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TITLE: How to Set Up Credit Card Alerts for Fraud and Purchases CONTENT: Monitor Your Credit and Stay Alert\n----------------------------------\nHaving a good credit score can help you get approved for credit cards and loans, and can qualify you for lower interest rates and favorable terms. It can even make it easier to get an apartment or a job. To protect your credit, consider signing up for free credit monitoring from Experian, which tracks your credit score, helps you stay on top of spending and sends real-time alerts of key changes to your credit report. Armed with credit card alerts on your mobile credit card app and credit monitoring alerts from Experian, you'll be better prepared to fight fraud. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Three Types of Credit Card Rewards\n----------------------------------\nCash Back\nPoints\nMiles\nCash back cards generally have a low annual fee or none at all\nCards have annual fees ranging from $0 to $500 or more\nCards have annual fees ranging from $0 to $500 or more\nRedemption options could include statement credits, direct deposits, paper checks, gift cards and more\nRedemption options could include travel, statement credits, direct deposits, paper checks, gift cards, merchandise and more\nRedemption options could include travel, statement credits, direct deposits, paper checks, gift cards, merchandise and more\nRedemption value is straightforward—$1 in rewards usually equals $1 in cash back\nRedemption value can vary depending on the rewards program, credit card and how you redeem your points\nRedemption value can vary depending on the rewards program, credit card and how you redeem your points\n### Cash Back\nCash back is by far the simplest and most flexible way to earn and redeem credit card rewards. When you have a cash back credit card that offers 2% back on all purchases, you'll earn $2 in rewards for every $100 you spend. If the card allows you to redeem your rewards for a direct deposit or paper check, you can use your cash however you want.\nHowever, some cards only allow statement credits, which helps you pay down your credit card balance, but it limits your flexibility.\nCash back credit cards typically don't charge an annual fee, though there are some exceptions with cards targeted to people with poor or fair credit and with cards that offer outsized rewards value. Cash back cards may offer welcome bonuses worth hundreds of dollars and introductory 0% APR promotions that apply to purchases, balance transfers or both.\n### Points\nPoints-based credit cards can earn points that are redeemable for a variety of things, such as hotel stays, flights, general travel rewards, cash back rewards, gift cards or even charitable contributions. Redemption options and values can vary, depending on the program and the card you're using.\nSome points-based credit cards don't have an annual fee, but many of them do. If you have a card with an annual fee, you'll typically have access to a bigger welcome bonus—some are worth $500 to $1,000 or even more—and more benefits.\nWhile some points cards offer an introductory 0% APR on purchases or balance transfers, it's not as common as it is with cash back credit cards.\n### Miles\nHistorically, the term \"miles\" only referred to rewards you could earn with frequent-flier programs. Now, there are a handful of airline rewards programs that use the term \"points\" instead, and there are also some general travel rewards programs that use miles.\nIn other words, there isn't a lot of difference between points and miles. They're simply terms for different types of rewards program currencies.\nLike points credit cards, miles credit cards can come with or without an annual fee, but cards with annual fees often offer bigger bonuses, better rewards and more valuable perks. Miles cards—especially airline credit cards—typically don't offer introductory 0% APR promotions.\nRules on How You Can Redeem Rewards\n-----------------------------------\nDepending on which card you have and how its rewards program works, there may be certain rules you have to follow to use your cash back, points or miles. Here are some rules you may come across:\n* Some card issuers require you to have a minimum balance—such as $25 or 2,500 points or miles—in your rewards account before you redeem.\n* Some rewards, particularly with airline and hotel loyalty programs, may expire if you cancel the account or don't maintain activity in your account for a certain period. In some cases, rewards expire after a certain time regardless of your activity.\n* You may not be able to redeem your rewards unless your account is in good standing, meaning you're not behind on payments.\n* Some cash back credit cards may require you to have an account with the issuing bank in order to request a direct deposit redemption.\n* Some travel credit cards offer lower redemption rates on non-travel redemptions.\nBefore you apply for a credit card, be sure to read the fine print to determine which rules apply and whether they fit with your goals.\nWhat's the Best Way to Redeem Credit Card Rewards?\n--------------------------------------------------\nThe best way to redeem your credit card rewards depends not only on the card you have, but also on your financial situation and goals.\nWith a cash back credit card like the Capital One Quicksilver Cash Rewards Credit Card, it's relatively easy to maximize your rewards because you're getting cash back rewards that don't change in value when redeemed for cash back.\nWith points and miles cards, however, things can get a bit trickier. For example, if you have the Chase Sapphire Preferred® Card, you can get 1 cent per point if you redeem your rewards for cash, but you'll get 1.25 cents per point if you redeem for travel through Chase's Ultimate Rewards platform. If you transfer your rewards to one of Chase's airline or hotel partners, you could potentially get even more value that way.\nIf you want to maximize the value of your points, taking the time to research redemptions with Chase's partners and transferring your points could net you far more value than what you'd get if you redeem directly with Chase. The same goes for other points and miles credit cards. Take a look at how much your rewards are worth, and try to pick the redemptions that give you the most bang for your buck. Keep in mind, however, that there may be times where it's better to pick a lower-value redemption option if it meets your current needs or goals, such as cash back if you're short on funds.\nCheck Your Credit Before Applying for a Rewards Card\n----------------------------------------------------\nMost of the top cash back, points and miles credit cards are targeted to people who have good or excellent credit. That generally means having a credit score in the upper 600s or higher.\nBefore you apply for a new credit card—or any type of credit for that matter—check your credit score to get an idea of where you stand. If it needs some work, take time to improve your credit before you submit an application. Alternatively, you can apply for a card that's a better fit for your credit range.\nWith Experian CreditMatch™, you can get personalized credit card offers based on your credit profile. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Cash Back\nCash back is by far the simplest and most flexible way to earn and redeem credit card rewards. When you have a cash back credit card that offers 2% back on all purchases, you'll earn $2 in rewards for every $100 you spend. If the card allows you to redeem your rewards for a direct deposit or paper check, you can use your cash however you want.\nHowever, some cards only allow statement credits, which helps you pay down your credit card balance, but it limits your flexibility.\nCash back credit cards typically don't charge an annual fee, though there are some exceptions with cards targeted to people with poor or fair credit and with cards that offer outsized rewards value. Cash back cards may offer welcome bonuses worth hundreds of dollars and introductory 0% APR promotions that apply to purchases, balance transfers or both. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Points\nPoints-based credit cards can earn points that are redeemable for a variety of things, such as hotel stays, flights, general travel rewards, cash back rewards, gift cards or even charitable contributions. Redemption options and values can vary, depending on the program and the card you're using.\nSome points-based credit cards don't have an annual fee, but many of them do. If you have a card with an annual fee, you'll typically have access to a bigger welcome bonus—some are worth $500 to $1,000 or even more—and more benefits.\nWhile some points cards offer an introductory 0% APR on purchases or balance transfers, it's not as common as it is with cash back credit cards. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Miles\nHistorically, the term \"miles\" only referred to rewards you could earn with frequent-flier programs. Now, there are a handful of airline rewards programs that use the term \"points\" instead, and there are also some general travel rewards programs that use miles.\nIn other words, there isn't a lot of difference between points and miles. They're simply terms for different types of rewards program currencies.\nLike points credit cards, miles credit cards can come with or without an annual fee, but cards with annual fees often offer bigger bonuses, better rewards and more valuable perks. Miles cards—especially airline credit cards—typically don't offer introductory 0% APR promotions. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Rules on How You Can Redeem Rewards\n-----------------------------------\nDepending on which card you have and how its rewards program works, there may be certain rules you have to follow to use your cash back, points or miles. Here are some rules you may come across:\n* Some card issuers require you to have a minimum balance—such as $25 or 2,500 points or miles—in your rewards account before you redeem.\n* Some rewards, particularly with airline and hotel loyalty programs, may expire if you cancel the account or don't maintain activity in your account for a certain period. In some cases, rewards expire after a certain time regardless of your activity.\n* You may not be able to redeem your rewards unless your account is in good standing, meaning you're not behind on payments.\n* Some cash back credit cards may require you to have an account with the issuing bank in order to request a direct deposit redemption.\n* Some travel credit cards offer lower redemption rates on non-travel redemptions.\nBefore you apply for a credit card, be sure to read the fine print to determine which rules apply and whether they fit with your goals. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: What's the Best Way to Redeem Credit Card Rewards?\n--------------------------------------------------\nThe best way to redeem your credit card rewards depends not only on the card you have, but also on your financial situation and goals.\nWith a cash back credit card like the Capital One Quicksilver Cash Rewards Credit Card, it's relatively easy to maximize your rewards because you're getting cash back rewards that don't change in value when redeemed for cash back.\nWith points and miles cards, however, things can get a bit trickier. For example, if you have the Chase Sapphire Preferred® Card, you can get 1 cent per point if you redeem your rewards for cash, but you'll get 1.25 cents per point if you redeem for travel through Chase's Ultimate Rewards platform. If you transfer your rewards to one of Chase's airline or hotel partners, you could potentially get even more value that way.\nIf you want to maximize the value of your points, taking the time to research redemptions with Chase's partners and transferring your points could net you far more value than what you'd get if you redeem directly with Chase. The same goes for other points and miles credit cards. Take a look at how much your rewards are worth, and try to pick the redemptions that give you the most bang for your buck. Keep in mind, however, that there may be times where it's better to pick a lower-value redemption option if it meets your current needs or goals, such as cash back if you're short on funds. END

TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Check Your Credit Before Applying for a Rewards Card\n----------------------------------------------------\nMost of the top cash back, points and miles credit cards are targeted to people who have good or excellent credit. That generally means having a credit score in the upper 600s or higher.\nBefore you apply for a new credit card—or any type of credit for that matter—check your credit score to get an idea of where you stand. If it needs some work, take time to improve your credit before you submit an application. Alternatively, you can apply for a card that's a better fit for your credit range.\nWith Experian CreditMatch™, you can get personalized credit card offers based on your credit profile. END

TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Advantages of FHA Loans\n-----------------------\nFHA loans are not limited to first-time homebuyers, but they are meant to help borrowers with limited or spotty credit histories. By design, their eligibility requirements are less stringent than what you'd find with many conventional mortgages that are not backed by government agencies.\n* **Down payment:** The 3.5% minimum down payment requirement on FHA loans is lower than what many (but not all) conventional loans require. If you have a credit score of about 650 or higher, the low down payment requirement is likely the main reason you'd be considering an FHA loan. As you'll see below, however, there are other low-down-payment options worthy of consideration if this is the case for you.\n* **Credit score:** The credit score requirement of 580 on FHA loans is lower than what most lenders require for conventional loans. (The vast majority of conventional loans conform to standards set by Fannie Mae and Freddie Mac, which require minimum FICO® Scores☉ of 620.) It's even possible to qualify for an FHA loan with a FICO® Score as low as 500, but you must put down 10% of the purchase price to do so.\n* **Debt-to-income ratio:** All mortgage lenders look at your debt to income ratio (DTI), the percentage of your monthly pretax income that goes toward debt payments. Lenders view borrowers with high DTIs as posing more financial risk, and they tend to prefer DTIs of 36% or less for conventional mortgages. You can qualify for an FHA loan with a DTI ratio as high as 43%. END

TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Financial Trade-Offs of FHA Loans\n---------------------------------\nThe lower barriers to entry on FHA loans come with financial trade-offs, and those additional costs are the main reason to consider a conventional loan if you qualify for one:\n* **Mortgage insurance:** You'll be charged an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount on every loan. (This amount can be financed and added to the monthly loan payment, with applicable interest charges.) Depending on your credit scores, an additional MIP of 0.45% to 1.05% of the loan amount is also charged annually and added to your monthly payment. If you make a down payment less than 10% on an FHA loan, these MIP charges remain for the life of the loan; if you put 10% or more down, MIP charges are removed after 11 years.\n* **Interest rates:** Depending on your credit score, lenders that issue FHA loans typically charge interest rates that are anywhere from 0.5% to 1.5% higher than those available on conventional loans.\nThese costs, particularly on loans where MIPs are required for the entire life of the loan (or until you refinance), can add up to tens of thousands of dollars over the life of a 30-year mortgage. If your good credit qualifies you for a conventional loan with better borrowing terms, it's wise to consider one. END

TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: What's the Difference Between an FHA Loan and a Conventional Loan?\n------------------------------------------------------------------\nWhen deciding whether an FHA loan or a conventional loan will work best with your credit score and financial situation, consider the following factors. END

TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Other Loan Options to Consider\n------------------------------\nIf you have high credit scores but are having a hard time raising a down payment of 20% (or even 10%) of the purchase price, FHA loans are not your only option. Consider some of these alternatives:\n* **Freddie Mac Home Possible loan****:** Freddie Mac, as the Federal Home Loan Mortgage Corporation is popularly known, devised the Home Possible loan to lower the barriers to homeownership. Down payments start at 3% and can come from family, employer assistance, a secondary loan or \"sweat equity.\" The minimum credit score requirement is 660 (680 if you're refinancing an existing loan), but if you or a co-applicant lack a credit score, you still could qualify through an alternative underwriting process.\n* **Fannie Mae 97 LTV loan:** The Federal National Mortgage Association, better known as Fannie Mae, authorizes two categories of mortgage loans that require minimum down payments of 3% (or LTV ratios of 97%):\n * The Fannie Mae Home Ready 97 LTV loan is designed for low-income borrowers—specifically those with incomes below 80% of their local area median income as designated by the U.S. Census Bureau.\n * The Fannie Mae Standard 97 LTV loan is open to any borrower, provided at least one applicant is a first-time homebuyer and all applicants have credit scores. (An automated underwriting process that uses credit scores is required for loan approval.)If all applicants for Fannie Mae LTV loans are first-time homebuyers, at least one must complete a homeowner education program.\n* **VA loan****:** Backed by the U.S. Department of Veterans Affairs, VA loans are designed for qualifying veterans, servicemembers, their spouses and other beneficiaries. They are available with no down payment and do not require mortgage insurance. A funding fee of 2.3% of the loan amount is required if you put less than 5% down—down payments can be as low as 0%. If you make a down payment of 10% or greater, the fee drops to 1.4% of the loan amount.\n* **USDA loan****:** Guaranteed by the U.S. Department of Agriculture, USDA loans can help low- to moderate-income homebuyers who want to purchase a home in eligible rural areas. They don't require down payments, and offer flexible credit score requirements. (A minimum FICO® Score of 640 is required for rapid approval using the USDA's automated application process, but you can be approved with a lower credit score via the process of manual underwriting.)\nGet Your Credit Ready for a Mortgage Application\n------------------------------------------------\nTo optimize your credit profile for mortgage approval, check your free credit report and get your credit score for free through Experian to know where you stand. Make sure to pay your bills on time, avoid taking on major new debt, and pay down your credit card debt as much as possible before applying for a mortgage. END

TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Get Your Credit Ready for a Mortgage Application\n------------------------------------------------\nTo optimize your credit profile for mortgage approval, check your free credit report and get your credit score for free through Experian to know where you stand. Make sure to pay your bills on time, avoid taking on major new debt, and pay down your credit card debt as much as possible before applying for a mortgage. END

TITLE: What Is a USDA Loan? CONTENT: How Does a USDA Loan Work?\n--------------------------\nThe USDA's Rural Development Guaranteed Housing Loan Program offers loans to help low- to moderate-income consumers buy homes. To qualify, applicants must be looking to finance a home in an eligible rural or suburban area. The home must be intended for use as their primary residence and the homebuyer's income must fall below specific limits, which depend on local median income levels.\nDensely populated urban areas of the country are excluded from the program, but that leaves 97% of the geographical U.S. as eligible for USDA home financing. The USDA's Single Family Housing Direct Self- Assessment tool can help you determine your eligibility in the area where you wish to finance a home. END

TITLE: What Is a USDA Loan? CONTENT: Types of USDA Loans\n-------------------\nThere are three types of USDA loans:\n### Section 502 Direct Loans\nThis type of USDA mortgage loan is available to low- and very-low-income borrowers. Loan proceeds may be used to purchase, renovate or relocate a home, or to make site improvements including installation of water and sewage services.\nThe current interest rate for direct home loans is 2.5%, but rates can drop as low as 1% when modified by payment assistance—a subsidy that temporarily reduces mortgage payments. Loan repayment periods are typically no longer than 33 years, but 38-year loans are available to recipients who cannot afford monthly payments on a 33-year loan.\nThe home you wish to finance using Section 502 direct loans must meet certain requirements, including cost. Because home values vary widely by geography, each county has its own price limit for purchases made using Section 502 loans.\n### Single Family Housing Repair Loans & Grants\nAlso known as the Section 504 Home Repair Program, this USDA initiative lends funds to homeowners who wish to repair or upgrade their homes. The program is available to applicants with incomes that fall below 50% of the local median income who cannot get affordable credit elsewhere, to fund improvements on homes they occupy (no rental properties or vacation homes).\nSingle Family Housing Repair Loans offer financing of up to $20,000 at a fixed interest rate of 1%, to be repaid over a period of up to 20 years.\nSingle Family Housing Repair Grants allow applicants aged 62 or older who cannot afford home improvement loans to receive as much as $7,500 for projects that make their homes safer. Individuals can apply for multiple grants over time, but the total lifetime grant amount cannot exceed $7,500. The grant must be repaid if the property is sold within three years of the grant being issued.\nHomeowners who can afford to make partial, but not full, repayment on Section 504 loans are eligible to apply for a combination of grants and loans to fund qualified home improvement projects, for total funding of up to $27,500.\nThe USDA Single Family Housing Section 504 Repair Pilot Program is offering qualified applicants even higher loan and grant amounts in rural areas of California, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Tennessee, Virginia, Washington and West Virginia.\nTo learn more about USDA Single Family Housing Repair Loans and Grants and to apply for them, contact your regional [Rural Development office](;agency=rd).\n### USDA Guaranteed Loans\nA contrast to the direct loans issued by the USDA itself, USDA Guaranteed Loans are issued through USDA-approved lenders, including banks and credit unions. The Guaranteed Loan program promises lenders it will cover 90% of any loan issued under its guidelines if the borrower fails to repay the loan. That enables lenders to offer low-interest loans to borrowers who don't have a down payment and have a less-than-ideal credit score. With this type of loan, the buyer will be required to pay a type of mortgage insurance fee called a guarantee fee if they don't put any money down.\nTo get this type of loan, you'll need to work with a USDA-approved lender. While many lenders offer USDA loans, it's best to work with one that specializes in this type of mortgage. END

TITLE: What Is a USDA Loan? CONTENT: How to Qualify for a USDA Loan\n------------------------------\nYou are eligible to apply for a USDA loan if you meet the following requirements:\n* You are a U.S. citizen or permanent resident.\n* The property you wish to buy or renovate is located in an eligible rural or suburban area; its market value falls below designated limits for the area; and it will serve as your primary residence.\n* You can show stable, dependable income sufficient to make the loan payments.\n* Your income is sufficiently below local median income for your area and meets specific requirements dependent on the loan type and local median income.\n* For USDA direct loans, the property you're intending to buy must be under 2,000 square feet in area.\n* You don't own another home. END

TITLE: What Is a USDA Loan? CONTENT: What Credit Score Do I Need to Get a USDA Loan?\n-----------------------------------------------\nThe USDA doesn't have a fixed credit score requirement, but most lenders offering USDA-guaranteed mortgages require a score of at least 640, and 640 is the minimum credit score you'll need to qualify for automatic approval through the USDA's automated loan underwriting system. Before you submit any loan applications, take a look at your credit reports and scores to see where you stand. You can get your credit report from all three credit bureaus (Experian, TransUnion and Equifax) for free through AnnualCreditReport.com. Your Experian credit report and credit score based on Experian data are also available for free.\nIf your credit score is below 640, or if you have no established credit history (and therefore cannot generate a credit score), you could still qualify for a USDA mortgage if the lender gauges your creditworthiness through a process known as manual underwriting. This typically requires an examination of your financial records, including evidence of at least 12 months of timely bill payments. Manual underwriting takes longer than automated underwriting and can still result in your loan application being declined. You also have the option of taking the opportunity to improve your credit.\nIf you have steady but limited income and are interested in buying or making improvements to a home in a rural or suburban area, a USDA loan could be a great vehicle for getting you set up in a house of your own. END

TITLE: How to Compare Mortgage Rates CONTENT: How Do You Evaluate a Mortgage?\n-------------------------------\nBefore you start assessing mortgage loans, it's important to learn a few basic terms. The more informed you are when you begin your search for a home loan, the better equipped you'll be to make the right decision. Here are some terms you should know:\n* **Loan term:** This is the length of time the lender agrees to give you to pay off your loan balance. Most mortgages offer terms of 10, 15, 20 or 30 years. During this period, you will make monthly payments to the lender to cover the principal and interest (and escrow payments if you have them).\n* **Principal:** The principal is the remaining balance of the loan, not including interest.\n* **Interest:** This is the fee a lender charges on an ongoing basis for a loan they issue. It's noted as a percentage. The annual percentage rate (APR) on the loan includes the interest rate but also factors in other fees. Interest rates are either fixed or variable. You will lock in your rate during the application process.\n* **Escrow****:** You may pay into this account, which the lender will use to make payments for property taxes, homeowners insurance and mortgage insurance (if applicable) on your behalf. This is different from an escrow account that is utilized during the homebuying process and holds your earnest money deposit.\n* **Points****:** Some lenders sell what are called origination points and discount points. You can buy origination points to reduce the fees you pay to the lender during the loan process, and discount points can help you lower the interest rate on your mortgage. They essentially let you prepay interest in order to reduce your monthly payment.\n* **Closing costs****:** These are fees you have to pay when the loan is issued. Costs generally range between 2% and 5% of the home purchase price.\nIt's tempting to shop based on rates alone, but it's key to consider the quality of the lender you'll be working with. Check online reviews from past and current borrowers. You could also refer to the Better Business Bureau and Consumer Finance Protection Bureau.\nA mortgage broker is an option if you're having trouble finding a lender you want to work with. They can shop your information around to lenders in their network to find a loan product with competitive terms. Or you can ask friends and family for recommendations. END

TITLE: How to Compare Mortgage Rates CONTENT: How to Compare Mortgage Estimates\n---------------------------------\nThe lenders you're considering can provide loan estimates to help you determine who has the best deal. Before you request loan estimates, though, set a budget for how much home you can afford so you can provide realistic figures to the lenders.\nMake sure you're comparing loans of the same amount and type, rate type and down payment amount. Doing so will help you compare your options more effectively.\nThe lenders will likely need the following information to generate loan estimates:\n* Your name and Social Security number\n* The address and sale price of the home you want to purchase\n* Your desired loan amount (or the amount you want to borrow after making the down payment)\nWhen you have the loan estimates in hand, evaluate these factors:\n* **Loan amount:** Is the loan amount within your homebuying budget?\n* **Monthly payment:** What is the monthly principal and interest payment? How much will you pay each month for property taxes, homeowners insurance, mortgage insurance and homeowners association (HOA) dues, if applicable?\n* **Interest rate:** Is the interest rate fixed or variable? What's the worst-case scenario for interest rates if you get an adjustable-rate mortgage (ARM)?\n* **Rate lock period:** When are you able to lock in your rate? Mortgage rates tend to fluctuate, so the timing can make a big difference. Can you purchase points or credits to lower your interest rate?\n* **Mortgage insurance:** Will you be required to pay mortgage insurance in the form of private mortgage insurance (PMI) or a mortgage insurance premium? If so, how much will it cost each month? If it can be removed from the loan, when can that happen?\n* **Fees and credits:** What are the upfront loan costs? Does the lender offer credits?\n* **Closing costs:** How much money will you need to bring to closing?\nBe mindful that the amounts listed for escrow accounts, including property taxes and home insurance, may differ. These figures are rough estimates used by the lender to gauge your monthly payment and could change once the loan is approved and cleared to close. Pay attention to factors that can vary by property location, too, such as HOA fees and utility costs. END

TITLE: How to Compare Mortgage Rates CONTENT: Why Do Lenders Have Different Mortgage Rates?\n---------------------------------------------\nLenders consider market factors and the borrower's finances to set mortgage rates. So, it's not uncommon to receive offers for the same loan amount and term but with different interest rates when shopping around for a home loan.\nIn fact, before the lender processes your application, they evaluate the bond market, federal funds target rate and current market conditions. They also analyze rates and fees from competitors as well as operational and labor costs to set baseline rates.\nWhen reviewing your loan application, the lender evaluates the information in your credit report, your credit score, your debt-to-income ratio and the size of your down payment. Even if you meet the loan program's general guidelines, some lenders have mortgage overlays that could require you to meet more stringent criteria. END

TITLE: How to Compare Mortgage Rates CONTENT: How Much Do Basis Points Matter?\n--------------------------------\nBasis points are equivalent to 1\/100th of a percent, or 0.01%. They may seem tiny, but they can have a major impact on your monthly payment and the amount you'll ultimately pay in interest on your mortgage.\nTo illustrate, let's take a look at a $300,000, 30-year ARM with an interest rate of 3%. Your monthly mortgage payment (principal and interest only) will be $1,264.80. At this interest rate, you'll pay $155,332.36 in interest over the loan term. If market conditions change and the rate increases 12.5 basis points to 3.125%, however, your monthly mortgage payment will climb to $1,285.13, and you'll pay $162,645.59 in interest over the life of the loan.\nIf you're considering an ARM, use Experian's mortgage calculator to determine how fluctuations in market conditions could affect your monthly payment. END

TITLE: How to Compare Mortgage Rates CONTENT: When Should I Start Shopping for a Mortgage?\n--------------------------------------------\nYou should start shopping for a mortgage when your credit is in good shape and you have enough money saved for a down payment. If your credit isn't up to par, you can start making improvements now and working on your overall financial health.\nTo get a better idea of the loan terms you're likely to be offered, consider getting preapproved. Be mindful, though, that mortgage preapprovals generally only last for up to 90 days. If your income or creditworthiness changes, you could receive a higher interest rate or be denied a home loan when you submit your application. END

