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TITLE: How to Improve Your Payment History CONTENT: How Payment History Affects Your Credit Score\n---------------------------------------------\nPayment history is the single biggest factor that contributes to your FICO® Score☉ , the credit score used by 90% of top lenders; it's responsible for about 35% of your score.\nThat means establishing and maintaining a spotless record of on-time debt payments is the single most important habit you can adopt to promote a strong credit score. It also means that—except for major credit missteps such as allowing unpaid bills to be turned over to collections, foreclosure or bankruptcy—nothing hurts your credit score more than a late or missed payment.\nFor the purposes of your credit reports and the credit scores based on them, a late payment is one that's 30 days overdue—and the first time one appears on your credit report, it can cause a significant drop in your credit score. Late payments typically remain on your credit report for seven years, but their effect on your credit scores wanes over time.\nWhile lenders won't report payments made a few days late to the credit bureaus, they may charge you a penalty for missing the due date, so there's ample reason for getting your bills paid on or before their due date. END
TITLE: How to Improve Your Payment History CONTENT: Which Bills Count Toward Your Payment History?\n----------------------------------------------\nThe types of accounts considered for credit payment history are those that involve repaying borrowed funds, including:\n* Credit cards: Paying your minimum monthly payment before the due date is essential to keeping your credit card account in good standing. Making payments greater than the monthly minimum can help you save on interest charges and potentially boost your credit score, and paying on time will spare you late fees and penalties.\n* Other revolving credit accounts: Personal lines of credit, home equity lines of credit (HELOCs), and any other accounts that let you borrow against a set credit limit and charge interest only on the funds you use are known as revolving accounts. (Credit cards are revolving credit too.)\n* Installment loans: Credit reports track payments on all installment loans—those with fixed monthly payments, such as mortgages, student loans and auto loans. When you finish making payments on an installment loan, it will be noted in your credit report as closed in good standing, but its payment history will continue to benefit your credit until the loan is removed from your credit report, usually after 10 years.\n* In-store financing: If a merchant such as a furniture store or electronics retailer lets you buy an item on a payment plan, that's another form of installment credit. The merchant (or the finance company they work with) may report your payments to the national credit bureaus, so they'll show up on your credit reports and can influence your credit scores. END
TITLE: How to Improve Your Payment History CONTENT: Non-Debt Payments (Usually) Don't Affect Payment History\n--------------------------------------------------------\nPayments for expenses unrelated to borrowing money such as rent, utility and cellphone bills, don't automatically influence your credit standing the way debt payments do, but they can affect your credit scores as well:\n* Few landlords and property managers do so, but they can report rent payments to the national credit bureaus—and if they do, rent payments may be incorporated into your payment history. Recent versions of the FICO® Score and VantageScore® scoring models are designed to consider rent payments if they appear in your credit reports.\n* If any bill you fail to pay is turned over to a collection agency, a collection account will appear on your credit report and will adversely affect your credit scores.\n* Enrolling in Experian Boost™† for free can incorporate your history of utility, cellphone and streaming service payments into your Experian credit report, and a record of on-time payments can increase your FICO® Scores based on Experian data. END
TITLE: How to Improve Your Payment History CONTENT: The following tactics can help you maintain a solid payment history, or start rehabbing one that's a little spotty:\n* Pay on time. This may seem obvious, but the key to a solid payment history is paying your bills on time, every month, without fail. Late payments in your past can't be taken back, but their effect will diminish with time, so if you move ahead without new missteps, your credit scores and standing will tend to improve.\n* Dispute misreported payments. If you made late payments in the past, you just have to live with the consequences—but if you believe your credit reports mistakenly list on-time payments as missed or late, you should consider contacting your lender or going through the credit report dispute process. You may have to furnish the credit bureaus (Experian, TransUnion or Equifax) with evidence of the inaccuracy.\n* Avoid underpayment. Late payments are the biggest potential blemish in your payment history, but payments that fall short of the required amount could also mar your credit history. It is better to pay something every month if you can't make a full payment, but underpaying does damage too. If you have trouble making your credit card payments, avoid using those cards and focus on paying down your balances, at least until the required minimum payment is within reach. On installment loans such as mortgages, car loans and student loans, if you're having trouble making your full payment, consider reaching out to your lender—ideally before you send in an underpayment—to see if you can work out new terms that lower your monthly obligation. If the lender approves a new financing arrangement, you'll likely pay more in interest over the life of the loan, but that could be a good trade-off for preserving your payment history.\n* Establish a bill-paying routine. If you have trouble remembering to pay your bills each month, scheduling a regular day for all your bill payments can be helpful. Pick a time and day that works for you—the last Sunday of the month, for bills due in the month ahead, for example—and put it on your calendar.\n* Let technology help. Most financial institutions let you schedule automated electronic bill payments (autopay), which is a great tool for avoiding late payments. Other tech tools that can help you avoid late payments are digital calendar reminders, alert features found in many credit card issuers' smartphone apps, and even virtual sticky notes. Any tech you're comfortable with that stops you from forgetting a payment is a win for your finances and your credit. END
TITLE: How to Improve Your Payment History CONTENT: Benefits of Paying Your Bills on Time\n-------------------------------------\nGetting in the habit of paying your bills on time can pay off in lots of ways:\n* Help improve your credit scores. Making all your debt payments on time can go a long way toward helping you build good credit. Lenders view steadily rising credit scores as evidence that you pose less of a risk as a borrower, so as scores increase over time, you gain access to a wider array of loans and credit cards, with potentially higher loan amounts and credit limits and lower interest rates and fees.\n* Avoid penalties from your lender. Loan contracts and cardholder agreements typically spell out fees or penalties you must pay if you miss a payment due date by as little as one day. On a first offense you might be able to get a lender to rescind the penalty (it can't hurt to ask), but those fees can really add up. And credit card penalties are added to your purchase balance, so they can cost you interest charges as well. It's far less costly to just make your payments on time.\n* Worry less. If you don't have a system for ensuring payments are made on time, you can spend a surprising amount of energy fretting about whether you've made this or that payment already this month, scrambling to transfer funds in the eleventh hour, and otherwise sweating over the state of your bills. We all experience anxiety over things we can't control, and taking charge of a manageable task like bill paying can make your life a little calmer and less stressful.\nA healthy credit history can bring some peace of mind and will promote steady credit score improvement. Checking your credit score and report for free through Experian can help you see how improving your payment history can have a positive effect. As long as you pay your bills on time every month without fail, and attend to the other factors that contribute to credit scores, monitoring your credit scores will be a satisfying endeavor. END
TITLE: What is a Line of Credit? CONTENT: How Does a Line of Credit Work?\n-------------------------------\nA personal credit line is a form of revolving credit that operates much like a credit card: You can write checks or make card payments in any amount up to your borrowing limit, and make payments in variable amounts as long as you meet a monthly minimum requirement. You pay interest only on the funds you borrow, and as you pay down your balance, your available credit is replenished.\nInterest rates on personal LOCs can be significantly lower than those on credit cards. And since you only incur interest if you use the credit line, setting one up can be a good strategy for dealing with unplanned expenses that exceed your emergency savings or other resources.\nPersonal lines of credit have fixed durations, which encompass two distinct phases, each typically lasting three to five years:\n* Draw period: During the initial draw period, you can freely borrow and repay money against your credit line.\n* Repayment period: During the subsequent repayment period, you can no longer borrow against the credit line, and must repay the outstanding balance in a series of fixed monthly payments.\nThe lengths of the draw and repayment periods are spelled out in the terms of the letter of credit loan agreement. END
TITLE: What is a Line of Credit? CONTENT: Unsecured and Secured Lines of Credit\n-------------------------------------\nLines of credit may be secured loans or unsecured loans. With a secured loan, you put up a personal asset as collateral, which the lender can seize if you fail to repay the loan. With an unsecured loan, the lender issues credit after reviewing your finances and credit history and determining you are likely to repay the loan. Unsecured credit is riskier for lenders than secured credit, so they typically charge higher interest rates and fees for unsecured credit lines.\nMost personal lines of credit are unsecured, but there are two popular types of secured personal credit lines:\n* A home equity line of credit (HELOC) allows you to borrow against the equity in your home—that is, the amount by which its appraised value exceeds the unpaid balance on your mortgage—and uses your home as collateral. You can typically borrow 60% to 85% of your home's equity. If, for example, you have paid off $200,000 in mortgage principal on a $500,000 mortgage, your unpaid principal equals $300,000; and if your home is appraised for $600,000, your equity would be that appraised value less the unpaid principal ($600,000 ᠆ $300,000), or $300,000. If a lender agreed to lend you 85% of your home equity, in this example, you could qualify for a HELOC of up to $255,000.\n HELOCs typically have draw periods of five to 10 years, followed by repayment periods of 10 to 20 years.\n* A CD-secured line of credit uses money you have on deposit in a certificate of deposit (CD) as collateral. You may be able keep a CD-secured line of credit open for more than the three- to five-year spans that are common with unsecured personal lines of credit. END
TITLE: What is a Line of Credit? CONTENT: How Lines of Credit Compare with Personal Loans and Credit Cards\n----------------------------------------------------------------\nThe most popular forms of unsecured loans available from financial institutions are lines of credit, personal loans and credit cards. Here's a look at their similarities and differences.\nHere are the main ways these forms of credit differ from one another:\n* Lump sum vs. credit line: With a loan, the amount you borrow is delivered in a lump sum and you must start making monthly payments (including interest charges) immediately and continue for the duration of the loan—typically 24 to 60 months. With a LOC or credit card, you have access to a maximum amount of cash—your credit line or borrowing limit—but you don't pay interest or make payments until you use your credit.\n* Payment amounts: A loan requires you to pay an identical amount every month for the life of the loan. With a credit line or credit card, you can pay back what you owe in payments of any amount at or above a specified monthly minimum. That means you can save on interest charges if you pay off your balance with a few large payments, or spread smaller payments out over a longer time span, and pay more in interest.\n* Cost: It typically costs less to use than it does a credit card. Some personal lines of credit currently have interest rates of 8.25% to 15%. That compares to an average credit card interest rate of about 16.3% these days and average annual rates on two-year personal loans of 9.58%.\n* Getting cash: It's much easier (and less costly) to get cash from a personal LOC or personal loan than from a credit card. With a personal loan, you receive a lump-sum cash payment, and with a personal credit line, you typically get a checkbook and a debit card you can use for purchases or cash withdrawals. Taking out a cash advance from a credit card can be much more expensive. Card issuers typically charge higher interest rates on cash advances than they do ordinary purchases, and many also charge additional fees on each cash advance.\n* Length of term: You can keep a credit card account open indefinitely if you keep the card active and make payments as agreed, but loans and personal LOCs have fixed durations. END
TITLE: What is a Line of Credit? CONTENT: What to Do if Your Personal Line of Credit Is Closed\n----------------------------------------------------\nIn recent months, some lenders have indicated a desire to stop offering unsecured personal lines of credit. If your lender informs you it is closing your personal line of credit, you should be aware that the action could adversely affect your credit score, even if you have no outstanding balance on the LOC. That's because closure of a credit line like the closure of a credit card account, lowers your total available credit. If you have an outstanding balance on your LOC or any other revolving credit account, less available credit increases your credit utilization—the percentage of your available credit represented by your outstanding balances. Utilization greater than about 30% can cause a significant decrease in your credit score.\nIf a lender plans to close your personal LOC, you have options for replacing this source of credit, including:\n* Take out a new personal LOC at another financial institution. You may be able to get a personal credit line at another financial institution. If you do so, consider keeping the new account active by using it to make a small regular monthly payment, such as a media-streaming subscription or gym membership, that you can easily pay in full each month. Doing so can prevent the new LOC from being closed due to inactivity, without running up interest charges.\n* Open a credit card account. As detailed above, this won't give you the same options as a personal LOC, and the interest charges are likely to be higher, but a credit card account with a borrowing limit close to that of your closed LOC can help you cover emergency expenses. It will also increase your available credit, and may offset some of the credit score damage caused by a rise in utilization. You can find cards you may qualify for using Experian CreditMatch™, which provides offers based on your unique credit profile. END
TITLE: What is a Line of Credit? CONTENT: How a Line of Credit Can Impact Your Credit Score\n-------------------------------------------------\nAs with a card account, your management (or mismanagement) of a personal credit line can have a major impact on your credit scores.\nIf you run up a balance on a personal line of credit and fail to make a minimum monthly payment, your credit score could suffer significantly. Payment history is responsible for about 35% of your FICO® Score☉ , making it the most important scoring factor.\nIf you use more than about 30% of the borrowing limit on a personal LOC, you can expect your credit scores to go down and to stay somewhat depressed until you repay enough of the balance to reduce your credit utilization. The amount you owe on your accounts is responsible for about 30% of your FICO® Score—and credit utilization factors heavily in that category.\nWhen you apply for a personal line of credit, the lender typically conducts a credit check, which leads to a hard inquiry on your credit report. A hard inquiry can cause a short-term drop in credit score, which typically recovers in a few months as long as you keep up with your bills.\nOpening a personal credit line can increase the variety of accounts you have on your credit report. Also known as credit mix, this factor accounts for about 10% of your FICO® Score.\nIf you want to see how a personal line of credit could affect your credit scores, consider signing up for Experian's free credit monitoring service, which will give you access to your credit report and FICO® Score and will alert you when your credit file changes. END
