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February 2, 2021

Can you Pay a Credit Card with a Credit Card?

AÂ credit cardÂ is designed to help you in an emergency, to give you options when there are none. But what happens if you have a maxed-outÂ credit cardÂ in one hand and an empty card in the other, can you use oneÂ credit cardÂ to pay off the other and, more importantly, should you?

TheÂ short answerÂ is yes and… probably not. However, there is a better option available and it’s actually one of the best ways to clear aÂ credit cardÂ balance.

Options for PayingÂ Credit CardÂ BillÂ with Another Card

There are three ways you can clear aÂ credit cardÂ billÂ using anotherÂ credit card. The first two options are nothing short of terrible and are likely to cause more issues than they fix. The third is really the only one you should consider, but before we get to that option, let’s get the bad ones out of the way.

Cash AdvanceÂ andÂ Convenience Checks

Credit cardÂ companiesÂ won’t let you pay off oneÂ credit cardÂ with another, at least not in that way. However, you can get around this by usingÂ convenience checksÂ or aÂ cash advance. The former is sent by your creditor for you to make a deposit into yourÂ checking account; the latter is used to withdraw cash.Â

Technically, you can get cash from yourÂ credit card, put this into yourÂ checkingÂ account, and then use that money to clear yourÂ credit cardÂ debt.

âBut, as mentioned above, this is aÂ bad idea.Â Cash advanceÂ feesÂ can be enormous and if you’re moving large sums of money and being charged a high fee for doing so, you could be seriously out of pocket. Luckily, there is aÂ better alternative.

Using aÂ Balance Transfer

AÂ balance transferÂ is the act of moving aÂ credit cardÂ balanceÂ from one or more cards to another. There are specificÂ balance transferÂ credit cardsÂ designed to help you with this process and all come with anÂ introductory periodÂ where youâre offered 0% APR for the first 6, 12 or 18 months.Â

Once this period ends, you may be charged aÂ higherÂ interestÂ rate, but if you can clear your balance during that intro period those extraÂ interest chargesÂ won’t matter.

HowÂ Balance TransfersÂ Work

Balance transferÂ credit cardsÂ are used byÂ credit cardÂ companiesÂ to attract new users. These introductory offers convince you to move your balance to aÂ newÂ credit cardÂ company, after which they hope you will continue to make purchases, accumulate debt, and remain with them for years to come.

MostÂ balance transferÂ credit cardsÂ charge a fee for moving the money across. This fee is often levied as 3% or 5% of the total balance, which equates to $300 or $500 for a balance of $10,000.Â

That sounds like a lot, but it also comes with a 0% APR, which means yourÂ monthly paymentsÂ will go exclusively towards the principal, paying it off quickly.

Usually, the majority of yourÂ minimum paymentÂ goes towards interest, which means your balance will decrease slightly with each passing month. By removing this interest obligation from the equation, all your payment will go towards the balance, thus clearing it quickly and cheaply.Â

These cards can save you thousands of dollars if used properly, but it’s important not to swap an older problem for a new one; not to create the same issues on yourÂ new cardÂ that you had on your old card.

Use aÂ balance transferÂ offerÂ to remove the balance entirely. Meet theÂ minimum payment, pay more where possible, and ensure that when theÂ introductory periodÂ ends, there is no balance on which interest can build. Once you reach this point, you’ve wiped the slate clean and can start afresh, makingÂ credit cardÂ paymentsÂ on time and clearing your balance in full every month.

ManyÂ balance transferÂ credit cardÂ offersÂ come with a $0Â annual feeÂ and don’t charge you for foreign transactions. However, they typically won’t provide you with the sort ofÂ cashbackÂ rewards you can get from otherÂ credit cards.

Paying Off aÂ Credit CardÂ with Bad Credit

If you haveÂ bad credit, you may struggle to find aÂ balance transferÂ cardÂ with a high enoughÂ credit limit. These cards, like all goodÂ credit cards, require a relatively cleanÂ credit report, preferably with aÂ credit scoreÂ above 670.

As long as yourÂ credit scoreÂ is above 580, you’ll still options, but those options may be limited toÂ high-interest ratesÂ and unfavorable terms. In such cases, there are a few things you can to clear your credit debt:

1. Improve YourÂ Credit Score

AÂ balance transferÂ feeÂ is the only real downside to aÂ balance transferÂ credit card, so it’s worth putting the time and effort in to get one of these cards. It may only take a few months to improve yourÂ credit scoreÂ to a point where you can apply for one of these cards.