TITLE: How to Compare Mortgage Rates CONTENT: Save Money by Comparing Mortgage Rates\n--------------------------------------\nYou can save a bundle on your home loan by comparing rates, but it's equally important to evaluate all terms of a mortgage. When shopping around with lenders, get a loan estimate and review the fine print to find the mortgage product that works best for you.\nYou can get your free credit report from Experian and read over it in detail. And with Experian CreditWorks Premium℠, you can view your mortgage-specific credit scores before you formally apply with lenders. This allows you to know where you stand, and if you need to improve your credit score before moving forward. END

TITLE: How to Get Down Payment Assistance CONTENT: Buying a home is often the largest purchase a person will make in their lives. Unless you're one of the lucky few who can buy a home outright with no need for a mortgage loan, you'll need to have at least some money on hand for a down payment. A down payment shows lenders you are committed to the purchase by putting your own money on the line.\nLenders may require a certain amount for a down payment, which is usually a percentage of the purchase price. For example, if you were buying a home that cost $200,000 and your lender required you to put 10% down, the down payment would be $20,000. Even utilizing government-backed mortgages intended to help low-income or first-time homeowners, you may still be required to put some money down (such as 3.5% for an FHA loan). The good news is there are many programs designed to help potential homeowners cover the down payment.\nAlmost all down payment assistance programs are provided through the federal government at the state level. Sometimes local nonprofits may partner with the government to provide homebuying education or distribute money for down payment help; however, the funding still flows down from the federal government. There are other institutions that provide down payment assistance too. (More on that later.)\nDown payment assistance programs fall into four general categories:\n* **Grants**: This is money that you don't have to pay back. If you can get a grant to cover your down payment, that's the most ideal scenario.\n* **Deferred payment loans:** This is a second mortgage you can take out to cover the down payment costs on the home you're purchasing. It's called a deferred payment loan because you don't have to pay back the money unless you move, sell or refinance your first loan. That said, these loans are never forgiven.\n* **Low-interest loans:** A low-interest loan is also a second mortgage. The difference between this and a deferred payment loan is that you have to start making monthly payments on this loan right away, usually at the same time you make your regular monthly mortgage payments.\n* **Forgivable loans:** A forgivable loan is another type of second mortgage. You won't have to pay this one back unless you move before your loan term ends. These loans usually come with an interest rate of 0%.\nOnce you find a down payment assistance program you think you may qualify for, you'll need to find out if your lender works with the program (or seek out other lenders that do). END

TITLE: How to Get Down Payment Assistance CONTENT: Who Qualifies for Down Payment Assistance?\n------------------------------------------\nTo qualify for down payment assistance, you usually need to be a first-time homeowner (defined as someone who hasn't owned a home within the previous three years) and meet other requirements, like income limits. Income limits are the maximum amount of income a household can receive to be eligible for assistance. Income limits vary depending on the program you're considering, where you live and how large your family is. Certain programs may also have debt-to-income ratio (DTI) requirements. Additionally, some down payment assistance programs target specific groups of people, such as teachers, veterans and police officers.\nCredit requirements may be more relaxed for down payment assistance programs than for typical mortgage approval. That said, if you have a credit score below 620, you'll want to work on improving your score to give yourself the best shot at qualifying for down payment assistance. If you're not sure where your credit stands, you can get your free credit report and score from Experian to see where you're at and how you might improve. END

TITLE: How to Get Down Payment Assistance CONTENT: How to Apply for Mortgage Down Payment Assistance\n-------------------------------------------------\nRequirements and processes for applying for down payment assistance vary by state, by the organizations offering assistance and by lender. If you've found a lender you want to work with, they may be able to refer you to state and local resources. Here are other good places to start:\n* **Federal Housing Administration (FHA) down payment grants programs:** The FHA provides a list of specific grants and programs for buyers in need of down payment assistance.\n* **HUD local homebuyer programs:** The U.S. Department of Housing and Urban Development offers an extensive list of resources that can help you find and apply for programs in your area that may offer down payment assistance and other homebuying resources. Programs may also provide a list or recommendations of approved lenders.\nOnce you've connected with an approved lender and determined you're eligible for a down payment assistance program, follow the instructions set out by the lender and program or agency to apply for assistance. END

TITLE: How to Get Down Payment Assistance CONTENT: Pros and Cons of Down Payment Assistance\n----------------------------------------\nThe biggest pro of getting down payment assistance is the possibility of receiving free money or low-cost financing to help offset the expense of a large down payment. Interest rates on down payment assistance loans can be as low as 0%, and the debt may even be forgiven in certain instances.\nThere aren't too many downsides to getting down payment assistance, although there are some things to consider:\n* Many programs might require you to attend an educational homebuyer class or workshop to be eligible for funding, adding extra time in the homebuying process.\n* If you get down payment assistance in the form of a second mortgage, you may have to repay it if you move, sell your home or refinance your primary mortgage loan.\n* Some programs have sales price limits, meaning you can only buy a home in a specific price range. Depending on where in the U.S. you live—especially if you live in a more expensive area—this could limit your choices in homes. END

TITLE: How to Get Down Payment Assistance CONTENT: Alternative Ways to Get Help Buying a House\n-------------------------------------------\nIn addition to seeking out down payment assistance programs, first-time homebuyers have other programs and resources that can help them navigate the homebuying process:\n* **Government-backed loans and programs:** Find out if you qualify for any other types of federal or local programs designed to help you buy a home. You may be eligible for government-backed loans, such as an FHA loan, which can help you buy a house with as little as a 3.5% down payment; a USDA loan, which requires no down payment for low-income buyers in suburban and rural areas; or a VA loan from the U.S. Department of Veterans Affairs. You may also want to check out HUD's Dollar Homes program aimed at low-income borrowers. With this program, you could be eligible to buy a foreclosed home for just $1 plus closing costs.\n* **Work with an experienced real estate agent.** They can often point you in the right direction for lenders who are a good fit, connect you to useful resources, and generally help you navigate what can be a complex journey. You can find a real estate agent through family and friend recommendations or real estate websites such as Realtor.com. END

TITLE: How to Get Down Payment Assistance CONTENT: The Bottom Line\n---------------\nEspecially for first-time homebuyers, it can be hard to save up enough money for a substantial down payment. Down payment assistance programs help fill that gap by covering all or part of the cost. When looking for programs to apply for, research their requirements, understand whether it's a grant or loan, and get specifics on how much assistance you can receive. No matter what, with the right knowledge and resources, buying a home can be within your reach. END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Does Experian Boost Work?\n-------------------------\nSince its launch, 60% of people who have completed the Experian Boost process have seen their FICO® Score go up, with consumers experiencing a 12-point increase on average. For Experian Boost users who started the process with a FICO® Score of 579 or below (considered \"poor\"), the average increase was even more significant: 87% of that group grew their scores, and had an average increase of 22 points.\nAmong those who saw an increase with Experian Boost, many improved from one scoring range to the next—which could ultimately help them get approved for credit or a loan on better terms.\nOf the consumers who saw a score range improvement, 21% moved from the poor FICO® Score range to the fair FICO® Score range (580-669). Here is a look at users who moved up to a new FICO® Score range:\n* 21% improved from a poor to fair FICO® Score\n* 4% improved from a fair to good FICO® Score (670-739)\n* 3% improved from a good to very good FICO® Score (740-799)\n* 3% improved from a very good to exceptional FICO® Score (800 and above)\nLenders use FICO® Scores to assess borrowers' potential risk in paying back a loan or credit card bill on time. Improved FICO® Scores can mean a better chance of approval or more attractive interest rates and terms. In this way, Experian Boost is helping lenders get a clearer picture of creditworthiness among potential borrowers. END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Has Helped Thousands of Consumers Become Scoreable\n-----------------------------------------------------------------\nExperian Boost not only helps people raise their existing FICO® Scores, but for consumers who have no score, the tool can actually help them become \"scoreable.\" A consumer who isn't scoreable doesn't have enough data in their credit history for credit scoring algorithms to assign them a score.\nOf the \"unscoreable\" users who completed the Experian Boost process, almost half—47%—of them built their credit file enough to become scoreable. Many of these consumers entered the poor or fair credit score range, but 15% of newly scoreable users ended up in the good score range or better. END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Helped 85% of Thin-File Consumers Raise Their Credit Scores\n--------------------------------------------------------------------------\nIn addition to moving consumers to the scoreable status, Experian Boost also helped many users with \"thin files\" (less than five accounts in their credit file) increase their FICO® Score.\nMany of the more than 100 million consumers who have a thin credit file can see a transformational change when they add new data to their credit report, as lenders often adopt tighter criteria when evaluating someone with a thin file.\nOverall, 85% of thin-file consumers who used Experian Boost saw their FICO® Scores increase. And on average, consumers saw an increase of 19 points. Further, 15% of those users moved to a higher credit score range, and 41% shed their thin-file status. END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: State With the Largest Average Score Increase\n---------------------------------------------\nSince Experian Boost launched, the state where consumers added the most points to their FICO® Scores using the tool is West Virginia. Consumers in the state who saw a FICO® Score increase using Experian Boost improved their scores by 16.6 points on average. Nevada followed closely, along with Oklahoma, Alabama and Indiana, to make up the top five.\nSource: Experian END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: States With the Highest Percentage of Experian Boost Increases\n--------------------------------------------------------------\nNevada was home to the highest percentage of scores boosted using Experian Boost. Of the users in the state who tried Experian Boost, 68% saw their FICO® Scores increase.\nSource: Experian END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Metro Area With the Largest Average Score Increase\n--------------------------------------------------\nRome, Georgia was the metropolitan statistical area (MSA) where consumers saw the largest average point increase among those whose scores improved with Experian Boost: 19 points. The other top five MSAs with the highest average per-consumer increases were spread across the country, including Gadsen, Alabama; San Angelo, Texas; Lima, Ohioa; and Parkersburg-Marrietta-Vienna, West Virginia-Ohio.\nSource: Experian END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Metro Area With the Highest Percentage of Experian Boost Increases\n------------------------------------------------------------------\nThe Rome, Georgia, metro area had the highest percentage of Experian Boost users who saw a score increase after connecting to the service. Of those in the metro area who used Experian Boost, nearly 73% saw an increase in their FICO® Score.\nSource: Experian END

TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Continues to Improve Credit Access\n-------------------------------------------------\nSince Experian Boost launched, it continues to improve, adding more and more financial institutions to the platform. Experian Boost can add phone, utility, telecom and streaming service payments made with a credit card, expanding opportunities to thicken credit files. These improvements, among others, make it easier for more people to connect their accounts and ultimately get credit for the payments they are already making.\nIf you've been working to improve your credit scores and want to get credit for the utility and telecom payments you're already making, check out Experian Boost to see if you can increase your FICO® Score. END

TITLE: What Are the Most Affordable States to Live In? CONTENT: 10 Cheapest States to Live in America\n-------------------------------------\nThe most affordable states to live in are concentrated in the South and the Midwest, while those with the highest cost of living are located on the coasts.\n### 1\\. Mississippi\nMississippi earned the top affordability spot from the Council for Community and Economic Research. Its average housing costs are the lowest of any state, and the only states with lower transportation costs on average are Tennessee and Virginia. Its median household income, however, is the lowest on the list, at $45,792.\n### 2\\. Kansas\nNext-most affordable is Kansas, with the third-lowest average housing costs in the country (behind Mississippi and Alabama). Kansas' median household income is almost $20,000 more per year than Mississippi's, and its median home value is nearly $35,000 more.\n### 3\\. Oklahoma\nMedian rent in Oklahoma is lower than in Kansas or Mississippi; in fact, Arkansas is the only state on this list with a lower median rent. Compared with Kansas, however, Oklahoma's median home value is nearly $30,000 less.\n### 4\\. Alabama\nAlabama's median household income is slightly lower than Oklahoma's—$51,734 compared with $54,449 per year—but both its median home value and median rent are higher.\n### 5\\. Tennessee\nTennessee is one of two states on the list, along with Georgia, whose median home values are over $200,000. It's also one of three states, alongside Georgie and Indiana, with median rent above $1,000 per month.\n### 6\\. Arkansas\nArkansas has the lowest median rent and the second-lowest median home value on the list, just above Mississippi.\n### 7\\. Georgia\nGeorgia has the highest median home value and outstanding mortgage balance of the states in the top 10, but it has the median household income to match. Georgians earn $61,980 per year at the median, the most on the list.\n### 8\\. Indiana\nMedian household income in Indiana is about the same as the next-most-affordable state on the list, Missouri, but the average mortgage balance is about $20,000 less than in Missouri.\n### 9\\. Missouri\nRenters in Missouri benefit from lower median rent than many states on our list; only Iowa, Arkansas, Oklahoma and Kansas have less expensive rental costs.\n### 10\\. Iowa\nIowans have the highest average FICO® Score on our list, at 726—higher than the national average of 711 in 2020. The median household income is the third-highest in the top 10, after Kansas and Georgia. END