TITLE: What is a Line of Credit? CONTENT: The Bottom Line\n---------------\nA personal line of credit can be a valuable source of cash for emergencies or ongoing projects such as home repairs, and it can be a more affordable form of revolving credit than a credit card. END
TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Although there's no magic number that will guarantee you'll have saved enough money to retire worry-free, you can consider retirement savings guidelines that aim to help you figure out whether you're on track. Fidelity Investments suggests saving at least six times your annual salary by age 50 to retire comfortably at age 67, the age at which people born after 1960 are eligible to receive full Social Security benefits. This estimate assumes you are saving 15% of your income, plan to withdraw no more than 4% to 5% of your savings each year, and that you'll live a good long life to the age of 93.\nThe savings you'll need may be greater if you plan to retire earlier—or less if you continue working until maximum Social Security benefits kick in at 70. Lifestyle factors will also affect how much you need to save for retirement. Will you receive a pension from work? Do you anticipate major lifestyle changes, such as selling your home, traveling the globe or taking up expensive hobbies? END
TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Factors to Consider When Saving for Retirement\n----------------------------------------------\nStart with a gut check. Suppose you want to retire at 67. By the time you reach this age, Fidelity suggests that you have 10 times your salary in retirement savings at the time you retire and plan to withdraw 4.5% of your total savings per year (based on the total amount you have saved when you start retirement). If your salary is $80,000, your numbers might look something like this:\nSource: Fidelity Investments\nTo get a rough picture of what your own retirement finances might look like, ask yourself these basic questions:\nWhat are your expected sources of retirement income?\n* Estimate your Social Security benefits. How much you receive depends on your eligibility, earnings over the years and your age when you begin drawing benefits. Using our example of someone earning $80,000 per year, Social Security benefits would be $1,630 monthly at age 62, $2,454 monthly if they retired at 67 and $3,100 at age 70. You can get a personalized estimate of your projected benefits on the Social Security Administration's website.\n* Get details on any pension program(s) you qualify for.\n* Add in any sources of passive income (and consider developing passive income if you don't have any yet).\n* Take inventory of your retirement accounts: 401(k)s, IRAs, Roth IRAs and regular savings you've earmarked for retirement.\nWhat are your baseline monthly expenses?\n* Review your budget or create one.\n* Think about which expenses are likely to continue in retirement and which ones you can eliminate.\n* Factor in the cost of any dependent children who will require support or college tuition.\nWhat is your plan for housing?\n* Will you have rent or a mortgage payment?\n* Are you thinking of downsizing your home? Would you make money by doing so?\n* Would you like to move?\n* Are you eligible for a reverse mortgage?\nIs health a concern?\n* Honestly assess whether chronic health conditions might be a factor in how long you work or whether you're likely to require prolonged medical care.\n* Consider the ongoing cost of maintaining your physical and mental health, including everything from long-term care insurance to medical care, a gym membership or prescription medications.\nEven if your estimates are vague—or you expect to alter your plans by the time you retire—it's helpful to think through what your retirement might look like and how much it might cost. At 50, you still have time to save more, adjust the timing of your retirement or otherwise alter your plans. END
TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: How to Save More Money\n----------------------\nWhat if your projected retirement savings just won't be enough? Here are eight tips for maximizing your retirement savings, starting now:\n* Don't wait. The very best time to begin saving for retirement is when you're young, but the second best time to start saving is right now. Compound interest or investment growth will make the value of every dollar you put away now significantly larger by the time you retire.\n* Take full advantage of employer-matched 401(k) contributions. You'll double your contribution on day one, which is an unmatched opportunity.\n* Look into Roth IRAs. Although you can't deduct Roth IRA contributions from your taxes now, your future withdrawals will be tax-free. This means your Roth IRA funds go further in retirement.\n* Automate your retirement savings. Having contributions deducted from your account automatically takes away some of the temptation to spend it instead.\n* Eliminate as much debt as possible. The interest you're paying now may slow down your rate of savings. And the less debt you have in retirement, the less income you'll need.\n* Create extra income to help fund your retirement. Even a little money from a side job or freelance gig can help you beef up your savings without cutting into your regular income.\n* Look for ways to spend less and save more. Make a budget and stick to it, adjusting as needed.\n* Talk to a financial advisor. Preparing for retirement can be a long, complex process. A financial advisor can help you make sense of your options. END
TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Thinking Through Your Future Finances\n-------------------------------------\nAlthough saving six times your annual salary is a helpful milestone for age 50, your retirement needs are unique to you. To understand how much you'll really need—and what it takes to get there—take the time to run actual numbers, then consider how your expectations match up against resources.\nAs you're thinking about your future finances, don't overlook the value of credit. Good credit can open doors for you and help you keep your options open if you want to resize or refinance your home down the road. Monitoring your credit starting now will help keep you on the right path all the way to retirement. END
TITLE: What Is a Solo 401(k)? CONTENT: How a Solo 401(k) Works\n-----------------------\nThis type of retirement account, also known as an individual 401(k) or one-participant 401(k), has the same rules and requirements that apply to traditional 401(k)s. The only difference is that it's designed specifically for business owners who don't have employees. With a traditional 401(k), the contributions you put in as an employee are tax-deductible. That means they reduce your taxable income today—a nice perk during your working years. Your employer may also choose to match some or all of your contributions. Solo 401(k)s are no different, but they are unique in that the business owner fulfils both roles—acting as both the employee and the employer.\nYou can make regular contributions to the solo 401(k) and, as the employer, you can also kick in a certain percentage of your total compensation. This sets the stage for higher contributions when compared with regular 401(k)s or individual retirement accounts (IRAs). But just like these accounts, you'll be taxed on the withdrawals you make in retirement. If you choose to tap your account balance prior to age 59½, you may also be hit with a 10% penalty. END
TITLE: What Is a Solo 401(k)? CONTENT: How Much Can You Contribute to a Solo 401(k)?\n---------------------------------------------\nContribution limits for a solo 401(k) are unique since the business owner serves as both the employee and employer. If you have a one-participant 401(k) in 2021, you can contribute as follows:\n* As the employee: Up to $19,500 of earned income. Those who are 50 or over can contribute up to $26,000.\n* As the employer: Up to 25% of your compensation. If you're self-employed and your business isn't structured as a corporation, you can calculate your earned income by taking your net earnings and subtracting the following:\n * Half of your self-employment tax\n * Contributions for yourself\nWhen taken together, total contributions to a solo 401(k) must not exceed $58,000 in 2021. That number jumps up to $64,500 for those 50 or older. This figure includes both the elective deferrals you make as the employee _and_ contributions on the employer side.\nAnother distinctive feature of a solo 401(k) is that it extends to one other person besides the business owner. If your spouse also earns income from the business, they can enroll in the plan as well—potentially accelerating your family's retirement contributions in the process.\nWhat Are the Tax Benefits of a Solo 401(k)?\n-------------------------------------------\nA one-participant 401(k) has a number of tax advantages that make it an attractive retirement savings plan for self-employed workers.\n* Your contributions are tax-deductible. As previously mentioned, the money you put into a solo 401(k) as an employee will reduce your tax liability during your pre-retirement years. That money also enjoys tax-deferred growth. There are some tax benefits on the employer side as well. Profit-sharing contributions count as a deductible business expense for businesses that are incorporated. If not, they'll likely count as a personal income deduction.\n* You can opt for a Roth solo 401(k). Traditional 401(k)s are funded with pretax dollars; not so with Roth 401(k)s. These types of retirement accounts are funded with contributions that have already been taxed. While you'll miss out on the tax deduction today, you can enjoy tax-free distributions in retirement.\nHow to Open a Solo 401(k)\n-------------------------\nIf you decide that a solo 401(k) is right for you, opening one isn't unlike opening an IRA. You can establish this type of account with many investment brokerages. Be prepared to provide an employer identification number (EIN) and appoint a plan administrator (most likely you). Once you've completed all the paperwork, you can choose your investment options. Some brokers provide additional assistance with this, so it's wise to review all fees and investment support before finalizing your plan.\nManaging your solo 401(k) plan should be pretty straightforward since there are only one to two participants. Just keep in mind that the IRS will require you to file Form 5500-EZ annually once your plan exceeds $250,000 in assets. That said, another perk of a solo 401(k) is that it allows you to borrow against it. While taking out a 401(k) loan isn't generally advised because it can set back your retirement savings, it could serve as a last resort in a financial emergency. \nThe Bottom Line\n---------------\nA one-participant 401(k) is a retirement plan designed specifically for business owners with no employees. It can allow for larger contributions while providing notable tax benefits along the way. Consider it another financial resource to keep in your toolbox. The same can be said for monitoring your credit—something you can do for free with Experian. It's a simple move that can help detect potential fraud and keep your financial health going strong. END
TITLE: What Is a Solo 401(k)? CONTENT: What Are the Tax Benefits of a Solo 401(k)?\n-------------------------------------------\nA one-participant 401(k) has a number of tax advantages that make it an attractive retirement savings plan for self-employed workers.\n* Your contributions are tax-deductible. As previously mentioned, the money you put into a solo 401(k) as an employee will reduce your tax liability during your pre-retirement years. That money also enjoys tax-deferred growth. There are some tax benefits on the employer side as well. Profit-sharing contributions count as a deductible business expense for businesses that are incorporated. If not, they'll likely count as a personal income deduction.\n* You can opt for a Roth solo 401(k). Traditional 401(k)s are funded with pretax dollars; not so with Roth 401(k)s. These types of retirement accounts are funded with contributions that have already been taxed. While you'll miss out on the tax deduction today, you can enjoy tax-free distributions in retirement. END
TITLE: What Is a Solo 401(k)? CONTENT: How to Open a Solo 401(k)\n-------------------------\nIf you decide that a solo 401(k) is right for you, opening one isn't unlike opening an IRA. You can establish this type of account with many investment brokerages. Be prepared to provide an employer identification number (EIN) and appoint a plan administrator (most likely you). Once you've completed all the paperwork, you can choose your investment options. Some brokers provide additional assistance with this, so it's wise to review all fees and investment support before finalizing your plan.\nManaging your solo 401(k) plan should be pretty straightforward since there are only one to two participants. Just keep in mind that the IRS will require you to file Form 5500-EZ annually once your plan exceeds $250,000 in assets. That said, another perk of a solo 401(k) is that it allows you to borrow against it. While taking out a 401(k) loan isn't generally advised because it can set back your retirement savings, it could serve as a last resort in a financial emergency. END
TITLE: What Is a Solo 401(k)? CONTENT: The Bottom Line\n---------------\nA one-participant 401(k) is a retirement plan designed specifically for business owners with no employees. It can allow for larger contributions while providing notable tax benefits along the way. Consider it another financial resource to keep in your toolbox. The same can be said for monitoring your credit—something you can do for free with Experian. It's a simple move that can help detect potential fraud and keep your financial health going strong. END
TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: A credit counseling agency is an organization that helps you get out of debt and manage your money. Credit counseling agencies, also sometimes called debt counseling agencies, focus on financial education and work with you to navigate the debt paydown process and offer strategies to help you avoid taking on more debt than you can afford in the future.\nA vital service credit counseling agencies can offer is helping you understand your credit report and score. Your credit report—and credit score based on the information in your report—is important because it tells lenders how risky it might be to lend you money. Reviewing your report to ensure all the information there is correct, as well as understanding areas for improvement in your credit score, are good first steps in helping get your debt under control. You can review your Experian credit report and credit score for free to get an idea of what's there before you meet with a credit counselor.\nCredit counseling agencies can also help you:\n* Get a realistic picture of your finances\n* Help you make a budget\n* Give you a better understanding of how debt works\n* Know your rights and responsibilities as a borrower\n* Provide free workshops and materials\n* Create a debt management plan to pay down your debts\nCredit counseling agencies can be helpful in many ways, but at a minimum, you can expect them to review your income and expenses, create an action plan for getting back on track, and make recommendations for managing your credit. END
TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: Should I Use a Credit Counseling Service?\n-----------------------------------------\nUsing a credit counseling service isn't for everyone, but there are some telltale signs it could be helpful to you, especially if you:\n* Regularly miss credit card payments\n* Struggle to pay your mortgage\n* Consistently pay credit cards late\n* Make only the minimum payments on credit cards\n* Are surprised by unforeseen bills or expenses\n* Are receiving calls from collection agencies\n* Have difficulty understanding your credit report\n* Live paycheck to paycheck\n* Feel overwhelmed by your debt\nBefore you find a credit counselor, it's essential to take a few minutes to consider your \"why\": Are you trying to find ways to improve your overall financial health? Did you just receive an unexpected debt collection notice? Are you trying to avoid accruing even more interest on your debt? Whatever your biggest needs are, jot them down so that you can make the best use of your time with a counselor. END
TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: How Do I Choose a Credit Counseling Agency?\n-------------------------------------------\nOnce you've figured out what areas you need help with, you'll need to find a credit counseling agency that can help you work through your financial issues. It can be hard to know whom to trust with something as important as your financial well-being. Fortunately, there are trustworthy resources available to help match you with a certified credit counselor. The first step is to look for nonprofit agencies that work with certified credit counselors. The two most well-known resources are:\n* The National Foundation for Credit Counseling (NFCC): This nonprofit financial counseling organization and its member agencies offer a free online assessment to determine if financial counseling is right for you. Their website is easy to navigate, and you can arrange an appointment with a certified counselor online or over the phone.\n* Financial Counseling Association of America (FCAA): FCAA is another nonprofit resource that lets you search for certified agencies by state and also offers the Debt Decisioning Tool, a free calculator to help you get a good snapshot of your current financial health.\nThese organizations can connect you with certified credit counselors. Once you've developed a list of potential credit counseling agencies, make sure the agencies you're considering are certified by checking the U.S. Department of Justice's list of agencies approved by state. Also check with your state's attorney general's office, local consumer protection agency and the Better Business Bureau to see if there are any customer complaints against the agency and make sure they're in good standing.\nAsk the counselors for free information about their services and see if their expertise lines up with your list of needs and priorities. A reputable credit counseling organization should be willing to send you free information about itself and the services it provides without requiring you to give any details about your situation. If a service doesn't do that, consider this a red flag and go elsewhere for help.\nCredit counseling agencies are not the same as for-profit \"credit repair\" companies, which charge fees and make promises to change information on your credit report. These companies often are scams and should be avoided. END
TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: How Much Does Credit Counseling Cost?\n-------------------------------------\nAre you worried about the prospect of going into even more debt to pay for credit counseling services? You'll be happy to know that many nonprofit credit counseling agencies offer helpful services at no charge. In fact, the first step of any credit counseling service is a free budget and debt counseling appointment. Your selected advisor will get information from you regarding your financial situation, explain your options for managing your debt, offer recommendations, and help you develop a plan to meet your goals.\nSome additional services may come with a fee, however. For example, you might decide to enroll in a debt management plan. With this arrangement, you make a single, recurring payment to the credit counseling agency. In turn, the agency makes monthly payments to each of your creditors (with whom they may negotiate reduced payments or interest charges). Typically these plans have an initial application fee and an additional monthly fee, which is either a fixed rate or a percentage of your debt. The industry average application fee is around $75, and a typical monthly cost might be between $25 and $55 per month.\nA word of caution: If a counseling service asks for payment before they've even met with you for an initial consultation, it could be a scam. No certified, nonprofit agencies found through FCAA or NFCC will require upfront payment before you meet.\nWith many certified nonprofit credit counseling agencies offering free initial consultations, there's not much downside to enlisting the help of a counselor other than a bit of your time. Understanding the services they offer and how they might be able to help you navigate your debt payments could be well worth it. END
TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: The Bottom Line\n---------------\nCredit counseling could be an excellent way to get back on track with your finances if you struggle to cover payments due to low income or too high expenses that don't leave you enough money for living costs. There are many resources to help you along your journey, including Experian's debt resource center.\nMonitoring your credit can help you understand your current debt situation and also help you track your progress as you begin your debt paydown. Experian offers free credit monitoring, which allows you to check your credit regularly and will also update you when there's a change to your Experian credit report so you can keep an eye out for any potentially fraudulent activity. END
TITLE: 10 Alternatives to Payday Loans CONTENT: Why Should I Avoid Payday Loans?\n--------------------------------\nTaking out a payday loan is one of the most expensive ways to borrow money. A two-week payday loan with a fee of $15 per $100 borrowed would result in fees equivalent to an annual percentage rate (APR) of nearly 400%, according to the Consumer Financial Protection Bureau. By comparison, credit cards have an average APR of around 16%.\nA common amount for a payday loan is $500, although it may be more or less. Generally, a borrower repays the entire loan on their next payday or when they receive another type of payment, such as a Social Security check. The timeframe for paying off a payday loan usually ranges from two to four weeks. Most payday loans don't require a credit check or proof that you can repay the loan.\nIf you fail to pay off the loan within the time period spelled out in your lending agreement, you might be able to extend the loan through what's known as a renewal or rollover. However, you may be hit with a renewal or rollover fee of $45, for example, on top of the principal and interest already owed. This cycle could continue every time you renew or roll over a payday loan, perhaps resulting in several hundred dollars in extra fees.\nSome states ban payday loans, and some payday lenders don't do business in states where interest rates and fees are tightly regulated. The maximum size of payday loans is regulated in other states. END
TITLE: 10 Alternatives to Payday Loans CONTENT: What Are Better Alternatives to Payday Loans?\n---------------------------------------------\nThankfully, a payday loan isn't your only option for quickly accessing cash. Here are 10 better alternatives.\n### 1\\. Consider a Payday Alternative Loan (PAL)\nCredit unions that are members of the National Credit Union Administration offer payday alternative loans (PALs). You could use money from a PAL to avoid a payday loan or to pay off an existing one. Lower-cost PALs give a borrower more time to pay off a loan than a payday loan does.\nA credit union can charge an application fee of up to $20 for a PAL. PAL amounts can range from $200 to $1,000, with the payoff period lasting one to six months. As many as three PALs may be given to the same borrower during a six-month period, as long as no PAL overlaps or rolls over.\nCommonly, credit unions offer PALs with APRs comparable to that of credit cards.\n### 2\\. Apply for a \"Bad Credit\" Personal Loan\nInstead of getting a payday loan, you may be able to qualify for a \"bad credit\" personal loan. A number of lenders offer these loans for amounts that range from $500 to $10,000. However, APRs can commonly be quite high, and you may wind up paying an origination fee or other charges too.\nUnlike home and auto loans, these loans don't require you to put up property as collateral. They typically require a credit check.\n### 3\\. Borrow From Family or Friends\nIf you're in a financial bind, a family and friends loan may be a great way to dodge a high-interest payday loan. In fact, you may even be able to borrow money with no interest.\nRegardless of the interest rate you decide on, put your loan agreement in writing. This contract should include the amount of money you're borrowing, the interest being charged or the collateral being used, the payoff period, and the payment amounts and due dates.\nFailure to repay a loan of this type won't hurt your credit, but it can result in legal action and a severed friendship or strained family relationship.\n### 4\\. Ask Your Creditor About a Payment Plan\nIf you're short on cash, borrowing more might not be a great option. Instead of going down that road, you might try asking your creditors whether they'll put you on a payment plan.\nUnder this kind of plan, you agree to pay a smaller amount of money each month over a certain period of time. While you might end up paying more interest under a payment plan, it could ease your current cash crunch without causing you to take on more debt.\n### 5\\. Seek Help From a Credit Counselor\nA nonprofit credit counseling agency may be the way to go if you feel like you're swimming in debt.\nA certified credit counselor can help you pay off your debt faster, lower your interest rates, work with you on a household budget and improve your financial situation. Depending on which services you utilize, nonprofit credit counseling agencies may provide their services at little to no cost.\n### 6\\. Get a Side Hustle\nDo you have a little extra time on your hands? If so, you may be able turn that time into cash through a side gig. Here are a few examples:\n* Become an online tutor.\n* Sell unused or retired clothing online.\n* Do part-time freelance work, such as web design, writing or graphic design.\n* Drive for a ride-hailing service like Uber or Lyft.\n* Sell craft items that you make, such as quilts or jewelry.\n### 7\\. Consider a Low-Interest Credit Card\nAlthough your credit may be a bit wobbly right now, you might be able to get a low-interest credit card (or at least a card with an APR that's considerably lower than the APR for a payday loan). Use Experian CreditMatch™ to see whether you can qualify for a low-interest card. If you're having a hard time paying back credit card debt, a balance transfer card can give you some breathing room. You'll typically need good credit or better to qualify for a credit card with a low interest rate.\n### 8\\. Explore Lending Circles\nAs a member of a lending circle, you can borrow money from other people at no cost to pay off high-interest loans, cover emergency expenses, buy a car and so forth. A lending circle includes six to 12 people. Loan amounts range from a couple hundred dollars to thousands of dollars. Mission Asset Fund operates one of the most well-known lending circles.\n### 9\\. Investigate Peer-to-Peer Loans\nPeer-to-peer loans are available through online platforms, such as LendingClub and Prosper, that match potential borrowers with investors willing to issue loans. At Prosper, APRs range from 7.95% to 35.99%. LendingClub advertises APRs from 7.04% to 35.89%. Keep in mind that peer-to-peer loans typically come with fees based on the percentage of the amount you've borrowed.\n### 10\\. Look Into a Cash Advance From a Credit Card\nA credit card cash advance typically charges a lower interest rate than a payday loan. Keep in mind, though, that the APR for a cash advance from a credit card may be higher than the APR for purchases made on the same credit card. You'll also be charged a fee for withdrawing a cash advance (3% or 5% of the amount borrowed is common). Beware of the potential to increase your credit utilization (which can hurt your credit) and accrue large fee and interest charges, however. END
TITLE: 10 Alternatives to Payday Loans CONTENT: The Bottom Line\n---------------\nPayday loans are easy to get, but consumers can pay a steep price for that convenience. Many alternatives are worth considering. In a lot of cases, you'll want to get your free credit score and free credit report from Experian to see where your credit stands before applying for an alternative to a payday loan. Doing so can help you narrow your options and better ensure your application gets approved. END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How Do Balance Transfers Work?\n------------------------------\nThe goal of a balance transfer is to save money on interest while you pay off credit card debt. You can move a credit card balance to a new card, but typically, you're not allowed to transfer a balance from one card to another that's issued by the same company or any of its affiliates.\nFor instance, Wells Fargo won't approve a balance transfer from a Wells Fargo Platinum card to a Wells Fargo Active Cash℠ Card because they're both issued by Wells Fargo. But you may be able to transfer a Wells Fargo card balance to a Chase card, for example, if you qualify.\nBeyond credit card debt, you may also be able to move other types of debt, like personal loans, directly to a balance transfer credit card. Or the card issuer may provide paper checks you can use to pay off balances on other accounts, like auto loans or home equity lines of credit (HELOCs). The amount you pay with the check will then be added to your balance transfer card balance and accrue interest at the promotional annual percentage rate (APR). END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How Much Money Can You Save With a Balance Transfer?\n----------------------------------------------------\nThe amount a balance transfer can save you depends on the new interest rate you receive and the length of your 0% APR promotional period.\nFor example, say you have a $3,000 balance on a credit card with an APR of 16.3%. Your minimum monthly payment would be $90, and it would take you 152 months to pay off the balance by paying only the minimum. You'd pay $2,239 in interest charges in that time.\nNow imagine you transfer the $3,000 balance to a card that carries a 0% intro APR, a 3% balance transfer fee and an 18-month interest-free period. If you pay off your balance in 18 months, you'd pay $0 in interest, and your payment would increase to about $167 per month. You'd also pay a $90 balance transfer fee.\nIf you kept your monthly payment the same—$90 rather than $167—you'd take 36 months to pay off your debt. For 18 of those months, you'd pay interest. If your interest rate after the promotional period increased to 14.99%, you'd pay about $252 in interest in total. That's still nearly $2,000 in interest savings compared with not using a balance transfer card at all. END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: What to Consider Before Completing a Balance Transfer\n-----------------------------------------------------\nWhen you're evaluating whether to pursue a balance transfer, consider the following:\n* Credit score requirements: Check your credit score before you proceed. Most balance transfer credit cards require good to excellent credit—670 or higher. If you're not quite there yet, look into ways to improve your score.\n* Effect on your credit score: When you apply for a new credit card, your credit score may dip as a result of a hard inquiry being added to your credit report. The effect will likely be minor, if there's any effect at all. Still, it's something to keep in mind if you're applying for new credit, such as a mortgage, in the near future. On the other hand, transferring a balance could be a way to improve your credit utilization, which is an important credit scoring factor. The new card would increase your overall credit limit and your individual card balance on the card you're transferring the balance from.\n* Balance transfer limits: Your new credit card issuer will take a look at your credit history and determine your credit limit. You can then likely only transfer a certain proportion or dollar amount of that limit to the card. Prioritize transferring the highest-interest debt you can to save the most money.\n* Time period to complete the transfer: You may be allotted as little as 45 to 60 days from account opening to initiate the balance transfer. Make sure you set aside time to do so.\n* Calculate the fees and savings: Since you'll most likely have to pay a balance transfer fee, make sure the interest savings from the transfer justify it. END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How to Complete a Balance Transfer\n----------------------------------\nTo begin the balance transfer process, and to make the most of your card:\n1. Choose the right balance transfer credit card. You'll likely need a good or excellent credit score to qualify. Also specifically look for cards that offer a 0% intro APR for 12 months or longer and as low a balance transfer fee as possible.\n2. Verify the credit limit and fees. You may receive a limit that is less than your total debt. Check the card's fees, transfer and purchase APR, the length of its promotional period, and the circumstances under which you could lose access to the 0% intro APR deal, including making a late payment.