Take a look at theÂ bestÂ balance transferÂ credit cardsÂ (Discover, Visa, Chase) to give you an idea of the sort of card that can help you and the type ofÂ credit scoreÂ you need. Once you have that target in mind, you can work towards achieving it.

2.Â Credit Counseling

A credit counselor can look at your current financial situation and determine the best course of action going forward. These services are offered by manyÂ credit counselingÂ agencies and you typically only need to pay a token amount for a short 30- or 60-minute session.

3. Debt Consolidation

Debt consolidation is very similar to aÂ balance transfer, as it swaps one or more smaller debts for a big one. The difference is that it pays theÂ credit cardÂ balancesÂ off with a single loan, and you then focus on repaying that loan.

Typically, debt consolidation extends the length of your loan with a view to reducing theÂ monthly paymentsÂ but increasing the total balance. This can help to make yourÂ credit cardÂ debtÂ more manageable and it will also improve your debt-to-income ratio.

4. Debt Settlement

Debt settlement is one of the cheapest ways to clearÂ credit cardÂ debt. It begins when a debt specialist requests that you stop meeting all monthly payments and then move your money to a separateÂ bank account.Â

The debt specialist will then use thisÂ bank accountÂ to negotiate with your creditors, waiting until they desperate to settle and then offering them a greatly reduced settlement sum.

Just bear in mind that when you miss aÂ minimumÂ monthly payment, you run the risk of your account defaulting, which will hurt yourÂ credit score.

Can you Pay a Credit Card with a Credit Card? is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

February 2, 2021

Best Credit Cards for Bad Credit

When it comes to excuses consumers give for their poor credit scores, banks and lenders have heard it all.Â

Maybe you lost your job and couldnât pay your student loan payment for a few months.Â Or perhaps you thought youâd gotten a deferment but were too busy job hunting to find out for sure.Â

Maybe you thought you paid your credit card bill but itâs actually sitting on your kitchen counter waiting for the mail.

Whatever the reason for your low credit score, one thing is for certain â lendersÂ donât care.

In fact, banks and other lenders lean on your credit score and other factors to determine whether they should approve you for a credit card or a loan â and thatâs about it. Your personal situation is never considered, nor should it be.

It would be wonderful if credit card companies understood that âlife happensâ and made special exceptions to help people out, but that’s not the world we live in.Â As most of us already know, thatâs not typically how credit works. Credit cards are backed by banks, and banks have rules for a reason.

Now, hereâs the good news: Credit cards can help rebuild your credit, earn cash back for each dollar you spend, make travel easier, and serve as an emergency fund if youâre stuck paying a huge bill at the last minute. This is true even if you have poor credit, although the selection of credit cards you can qualify for may be somewhat limited.Â

Keep reading to learn about the best credit cards for bad credit, how they work, and how you can get approved.

Best Cards for Bad Credit This Year

Before you give up on building credit, you should check out all the credit cards that are available to consumers who need some help. Our list of the best credit cards for bad credit includes some of the top offers with the lowest fees and fair terms.

Total VisaÂ®
Discover itÂ® Secured
Credit One BankÂ® VisaÂ® Credit Card
Secured MastercardÂ® from Capital OneÂ®
MilestoneÂ® Gold MastercardÂ®
Credit One BankÂ® Unsecured VisaÂ® with Cash Back Rewards

#1: Total VisaÂ®

The Total VisaÂ® is one of the easiest credit cards to get approved for in today’s market, and itâs easy to use all over the world since itâs a true Visa credit card. However, this card does come with high rates and fees since itâs available to consumers with poor credit or a limited credit history.

Processing your application will cost $89, which is extremely high when you consider the fact that most credit cards donât charge an application fee. Youâll also pay an initial annual fee of $75 and a $48 annual fee for each year thereafter.

Once you sign up, youâll be able to pick your preferred card design and your credit card payments will be reported to all three credit reporting agencies â Experian, Equifax, and TransUnion. This is the main benefit of this card since your on-time payments can easily help boost your credit score over time.Â

For the most part, the Total VisaÂ® is best for consumers who donât mind paying a few fees to access an unsecured line of credit. Since this card doesnât dole out rewards, however, there are few cardholder perks to look forward to.Â

APR: 35.99% APR
Fees: Application fee and annual fee
Minimum Credit Score: Not specified
Rewards: No

#2: Discover itÂ® Secured

While secured cards donât offer an unsecured line of credit like unsecured credit cards do, they are extremely easy to qualify for. The Discover itÂ® Secured may not be ideal for everyone, but it does offer a simple online application process and the ability to get approved with little to no credit history.