TITLE: What Are the Most Affordable States to Live In? CONTENT: How Are the Cheapest States Determined?\n---------------------------------------\nThe Council for Community and Economic Research (known as C2ER) determines its Cost of Living Index by looking at six component categories in each state: housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. C2ER assesses about 60 types of goods and services in metropolitan statistical areas and counties throughout the country.\nTo create the index, C2ER considers the number 100 to be the average cost of living across the whole country. If a state has a cost of living that is less than 100, it costs less than average and is more affordable. If a state has a cost of living that is more than 100, it costs more than average and is less affordable.\nExperian's state-by-state list is based on the average cost of living for all participating metropolitan areas in each state, as calculated by the Missouri Economic Research and Information Center. END

TITLE: What Are the Most Affordable States to Live In? CONTENT: Evaluating Affordability by State\n---------------------------------\nWhen determining which state would be most affordable for you and your family, look at your own circumstances and consider the factors that are most important to you. Are you hoping to have a short commute or afford a larger home for your growing family? Take the general data points we've listed as a starting point, then look into the particulars that will affect your financial life in that state. END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Overall Personal Loan Debt in the U.S. Grew in 2020\n---------------------------------------------------\nThough the nation's outstanding personal loan debt grew in 2020, the rate at which the balances expanded was cut in half—shrinking from 12% growth in 2019 to just 6% in 2020, according to Experian data. This slowing marks a deviation from a six-year-long trend that saw personal loans become the fastest-growing type of consumer debt in the country. As of 2020, however, student loan and mortgage balances grew at a rate faster than personal loans, increasing by 24% and 7%, respectively.\nBeginning in 2009—on the heels of the Great Recession—personal loan balances began to shrink and continued to do so until 2014. This period of decline resulted in overall personal loan debt falling from $259 billion in 2008 to $171 billion in 2013. Outstanding personal loan balances began to rebound in 2014, and personal loans became one of the fastest-growing debt categories leading up to 2020.\nIn Q3 2020, overall personal loan debt reached a new all-time high of $323 billion. This represented a 6%—$18 billion—increase from $305 billion in 2019. Despite the growing balances, personal loan debt still represents only 2% of overall debt in the U.S., ahead of only retail credit cards in terms of total balance.\nSource: Experian END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Average Consumer Snapshot: Personal Loan Balances\n-------------------------------------------------\nThough overall personal loan debt saw growth in 2020—in continuation of the six-year trend—the average amount each consumer owes only increased by only 1%, according to Experian data.\nAs of Q3 2020, consumers owed an average of $16,458 in personal loans, up $199 from $16,259 in 2019. This year's increase in individual average personal loan debt comes on the heels of several years in which average consumer balances went down. In 2018 and 2019, average personal loan balances per consumer shrank by 1% and 0.5%, respectively—a decline that occurred while overall personal loan debt increased.\nThe contrast between overall growth and declining individual balances is likely explained by the increasing number of personal loan accounts, which has been the trend since 2013, according to Experian data. With more accounts, overall debt balance can grow while the average balance remains about the same. Since 2013, the total number of personal loan accounts has grown 90%, from 22 million to 43 million in Q3 2020. END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Personal Loan Debt Increases in Some States, Falls Elsewhere\n------------------------------------------------------------\nAcross the U.S., the country was split when it came to how consumers' average personal loan debt changed in the past year. Consumers in 27 states saw their balances grow in 2020, while personal loan debt balances fell in the remaining 23 states and the District of Columbia.\nAmong the states where consumers' balances increased, nearly two-thirds—17 states—saw amounts owed grow by 4% or more. Two states saw double-digit percentage growth.\nOf the states where consumer balances decreased, a little over half—16 states—saw a decrease of less than 4% and only two saw double-digit percentage declines. Notably, in the 10 states that saw balances drop the most, consumers' average FICO® Scores☉ were consistently above the national average of 710—a potential nod to the ability higher-score holders had in paying down debt over the past year.\nSource: Experian\nNearly half of all states and the District of Columbia saw their average personal loan balance drop in 2020. The nation's capital saw the biggest drop by far, nearly doubling the decrease seen in the second-ranked state—New Jersey. Vermont, Connecticut and North Dakota followed closely behind New Jersey to round out the states with the top five biggest decreases in debt.\nConsumers in the District of Columbia decreased their average balance by 19.6% since 2019, according to Experian data. This reduction is in line with other trends within the district. In 2020, consumers there also saw their credit card debt drop by 20%—the most of any state.\nSource: Experian\nConsumers in more than half of states—27 to be exact—saw average personal loan balances increase since 2019. The greatest increase was recorded in Kentucky, where consumers saw their average personal loan balance spike by 11%. Nebraska, Nevada, Maine and Wyoming followed Kentucky as the states where consumer balances saw the greatest growth in 2020.\nSource: Experian END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Younger Generations Drove Changes in Personal Loan Debt\n-------------------------------------------------------\nSince the time personal loan debt began to increase in 2014, the composition of lenders issuing the debt has changed. In 2015, only 22% of unsecured personal loans were issued by fintech lenders (online-based technology companies), with traditional financial institutions (including brick-and-mortar banks and credit unions) accounting for the rest. That figure more than doubled by 2019, when fintech lenders accounted for 49.4% of new originations, according to an Experian report.\nThe growing popularity of fintech lenders has many implications, one of which is the inclusion of younger Americans in the borrowing pool. Among personal loans issued by traditional banks, only 28% were taken out by millennials and members of Generation Z, according to Experian. Meanwhile, 39.9% were issued by fintech lenders, a sign of the shifting digital landscape and younger generations' affinity for fintech solutions.\nIn terms of how much is being borrowed, members of Generation Z saw their personal loan balances grow the most of any age group in 2020. These consumers increased their personal loan balances by 33%, or $1,478, on average. Though millennials saw a fraction of the growth in their debt—millennials' average balance increased by just 4%—the second-youngest generation still recorded the second-highest spike in 2020.\nSource: Experian; Ages as of 2020\nThe growth in personal loans among younger generations can't all be traced to the increased popularity of fintech lenders, though. As time's gone on, many of these consumers have reached an age where taking out a personal loan is more common. Additionally, as these consumers age, their average credit scores generally increase—opening the doors to new borrowing opportunities. The confluence of these factors is likely what's driving the significant debt growth among younger Americans.\nAt the same time, the opposite pattern is appearing across the oldest generations. Baby boomers have the highest personal loan balances of any group, but they are growing this debt at the second slowest rate. The silent generation saw virtually no balance change from 2019 to 2020, as many members of the generation are retired and in the process of paring their debt down as they age by paying off mortgages, for example. END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Personal Loan Delinquencies Decreased in 2020\n---------------------------------------------\nAs the pandemic took hold and the economy began to slump, many worried that consumers would fall behind on their debt payments. During the Great Recession that began in 2007, delinquencies grew to record highs, and the impact of falling behind left a lasting stain on the economy and individuals' finances.\nIn an effort to minimize widespread delinquency and other economic repercussions caused by the pandemic, Congress and other institutions took preemptive measures by issuing relief measures—including legislation in the form of the Coronavirus Aid, Relief and Economic Security (CARES) Act—that gave borrowers options to help them avoid letting their accounts become delinquent.\nPaired with other factors, these measures have seemingly proved effective thus far—at least in part—as credit report data show that across nearly all debts and time periods, consumers have improved their delinquency rates since 2019.\nPersonal loan delinquency rates saw significant improvement in the past year, decreasing by double-digit percentages across measures of delinquency. The ratio of personal loan accounts severely delinquent—90 to 180 days past due (DPD)—shrank by 35% from 1.37% to 0.89% between 2019 and Q3 2020, according to Experian data. The portion of accounts 30 to 59 DPD reduced by 24% and accounts 60 to 89 DPD shrank by 17%.\nSource: Experian\nPersonal loans were not the only credit type to see a decrease in delinquencies. In fact, across the U.S., the ratio of all delinquent accounts shrank between 2019 and 2020, and this pattern of decline was true for all debt types, according to Experian data.\nThe reasons behind improvements for student loan and mortgage are fairly clear: The CARES Act not only suspended student loan repayment, but it issued guidance for mortgage lenders, allowing many consumers financially impacted by the pandemic to place their home loans in forbearance.\nThe explanation for the decrease in personal loan delinquency is more opaque, however. While the federal government urged lenders to work with borrowers who were struggling due to the pandemic, there was no clear mandate for personal loans and other debts. It's unclear to what extent personal loan issuers worked with consumers financially impacted by the pandemic, but there is a possibility that at least some of the improved delinquency rates can be attributable to lender accommodations such as lowered monthly payments. END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: How Did COVID-19 Impact Personal Loans in 2020?\n-----------------------------------------------\nThe COVID-19 pandemic has clearly impacted the way consumers interact with personal loans, both negatively and positively. Borrowers still seem to be turning to these lump-sum payment options, but overall debt is growing at half the rate it did in past years.\nTo understand more about how COVID-19 impacted consumers' decision to take a personal loan, Experian surveyed a group of 186 Americans who had taken a personal loan in the past 12 months.\nOf this group, only 26% said they took the loan because of direct financial hardship from COVID-19. Another 24% said the pandemic had some influence on their decision to take a new loan, but was not the entire reason for their doing so.\nThe vast majority of those surveyed said they were confident in their ability to pay back their debt. A total of 86% of respondents said they can afford the monthly payment on their personal loan, according to the survey. The remaining 14% did not say they could afford their monthly payment.\nFinally, the pandemic hasn't only changed the ways borrowers think about taking out debt, but it's changed how some lenders view applicants. According to media reports, the pandemic's economic impact has caused some lenders to reign in the number of loans they issued. Any reduction in lending that occurred could have contributed to the slowing overall debt growth.\nEven if consumers had maintained—or even increased—their appetite for personal loans during the pandemic, with a reduction in borrowing opportunities, debt growth is bound to slow. END

TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Credit and Debt Trends in Changing Times\n----------------------------------------\nThough initial debt data shows promising changes—including the slowed debt growth and an improved delinquency rate—it's important to recognize that this data is a snapshot taken during a turbulent period. Additionally, most of these changes occurred over a period of less than a year and are subject to further change as time goes on.\nThis analysis looks at the most recent (upon date of publication) data from Q3 2020 and compares it with an annual snapshot for 2019 and other years cited. As time goes on, we will continue to monitor changes to consumer credit reports and will provide updates when notable change occurs. END

TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: Prime Loans vs. Subprime Loans\n------------------------------\nWhen lenders consider your loan application, they assess factors including your credit score, credit history and debt-to-income ratio (DTI) to determine your creditworthiness and how much risk you present as a borrower. You might be considered high risk if you are new to credit, if you have a fair or poor credit score, or if your credit history shows serious negative events such as a bankruptcy in your past.\nLenders use risk-based pricing to set loan terms such as interest rates and fees. There are different credit scoring models, and each lender may have its own criteria for assessing your creditworthiness. A FICO® Score☉ of 670 to 739 is considered prime and generally qualifies you for loans at competitive rates, if your FICO® Score is 740 or above, you're considered super prime and can qualify for the lowest rates.\nExperian generally defines subprime borrowers as those with a FICO® Score of 580 to 669, or fair credit. Subprime loans include many of the same types of loans open to prime borrowers; there are subprime mortgages, auto loans and personal loans (and subprime scores can vary depending on the type of loan and lender). But because these loans are designed for subprime borrowers, there are some key differences.\n* **Higher interest rates**: Subprime borrowers are viewed as a greater lending risk compared with prime borrowers, so lenders tend to charge higher interest rates to protect themselves.\n* **Larger down payments**: If you're getting a subprime mortgage or car loan, you'll usually have to make a bigger down payment than you would for a prime loan of the same size.\n* **Smaller loan amounts**: Subprime borrowers may not be able to borrow as much as prime borrowers.\n* **Higher fees**: Lender fees such as origination and late payment fees are typically higher for subprime loans.\n* **Longer repayment periods**: Subprime loans often take longer to pay back than prime loans. The term of a subprime car loan, for example, might be 60 months compared with 36 months for a prime loan of the same amount. Longer repayment periods reduce your monthly payments, but usually mean you will pay more in interest over the loan term.\n* **Adjustable interest rates**: Fixed interest rates don't change over the life of a loan, but many subprime loans have adjustable interest rates. Adjustable interest rates are locked for a set period; after that, they typically adjust every year, which can lead to steep increases in both monthly payments and total interest. END

TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How Do Subprime and Prime Loans Affect Credit?\n----------------------------------------------\nBoth subprime and prime loans affect your credit in the same way. If you make your loan payments on time, both can help improve your credit score. If you miss loan payments or default on either type of loan, however, your credit score can suffer.\nAre you trying to boost your credit score into the prime range? The way you manage a subprime loan can help. Doing the following can help ensure the most positive impact on your scores:\n* **Make sure your payments are reported.** Before you apply for a subprime loan, ask if the lender reports your account to the three consumer credit agencies: Experian, TransUnion and Equifax. This ensures your on-time payments will show up on your credit history, which can help to improve your credit.\n* **Always make your loan payment on time.** To avoid missing a payment, set reminders, put the loan due date on your calendar or set up an automatic payment from your bank account. (Just be sure to have enough money in the account to cover the payment.) The timeliness of your payments is the single biggest factor in your FICO® Score.\n* **If you do miss a payment despite your efforts, don't panic.** Instead, pay it as soon as you possibly can. Late payments aren't reported to credit bureaus until they are 30 days past due. Although you may be charged a late fee and face other penalties, a payment that's a couple days past due shouldn't affect your credit score. END

TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How to Get a Subprime Loan\n--------------------------\nLenders have different definitions of subprime borrowers, so checking your credit score won't give you a definitive answer on where you stand, but it will give you a good idea. If your credit score falls at the high end of the subprime range, you may get better loan terms by delaying your loan application a bit while you work to improve your credit score. (More on that later.)\nIf you're solidly in the subprime category, follow these steps to get the best subprime loan for you. END

TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How to Improve Your Credit and Become a Prime Loan Borrower\n-----------------------------------------------------------\nPrime borrowers have FICO® Scores of 670 or above and a history of paying their debts. As a result, lenders consider them lower risk, and it's generally easy for them to get competitive rates on loans. Super prime borrowers, who have FICO® Scores of 740 or higher, are even more desirable to lenders and can qualify for the lowest rates.\nOver time, getting the lower interest rates available to prime borrowers can save you hundreds or even thousands of dollars on a loan. To become a prime borrower, you'll need to improve your credit score.\nStart by getting a copy of your credit report from each of the three major credit bureaus (Experian, TransUnion and Equifax). You can get free copies of your credit reports through AnnualCreditReport.com. Review your credit reports carefully to make sure they're up to date and accurate. If you suspect fraudulent activity or believe information is incorrect, contact the credit bureau to file a dispute.\nIf you have any late accounts, bring them current. Going forward, focus on paying all your bills on time. Paying down debt and reducing your credit utilization rate can also help boost your credit score.\nEnrolling in Experian Boost™† can be a quick way to increase your FICO® Score from Experian. This free service gives you credit for paying your phone, utility, certain streaming services and other bills on time.\nAvoid opening new credit accounts or closing existing credit accounts. Even if you aren't using them, having those accounts on your credit report can add to your credit mix, lengthen your credit history and provide more available credit, lowering your credit utilization ratio. You may, however, consider closing a credit account if it charges high annual fees you have a hard time keeping up with.\nAs you work to improve your credit score, Experian's free credit monitoring service can help you track your progress over time and alert you when your FICO® Score changes. END

TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: Should You Get a Subprime Loan?\n-------------------------------\nIf you need money quickly, a subprime loan might be your best option. But keep in mind that the bigger the subprime loan amount, the more the higher interest costs will add up. For example, interest on a subprime mortgage loan over 30 years could cost you tens of thousands of dollars more than interest on a prime loan for the same amount. Think long and hard about whether you really need a loan immediately or whether you should wait until you've improved your credit score—and your odds of qualifying for a prime loan. END

TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Drops in Delinquency, Utilization Likely Driving Score Growth\n-------------------------------------------------------------\nThe standout growth of the average FICO® Score in 2020 can likely be attributed to shrinking debt, decreased credit utilization and a drop in delinquencies (late payments). Since the onset of COVID-19 in January 2020, consumer debt management has trended in a positive direction.\nFICO® Scores are calculated using information from consumer credit reports. And when features of consumers' credit profiles improve, their scores typically do as well. Not all changes will have an immediate or visible impact, but improvement in key areas of credit reports will.\nFICO® Scores are based on five types of information found in your credit report:\n1. **Payment history:** Payment history is the most important factor in your credit scores and shows whether you have paid your credit accounts on time.\n2. **Amounts owed:** How much debt you owe is the second most important category, including how much of your available revolving credit you are using each month.\n3. **Length of credit history:** The length of your credit history is based on how long you have had credit accounts open. A more established credit history usually helps credit scores.\n4. **Credit mix:** Your credit mix is based on how many different types of credit accounts you have, including mortgages, credit cards, auto loans and installment loans.\n5. **New credit:** This category looks at how many hard inquiries you have, as well as how many times you have applied for credit in the past 12 months. In addition, this category includes other credit activities in the recent past such as reducing balances, paying off installment loans, closing accounts and new accounts being added. Inquiries are only one small part of the puzzle when it comes to credit scores.\nSince 2019, consumers have seen record improvement in utilization rates, debt amounts and number of delinquencies. The most significant changes between 2019 and October 2020:\n* Average credit card utilization decreased by 12%.\n* The average number of consumer accounts ever delinquent dropped by 10%.\nThese changes are not only positive for consumers' credit health, but they are unprecedented in recent years. Considering the importance of payment history and credit utilization when calculating credit scores, improvement in these two areas may have been a driving force in increasing the nation's average score. END

TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average FICO® Score Remains in \"Good\" Score Range\n-------------------------------------------------\nFICO® Scores, which range from 300 to 850, are the credit scoring model most commonly used by lenders for evaluating a borrower's creditworthiness. A FICO® Score of 711 is considered \"good\" by most lending standards. Approximately 21% of Americans had a FICO® Score that fell in the \"good\" credit score range in 2020.\nHere are the FICO® Score ranges:\n* 800-850: Exceptional\n* 740-799: Very good\n* 670-739: Good\n* 580-669: Fair\n* 300-579: Very poor END

TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average FICO® Scores by Age Group\n---------------------------------\nAverage credit scores vary by age groups, and generally, the older someone is and the more experienced with credit they are, the higher their credit score will be. Members of the silent generation—the oldest group in our analysis, age 75 and older—consistently have the highest average FICO® Score of any generation. In October 2020, members of the silent generation have an average FICO® Score of 758; that's 47 points higher than the national average, according to Experian data.\nConversely, the youngest generation of adults—Generation Z, ages 18 to 23—have the lowest average score. This group has an average score of 674, which is 37 points below the national norm in October 2020.\nRegardless of age group, every generation saw its average FICO® Score improve since this time last year. The bulk of the improvement occurred for the middle generations—millennials and Generation Xers—who each saw their average FICO® Score grow by 10 or more points.\nSource: Experian. Table compares annually representative samples from 2019 and October 2020. END

TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average Credit Scores by State\n------------------------------\nAcross the country, consumers in all 50 states and Washington, D.C., saw their average FICO® Score increase since 2019. Compared with last year's growth—which only saw 42 states increase their scores—2020's average score improvement can be seen in all states. Minnesota remained the state with the highest average score in 2020, at 739.\nSource: Experian. Table compares annually representative samples from 2019 and October 2020.\nHow to Increase Your Credit Score\n---------------------------------\nImproving your FICO® Score can be helpful before applying for a new line of credit such as a credit card, mortgage or personal loan. A higher score can help you secure better terms and lower interest rates available. Here are some actions that can help improve your FICO® Score:\n* **Pay all of your bills on time.** This will help ensure your payment history is unblemished and shows lenders that you have a history of paying on time.\n* **Pay down credit card balances.** Keeping balances on your credit cards low will help keep your credit utilization at a good level.\n* **Apply for credit only when you really need it.**\n* **Enroll in Experian Boost™† .** Adding your positive cellphone, utility and streaming service payment could help boost your credit scores instantly.\nKnow your financial profile to understand what lenders see when they look at your credit report so you can make sure to get the best interest rates and terms on loans and credit cards. END

TITLE: What Is the Average Credit Score in the U.S.? CONTENT: How to Increase Your Credit Score\n---------------------------------\nImproving your FICO® Score can be helpful before applying for a new line of credit such as a credit card, mortgage or personal loan. A higher score can help you secure better terms and lower interest rates available. Here are some actions that can help improve your FICO® Score:\n* **Pay all of your bills on time.** This will help ensure your payment history is unblemished and shows lenders that you have a history of paying on time.\n* **Pay down credit card balances.** Keeping balances on your credit cards low will help keep your credit utilization at a good level.\n* **Apply for credit only when you really need it.**\n* **Enroll in Experian Boost™† .** Adding your positive cellphone, utility and streaming service payment could help boost your credit scores instantly.\nKnow your financial profile to understand what lenders see when they look at your credit report so you can make sure to get the best interest rates and terms on loans and credit cards. END

TITLE: What Is a Cosigner? CONTENT: What Does a Cosigner Do?\n------------------------\nA cosigner can help you qualify for a credit card, mortgage or other loan when you can't do so on your own. Cosigners share equal responsibility for the debt and agree to cover any loan or credit card payments and applicable fees if the primary borrower fails to pay. The debt account will appear on the cosigner's credit report, and depending on how the primary borrower manages the account, could help or hurt the cosigner's credit score.\nAlthough the cosigner is legally obligated to make payments if the borrower can't, they have no rights to the loan proceeds. END

TITLE: What Is a Cosigner? CONTENT: Pros and Cons of Cosigning\n--------------------------\nIf you can find a cosigner with a strong credit profile, you may be more likely to get approved for the credit card or loan you need. However, there are potential risks to consider—whether you're the cosigner or the borrower considering asking someone to cosign with you.\n### Pros\n* **Your approval odds may increase**. If you have bad or even fair credit, applying with a cosigner could help you qualify for an unsecured credit card; you're also more likely to be approved for a loan or mortgage with more favorable terms and a lower interest rate.\n* **You can help a friend or relative in need.** Cosigning for someone with bad credit could help them get approved and save hundreds or thousands of dollars in interest. Even better, you can play a part in helping the primary borrower learn to manage credit responsibly.\n### Cons\n* **You risk damaging your credit.** As a cosigner, your credit could take a hit if the borrower pays late or misses payments and the lender reports the delinquency to the credit bureaus. This can cause your credit score to plummet and could result in a strained relationship with your cosigner.\n* **You assume liability for the entire credit card balance or loan amount.** You will be on the hook for missed payments as a cosigner if the primary borrower falls behind on their debt payments. If they open the account and fail to make a single payment, you will be responsible for repaying the entire debt. If you're unable to pay, you could get sued by the creditor to recoup the funds owed.\n* **It's challenging to** **remove yourself as a cosigner****.** If you want to take yourself off the loan or card account, it's up to the lender to decide if the primary borrower can make payments on their own. The only other way to remove yourself as a cosigner is for the primary borrower to refinance or pay off the loan. If it's a mortgage loan, you could get released once the borrower sells the property and the loan is paid in full. For other loans, read the fine print to determine the terms under which you can be released as a cosigner.\n* **You may get turned down if you apply for other credit products in the future.** If you cosign a loan and then need to apply for credit for yourself, the lender may deny you because your current debt levels are too high. This is especially the case if your debt-to-income ratio is high and you're seeking a mortgage. END

TITLE: What Is a Cosigner? CONTENT: How to Find a Cosigner\n----------------------\nIf you need a cosigner, start by asking family and friends who are financially stable, have a steady source of income and have good or excellent credit for help. Explain to the person you're asking how the debt product will benefit you, why you need a cosigner and their role in the transaction. Being honest and upfront about their responsibility for the loan is crucial to maintaining a strong relationship once the documents are signed. If you are the person being asked to cosign a loan or credit card, think very carefully about doing so and consider all the pros and cons first.\nNo luck getting a cosigner? You may need to improve your credit before applying for a loan or card. You can get your Experian credit report and credit score for free to know where you stand and what to focus on to boost your credit health. When you register, you'll also get real-time alerts of any activity on your credit reports and free insights on factors that are impacting your credit score. END

TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 1\\. Don't Touch the Money\n-------------------------\nWhen encountering what seems to be a huge windfall, even the saintliest among us may be tempted to pay off debt, make a major purchase or put a down payment on a house. After all, the bank is insured against such losses, right? Or maybe you plan to report the error and pay back the money. In the meantime, however, you might figure there's no harm in putting the cash in an interest-bearing account or using it to buy some stocks and earn a profit. Aside from the moral implications of using money that's not yours, the error will eventually come to light and consequences could result.\nEven if the bank doesn't notice its mistake, the money's real owner will. When the bank investigates their customer's complaint and finds the money in your account, they'll naturally question why you didn't report it. If you've spent the money or transferred it to another account, you'll have to pay the bank back and may face criminal charges. That Georgia couple, having spent almost all of the $120,000 before the bank uncovered the mistake, were convicted of theft and ordered to repay more than $100,000 to the bank. END

TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 2\\. Contact Your Bank\n---------------------\nIf you discover a bank error in your favor, alert your bank right away and ask them to investigate the source of the funds. It's possible someone else, such as a parent or other relative who knows your account number, put money in your account without telling you. If so, the bank will uncover it and let you know you're free to use the money as you wish.\nEven though bank errors sometimes get automatically reversed, don't rely on that happening. Telling the bank about the mistake immediately shows them you're being honest about the situation. Maintain records of your interactions with the bank about the error, including who you talked to, the date and what was said. END

TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 3\\. Monitor Your Account\n------------------------\nUnless you're ultra wealthy, you'd probably notice if $30,000 accidentally appeared in your checking account. However, if you only glance at your bank balance from time to time, you might not notice a deposit error of a few hundred dollars. These small errors in your favor still have the potential to negatively affect your credit score. How? Here's an example.\nSuppose an extra $500 is mistakenly deposited into your checking account and you don't notice it. If the bank discovers the error, they can withdraw the funds without your permission, freeze your account or place a hold on the funds. Any checks you've written could bounce; automatic bill payments you've set up may not get funded. If your bills don't get paid on time, you might face late fees from creditors. Your bank may also charge fees for having non-sufficient funds (NSF) or overdraft fees if your balance goes below $0.\nThis financial turmoil could easily result in late payments that can hurt your credit score. Your payment history is an important factor in credit score calculations—and even one payment that's 30 days late or more can take time to recover from. Overdrafts and NSF fees don't appear on credit reports, so they won't directly affect your credit score. However, if you don't pay your NSF fees or overdraft fees or repay your negative balance after an overdraft, your bank might send your debt to collections. This creates a collection account that appears on your credit report for up to seven years and has a derogatory effect on your credit score.\nClearly, it's important to keep tabs on your bank account and make sure you always have enough money to cover upcoming expenses. Making it a habit to review the details of your account details once a week or so will help you spot anything out of the ordinary before it seriously affects your finances.\nIf you do find a bank error in your favor, alert your bank immediately and then check your account every few days until you see that the deposit has been reversed. Your bank's deposit account agreement will specify how long it should take to correct a deposit error. Generally, banks have 10 business days to investigate a report of an error on a consumer bank account, but it may take as long as 45 days to complete an investigation. Keep checking back until you have proof that the issue is resolved. END

TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: Keep Track of Your Financial Health\n-----------------------------------\nSetting up alerts on your bank account is an easy way to keep tabs on your finances so you can spot errors or fraud right away and act quickly. You can typically set up bank account alerts through your bank's website or app. Different banks offer different alerts, but you can usually get alerted when your balance is low, when a deposit or withdrawal is made, when your debit card is used at an ATM and more.\nIn addition to monitoring your bank accounts, keeping an eye on your credit report and credit score is key to protecting your financial health. Experian also offers free access to your credit report and credit score , as well as free credit monitoring to alert you of changes in your credit. END

TITLE: What Is No-Exam Life Insurance? CONTENT: How Does Life Insurance Work?\n-----------------------------\nWhen you purchase a life insurance policy, you're typically purchasing protection for your family or other loved ones. Your policy names a beneficiary or beneficiaries who receive the policy's payout after you die, as long as the policy remains in effect.\nTwo basic types of life insurance are available:\n* **Term life insurance:** A term life policy covers a certain stretch of time, such as 10, 20 or 30 years. If the policy is in effect when you pass away and your payments are up to date, the beneficiaries get the death benefit (such as $25,000) that you selected when you bought the policy. If you're still alive when the policy's term expires, the policy no longer stays in effect unless you renew the coverage on an annual basis at a higher cost.\n* **Permanent life insurance:** As its name suggests, permanent life insurance can offer coverage for as long as you're alive. Types of permanent life insurance include whole life and universal life. These types of insurance offer a death benefit, as well as cash value, which acts similarly to a savings account. The cash value of a permanent life policy grows over time on a tax-deferred basis and may be used while you are still alive. Permanent life insurance is significantly more expensive than term life.\nBefore extending coverage to you, life insurers typically ask questions about your health, including your medical history and your family's medical history.\nThe insurer will also often require a medical exam. Among other things, the person administering the exam likely will record your height and weight, check your blood pressure, take blood and urine samples for lab tests, and conduct other screenings. You'll probably be checked for use of recreational drugs and cigarettes or other products with nicotine.\nIf a life insurance medical exam determines you're in good health, the insurer will deem you a relatively low risk and you'll likely enjoy lower premiums. But if the exam turns up serious medical issues, such as high blood pressure or hepatitis, you're considered higher-risk and may be hit with high premiums or even be rejected for coverage.\nWhat can you do if your health is not so great and you don't want to submit to a medical exam? You may be able to purchase a no-exam life insurance policy. END

TITLE: What Is No-Exam Life Insurance? CONTENT: No-exam life insurance generally comes in two forms: simplified issue and guaranteed issue. Normally, you can expect coverage amounts of $25,000 to $1 million for a no-exam policy.\nTo qualify for a simplified issue policy, you'll answer questions about your current health, your medical history and your family medical history. An insurer will also want to review your medical records; however, you won't be required to get a medical exam.\nSimplified issue coverage may be a term life policy or a permanent life policy, with coverage often limited to anywhere from $25,000 to $300,000.\nGuaranteed issue life insurance also requires no medical exam. To qualify for this coverage, you'll answer some questions about your health and your medical history.\nPremiums for this coverage typically are higher than for simplified issue coverage. Furthermore, the death benefit may be under $25,000, and the amount of the benefit may be reduced if you pass away within two or three years of the policy being issued.\nAside from simplified issue and guaranteed issue policies, there's \"instant approval\" coverage. A number of online insurers provide instant approval of no-exam coverage based on answering questions online about your health, family medical history and lifestyle. They also consider your credit history (where allowed), driving history and other non-medical information.\nKeep in mind that you might not qualify for no-exam life insurance if you're older than 60 or 70, depending on the insurer. END

TITLE: What Is No-Exam Life Insurance? CONTENT: How Much Does No-Exam Life Insurance Cost?\n------------------------------------------\nThe cost of a no-exam life insurance policy varies based on the insurance company, your age and other factors. Premiums for a policy with no medical exam typically are at least twice as much as premiums for a policy requiring a medical exam.\nA woman in her late 60s might pay $122 a month for $25,000 worth of coverage, according to insurance marketplace Breeze, while a woman in her mid-30s might pay around $12 a month for $30,000 worth of coverage. In other words, the older woman in this scenario pays more money for less coverage.\nA check of online quotes for traditional and no-exam life insurance found a difference that could add up to hundreds of dollars per year between premiums for these two types of coverage purchased by the same policyholder. A price comparison revealed premiums of approximately $29 to $45 a month for a $500,000, 20-year policy purchased by a 30-year-old man in California who's in excellent health and doesn't use tobacco. Meanwhile, a quote for the same man supplied by a provider of no-exam coverage showed a monthly premium of $44 to $69. END

TITLE: What Is No-Exam Life Insurance? CONTENT: Should You Get a No-Exam Life Insurance Policy?\n-----------------------------------------------\nIf you can't qualify for a typical life insurance policy requiring a medical exam because of your health or you just don't want to bother with a medical exam, a no-exam policy might be a good option. It also might be a smart choice for someone who's young, in good health and wants to skip a medical exam, or for somebody who simply wants to leave enough money for beneficiaries to cover funeral costs and other final expenses.\nBut if you're in great health and willing to undergo a medical exam, a traditional life insurance policy typically makes more sense because you'll likely pay lower rates. END

TITLE: What Is No-Exam Life Insurance? CONTENT: Why Should You Buy Life Insurance?\n----------------------------------\nRegardless of whether you obtain a traditional policy or a no-exam policy, life insurance can be a wise investment. For instance, life insurance can:\n* **Replace your income.** A policy's death benefit can provide much-needed money to help survivors, such as a spouse or young children, ease the financial burden of your loss.\n* **Pay final expenses.** Money from your life insurance payout can cover \"final\" costs like your funeral and burial.\n* **Pass along wealth.** Life insurance can create a pool of money that can be inherited by your heirs.\n* **Cover estate taxes.** Your life insurance payout can help pick up the bill for estate taxes that your beneficiaries may need to pay after they've inherited your estate. END

TITLE: How Much Does Car Insurance Cost? CONTENT: Average Cost of Car Insurance\n-----------------------------\nThe cost of a policy that sets you back $1,202 per year breaks down to about $100 per month, though car insurers tend to offer discounts if you pay your policy premium in full instead of in monthly increments.\nThis average is based on national data, which takes into account everyone from teen drivers to experienced and accident-free drivers. Depending on where you live, how long you've been driving, how much you drive, your age and sex and several other factors, the premium you're charged may be very different. END

TITLE: How Much Does Car Insurance Cost? CONTENT: Factors That Affect Car Insurance\n---------------------------------\nThere are several primary elements insurance companies look at to decide your premium when you apply for a car insurance quote.\n### State and Region\nCar insurance is regulated at the state level, and rates can vary by state and even by ZIP code. In other words, the exact location of your residence can have a major impact on your monthly premiums.\nFor instance, the incidence of vandalism, theft and accidents is higher in urban areas than in rural areas. So you can generally expect to pay more if you live in a city versus someone who lives in a small town.\n### Driving Record\nTickets and other violations can spike your car insurance rate because they're a sign that you may be a risky driver.\nAccidents, primarily when you're at fault, can also cause your premium rates to balloon. In some cases, you can see a rate increase after an accident even if you were not at fault for the accident but still filed a claim. That's especially the case if you've filed other claims in the past.\n### Vehicle Type and Use\nThe type of car you drive is a key consideration for insurers. For example, cars that are statistically more likely to be stolen may carry higher rates than others that are further down the list. And the more expensive the car, the more expensive the potential claims, which makes it more likely that you'll have a higher monthly premium. Insurers use the car's vehicle identification number (VIN) to assess its mileage, accident history and other factors to help determine your rate.\nHow you use the car is also important. You'll typically share how many miles you expect to drive each year and the primary usage. For example, if you have a long commute, you may be more likely to get into an accident than someone who primarily drives on the weekends for pleasure. Some insurance providers even ask you to install a GPS tracker on your car so your rates can be adjusted based on your driving habits.\n### Demographics\nInsurance carriers use a lot of data to determine risk profiles, including demographics such as age, gender and marital status. For example, single males under 25 are the most likely to get in an accident, and they can expect their insurance rates to reflect that elevated level of risk.\n### Type and Amount of Coverage\nIn most states, you must have at least a minimum level of liability insurance on your vehicle. Even where it's not required, you have to provide evidence that you're financially equipped to pay for damages if you cause an accident. If your car is financed, your lender may require you to carry a certain level of insurance above the legal minimum.\nBut beyond that requirement, the types of coverage you choose and how much will be reflected in your premiums. The main coverage types include:\n* **Liability:** This protects you in an accident when you're at fault; it covers the cost of the damage to the other vehicle and the medical bills resulting from injury.\n* **Collision and comprehensive:** Collision coverage provides protection if you're in an accident and not at fault. Comprehensive protection covers theft and damage that occurs in other ways, such as vandalism or natural disasters.\n* **Uninsured\/underinsured motorist:** If you get in an accident where the other party is at fault and they either don't have insurance or their liability protection is insufficient, this coverage kicks in to help your policy bridge the gap.\n* **Personal injury protection:** This covers medical bills for both you and others in your vehicle at the time of an accident, regardless of who's at fault. This type of insurance is not available in all states.\nSome insurers will also provide additional coverage types, such as rental car reimbursement and emergency roadside assistance.\nIn addition to the coverage amounts you choose, insurers will also consider your deductible. This is the amount you'll pay out of pocket before your coverage kicks in when you file a claim. A lower deductible means you're on the hook for less if something happens, but it will typically result in a higher monthly rate.\n### Credit History\nIn states where it's allowed, auto insurers also may use what's called a credit-based insurance score to help determine your rate. That's because credit scores can help predict the likelihood that you'll miss a premium payment or file a claim.\nKeep in mind, though, that insurers don't consider your credit history in California, Hawaii, Michigan or Massachusetts. Even in states where it is allowed, insurers typically can't use your score as the sole reason to raise your rate, deny you coverage or cancel or refuse to renew your policy.\n### Other Factors\nWhile not as prominent in the decision, there are several other factors that an insurance company may consider when determining your rate, including:\n* Occupation\n* Housing situation\n* Previous insurance coverage (specifically, whether there's been had a gap in coverage)\n* Driving experience\n* Discount eligibility END

TITLE: How Much Does Car Insurance Cost? CONTENT: How to Lower Your Car Insurance Rate\n------------------------------------\nNow that you understand what goes into the decision-making process for car insurance, here are some tips to help you qualify for a lower rate:\n* **Shop around.** One of the best things you can do to score a low rate is to shop around and compare quotes from several insurers. This process could save you hundreds or even thousands of dollars, depending on where you live.\n* **Ask about discounts.** Insurers offer discounts as an incentive to buy a policy. There are generally discounts available based on your driving habits, your demographics, the vehicle's safety technology and how you plan to use the vehicle.\n* **Bundle your policies.** If you own more than one vehicle, own a home or are renting, getting all of your insurance policies from the same company can help you save money. Those savings could be as high as 30%.\n* **Improve your credit score.** If your credit isn't in great shape, look for ways to improve it before you buy a policy. You can get your free credit report and credit score through Experian. Take a look for areas that need work, focusing on some of the more significant factors that go into your credit score, such as account balances.\n* **Raise your deductible.** Increasing your deductible eliminates some of the risk for the insurance company, so you can generally expect a slightly lower rate. That said, consider raising your deductible only if you're confident you'll be able to pay it in the event of a claim without causing financial distress.\nReview Car Insurance Rates Regularly\n------------------------------------\nCar insurance rates are never set in stone, and the factors that determine yours can change over time. While you may get extra benefits for being loyal to your local grocery store, favorite airline or retailer, that's not always the case with car insurers.\nAs such, it may be a good idea to check in on your car insurance rate every year or two. Consider shopping around a bit to make sure you still have the lowest rate possible. If not, it may be worth switching to take advantage of lower costs elsewhere. You can browse auto insurance offers through Experian and potentially find a cheaper rate. END