\n3. Determine how much to transfer. Consider the new card's credit limit when planning your transfer. The new card's credit limit may mean you're only able to transfer a portion of an existing card's balance. Moving the balance with the highest interest rate will likely save you the most on interest.\n4. Complete your transfer. Verify with the issuer whether you can make the transfer online, and check that you have the necessary information handy, including the original account number, to do so. Make sure to complete the transfer within the time limit the issuer specifies. If you're using a paper check to complete the transfer, make sure you fill it out completely and accurately to prevent any delays.\n5. Use the new card wisely. Continue making payments on your previous balances until your new card's issuer confirms the transfer is complete. Don't make any purchases while you pay down balances on the new card. Additionally, calculate the monthly payment you'll have to make in order to pay off the balance by the end of the 0% APR period. Stick as closely to that schedule as you can. END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: Best Balance Transfer Credit Cards\n----------------------------------\n[](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\nWells Fargo Platinum card\n-------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\non Wells Fargo's website\nRecommended FICO® Score\\\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n* $0 Annual Fee\n* Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n* Easy access to your FICO® Credit Score with Wells Fargo Online®\n* Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n* Convenient tools to help create a budget and manage your spending with My Money Map\n* Select \"Apply Now\" to learn more about the product features, terms and conditions\n* Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\n[](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\nWells Fargo Active Cash℠ Card\n-----------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\non Wells Fargo's website\nRecommended FICO® Score\\\nGood - Exceptional\nWells Fargo Active Cash℠ Card\n-----------------------------\nAPR\n14.99%-24.99% (Variable)\nIntro APR\n0% Intro APR for 15 months from account opening on purchases and qualifying balance transfers\nRewards\n2% cash back on Purchases\nIntro Bonus\nEarn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months\n##### Card Details\n New! Earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months\n* Earn unlimited 2% cash rewards on purchases\n* 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 14.99% to 24.99% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n* $0 annual fee\n* No category restrictions or sign ups and cash rewards don’t expire as long as your account remains open\n* Enjoy a premium collection of benefits at a selection of the world's most intriguing and prestigious hotel properties with Visa Signature Concierge\n* Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Active Cash℠ Card\n* Select “Apply Now” to learn more about the product features, terms and conditions\n* Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=954920.366&type=3&subid=0) END
TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: Is a Balance Transfer the Right Option for You?\n-----------------------------------------------\nConsider a balance transfer if your credit qualifies you for a card with a promotional 0% APR period and you can commit to paying off the whole balance, or at least a significant portion of it, in that time. A balance transfer might also be a good option if you can find a card with no balance transfer fee or the amount you'd pay in fees wouldn't cut notably into your savings.\nIn the right circumstances, a balance transfer can be a ticket to freedom from overwhelming debt, or a meaningful step in that direction. END
TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Will Federal Student Loan Forbearance Be Extended?\n--------------------------------------------------\nThe CARES Act not only paused payments on federal student loans but also dropped interest rates to zero and halted collection efforts by the Department of Education on loans that are in default.\nThe initial provision was slated to end September 30, 2020, but the Trump and Biden administrations both issued extensions. According to the Biden administration, the August extension to January 31, 2022, will be the last one issued, so student loan borrowers should start thinking now about how they'll pay down their student loans once it ends. END
TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Depending on your situation and budget, there may be several ways you can approach paying down your student loans. While the CARES Act provisions dropped the minimum required payment to $0, you still owe the full balance remaining on the loan. Here are some ways you can start thinking about preparing for student loan payments to start up again.\n### Make a Budget\nIf you don't already have a budget in place, now may be a good time to start using one. A budget is a simple way to help you understand exactly where all of your money is going.\nTo make a budget, start by writing down your income and expenses from the last few months to get an idea of where your money is coming from and where it's going. Depending on your comfort level, break out your expenses into different categories—the more categories you have, the easier it will be to make decisions about how to allocate your spending.\nWith that information in mind, you can start planning how you want to spend your money for the upcoming month, including your student loan payment. Check with your loan servicer to confirm your payment amount in advance, as it's possible it may have changed. Once student loan payments start up again, your budget will help you make sure you have enough cash flow for that expense, along with all of your other ones.\n### Cut Costs\nIt's been a long time since student loan payments were required, and your budget may have changed significantly by now. If you've started using the money that would have otherwise gone to student loan payments for other purposes, you may have to cut back in certain areas of your budget.\nIf you've improved your financial footing, however, you could consider putting more toward your student loans than is required. Even a little extra every month can shave off months of repayment and hundreds or even thousands of dollars in interest.\nAs you look for areas to cut back, be honest with yourself but also reasonable, so you can achieve your debt payoff goals while also being able to pay your other bills on time.\n### Earn More Income\nIf you have the time, you may also look into opportunities to earn more income. This may include working overtime at your current job, taking on a second, part-time job or starting a side hustle.\nIf you're thinking about getting a side hustle, opportunities are plentiful, so do some research based on what you enjoy doing or what you're good at to find the right fit.\nSome common side hustle options include:\n* Driving for Uber or Lyft\n* Delivering food or groceries for apps like DoorDash and Instacart\n* Buying and selling used items online\n* Renting a room on a short-term rental website\n* Performing odd jobs on Craigslist, Mechanical Turk or Thumbtack\n* Tutoring young students\n* Becoming a mystery shopper\n* Walking dogs\nTake some time to consider several options, including the time requirement, flexibility and pay, to find the best one for you. END
TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: What to Do if You Can't Afford Your Student Loan Payments\n---------------------------------------------------------\nWhile many student loan borrowers have managed to get back on their feet financially since the economy was hit hard by the pandemic, others may still be experiencing financial hardship.\nIf you believe you might still have trouble paying your student loans once the federal student loan payment pause ends, here are some potential solutions:\n* Request forbearance or deferment. The federal government offers forbearance and deferment for people experiencing financial difficulties. Your options may depend on your situation, so contact your student loan servicer directly for more information. \n* Get on an income-driven repayment plan. The Department of Education offers four different income-driven repayment plans, all of which can reduce your monthly payment to 10% to 20% of your discretionary income. That way, you don't have to worry about the end of a forbearance plan creeping up on you and being right back where you started. Income-driven repayment plans also extend your repayment plan up to 20 or 25 years, after which any remaining balance is forgiven.\nThese options can provide immediate relief and potentially help you get to where you need to be financially to continue paying down your student loan debt.\nStudent loan refinancing can be another way to reduce your monthly payments, but private lenders typically don't offer income-driven repayment plans, and their forbearance options are often less generous than what the federal government provides. END
TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Monitor Your Credit as You Pay Down Your Debt\n---------------------------------------------\nRegardless of how you approach your student loan debt, it's important to keep track of your credit score and credit reports.\nWith Experian's free credit monitoring service, you'll be able to keep track of your FICO® Score☉ and regularly review your Experian credit report to understand what impacts your score and to address issues as they come up.\nYou'll also get real-time alerts when changes are made to your credit report, such as a new account or inquiry. As you monitor your credit, you'll be better positioned to build a strong credit history and to prevent potential negative items from doing significant damage to your credit score. END
TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: A personal line of credit is similar to a credit card account. A bank or other financial institution extends a line of credit with the invitation to access this money up to a certain amount whenever you need it. Any money you use becomes revolving debt that you pay back over time just like you would with a credit card, with minimum payments and no early repayment penalty. Limits depend on a variety of factors, including your credit score. Typical lines range from $1,000 to $25,000 or more.\nInterest rates on personal lines of credit are generally lower than they would be on a credit card, currently starting around 10% with good credit. Lines of credit may have limited terms, typically three to five years. When the term ends, you can continue paying your outstanding balance until it's paid off, but you no can no longer use the account to draw additional money. Secured lines of credit that use certificates of deposit or investment accounts as collateral may offer higher limits, depending on the size of the account. Some lines of credit come with annual fees.\nA long time ago, when credit card payments pretty much always involved using an actual card, a personal line of credit was a handy way to pay bills or cover expenses that did not accept a card for payment. You might have used it to cover overdrafts on your checking account, for example, or medical bills. Now that you can pay for almost anything with a credit card, the benefit of a personal line of credit may be more psychological than functional: It's a way of borrowing a set amount of money at a decent interest rate and paying it back as a separate debt over time. END
TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: How Does a Personal Line of Credit Affect Your Credit?\n------------------------------------------------------\nCredit reporting agencies typically track personal lines of credit as revolving credit, like a credit card account. Since a credit line is treated as revolving debt, both your maximum credit line limit and your balance affect your credit utilization. Your payment history is also reflected on your credit report, which could help or hurt your score depending on how you manage the account. Here's more detail on how a personal line of credit affects your credit:\n* Available credit on your personal line of credit can improve credit utilization, which accounts for 30% of your FICO® Score☉ . To calculate your credit utilization ratio, divide your total credit limits by your total debt on credit cards and personal lines of credit. Quick example: If the credit limits on your credit cards and personal line of credit add up to $40,000, and you have $4,000 in combined debt, your credit utilization is 10%.\n* Debt on your personal line of credit adds to your revolving debt, along with your credit card balances. Revolving debt raises your credit utilization. When credit utilization approaches and climbs above 30%, it has a greater potential to harm your credit; those with the highest credit scores tend to keep it under 10%.\n* On-time payments on your line of credit help your credit score. Payment history is the most heavily weighted factor in calculating your credit score, accounting for 35% of your FICO® Score. On the other hand, payments that are 30 days or more late can stay on your credit report and affect your score for up to seven years.\n* A long-standing personal line of credit adds to your length of credit history. However, a new line shortens your overall history of accounts as will closing a personal line of credit. A shorter credit history may lower your credit score.\nWhat if your bank closes your personal line of credit before your term is up? As these accounts become less common, some banks may stop offering them or even close accounts. If this happens, your available credit would shrink and your length of credit history could drop. A reduced credit limit could affect your overall credit utilization ratio. If this happens to you, contact your bank to find out what arrangements they might be able to make to help minimize the impact to your credit. END
TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: 5 Reasons a Personal Line of Credit May Not Be a Good Fit\n---------------------------------------------------------\nAs personal lines of credit become less popular with financial institutions, new types of credit are replacing them. Here are a few reasons you might not want to choose a personal line of credit—and what you might choose instead.\n1. You can't find a personal line of credit. Not every bank offers personal lines of credit. As with any type of credit, you'll have to shop for good terms.\n2. Your credit card offers a pay-in-installments feature. Some credit cards now allow cardholders to separate out large purchases and pay them off in regular installments over time. My Chase Plan, offered on Chase cards like the Chase Freedom Flex℠, is one example. This will allow you to pay off your purchase off as if it's a separate loan.\n3. A personal loan works just as well. If you want to borrow a set amount of money at a favorable interest rate, a personal loan might work for you. Bonus: Personal loans count as installment loans, not revolving debt, so your credit utilization won't be affected.\n4. You can buy now, pay later, often without interest, using a company like Klarna or Afterpay. No interest beats low interest any day.\n5. A home equity line of credit (HELOC) is a better fit. Although some personal lines of credit offer six-figure limits, a HELOC may be more appropriate if you're hoping to take on a major home repair or renovation. A HELOC may offer a lower APR and a larger credit line. The downside: Your home is collateral, and can be at risk of repossession if you default on your loan.\nA personal line of credit—or any of the choices listed above—is a better option than a payday loan or title loan, either of which can trap you into a cycle of debt with ultra-high interest rates, and ballooning payments. END
TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: The Right Kind of Credit for Your Situation\n-------------------------------------------\nIf you're concerned about how a personal line of credit might affect your credit, this is an excellent opportunity to get up to speed on your credit file. Check your credit score and report for free with Experian anytime to get a clear, personalized picture of how you're managing your credit—and what you can do to improve.\nIn the meantime, a personal line of credit can be a useful tool for managing and diversifying your overall credit portfolio. With so many options available in the market for credit, you have an excellent chance of finding a solution that fits your situation and needs. END
TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: All standard homeowners insurance policies include liability coverage. This insurance protects you if a visitor is injured on your property, or if you or a family member living in your home accidentally hurts another person or damages their belongings off your property. If your children are playing football and break a neighbor's window, for example, home liability insurance can pay for it.\nThe two key components of home insurance liability coverage are _personal liability coverage_ and _medical expense coverage_.\nPersonal liability: If you're sued due to a covered incident, homeowners insurance liability coverage pays for (and usually appoints) an attorney for you. It also pays damages for which you're found responsible, up to the limits of your coverage.\nMedical expenses: When a visitor is injured on your property, the policy may help pay their medical bills, even if they have health insurance. It's no-fault coverage, which means the injured party can generally submit medical bills to your insurer without filing a claim against you.\nTypically, home liability insurance also covers:\n* Lost wages: If the injured person can't work due to their injuries and you're found to be at fault, your policy can reimburse them.\n* Pain and suffering: These can result if a court awards damages to compensate the injured person for mental, emotional and physical pain from the injury.\n* Death benefits: These include funeral costs and death benefits for survivors if someone dies due to an injury in your home.\n* Libel and slander: Most homeowners liability insurance covers you in lawsuits that accuse you of defaming someone's character. END
TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: What Is Not Covered by Home Insurance Liability?\n------------------------------------------------\nInjuries or damages not covered by home insurance liability commonly include:\n* Injuries to your family members: This is covered by your health insurance.\n* Intentional injury or property damage: If a salesperson falls down your steps, it's covered by liability insurance. If you push them down the steps, it's not covered.\n* Dog bites: The way insurance providers handle dog bites varies. Some won't insure you if you own a breed the insurer considers \"dangerous\" or if your dog has been declared vicious according to your local ordinances. Restraining the dog with a cage or a chain or showing proof of obedience training may qualify you for coverage.\n* Car accidents: These should be covered by auto insurance. Some policies have other out-of-home exclusions, such as boating accidents.\n* Business-related injuries: If you run a business out of your home and someone visiting you for business purposes is injured on your property, that would be covered by business insurance.\nThere may be other exclusions, so review your policy carefully to clarify what is and isn't covered. END
TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: What to Do if Someone Is Injured in Your Home\n---------------------------------------------\nIf you think you or the injured person may want to file a claim, tell the insurance company about the incident right away. (Many policies require notifying the insurer as soon as possible, or the claim may not be covered.) If the person later sues you, inform your insurance company immediately.\nThe process that follows a personal injury is similar to what happens after a car accident. Take photos of any damages or injuries as well as the setting where they occurred. Get names and contact information of any witnesses, as well as the injured person, so your insurance company can contact them to handle the claim.\nFor the injury to be covered, the injured person generally must prove you were somehow negligent, which could mean you're ignoring unsafe conditions on your property or not cautioning visitors. For example, if you warn a visitor to be careful about a loose step on your porch, you're not being negligent. If you know about the loose board and say nothing, you could be considered negligent. END
TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: Do You Have Enough Homeowners Liability Insurance?\n--------------------------------------------------\nLiability claims accounted for just 2.8% of all homeowners insurance claims in 2019. As rare as they are, however, they can be costly. In 2019, the average loss from a liability claim was $22,363. Fortunately, protecting yourself is fairly inexpensive. Home liability insurance usually costs about $10 annually for each $100,000 worth of coverage, according to an Insure.com analysis.\nBut how much liability coverage is enough? In a lawsuit, all your assets could be at risk, including your home, retirement accounts, investments and savings, so liability coverage should provide coverage that's at least equivalent to your total net worth.\nMost homeowners insurance starts with $100,000 worth of liability insurance, but you can buy more. You may also want umbrella insurance, which provides additional coverage in increments of $1 million for liability coverage that exceeds the limits of your home or auto insurance policy. You'll generally need a home and auto policy with the same insurer and at least $300,000 in homeowners liability insurance to buy umbrella coverage. An insurance agent can help you determine the amount and type of coverage you need. END
TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: Protect Your Finances, Protect Your Credit\n------------------------------------------\nWhen accidents happen, home insurance liability coverage can provide peace of mind. So can a good credit score. In most states, insurers review your credit-based insurance score when setting insurance rates. While this isn't the same as your credit score, the two are generally similar, and a poor score can mean you'll pay more for insurance. Checking your credit report regularly and paying bills on time can protect your credit—just like insurance protects your home. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: An authorized user is a person added to a credit card account by the primary cardholder. Anyone can be an authorized user, as long as they meet the card issuer's age requirements; for instance, the primary cardholder may choose to add their child, spouse, partner or close friend as an authorized user.\nThere may be a fee for adding an authorized user. Cards that charge an annual fee might also charge an authorized-user fee, which could be $75 or more.\nWhile an authorized user can make purchases with their card (assuming the cardholder agrees), the liability for making payments lies only with the primary cardholder. The credit card issuer will expect the primary account owner to pay the monthly bill as normal, no matter who made the purchases. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: What Responsibilities Does an Authorized User Have?\n---------------------------------------------------\nOfficially, an authorized user is not expected to pay their portion of the monthly bill directly to the card issuer. But in order to build responsible credit habits—and avoid buying more than they can afford, leaving the account owner with the bill—it's typically a good idea for an authorized user to cover their charges.\nTo keep card balances under control, the authorized user should set up a payment arrangement with the primary cardholder. At the end of each month, for example, the authorized user could transfer an amount equivalent to their purchases to the account owner, or the account owner could send a request on Venmo or another payment app for the charges. Both parties should create accounts on the card issuer's website or mobile app so they can track their purchases. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How Does Being an Authorized User Affect Your Credit?\n-----------------------------------------------------\nAs an authorized user, the credit card account is reflected on your credit report, which can help you make progress toward building a robust credit history.\nFor example, say you're 18 and you've been added to a parent's credit card as an authorized user. A few times a month, you use the card to pay for gas, and you pay your parent for those charges. Meanwhile, your parent uses the card to make purchases of their own, like a new dishwasher and a Netflix subscription. Your parent pays off the full balance each month.\nIf the credit card company reports authorized user activity to the credit bureaus, all of the credit card's characteristics will be reflected on your credit report, including: its credit limit, the amount of credit being used (known as credit utilization) and payment history. If the card's been managed responsibly, meaning no missed payments or high levels of debt, an authorized user account has the potential to improve your credit scores.\nOn the flip side, if your parent misses payments or uses a big portion of their credit limit, your credit may not improve. The impact of negative information depends on how the credit bureau views that history. Experian, for example, won't include the information on an authorized user's credit report if the primary account owner misses payments, but high credit utilization—like a maxed-out credit card—could wind up damaging the authorized user's credit.\nPlus, your own credit history will factor into how much your credit is affected by authorized-user status. If you're new to credit, being an authorized user could have a bigger positive impact than it would for someone who has an established credit history or damaged credit. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How to Add or Become an Authorized User on a Credit Card\n--------------------------------------------------------\nTo become an authorized user, ask a trusted family member or friend to add you to their account. Make sure you can rely on the account owner to pay their bill on time every month, and ideally that they pay their whole balance. The lower their utilization, the better; using more than 30% of an account's credit limit at one time can result in credit score damage.\nSome cards let the primary cardholder set spending limits for authorized users. But even if that's not possible, you can informally agree to spend up to a certain amount each month and pay back the cardholder by a certain date. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How to Remove or Get Removed as an Authorized User on a Credit Card\n-------------------------------------------------------------------\nThe primary account owner can remove an authorized user at any time. It's often possible to do so online, but calling is your best bet if you're unable to find a way to do so on the issuer's website or mobile app. You may also be able to remove yourself by requesting the change directly with the credit card issuer.\nKeep in mind that your credit may be affected after the removal. If it was a card with a long history and you don't have any other accounts of similar age, or you have little credit otherwise, you may see a drop in your credit score. END
TITLE: Credit Card Authorized User: What You Need to Know CONTENT: Managing Your Credit as an Authorized User\n------------------------------------------\nYou can retrieve your free credit report from all three credit bureaus through AnnualCreditReport.com. You can also get your credit report for free directly through Experian, which also offers access to your free FICO® Score☉ . It's always important to keep an eye on your credit, but it's especially urgent when you're eager to build or improve it as an authorized user. Regularly check your credit report and score so that you can determine if becoming an authorized user is helping your score grow. END
TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: Generally, Tuesday, Wednesday and Saturday are the cheapest days to fly, while Fridays and Sundays are pricier, according to travel deal site FareCompare. Leisure travelers tend to fly on the weekends, either starting their vacations on Friday or taking a long weekend Friday to Sunday. Business travelers often return on Fridays and head out on business trips on Sunday evenings. Mid-week flights are cheaper because there's generally less demand from both business and leisure travelers.\nFor example, compare prices for a nonstop, one-way, 7 a.m. Delta flight from New York City's JFK Airport to Los Angeles International Airport in early September. On Sunday, the cheapest fare is $199. Monday, the lowest price drops to $169. On Tuesday, Wednesday and Thursday, the flight costs $119, but on Friday, it jumps to $169. On Saturday, it drops back to $119. END
TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: What's the Cheapest Time of Day to Fly?\n---------------------------------------\nEarly morning and late-night flights tend to be cheaper than midday flights. For example, the aforementioned September Delta flight costs $119 at 7 a.m. on a Saturday, but a 1:57 p.m. flight the same day costs $263—more than double the cost of the early morning flight.\nHowever, guidelines about the cheapest days and times to fly aren't foolproof, especially in the current travel environment. For example, a nonstop, one-way 2:40 p.m. Delta flight from New York City's JFK Airport to Los Angeles International Airport in late August costs $150 Monday through Thursday and $169 on Sunday. Friday, which should be a more expensive day, boasts the lowest price of the week ($146), while a 7 a.m. flight (which should be cheaper) costs $199. END
TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: How to Save Money on Flights\n----------------------------\nYou may save money shifting your travel time and flying out at dawn on Tuesday, but there are other tactics you can use to save on airfare.\n* Do some comparison shopping. Start with third-party travel price comparison sites like Google Flights, Kayak or Skyscanner. Most let you set price alerts on desired routes or see price forecasts. Before buying, check prices on airline websites. Buying direct may save you money and make it easier to change your itinerary if need be.\n* Be flexible with dates. Arriving a few days early or leaving a few days later than planned could save money.\n* Avoid popular dates and seasons. Airfares are higher in the middle of summer, when most people vacation, and right before and after Thanksgiving and Christmas. For instance, Google Flights estimates a one-way, nonstop flight from New York City's JFK airport to Los Angeles International Airport starts at $119 for most of November. The day before Thanksgiving, however, the cheapest price more than doubles to $269; the Sunday after, flights start at $435.\n* Consider connecting flights. Connecting flights are often cheaper than nonstop. Weigh the savings against the inconvenience of the extra travel time, greater odds of losing your luggage and the risk of missing a connecting flight.\n* Shop early. Airfare prediction app Hopper says the best time to get a low fare is 25 to 150 days before traveling. If you're heading to a popular destination—say, Hawaii in July—start searching ASAP.\n* Join airline frequent flyer programs. Members can get fare discounts and earn points toward future travel.\n* Get an airline rewards credit card. Look for one with an introductory sign-up bonus that awards points or miles for spending a set amount on the card within a certain time frame. You could earn enough to pay for a ticket. Airline rewards cardholders often get perks like free checked baggage, travel credits, upgrades and preferred boarding. Use Experian CreditMatch™ to get personalized offers for travel rewards cards.\n* Watch out for the extras. Check the fine print of airfare offers for extra charges. Fees for checked baggage or changing your flight can add up. END
TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: Travel Smart, Save Money\n------------------------\nCarrying a few credit cards when traveling is a smart move. Using credit cards is easier and safer than carrying cash; if your card is lost or stolen, you can freeze it and quickly get a replacement. Credit cards offering trip or rental car insurance and other travel protections can provide peace of mind too. When traveling internationally, bring a card that doesn't charge foreign transaction fees.\nMost travel rewards credit cards require good or excellent credit, so familiarize yourself with your credit before you apply. You can view your credit report from all three bureaus through AnnualCreditReport.com to check for things like late payments and accounts in collection. You can also get your credit report for free directly through Experian. Importantly, you should also review your FICO® Score☉ to make sure you meet the credit card issuer's minimum requirements. If not, work on improving your credit score while you plan your trip. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: How Do Cashier's Checks Work?\n-----------------------------\nA cashier's check works like a personal check but with one key difference: Instead of the check being guaranteed by money in your bank account, it's guaranteed by the bank or credit union that issued the check.\nIn addition to having a bank or credit union guarantee, cashier's checks also typically come with added security features, such as a watermark or signatures from two bank or credit union employees.\nWhen you request a cashier's check, you'll pay the financial institution that issues it, either with cash or a withdrawal from your bank account. The check is then issued to you, with the name of the person or business you're paying in the recipient line. You cannot get a blank cashier's check.\nCashier's checks are often required when you are making large purchases in which the seller needs a high level of certainty that the check won't bounce.\nBecause they're one of the safest forms of payment available, they also tend to clear more quickly than personal checks—usually by the next business day. However, larger checks may be held for longer than that to ensure that they're not fraudulent. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Cashier's Check vs. Certified Check vs. Money Order\n---------------------------------------------------\nWhile some recipients may require a cashier's check to complete a transaction, you may be able to use a certified check or money order instead in some situations.\n### Certified Check\nA certified check is a type of personal check that's drawn from your account rather than the bank's or credit union's reserves. But as added security, the issuing bank or credit union certifies that funds were available for the amount of the check at the time you wrote it.\nThe bank or credit union also verifies that the signature on the check is genuine and sets aside the amount to be used only for that transaction. That action essentially guarantees the check won't bounce.\nA certified check may be a good option when the purchase is large enough that you can't use a money order, and using cash or a personal check would be impractical.\n### Money Order\nA money order is another form of payment that provides more security than a personal check.\nMoney orders are similar to cashier's checks in that they are both prepaid and guaranteed by the issuer of the check instead of the person buying it. With a money order, however, the guarantor is typically a company like Western Union, the U.S. Postal Service or a retailer like Walmart, and not a bank or credit union.\nMoney orders are also typically more convenient to buy versus a cashier's check or certified check due to their wider availability. If you need to send money securely or make a utility or rent payment, a money order may suffice. Money orders typically have a $1,000 limit, however, which means it may not be an option if you need to make a large purchase. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: When You May Need a Cashier's Check\n-----------------------------------\nCashier's checks may be required on certain large transactions, such as when you're buying a car, motorcycle, boat or RV from a private party or dealership. It may also be possible to use one to close on a home purchase, though the title company may request a wire transfer instead.\nIf you're making a large purchase like a vehicle or home, ask the seller, dealership or title company about the payment methods they accept. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: You can get a cashier's check from any bank or credit union, but you may be required to be an existing customer to buy one. Whether you're heading into a local branch or submitting your request online, here are some steps you'll need to take.\n### 1\\. Have the Money Ready\nBecause the bank or credit union guarantees a cashier's check with its own funds, it'll require you to pay the amount of the check upfront. You can do this with cash or funds from your own checking or savings account. In some cases, you may be required to pay a small fee.\nIf you want to withdraw the funds for a cashier's check, though, you may be required to provide some form of identification.\n### 2\\. Provide the Check Details\nThe bank or credit union prints off the cashier's check, including the recipient's name and the amount of the check. This means you'll need to have all the necessary information ready to give the teller.\n### 3\\. Ask for a Receipt\nOnce your request is completed, the bank will either freeze the amount of the check or deduct it from your account balance, plus any applicable fees. Once you have the check in hand, make sure to also ask for a receipt, which may be helpful if you need to track the check or if it goes missing. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Best Practices When Giving or Receiving a Cashier's Check\n---------------------------------------------------------\nIn general, cashier's checks are among the safest payment methods available. But even with the security features they include, they're not entirely immune to fraud. Here are some best practices to keep in mind.\n### When Receiving\nIf you don't know the person who gave you the check, it's best to avoid using the funds until after the check clears with your bank. This typically only takes a day, but it can take longer depending on the bank and the amount of the check. Avoid buyers who want to give you a cashier's check for more than the purchase price or who offer you checks with misspellings or no security features. These are both signs of common cashier's check scams.\nIf you're receiving the check in the sale of a car or something else that's valuable, consider making the sale contingent upon the check clearing instead of when the buyer hands it to you. If the buyer refuses, you can always look for someone else.\n### When Purchasing\nIf you purchase a cashier's check and lose it before giving it to the recipient, the bank will require you to purchase an indemnity bond before it issues a new one. The bond ensures that you will be liable for the original check instead of the bank if it's found and used for payment. You can also purchase an indemnity bond from select insurance companies, but it's not easy to get one, so safeguard the cashier's check like you would cash. END
TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Know When to Use the Right Payment Method\n-----------------------------------------\nCashier's checks are a safe way to send money or make a payment, but they're not always necessary. Because some banks charge a fee to issue a cashier's check, check with the recipient to see what other options are available. If you can complete the transaction with a more convenient and less expensive option, you may be able to save both time and money.\nIf you do need a cashier's check, though, make sure you have the money and the information required, and treat the check the same as you would cash until you hand it to the recipient. At that point, they're responsible for its safekeeping until they deposit or cash it. END
TITLE: What Is Consumer Credit? CONTENT: What Are the Main Types of Consumer Credit?\n-------------------------------------------\nThere are two broad ways consumer credit is categorized: how it's paid back (revolving vs. installment), and whether it requires collateral (secured vs. unsecured). The credit types you use—whether it's personal loans, credit cards or mortgages—fit into these categories. It's likely that you've got both installment and revolving credit as well as secured and unsecured credit.\n### Revolving and Installment Credit\nInstallment credit typically refers to loans, such as mortgages, auto loans, personal loans and student loans. With installment credit, you repay what you borrow in fixed payments made each month over a set period of time, or term. The monthly payments, or installments, are based on the amount you borrow plus the interest you owe.\nWith revolving credit, you can borrow money numerous times a month as long as you stay below your credit limit. You'll have to make at least a minimum monthly payment on revolving credit on or before the account's due date. The amount of your monthly payment will depend on how much money you've borrowed and whether you regularly pay off the full balance to avoid interest changes. If you don't pay off your debt immediately, it rolls over—or \"revolves\"—to the next billing period.\nThe most familiar and common type of revolving credit is a credit card. Two other kinds of revolving credit are personal lines of credit and home equity lines of credit (HELOCs).\n### Secured and Unsecured Credit\nSecured debt is backed by collateral—such as a home, car or cash deposit—that a lender can take to cover your debt if you fail to pay back the loan. Types of secured credit include mortgages, auto loans and secured credit cards.\nUnsecured debt does not involve collateral. Credit cards, personal loans and student loans are often unsecured, and are lent primarily on the basis of someone's creditworthiness. When a lender extends unsecured credit, it typically charges a higher interest rate than it would for secured credit. That's because a lender assumes more risk with unsecured credit than secured credit. END
TITLE: What Is Consumer Credit? CONTENT: Lending Sources for Consumer Credit\n-----------------------------------\nConsumer credit is available from a variety of lending sources, such as:\n* Banks\n* Credit unions\n* Online lenders\n* Peer-to-peer lending platforms, such as LendingClub and Prosper\n* Consumer finance companies, whose products include personal loans\n* Sales finance companies, whose products include auto loans and furniture loans\n* State and federal agencies (student loans)\n* Payday lenders\n* Pawn shops\n* Family and friends END
TITLE: What Is Consumer Credit? CONTENT: Advantages of Consumer Credit\n-----------------------------\nConsumer credit could offer a number of advantages, depending on how you use it. They include:\n* Building your credit history: If you establish a solid payment history for consumer credit accounts, including credit cards and personal loans, and otherwise handle credit responsibly, consumer credit can be a valuable tool for building your credit.\n* Boosting your credit score: A positive history of making payments on credit cards, loans and other types of consumer credit can positively affect your credit score.\n* Providing perks and rewards: Consumer credit, particularly credit cards, can deliver goodies like airline miles, hotel points and cash back rewards.\n* Protecting you against fraud: Credit cards provide all sorts of ways to protect yourself against fraud, such as contactless cards, virtual card numbers, card-locking capabilities and little to no cardholder liability for unauthorized purchases.\n* Reimbursing certain purchases: Some credit card issuers reimburse you for purchases if you're not satisfied with an item you bought but the merchant won't accept a return. END
TITLE: What Is Consumer Credit? CONTENT: Disadvantages of Consumer Credit\n--------------------------------\nWhile consumer credit provides advantages, it also provides disadvantages. Some of those are:\n* Consumer credit can come at a cost, including interest charges and potential fees.\n* Access to consumer credit might enable you to spend beyond your means.\n* Missed payments and high debt levels could damage your credit and impact your ability to obtain credit in the future.\n* Piling up a lot of consumer debt could result in your debt being turned over to a debt collector, who might constantly nag you about paying the debt.\n* Some predatory lenders might trap you into borrowing money at sky-high interest rates. END
TITLE: What Is Consumer Credit? CONTENT: The Bottom Line\n---------------\nConsumer credit comes with trade-offs: You balance the freedom and convenience of borrowing money with the costs and potential pitfalls of debt. For instance, a mortgage gives you the freedom to buy a home, but falling behind on mortgage payments could harm your credit history and might even lead to the loss of the home. If you're careful with consumer credit, however, the freedom and convenience can far outweigh the risks.\nTo keep on top of managing your consumer credit, get your free credit report and free credit score from Experian. END
TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: Payment History Is the Most Important Factor of Your Credit Score\n-----------------------------------------------------------------\nPayment history accounts for 35% of your FICO® Score. Four other factors that go into your credit score calculation make up the remaining 65%.\nKeep in mind that there are as many as 28 versions of the FICO® Score, meaning you may have one score that's used to determine whether your credit card application is approved, another score for a mortgage application and yet another score for an auto loan application. When calculating these various scores, FICO weighs your payment history on your credit accounts most.\nWhy is payment history more important than the other factors? A lender wants to protect itself from risk. Therefore, it wants to know whether you've made timely payments on current and previous credit accounts. According to FICO, research shows payment history is typically the No. 1 predictor of whether you'll pay your debts on time, thus the heavier emphasis on this factor. END
TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: What Bills Affect My Payment History?\n-------------------------------------\nSeveral kinds of bills affect your payment history. These include:\n* Credit cards, including Mastercard, Visa, American Express and Discover cards\n* Retail credit cards from stores\n* Installment loans, such as auto loans and mortgages, that involve making regular payments for a set term\n* Accounts from finance companies\nIn addition to these accounts, FICO considers bankruptcies and collection accounts as part of payment history. Both can have a significant negative effect on your scores.\nBills from providers of phone, utility, cable TV and streaming services also may affect your payment history. In the past, these accounts would only impact your credit if they were sent to collections as a result of non-payment, in which case they'll stay on your credit report for seven years and negatively affect your score.\nToday, these accounts can actually help improve your credit score, through Experian Boost™† . With Experian Boost, you can allow Experian to securely access your online payment history for phone, utility, cable TV and certain streaming service providers. Then, on-time payments on authorized accounts will start showing up on your Experian credit report, and your FICO® Score may get a boost. END
TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: How Long Do Late Payments Stay on Credit Reports?\n-------------------------------------------------\nLate payments can stay on your credit report for up to seven years. They can damage your credit score, but the effect on your score fades over time.\nNot all late payments show up on your payment history, however. If you didn't make a credit card payment by the due date and instead made the payment a day late or a week late, you could be hit with a late fee by the card issuer, but your credit won't be hurt.\nWhy is that? Because credit card issuers won't notify the major credit bureaus (Experian, TransUnion and Equifax) about a late payment until a full billing cycle, or 30 days, has gone by.\nThe situation changes if the payment is more than 30 days late. In this case, the effect on your credit scores depends on how long your account was delinquent before you made a payment. So, a payment that's 60 days late will do more harm than a payment that's more than 30 days late but less harm than a payment that's 90 days late. END
TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: How to Improve Your Payment History\n-----------------------------------\nIf you're looking to improve your payment history and potentially bump up your credit score, the simplest advice is to always pay your bills on time and be sure you've budgeted enough money to cover them. Other recommendations include:\n* Catch up on past-due payments. Bringing unpaid bills current will help your score over time.\n* Activate automatic bill payments. If you put your payments on autopilot, you reduce the chance that a bill will go unpaid.\n* Set up payment alerts. Many creditors let you create reminders to inform you when upcoming payments are due.\nOther Factors That Impact Your Credit Score\n-------------------------------------------\nWhile payment history ranks as the top factor in calculating your FICO® Score, it's important to be aware of the four other factors:\n1. Amounts owed (30%): The amount of available revolving credit you're using (also known as your credit utilization ratio) and how much debt you're carrying accounts for 30% of your score. If you're using too much of your available credit, it may be a sign that you're financially strapped and might end up defaulting on your debt. For the best scores, keep your credit usage on each of your individual revolving accounts and overall under 10%.\n2. Length of credit history (15%): Generally, a longer credit history can result in a higher score.\n3. Mix of credit types (10%): Managing different types of credit, such as credit cards, mortgage loans and personal loans, can help your score.\n4. New credit (10%): Opening several new credit accounts over a short period of time may signal risky financial behavior. It also reduces the average age of your accounts, which can lower your score. END
TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: The Bottom Line\n---------------\nBecause payment history is the most important factor in your FICO® Score, paying all your bills by the due date can go a long way to helping you build a positive credit history over time. To ensure your payment history and other aspects of your credit are in good shape, check your free credit score from Experian and regularly review your free Experian credit report. END
TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: How Many FICO® Score Versions Are There?\n----------------------------------------\nFICO® reports there are currently 16 distinct versions of the FICO® Score in use by creditors and other authorized users of personal credit data, such as landlords, utility companies and companies performing certain types of pre-employment background checks. These are just a portion of the dozens of FICO® Score versions issued since 1989.\n### Most Widely Used FICO® Score Versions\nFICO® Score 8: The company says that FICO® Score 8, introduced in 2009, is currently the most widely used version of the FICO® Score.\nFICO® Score 9: FICO® Score 9, which debuted in 2014, is also widely used by lenders, according to FICO®.\n### Newly Released FICO® Score Versions\nThe most recent versions of the FICO® Score were introduced in January 2020. It often takes new score versions several years to gain widespread usage, as lenders typically do extensive testing with them before integrating them into automated approval processes.\nFICO® Score 10: FICO® reports that the FICO® Score 10, the company's latest version of its standard FICO® Score software, offers better predictive accuracy than earlier versions of the scoring model.\nFICO® Score 10T: Also introduced in January 2020, this version of the scoring software uses the same analytical framework FICO® Score 10, but also makes use of _trended data_, an enhanced method of organizing credit report information. Implemented in recent years by all three national credit bureaus, trended data allows credit scoring software to make predictions based on behavior patterns that cannot be discerned using traditional credit report data. For example, traditional data distinguishes borrowers who pay bills on time each month from those who don't, but trended data can also enable comparisons between bill payers who habitually pay credit card balances in full and those who make only the minimum required payment each month.\nFICO® Auto Score 10: Launched in 2020, this version of the FICO® Score model is specially designed to gauge the likelihood a borrower will repay an auto loan. It offers refined assessments of new credit users, who make up a large portion of the first-time car buyer segment. In contrast to the standard FICO® Score 10, which assigns scores on a scale of 300 to 850, Auto Score 10 uses a scale range of 250 to 900.\nFICO® Bankcard Score 10: The latest version of the FICO® Bankcard Score 10 adapts the scoring framework of FICO® Score 10 to predict how borrowers may pay their credit card bills. Its refinements include greater accuracy among \"subprime\" borrowers targeted by some credit card issuers. (For purposes of FICO® Bankcard Score 10, the company defines a subprime borrower as one with at least one credit account that's delinquent by 90 days or more, with at least one account in collections, and\/or with a bankruptcy in their credit history.) FICO® Bankcard Score 10 uses a scale range of 250 to 900.\n### FICO® Scores for Credit Card Decisions\nSince 1993, FICO® has introduced multiple versions of its credit scoring software optimized for assessing the creditworthiness of credit card borrowers. All versions of the FICO® Bankcard Score assign scores using a scale range of 250 to 900.\nFICO® Bankcard Score 9 and FICO® Bankcard Score 8: Released in 2014 and 2009, respectively, these versions are available from all three national credit bureaus.\nFICO® Bankcard Score 2 and FICO® Score 3: Experian provides these versions of the FICO® Score to credit card issuers that prefer them for their approval processes.\nFICO® Bankcard Score 4: Card issuers can get this version of the FICO® Bankcard Score from TransUnion.\nFICO® Bankcard Score 5: Credit card issuers can obtain this version of the FICO® Bankcard Score from Equifax.\n### FICO® Scores for Mortgage Lending\nKnown as \"classic\" FICO® Scores, the following versions of the FICO® Score are widely used by mortgage lenders.\nFICO® Score 2: Mortgage lenders get this version of the FICO® Score from Experian.\nFICO® Score 4: Mortgage lenders get this version of the FICO® Score from TransUnion.\nFICO® Score 5: Mortgage lenders obtain this version of the FICO® Score from Equifax.\nFor many years, lenders offering mortgages known as conforming loans—loans eligible for purchase by Fannie Mae and Freddie Mac—were required to use these classic FICO® Scores in their loan approval process. In late 2020, the Federal Housing Finance Agency (FHFA)—the regulating agency that oversees Fannie Mae and Freddie Mac—announced that other credit scoring software, including newer versions of the FICO® Score and competing software from VantageScore, will be evaluated for future use with conforming loan applications.\n### FICO® Scores for Auto Lending\nFICO® Auto Score 9 and FICO® Auto Score 8: Introduced in 2014 and 2009, respectively, these versions of the FICO® Auto Score are available from all three national credit bureaus.\nFICO® Auto Score 2: Experian provides this version of the FICO® Auto Score to auto lenders.\nFICO® Auto Score 5: Auto lenders can obtain this version of the FICO® Auto Score from TransUnion.\nFICO® Auto Score 4: Auto lenders can secure this version of the FICO® Auto Score from Equifax. END
TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: How Are FICO® Scores Calculated?\n--------------------------------\nEach FICO® Score version calculates scores somewhat differently, and the specific calculations each uses are trade secrets, but FICO® cites five behaviors that influence _all_ FICO® Scores. Focusing on these score factors will tend to bring improvement to all credit scores:\n* Payment history: Paying your bills on time each month—especially debts such as loans and credit cards—promotes credit score improvement more than any other single factor. On the other hand, payments made more than 30 days late can do major damage to your credit scores. Payment history accounts for about 35% of your FICO® Score.\n* Amounts owed: Your total outstanding debt and your credit utilization—the percentage of your total credit card borrowing limit represented by the sum of your outstanding balances—contributes about 30% of your FICO® Score. Keeping your outstanding credit card balances well below 30% of your borrowing limit can help your FICO® Score.\n* The age of your credit history: Lenders like to work with borrowers who have experience managing debt, as long as you avoid major missteps your credit scores tend to increase over time. This factor accounts for about 15% of your FICO® Score.\n* Credit mix: Lenders appreciate borrowers who can responsibly manage multiple types of debt at once, so a blend of active accounts can increase your credit scores. The FICO® Score tends to reward combinations of installment debt (loans with fixed monthly payments and defined repayment terms) and revolving credit (accounts like credit cards, in which you borrow against a credit limit and make payments in variable amounts). Credit mix is responsible for about 10% of your FICO® Score.\n* New credit: When you apply for a loan or credit card, the lender usually performs a credit check known as a hard inquiry, typically requesting a copy of your credit report and, often, a credit score based on that report. Hard inquiries can cause your credit score to drop a few points. And while scores tend to rebound quickly if you keep up with your bills, multiple credit applications for different types of credit over a short time can do cumulative harm to your credit scores. END
TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: Which FICO® Score Should I Check?\n---------------------------------\nBecause lenders use so many different versions of the FICO® Score, and because they can get many of them from any of the three national credit bureaus (whose versions of your credit reports typically differ somewhat at any given time), it's practically impossible to know exactly which score a lender will see when they process your credit application. Fortunately, knowing exactly which score a lender sees is less important than working to make all your scores as high as they can be before you apply for a loan or credit card.\nIn keeping with the status of FICO® Score 8 as the most widely used version of the score currently in use, many free credit scoring services provide access to that version of the FICO® Score. It is a good representation of the scores lenders will likely see when they check your credit. END
TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: Check Your FICO® Score With Experian\n------------------------------------\nWhen you check your FICO® Score for free with Experian, the version you'll see is FICO® Score 8. Experian also offers a paid subscription service that gives you access to FICO® Score calculations based on your credit reports from Experian, TransUnion and Equifax, and to your credit reports from all three national credit bureaus.\nChecking credit scores from all three credit bureaus on a regular basis can give you a good idea of your progress toward building up your credit. It's normal for scores to vary somewhat month to month, but large changes in score can be a sign of credit fraud. If you see a major change in your credit score that doesn't correspond with your credit activity, check your credit reports for signs of unauthorized activity. END
TITLE: Should I Get a Student Credit Card? CONTENT: Benefits of a Student Credit Card\n---------------------------------\nOpening a student credit card could be a smart move if you use it sparingly and pay the balance off each month. Here are some things that a student credit card can help you do:\n* Build credit. If you don't have any other credit accounts, a student card can help you get started on your credit journey, which can pay off later when it's time to take out a loan, rent an apartment or even get a job. Paying your credit card bill on time can help you establish a positive payment history as you work toward a strong credit score.\n* Pay simply and safely. Credit cards can make online shopping easier and safer. Student cards may come with zero liability protection, which means you won't be held responsible for unauthorized charges if your card number gets into the wrong hands. You may even be able to connect your card to a mobile wallet to make contactless in-store purchases.\n* Earn shopping rewards. Some student cards offer cash back on purchases or when you shop in certain stores.\n* Get student perks. You may be able to qualify for incentives, such as a credit if you maintain a certain GPA or bonus cash back if you pay on time. END
TITLE: Should I Get a Student Credit Card? CONTENT: Drawbacks of a Student Credit Card\n----------------------------------\nWhile there are many benefits of student credit cards, there are some drawbacks to think about before applying. Here are some disadvantages of student credit cards:\n* Low credit limits: Student cards may have lower credit limits than you might find with a non-student credit card. However, the credit card company may increase your limit after you establish a track record of on-time payments.\n* High annual percentage rates (APRs): Student cards are geared toward students with limited credit. Because of this, they may have higher interest rates than other cards.\n* Potential debt trap: If debt piles up on your card, a student credit card could end up doing more harm than good, especially if you have a limited income. Not being able to make the minimum monthly payments could hurt your score, and late payments can stick around on your credit report for up to seven years. END
TITLE: Should I Get a Student Credit Card? CONTENT: Do You Have to Be a Student to Get a Student Credit Card?\n---------------------------------------------------------\nWhether or not you have to be a student to get a student credit card depends on the card issuer. In some cases, you have to tell the credit card company what school you attend in the application. There are exceptions, though: Being a student isn't required to apply for the Journey Student Rewards from Capital One.\nBesides the school requirement, you may need to be a U.S citizen or legal resident with a social security number to apply. The minimum age for a student credit card is typically 18 years old. However, if you're under 21, you may need to sign up with a cosigner or show proof of independent income.\nThe credit history needed to qualify for a student credit card can vary as well. In some cases, you may need _some_ credit history to get approved, and payments on student loans could help you in this area.\nIf you have no credit history, you may still have options. For example, Petal is a company that looks beyond credit history alone to approve borrowers for the Petal® 1 \"No Annual Fee\" Visa® Credit Card. END
TITLE: Should I Get a Student Credit Card? CONTENT: Choose One of the Best Student Credit Cards\n-------------------------------------------\nIf you're interested in applying for a student credit card, the Journey Student Rewards from Capital One and Petal® 1 \"No Annual Fee\" Visa® Credit Card are two excellent choices—and neither one has an annual fee.\nThe Journey Student Rewards from Capital One, for example, offers 1% cash back on all purchases, but that bumps up to 1.25% cash back if you pay your bill on time for that month. New cardholders can also earn a $5 statement credit per month (with a 12-month limit) for select streaming services when you pay your credit card bill on time; restrictions apply.\nIf you're not sure which student credit card would be the best for your situation, you could use Experian CreditMatch™ to get personalized student credit card offers. END
TITLE: Should I Get a Student Credit Card? CONTENT: Next Steps\n----------\nBefore applying for a student credit card to build credit, a good first step is checking to see what's currently on your credit report. You can get your Experian credit report and FICO® Score☉ for free when you sign up for Experian CreditWorks℠.\nGot approved for your first student card? Congratulations! Now it's time to use your card to build credit. Maintaining a low balance and diligently paying the bill on time each month can help you grow your credit score in college and beyond—and that can help you reach your future financial goals. END
TITLE: Can My Credit Score Affect Renting? CONTENT: Will My Credit Score Affect My Ability to Rent?\n-----------------------------------------------\nWhen a landlord runs a credit check on a potential renter, they likely won't zero in on the person's credit score. In fact, a landlord might not care at all about the credit score. Instead, the landlord might concentrate more on the potential renter's overall credit history, particularly their record of on-time payments.\nA landlord is trying to assess the likelihood that you'll pay your rent on time every month, and reviewing your track record of managing your debts can help them with that. A credit history free of negative marks could tip the landlord's decision to approve you, while lackluster credit may cause the landlord to ask for other assurances—such as a higher security deposit.\nThe commonly used FICO® Score☉ ranks payment history as the most important factor in calculating your score, assigning it a weight of 35%. The other factors are how much debt you carry (30%), the length of your credit history (15%), new credit (10%) and the types of credit accounts in your credit report (10%). END
TITLE: Can My Credit Score Affect Renting? CONTENT: What Credit Score Do I Need to Rent an Apartment?\n-------------------------------------------------\nThere's no specific FICO® Score that will determine whether or not you can move into a new apartment.\nWhile your FICO® Score may not be the No. 1 factor in deciding whether you'll be approved for an apartment lease, a higher score may give you an advantage. That's especially true in a competitive rental market, where higher-rent apartments may demand a higher credit score.\nFICO® Scores range from 300 to 850, and a FICO® Score above 670 indicates good credit. However, a FICO® Score below 670 doesn't necessarily mean a landlord will reject your rental application outright. A landlord may scrutinize your application more closely if your FICO® Score is low, but the score that gets you in the door can depend on the type of apartment you want to rent, the rent you'll be paying, the state of the local rental market and your income. Your landlord may not even consider your credit at all when reviewing your application. FICO® Scores don't include income as a factor, nor is your income included on your credit report.\nBefore you submit a rental application, you can get your free Experian credit report to help you understand where your credit stands. To get your credit move-in ready, review your credit report and take the time to address any issues you find, such as high credit card balances. END