TITLE: How Much Does Car Insurance Cost? CONTENT: Review Car Insurance Rates Regularly\n------------------------------------\nCar insurance rates are never set in stone, and the factors that determine yours can change over time. While you may get extra benefits for being loyal to your local grocery store, favorite airline or retailer, that's not always the case with car insurers.\nAs such, it may be a good idea to check in on your car insurance rate every year or two. Consider shopping around a bit to make sure you still have the lowest rate possible. If not, it may be worth switching to take advantage of lower costs elsewhere. You can browse auto insurance offers through Experian and potentially find a cheaper rate. END

TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 1\\. Decide Between a Traditional and Roth IRA\n---------------------------------------------\nYou have two main choices: a traditional IRA and a Roth IRA. In simple terms, a traditional IRA is more of a \"buy now, pay later\" proposition. You use pretax dollars to fund it—meaning you may be able to deduct contributions from your income taxes—and defer paying taxes until you withdraw the money in retirement. By contrast, you don't get a tax deduction when you contribute to a Roth IRA; it's funded with income that's already been taxed. As long as you follow eligibility guidelines, however, you don't pay taxes on Roth IRA withdrawals. You can even pass along your Roth IRA tax-free to your heirs.\nHere's a chart comparing some of the features of traditional and Roth IRA accounts:\nWhich type of account is better for you? Ask yourself three questions:\n* **Are you eligible to deduct your contributions?** Check the IRS Guide to IRAs for information. Your deductions may be limited if you or your spouse contribute to an employer-sponsored retirement plan such as a 401(k).\n* **Are the tax savings worth it?** If you have a high income, the tax deduction could be significant. Your tax savings may not be as impactful if your income is lower, however.\n* **Would you rather have a tax advantage before or after you retire?** With a Roth IRA, you forgo an immediate tax deduction in favor of getting a tax break when you're retired. Getting to keep and spend more of your retirement money will help you maximize the dollars you've saved.\nCan't decide? If you're eligible and you have enough funds, you can open both a traditional and a Roth IRA. The contribution limit for both types of accounts is $6,000 annually, with an additional $1,000 if you'll be age 50 or older by the end of the tax year. END

TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 2\\. Choose an IRA Provider\n--------------------------\nYou can open an IRA with many types of financial institutions, including banks, credit unions, investment brokerages and mutual fund providers. You can choose from these four basic options:\n* **Savings:** Banks and credit unions typically offer IRAs that keep your money in savings or certificates of deposit. The downside is that these accounts will appreciate slowly. The upside: little to no risk. A bank or credit union may also offer investment-based IRAs, including some options listed below.\n* **Self-managed investments:** Open an investment or mutual fund account and manage your own investments. You may save money in management fees, but beware that fluctuations in the market and constantly changing opportunities aren't easy for an amateur investor to track.\n* **Automated** **robo-advisor** **accounts:** Although the term \"robo-advisor\" may sound weirdly futuristic, the process of engaging one is straightforward. You provide information about your risk tolerance, life stage and goals, and the robo-advisor uses complex algorithms to create and manage your investments. You don't get much human interaction or hand-holding, but you will save a few dollars on management fees while still having an active \"eye\" on your investments.\n* **Professionally managed investments:** There's no doubt that having a live human advisor who can answer your questions, discuss goals and strategies, and actively manage your investments is a great benefit. Finding the right advisor can be a bit of a challenge, however. Be prepared to pay higher fees in exchange for personalized advice. Also, scrutinize any candidate carefully before turning over your money. Be sure you know upfront how fees are structured (flat fee vs. commissions) and how much you should expect to pay. END

TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 3\\. Open and Fund Your IRA\n--------------------------\nOnce you've chosen your account type and provider, you're ready to open your account and start funding it. Check with your provider about minimum contributions. You may be able to open an account with little to no money and fund it electronically from your bank account or paycheck. Choose one of three ways to fund your account:\n**Make regular automatic contributions.** Calculate how much you'd like to contribute annually and divide it by the number of contributions you plan to make in a year. For example, say you'd like to contribute $6,000 in 2021 and you have 12 remaining pay periods before the April 15, 2022, contribution deadline for the 2021 tax year. You can set up an automatic contribution of $500 every payday to reach your goal—and spread out the timing of your investments. If you'd like to keep going for the 2022 tax year, divide your $6,000 by 24 twice-monthly paychecks. You'll contribute $250 each pay period.\n**You can also make lump-sum contributions.** Do you have a few extra dollars in savings or checking? Have you recently had a windfall—stimulus money, a tax refund, a signing bonus? Transfer any amount—up to your yearly contribution limit—directly into your IRA account. Your provider will send you and the IRS Form 5498 showing the yearly total of your contributions, including lump sums, automatic payments and rollovers.\n**Roll over funds from another IRA or retirement account.** If you have another IRA or a 401(k) or other retirement plan with a previous employer, you can usually arrange an electronic transfer from your old account directly into your new one. Alternatively, make sure you maintain a paper trail that shows where the money came from, how much was withdrawn, and the amount deposited into your new IRA (which should equal the amount withdrawn). Documenting these moves will prevent confusion at tax time. END

TITLE: How to Open an IRA in 3 Easy Steps CONTENT: Additional Ways to Invest for Retirement\n----------------------------------------\nIf you aren't eligible for a traditional IRA or have exceeded contribution limits for the year, consider opening or funding a regular investment account to grow your money over time. You'll pay taxes on your earnings and capital gains each year (starting immediately), and your contributions won't be tax-deductible. But you can contribute as much as you'd like to a regular investment account—and withdraw your money whenever you'd like as well. If you have the funds, this could be an excellent way to grow your retirement nest egg.\nYou can also invest for retirement by contributing to your employer's 401(k) or 403(b) plan. Check with your employer for full details. You'll be limited in terms of where and how you can invest. Still, these accounts are hard to beat if your employer matches your contributions.\nFinally, if you're self-employed, you might consider SEP-IRA or SIMPLE accounts. These are similar to traditional IRAs but have different contribution limits and rules. END

TITLE: How to Open an IRA in 3 Easy Steps CONTENT: More Is Better\n--------------\nChoosing, opening and funding an IRA account (or two) takes a bit of research and initiative, but the benefits you receive may go well beyond the dollars you deposit. With a 5% average annual return, a $6,000 investment today could be worth $44,328 in 40 years, even if you never contribute another dime. Then again, once you've opened accounts and set up funding, it's easy to continue growing your savings, which in turn contributes to a more optimistic and realistic outlook on retirement. END

TITLE: Do I Need Insurance to Rent a Car? CONTENT: Check if Your Credit Card Offers Rental Car Insurance\n-----------------------------------------------------\nTo find out if your credit card offers car rental insurance and what type of coverage it includes, check your credit card agreement or call the number on the back of your card. Policies vary from one card to another, so be sure you understand your policy's coverage, requirements and exclusions. For instance, some policies exclude long-term rentals or certain types of vehicles. Coverage may require that you decline the car rental company's coverage, use the card to pay all charges for the rental car, or file a claim within a certain time frame.\nAlso check to see if the credit card provides primary or secondary rental car coverage. Primary coverage is rarer and means you can file a claim with the credit card benefits administrator before filing a claim with your own car insurance or homeowners insurance. If the credit card policy covers the damage, you won't have to pay your own insurance policy's deductible or worry about your premiums rising. Secondary coverage kicks in only after any benefits from your own insurance policy have been exhausted. It may cover any deductibles you have to pay your insurance company.\nIf you don't have a credit card that includes car rental insurance, you may want to apply for one that does. The Chase Sapphire Preferred® Card and Chase Sapphire Reserve® card offer primary rental car insurance, while the Chase Freedom Unlimited® card offers secondary rental insurance. All these cards require good or better credit or better and offer plenty of other rewards and benefits.\nA personal credit card that has rental car coverage may not cover a car rented for business. For that, you'll want to use a business credit card. END

TITLE: Do I Need Insurance to Rent a Car? CONTENT: Rental Car Insurance Options\n----------------------------\nAfter you determine what your car insurance and your credit card cover, consider whether you need any of the rental agency's insurance products. You'll generally be offered four types of rental car coverage:\n1. **Loss damage waiver (LDW) or collision damage waiver:** This covers damage to or theft of the rental car, similar to the collision and comprehensive coverage in a car insurance policy. Most LDWs also cover loss of use while the car is being repaired; some also cover towing or any administrative fees the rental company charges. Clarify what is covered and what might void the coverage; for example, accidents due to speeding, driving while intoxicated or driving on unpaved roads are typically not covered. Cost: $9 to $19 per day.\n2. **Liability coverage:** This provides financial protection from lawsuits related to accidents you cause while driving the rental vehicle. Car rental agencies must provide the minimum amount of liability insurance required by state law. However, these minimums tend to be low, so you may want to buy supplemental liability insurance to protect yourself. Cost: $7 to 14 per day.\n3. **Personal accident insurance (PAI):** PAI covers medical bills for you and your passengers. If you have health insurance or have medical coverage or personal injury protection through your car insurance policy, you probably don't need PAI. Cost: $1 to $5 per day.\n4. **Personal effects protection (PEP):** PEP covers personal items stolen from the rental car. Homeowners or renters insurance that includes off-premises coverage generally covers this, but you'll have to pay your deductible if you file a homeowners claim. If the car rental company's PEP doesn't have a deductible, paying $1 to $4 per day for this coverage may be worthwhile.\nBefore purchasing any type of coverage from the rental car company, make sure you understand its dollar limits, exclusions and requirements—and whether you may already be covered by your insurance policy or your credit card's policy. END

TITLE: Do I Need Insurance to Rent a Car? CONTENT: Protect Yourself When Renting a Car\n-----------------------------------\nPaying for a rental car accident or theft out of pocket could cost you tens of thousands of dollars. Before you hop into the driver's seat, make sure you're adequately insured by your own car insurance, the rental company's coverage or your credit card's policy.\nGood credit can make it easier to qualify for credit cards that include rental car coverage. Before applying for such a card, review your credit report for accuracy and check your credit score. Taking a few simple steps, such as paying down debt and bringing late accounts current, can help improve your credit score so you can get the credit card you want. END

TITLE: How to Refinance Your Car Loan CONTENT: Benefits of Refinancing a Car Loan\n----------------------------------\nThere are a few reasons to consider refinancing your car loan with a different lender. Here are some benefits to keep in mind:\n* **Lower interest rate:** If your credit has improved since you first bought your vehicle or market interest rates have decreased, you may be able to get a lower interest rate than what you have right now.\n* **Lower monthly payment:** If you keep the same repayment term, a lower interest rate will typically translate into lower monthly payments. If you want to lower your monthly payment even more, though, you may be able to get a new loan with a longer repayment term. This may mean higher interest charges over the life of the loan, but it can be worth it if your monthly budget is tight.\n* **Choose to pay off debt sooner:** On the flip side, you could also choose a shorter repayment term. Shorter terms typically correspond with lower interest rates, which means you'll save more money and eliminate the debt sooner—although your monthly payments will be more expensive.\n* **Get cash from your equity:** Some auto lenders offer cash-out refinance loans that allow you to refinance the original loan and get some cash to pay for other expenses. This option is typically limited to people who have a lot of equity in their vehicle.\nAs you consider these benefits, think about whether refinancing is right for you and take steps to refinance your auto loan. END

TITLE: How to Refinance Your Car Loan CONTENT: 1\\. Consider if Refinancing Makes Sense for You\n-----------------------------------------------\nBefore you start the application process, it's important to determine if refinancing is the right move for you right now. Here are some factors to consider:\n* **Credit requirements:** To qualify for the best terms on the new loan, your credit history typically needs to be in great shape. If you're not quite ready, consider waiting and improving your credit score first.\n* **Prepayment penalty:** Some lenders will charge you a fee if you pay off your auto loan earlier than agreed. Check your loan terms to see if you have a prepayment penalty and how much it'll cost you compared with the potential savings you expect to get from the new loan.\n* **Origination fee:** Some lenders may charge an upfront fee when you refinance. This fee can vary from lender to lender, but it's important to compare it with the potential savings to see if it's worth the hassle.\n* **Length of repayment period:** If your new repayment term is longer than your current one and you don't necessarily need the lower payments, it may not be worth it simply because you may end up paying more in interest over the life of the loan. END

TITLE: How to Refinance Your Car Loan CONTENT: 2\\. Check Your Credit\n---------------------\nIdeally, your credit score will be better now than it was when you received your first auto loan on the car. Check your credit score to see where you stand and if it might make sense to wait and continue making improvements before you apply.\nIf your credit does need some work, go over your credit reports to get ideas of where you can focus your efforts. You can get your credit report from all three bureaus for free through AnnualCreditReport.com. Your Experian credit report is also available for free directly through Experian. END

TITLE: How to Refinance Your Car Loan CONTENT: 3\\. Gather the Necessary Documents for a Loan Application\n---------------------------------------------------------\nAfter you submit your application, you'll typically be required to provide some documents to your new lender. Having this information before you even start the loan process will help it go more smoothly.\nDocuments that you may be required to share include:\n* Copy of your driver's license\n* Vehicle registration\n* Proof of insurance\n* Proof of income\n* Proof of residence\n* 10-day payoff statement\nYou'll also typically need to provide the vehicle identification number (VIN), so the lender can determine the car's value. END

TITLE: How to Refinance Your Car Loan CONTENT: 4\\. Compare Offers\n------------------\nThe best way to maximize your savings is to shop around and compare offers from multiple lenders. Some lenders will allow you to get prequalified before you submit an application, while others may require a full credit check before offering any kind of interest rate information.\nThe good news is that if you do submit multiple auto loan applications in a short period—try to submit all applications within 14 days—FICO will generally combine all of them into one for purposes of calculating your credit score.\nAs you compare offers, look at the interest rate, repayment terms, fees and other features that are important to you. END

TITLE: How to Refinance Your Car Loan CONTENT: 5\\. Apply for a New Auto Loan\n-----------------------------\nOnce you've narrowed down your list of offers to one, submit an application with that lender. Depending on the financial institution, you may be able to do it online, over the phone or even in person.\nYou'll generally need to provide the same information you shared when you applied for your existing auto loan. END

TITLE: How to Refinance Your Car Loan CONTENT: 6\\. Review the Terms and Sign the Contract\n------------------------------------------\nOnce you've submitted your application, the lender will go through the underwriting process to determine whether you qualify and what your loan terms will be.\nCarefully read the fine print to make sure you understand what you're getting yourself into. If you agree, sign the contract, and the lender will pay off your existing loan. The contract will let you know when you'll need to start making payments on the new loan.\nBe sure to manage this transition to the new loan carefully to avoid missing payments. Pay attention to all communication from both your old lender and your new one to make sure everything is buttoned up. END

TITLE: How to Refinance Your Car Loan CONTENT: How Refinancing a Car Loan Affects Your Credit\n----------------------------------------------\nWhen you first apply for a new loan, the hard credit inquiry made by the lender can cause your credit score to temporarily dip by a few points. But over time, your score will rebound, especially if you make all of your payments on time.\nRefinancing can also lower the average age of your accounts, which could impact your score negatively. But again, payment history is the most important factor in your FICO® Score☉ , so making your payments on time will do the most good to protect your credit score. END

TITLE: How to Refinance Your Car Loan CONTENT: Continue to Monitor Your Credit\n-------------------------------\nAfter you've been approved to refinance your auto loan, it's still important to keep track of your credit and make adjustments as needed. That way, you'll be ready the next time you need to borrow money.\nExperian's credit monitoring tool makes it easy to stay on the right track. You'll get free access to your FICO® Score powered by Experian and your Experian credit report. You'll also get real-time alerts whenever your credit report updates with new inquiries, accounts and personal information.\nWith your pulse on your credit score, you'll be in a better position to address issues as they arise to maintain good credit. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: What Is a Lending Circle?\n-------------------------\nLending circles aren't a new idea. Groups of family, friends and community members around the world form rotating savings and lending circles that go by many names, including _tandas_, _cundinas_, _susu_, _hui_ and _paluwagan_.\nThe basic premise is that every member of a group contributes to a shared pot of money, and one member receives the entire sum. The circle continues until everyone receives their payout. Most lending circles charge low or no fees or interest.\nFor example, you could join a lending circle with 12 people where everyone contributes $100 each month. For the next 12 months, each person puts in $100, and one person a month receives $1,200. The order of distribution may be determined when the lending circle first forms. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Will All Lending Circles Help You Build Credit?\n-----------------------------------------------\nLending circles rely on community participation and informal arrangements, or formal commitments through organizations. But even if everyone makes their payments on time, a lending circle won't help participants build credit unless the loan and payments get reported to the credit bureaus.\nSome organizations that run lending circle programs have created official loan documents and established credit reporting systems. Participation in one of these lending circles may be able to help your credit.\nFor example, Mission Asset Fund (MAF), a nonprofit organization that helps facilitate lending circles, reports its lending circle loans to all three major bureaus—Experian, TransUnion and Equifax. It also partners with organizations across the country to help form and run lending circles.\nCircles organized by MAF generally consist of six to 12 participants and last six to 12 months, respectively, with monthly payments ranging from $50 to $200. Once the lending circle begins, MAF will report the installment loan and its details, along with your payments, to the credit bureaus.\nMAF doesn't charge interest or fees to participate in a lending circle. And you may qualify regardless of your credit history or score. However, the organization may consider your debt-to-income ratio (DTI) to ensure you'll be able to afford the payments. It might recommend other options, such as working with a financial counselor, if a lending circle doesn't seem workable right now.\nThere's also a lending circle option through the Esusu Savings app. Using the app, you may be able to create an Esusu savings group and invite participants. Esusu may report the payments to the credit bureaus if the circle lasts at least six months. It charges a $10 fee per each payment cycle, which is evenly split among participants. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: How to Find a Lending Circle\n----------------------------\nIf you're interested in joining or starting a lending circle that can help build your credit, MAF has a directory you can search based on your ZIP code. You might work directly with MAF, or form a group through a local partner organization. In either case, you'll see MAF as the lender in your credit reports. The lending circle payments are also guaranteed, so you'll receive your full payout even if a member of your circle misses a payment.\nYou can download the Esusu Savings iOS or Android app to create an account and start a savings group. While Esusu helps facilitate the transfer of funds and credit reporting, the group leaders are responsible for setting the group's terms, inviting people to participate and encouraging participants to make their contributions on time. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: How Do Lending Circle Loans Affect Your Credit?\n-----------------------------------------------\nA lending circle can impact your credit in the same way as other installment loans. The benefit is that the programs often don't have credit score requirements or charge interest, and there may be low or no fees.\nAssuming the loan is reported to a credit bureau, a lending circle installment loan can help your credit by:\n* Letting you build positive payment history if you make the payments on time\n* Adding to your credit mix\n* Establishing a new tradeline in your credit report\nIf you've already established credit, opening a new loan may lower the average age of your accounts, which might hurt your score. You can ask if the lending circle provider requires a credit check (many don't), as a hard inquiry could hurt your scores a little as well.\nMissing your payments could hurt your credit when the late payment gets reported. And past-due accounts could be sent to collections, which will also cause a credit score drop.\nIf you think you may have trouble affording a payment, reach out to the lending circle coordinator immediately. Some may be able to work with you to find an alternative payment plan that's affordable and won't lead to missing a payment. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Alternatives to Lending Circle Loans\n------------------------------------\nMany loans and credit cards can also help you establish or build credit. When researching options, make sure the loans and cards you're considering report payments to the credit bureaus. If you're just getting started or rebuilding your credit, you could look into:\n* **Secured credit cards****:** Secured credit cards work like regular credit cards, but the issuer requires a refundable security deposit in case the cardholder stops making their payments. You can get the deposit back after closing your account if it's in good standing. Some cards, like the Secured Mastercard® from Capital One, may refund the deposit as a statement credit and let you upgrade to an unsecured version after you've used the card responsibly.\n* **Credit-builder loans****:** A credit-builder loan is an installment loan that lets you build savings and credit. When you take out a credit-builder loan, the loan proceeds are typically set aside in a savings account. Your loan payments get reported to the credit bureaus, and you'll receive the set-aside funds once you pay off the loan.\nIf you're looking for a loan because you want to borrow money (and not just build credit), an unsecured personal loan could be an option. Some lenders, such as Avant and LendingPoint, work with borrowers who have fair credit. Repaying the loans on time can help you improve your credit.\nIt's generally best to avoid other options that don't require a credit check, such as payday loans. In addition to being much more expensive than other options, payday loans don't get reported to the credit bureaus—meaning they won't help your credit even if you repay the loan on time. END

TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Monitor Your Credit\n-------------------\nYou can watch your progress by Experian Boost™† tool to add other regular bills to your Experian credit report, such as bills for phone, utilities and popular streaming services. END

TITLE: How Much Money Should You Have Saved by 60? CONTENT: Just how much should you have saved by 60? The answer is completely personal—and a source of some anxiety for many non-retirees in their 60s. In a 2020 Federal Reserve Board of Governors survey released in May 2021, 87% of non-retirees in their 60s had at least some retirement savings, but only 48% felt as though those savings were on track.\nAccording to guidelines created by investment firm Fidelity, at age 60 you should have saved roughly eight times your annual salary if you plan to retire at age 67, the age at which people born after 1960 can collect full Social Security benefits. To better understand how this estimate plays out in real dollars, let's consider a hypothetical example.\nTo keep the math simple, let's say your current salary is $100,000 a year. According to Fidelity guidelines, you should have $800,000 saved up now and $1 million by 67. How do you get from $800,000 to $1 million?\n* If you set aside 15% of your income, you'll save $105,000 in seven years (not including any interest earned) for a total of $905,000. A good start, but this doesn't get you to your goal.\n* Invest your money with an average return of 4% and no additional contributions, and you'll have just over $1.05 million at 67.\n* Contribute 15% and earn a conservative 1.5% annually: You'll reach $999,000+ in seven years.\nSay you're 60 today and you retire at 67. Using the figures in our example, your monthly Social Security benefits would be $2,544. (Estimate your own Social Security benefits on the Social Security site.) Plan to withdraw roughly 4% to 5% of your starting balance ($1 million) each year for additional monthly income of about $4,000. Stick to these numbers and, by Fidelity's calculation, you should stay on track financially through age 93. END

TITLE: How Much Money Should You Have Saved by 60? CONTENT: Factors to Consider When Saving for Retirement at 60\n----------------------------------------------------\nEstimating your retirement income only tells one part of the story; several additional factors come into play. Before you celebrate—or despair—over your projected funds, think through these questions:\n* **How much income do you need to support your lifestyle?** Consult your current budget, but also look ahead at factors that may reduce your needs when you retire. Will your mortgage be paid off? Will switching to Medicare save you money? Will you spend less on clothing, cars, dry cleaning or dining out? Will you spend more on travel?\n* **What sources of income will you have?** In addition to retirement savings and Social Security, do you have separate savings, passive income or additional pensions you can tap?\n* **How long can you work?** Can you continue doing your current job for as long as you want? Is it possible your job will end? Do you feel physically and emotionally capable of working for another five or 10 years?\n* **What will you do if you run out of money?** You don't want to resort to a backup plan, but you should have one just in case.\nThese issues can be complicated. If you need an expert eye, consider working with a financial advisor to help you figure out exactly what your options might be. At age 60, you don't have decades to save and invest for your future retirement, but you do have time to gather the facts, make some plans and save, save, save. END

TITLE: How Much Money Should You Have Saved by 60? CONTENT: How to Save More Money for Retirement\n-------------------------------------\nRegardless of where you are in your retirement savings journey, you may want to take this opportunity to save a little more. How can you save more for retirement during the home stretch of your working life?\n* **Max out your** **401(k) contribution**, especially if your employer matches it.\n* **Contribute to a separate IRA or Roth IRA.** Your contribution to a traditional IRA may be tax-deductible. Roth IRA contributions are not tax-deductible, but your future retirement withdrawals are tax-free.\n* **Check up on your investments.** Can your money work harder for you? Even a small tick-up in interest, dividends or investment value adds up over the years.\n* **Convert to a retirement lifestyle now.** An empty nest, changing work requirements, a simpler life—some elements of a less expensive retired lifestyle may be available to you now. Are you thinking of downsizing your home? If so, you might see multiple benefits:\n * Your home sale could generate a net profit that you can add to your retirement savings now.\n * You could reduce or eliminate your mortgage payment, which would increase your current monthly income and ability to contribute to retirement.\n * You could get a jump on enjoying a less work-intensive lifestyle by moving to a home with no yard work, for example.\n* **Find an encore career.** Does converting to part-time work or consulting make long-term employment seem more appealing? Is there another type of work you might enjoy, even if it paid less? A new career could bridge the gap between your current job and no job at all.\n* **Reimagine your retirement.** Your post-career life doesn't have to be expensive or income-free. Now's a great time to look for opportunities to make your post-retirement life sustainable. Rent out your house and live on a sailboat. Teach English abroad. Take up house or dog sitting. So many life pressures are about to shift: Figure out what you want now. END

TITLE: How Much Money Should You Have Saved by 60? CONTENT: Save Enough to Support Your Best Choices\n----------------------------------------\nAs you look forward to retirement, the money you've spent a lifetime saving will fund your vision for what the coming years bring. You still have time to save more, adjust your plans and cultivate new opportunities. As you go, don't overlook the value of good credit. Retirement isn't a great time to spend wildly or take on excess debt. But having access to the flexibility of credit cards, low-interest home and auto loans, good scores for rental applications—the list goes on—will expand your choices as you age. Check your credit report and score or sign up for free credit monitoring that will help you track your credit into the future.\nAt 60, you have many choices ahead. With good stewardship and planning, they can be some of the best choices of your life. END