TITLE: Can My Credit Score Affect Renting? CONTENT: How to Pass a Rental Credit Check\n---------------------------------\nA landlord might take a close look at the information in your credit report when deciding whether to approve your application. Plenty of factors typically will be examined. They include:\n* Ratio of debt to income (you'll likely be asked to report your income on your rental application)\n* Bankruptcies\n* Foreclosures\n* Defaults on loans\n* Delinquent accounts\n* Charge-offs, meaning a creditor has written off your debt as unpaid and has closed your account\n* Auto repossessions\nKeep in mind that items like foreclosures or a bankruptcy might be more important to a landlord than hefty credit card balances or a couple of late credit card payments. Also, you should know that a landlord typically can deny your rental application if you refuse to authorize credit and background checks.\nIt's worth noting that evictions and your history of paying rent don't automatically appear on your credit report. That's because landlords and property management companies don't always report your payment activity to the three major credit reporting bureaus—Experian, TransUnion and Equifax. They also won't submit information to the credit bureaus about evictions, bounced checks, broken leases or property damage. Unpaid rent may show up on your credit report if the debt wound up going to collections, however.\nYour history as a renter can also show up in your rental history report, which is a separate report landlords can request through services like Experian RentBureau. Rental history reports show things like evictions, late payments you've made in the past, broken leases and bad checks.\nTo help ensure you pass a landlord credit check:\n* Pay all of your bills, including your rent, on time.\n* Pay off credit cards and loans.\n* Dispute information on your credit report that you believe to be incorrect, such as accounts reported as late that your records show to be current.\n* Keep spending well below your credit limits to protect your credit utilization ratio.\n* Consider signing up for Experian Boost™† , which reports payments on things like cellphone service, utilities and certain streaming services to credit bureaus.\nIf you have a poor credit score, you can improve your odds of your rental application being approved by:\n* Explaining your circumstances. A landlord may give you some leeway if, for instance, your credit was damaged because of a divorce or you lost a job but now have a new one and are now getting back on your feet financially.\n* Getting a cosigner for your lease who's got good credit.\n* Providing concrete proof of your income, such as recent pay stubs. END
TITLE: Can My Credit Score Affect Renting? CONTENT: The Bottom Line\n---------------\nYour credit score may affect your ability to rent a place, so make sure you know what it is and work toward a good score. To track the condition of your credit, obtain your free Experian credit report and free Experian credit score. END
TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: How Much Do Credit Card Annual Fees Cost?\n-----------------------------------------\nThe cost of a credit card's annual fee can vary greatly from one card to the next. Some credit cards have no annual fee, while others may charge $39 to $95 per year. Credit cards that come with premium benefits and travel perks may carry a much higher price tag of $250, $550 or even $995 per year.\nCards with higher annual fees may offer extra bells and whistles like access to an exclusive airport lounge, hotel upgrades and introductory rewards bonuses. In essence, you get what you pay for. END
TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: Why Do Credit Card Issuers Charge Annual Fees?\n----------------------------------------------\nCompanies may charge an annual fee for certain cards that provide generous cardholder benefits, like travel credits, exclusive rewards opportunities or free checked luggage on flights. You generally pay more per year for the cards that come with the most perks.\nAnother time a credit card may have an annual fee is if it's geared to borrowers with fair or poor credit. Interest rates for these types of cards may also be high. The good news is that after building credit with the card you may be able to qualify for a card that has a lower fee (or none at all) and a better interest rate. END
TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: When You May Want to Pay an Annual Fee\n--------------------------------------\nBefore automatically ruling out a credit card that has an annual fee, it's worth doing some math to see if you can benefit from the card despite the fee. If the value you get from the card's rewards and other benefits exceeds the annual cost, paying the fee could be worthwhile. Here are some scenarios in which it could make sense to pay an annual fee:\n### Lucrative Rewards\nIf a card has a high-value rewards offer or introductory bonus, you may earn enough to cover the fee and still see some upside.\nFor example, the Credit One Bank American Express® Credit Card has a $95 annual fee, but there's an opportunity to earn even more in cash back. Cardholders can earn 5% cash back on the first $5,000 spent on gas, groceries, cable, internet, cellphone service and satellite TV each year. That's $250 in potential cash back for that category, plus you can earn an extra 1% cash back on everything else. If you shop heavily at the grocery store and commute by car daily for work, you may easily earn enough cash back to cover the card's $95 fee and still make a profit.\nAnother example, the Chase Sapphire Preferred® Card, allows you to earn a generous intro bonus of 100,000 bonus points if you spend $4,000 in the first 3 months you have the card. That's worth $1,250 when redeemed for travel through Chase Ultimate Rewards, which is more than enough value to cover the card's $95 annual fee.\n### Money-Saving Perks\nA card with an annual fee might offer savings opportunities in the form of its benefits. At first, you may balk at the $550 annual fee you'd pay with the Chase Sapphire Reserve®, but it's one of the most popular travel credit cards for a reason.\nFirst off, the credit card offers you a $300 travel credit each year. Plus, you can get complimentary access to VIP airport lounges (through Priority Pass Select after enrollment), 1:1 point transfers to other loyalty programs and a credit every four years or 4.5 years to pay for Global Entry or TSA Precheck.\nAfter you earn the $300 travel credit, you can earn 5 points per dollar spent on flights and 10 points per dollar on hotels and car rental bookings through Chase Ultimate Rewards. In addition, the card offers another 3 points per dollar on other travel bookings and 3 points per dollar on dining, including takeout. There may be lots of opportunities to receive credits and earn rewards to offset your annual costs.\n### Help Building Credit\nAs mentioned, credit cards geared toward borrowers with limited credit or poor credit may also have annual fees. While paying an annual fee may not be ideal, opening up a card with an annual fee and using it to build credit could have long-term advantages.\nIf you keep credit usage low and make your card payment on time each month, the card could help you build credit so you're better positioned to apply for loans and credit cards in the future.\nBefore opening up a credit card, be sure to compare rates and fees to see where you can get the best deal. Then after opening up the card, try to pay off the entire balance each month because it'll help you avoid interest. Otherwise, paying an annual fee on top of interest charges each month can get pretty expensive. END
TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: How to Get Your Credit Card's Annual Fee Waived\n-----------------------------------------------\nIn some cases, credit card companies will waive the annual fee for the first year as a new cardholder incentive. If you're an existing cardmember and an intro offer isn't on the table, you may be able to call your card issuer to request a one-time waiver. END
TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: Compare Cards Before Applying\n-----------------------------\nWhether paying an annual fee for a card makes sense for your budget depends on your spending habits and the benefits the card provides. If you rarely travel and barely use a credit card, choosing one with an annual fee may not be worthwhile since you may not see enough benefit to justify the fee.\nOn the other hand, if you spend heavily in a certain shopping category and a credit card rewards you for it, paying an annual fee for premium perks and rewards opportunities could work out well for you.\nBefore choosing a card, it's always a good idea to compare rewards programs to land on the right card for your situation. If you're looking for a good place to start shopping around, you can get personalized credit card offers that won't affect your credit score using Experian CreditMatch™. END
TITLE: How to Fight an Eviction CONTENT: Know Your Rights\n----------------\nEviction laws vary widely from state to state and even county to county, so as the national moratorium ends, it's important to know what other laws protect you. For instance, if you live in a multifamily property with a mortgage through Fannie Mae or Freddie Mac, you cannot be evicted until at least September 30, 2021. If you're an active-duty servicemember or live in federally funded housing, you may have additional rights.\nMany states, counties and cities have their own eviction moratoriums. You can find lists of state moratoriums online, but since the situation changes daily, the best place to get up-to-date information is your state, city or county government website.\nWhether or not there's a moratorium in place where you live, be sure you understand your rights as a tenant. Review your lease and any other written agreements with your landlord. The U.S. Department of Housing and Urban Development (HUD) has a directory of tenant rights by state. END
TITLE: How to Fight an Eviction CONTENT: Negotiate With Your Landlord\n----------------------------\nLaws vary depending on where you live, but typically, landlords must give tenants a written notice of eviction and allow time to respond; after that time period passes, they may file a lawsuit. Until a lawsuit is filed, you can still negotiate with your landlord to come up with a more realistic payment plan for back rent and future rent.\nDepending on your situation, options your landlord may agree to include adjusting rent due dates to better fit your income; splitting rent into smaller payments throughout the month; waiving late fees, interest and penalties as long as you pay some amount of rent; reducing rent temporarily; or setting up a repayment plan to repay back rent over time in the future. Be sure to get any agreement with your landlord in writing. END
TITLE: How to Fight an Eviction CONTENT: See if You Qualify for Rental or Financial Assistance\n-----------------------------------------------------\nThe U.S. Treasury Department is making it easier for state and local governments to distribute emergency rental assistance (ERA) to households whose finances have been affected by the pandemic. Search for emergency rental assistance in your area through the National Low Income Housing Coalition, 211.org, FindHelp.org, Benefits.gov or the Consumer Financial Protection Bureau.\nYou can also seek other types of assistance, such as that offered by local religious groups or food banks. Contact your local utility provider to see if they're offering relief or look for assistance with utility bills. Also explore options for credit card and debt relief from your lenders. Put the money you'd normally spend on those expenses toward the rent. END
TITLE: How to Fight an Eviction CONTENT: Seek Free Legal Assistance\n--------------------------\nIf you can't pay your rent and your landlord files an eviction lawsuit, you'll need to file a response with the court within a certain time frame, either on your own or with the help of an attorney. Contact the court to find out how to do this. You can find free legal help in your area through the American Bar Association, the Legal Service Corp. and LawHelp.org. END
TITLE: How to Fight an Eviction CONTENT: Increase Your Savings and Income\n--------------------------------\nIf you have time to gather more money to pay rent and stay in your home, consider the following actions:\n* Save as much money as possible. If your landlord hasn't started eviction proceedings but you're worried about making rent in the near future, revamp your budget to cut out all the fat, looking for ways to save money you can put toward housing.\n* Take in a roommate. A roommate can help share the rent burden, but read your rental agreement and get your landlord's blessing first. Some landlords will raise the rent or want an extra security deposit for adding a roommate to a lease.\n* Find a side gig. Look for a part-time job to earn extra money or consider selling items on Amazon, eBay, Poshmark, Facebook Marketplace or other sites. There are many jobs you can do online to bring in more money for the rent.\n* Look for cheaper housing. If you think you'll have trouble paying the rent for the foreseeable future, now may be the time to find more affordable housing. For example, you could rent a room in someone's house, move in with a roommate to pay less rent, or move in with family or friends. END
TITLE: How to Fight an Eviction CONTENT: Pay Your Rent with a Credit Card\n--------------------------------\nMany landlords won't accept rent payment by credit card. Even if yours does, the fees and interest can add up, and the charges could increase your credit utilization ratio, potentially hurting your credit score. However, if you expect funds from a new job or rental assistance to kick in soon, paying rent with a credit card could tide you over until your bank account is back in shape. END
TITLE: How to Fight an Eviction CONTENT: Have a Backup Plan\n------------------\nWhile you work to prevent eviction, be prepared in case the worst should happen. Once a court rules against you, you may be forced out of your rental in as little as 24 hours. Look for temporary shelter with friends or relatives, or visit JustShelter.org and HUD for resources to find housing and other assistance. END
TITLE: How to Fight an Eviction CONTENT: Protect Yourself and Your Credit\n--------------------------------\nEven though evictions don't appear in your credit history, they can still damage your credit and finances. Landlords may sell your account to a collection agency; if the collection account is reported to the credit bureaus, it will stay on your credit report for seven years and have a negative impact on your credit score.\nIf a landlord sues you for unpaid rent and wins a judgment, the court could garnish your wages. Judgments don't appear on credit reports, but they do appear in the public record and may show up in other types of consumer reports. Evictions are also part of your rental history report, which landlords may review when considering your rental application.\nMany Americans are still struggling financially due to the pandemic. If you're one of them, getting credit counseling can help you pay down debt and get your finances back on track. Monitoring your credit regularly can help you understand what factors may be affecting your credit score and how you can improve it going forward. END
TITLE: What to Consider When Choosing a New Credit Card CONTENT: 1\\. Credit Score Requirements\n-----------------------------\nCredit card issuers don't necessarily have (or share) a minimum credit score requirement for each of their cards, but they may offer some general guidance. Certain cards may primarily be intended for people who fall within certain credit score ranges—whether that's poor or very good or somewhere in between.\nThe Experian CreditMatch™ credit card marketplace can show you recommended FICO® Score☉ ratings for each card. You can get your credit score for free from Experian to see where your FICO® Score stands and then apply for cards that align with your score. Or you may want to improve your score first, and then apply after it increases. Doing so can increase your chances of a successful application. END