Keep in mind, however, that secured cards do work differently than traditional credit cards. With a secured credit card, youâre required to put down a cash deposit upfront as collateral. However, you will get your cash deposit back when you close your account in good standing.

Amazingly, the Discover itÂ® Secured lets you earn rewards with no annual fee. Youâll start by earning 2% back on up to $1,000 spent each quarter in dining and gas. Youâll also earn an unlimited 1% back on everything else you buy.

The Discover itÂ® Secured doesnât charge an application fee or an annual fee, although youâll need to come up with the cash for your initial deposit upfront. For the most part, this card is best for consumers who have little to no credit and want to build their credit history while earning rewards.

APR: 24.74%
Fees: No annual fee or monthly fees
Minimum Credit Score: Not specified
Rewards: Yes

#3: Credit One BankÂ® VisaÂ® Credit Card

The Credit One BankÂ® VisaÂ® Credit Card is another credit card for bad credit that lets you earn rewards on your everyday spending. Youâll earn a flat 1% cash back for every dollar you spend with this credit card, and since itâs unsecured, you donât have to put down a cash deposit to get started.

Other benefits include the fact you can get pre-qualified for this card online without a hard inquiry on your credit report â and that you get a free copy of your Experian credit score on your online account management page.

You may be required to pay an annual fee up to $95 for this card for the first year, but it depends on your creditworthiness. After that, your annual fee could be between $0 and $99.

APR: 19.99% to 25.99%
Fees: Annual fee up to $95 the first year depending on creditworthiness; after that $0 to $99
Minimum Credit Score: Not specified
Rewards: Yes

#4: Secured MastercardÂ® from Capital OneÂ®

The Secured MastercardÂ® from Capital OneÂ® is another secured credit card that extends a line of credit to consumers who can put down a cash deposit as collateral. This card is geared to people with bad credit or no credit history, so itâs easy to get approved for. One downside, however, is that your initial line of credit will likely be just $200 â and that doesn’t give you much to work with.Â

On the upside, this card doesnât charge an annual fee or any application fees. That makes it a good option if you donât want to pay any fees you wonât get back.

Youâll also get access to 24/7 customer service, $0 fraud liability, and other cardholder perks.

APR: 26.49%
Fees: No ongoing fees
Minimum Credit Score: Not specified
Rewards: No

#5: MilestoneÂ® Gold MastercardÂ®

The MilestoneÂ® Gold MastercardÂ® is an unsecured credit card that lets you get pre-qualified online without a hard inquiry on your credit report. You wonât earn any rewards on your purchases, but you do get benefits like the ability to select your cardâs design, chip and pin technology, and easy online account access.

You will have to pay a one-time fee of $25 to open your account, and thereâs an annual fee of $50 the first year and $99 for each year after that.

APR: 24.90%
Fees: Account opening fee and annual fees
Minimum Credit Score: Not specified
Rewards: No

#6: Credit One BankÂ® Unsecured VisaÂ® with Cash Back Rewards

The Credit One BankÂ® Unsecured VisaÂ® with Cash Back Rewards lets you earn 1% back on every purchase you make with no limits or exclusions. Thereâs no annual fee or application fee either, which makes this card a winner for consumers who donât want to get hit with a lot of out-of-pocket costs.

As a cardholder, youâll get free access to your Experian credit score, zero fraud liability, and access to a mobile app that makes tracking your purchases and rewards a breeze. You can also get pre-qualified online without a hard inquiry on your credit report.

APR: 25.99%
Fees: No annual fee or application fee
Minimum Credit Score: Not specified
Rewards: Yes

The Downside of Credit Cards with Bad Credit

While your odds of getting approved for one of the credit cards for bad credit listed above are high, you should be aware that there are plenty of pitfalls to be aware of. Here are the major downsides youâll find with these credit cards for bad credit and others comparable cards:

Higher fees: While someone with excellent credit can shop around for credit cards without any fees, this isnât the case of you have bad credit. If your credit score is poor or you have a thin credit profile, you should expect to pay higher fees and more of them.
Higher interest rates: While some credit cards come with 0% interest for a limited time or lower interest rates overall, consumers with poor credit typically have to pay the highest interest rates available today. Some credit cards for bad credit even come with APRs as high as 35%.
No perks: Looking for cardholder benefits like cash back on purchases or points toward airfare or movie tickets? Youâll need to wait until your credit score climbs back into âgoodâ or âgreatâ territory. Even if you can find a card for applicants with bad credit that offers cash back, your rewards may not make up for the higher fees.
No balance transfers: If youâre looking for relief from other out-of-control credit card balances, look elsewhere. Credit cards for bad credit typically donât offer balance transfers. If they do, the terms make them cost-prohibitive.
Low credit limits: Credit cards for bad credit tend to offer initial credit limits in the $300 to $500 range with the possibility of increasing to $2,000 after a year of on-time monthly payments. If you need to borrow a lot more than that, youâll have to consider other options.
Security deposit requirement: Secured credit cards require you to put down a cash deposit to secure your line of credit. While this shouldnât necessarily be a deal-breaker â and it may be required if you canât get approved for an unsecured credit card â youâll need to come up with a few hundred dollars before you apply.
Checking account requirement: Most new credit card accounts now require cardholders to pay bills online, which means youâll need a checking account. If youâre mostly âunbanked,â you may need to open a traditional bank account before you apply.

Benefits of Improving Your Credit Score

People with bad credit often consider their personal finances a lost cause. The road to better credit can seem long and stressful, and itâs sometimes easier to give up then it is to try to fix credit mistakes youâve made in the past.

But, there are some real advantages that come with having at least âgoodâ credit, which typically means any FICO score of 670 or above. Here are some of the real-life benefits better credit can mean for your life and your lifestyle:

Higher credit limits: The higher your credit score goes, the more money banks are typically willing to lend. With good credit, youâll have a better chance at qualifying for a car loan, taking out a personal loan, or getting a credit card with a reasonable limit.
Lower interest rates: A higher credit score tells lenders youâre not as risky as a borrower âa sign that typically translates into lower interest rates. When you pay a lower APR each time you borrow, you can save huge amounts of money on interest over time.
Lower payments: Borrowing money with a lower interest rate typically means you can usually get lower payments all your loans, including a home loan or a car loan.
Ability to shop around: When youâre an ideal candidate for a loan, you can shop around to get the best deals on credit cards, mortgages, personal loans, and more.
Ability to help others: If your kid wants to buy a car but doesnât have any credit history, better credit puts you in the position to help him or her out. If your credit is poor, you wonât be in the position to help anyone.
More options in life: Your credit score can also impact your ability to open a bank account or rent a new apartment. Since employers can request to see a modified version of your credit report before they hire you, excellent credit can also give you a leg up when it comes to beating out other candidates for a job.Â

In addition to the benefits listed above, most insurance companies now consider your credit score when you apply for coverage. For that reason, life, auto, and home insurance rates tend to be lower for people with higher credit scores.

This may seem unfair, but you have to remember that research has shown people with high credit scores tend to file fewer insurance claims.

How to Improve Your Credit: Slow and Steady

When you have a low credit score, there are two ways to handle it. If you don’t mind the consequences of poor credit enough to do anything about it, you can wait a decade until the bad marks age off your credit report. Depending on when your creditors give up and write off your debt, you may not even need to wait that long.

If you donât like the idea of letting your credit decay while you wait it out, you can also try to fix your past credit mistakes. This typically means paying off debt â and especially delinquent debts â but it can also mean applying for new loan products that are geared to people who need to repair their credit.

If you decide to take actionable steps to build credit fast, the credit cards on this page can help. Theyâll give you an opportunity to show the credit bureaus that youâve changed your ways.

Before you take steps to improve your credit score, however, keep in mind all the different factors used to determine your standing in the first place. The FICO scoring method considers the following factors when assigning your score:

On-time payments: Paying all your bills on time, including credit cards, makes up 35% of your FICO score. For that reason, paying all your bills early or on time is absolutely essential.
Outstanding debts: How much you owe matters, which is why paying off your credit cards each month or as often as possible helps your score. According to myFICO.com, the amounts you owe in relation to your credit limits make up another 30% of your FICO score.
New credit: Apply for too many new cards or accounts at once can impact your score in a negative way. In fact, this determinant makes up another 10% of your FICO score.
Credit mix: Having a variety of open accounts impresses the credit bureau algorithm Gods. If all you have are personal loans right now, mixing in a credit card can help. If you already have four or five credit cards, it may be wise to back off a little.
Length of credit history: The length of your credit history also plays a role in your score. The longer your credit history, the better off you are.

If you want to improve your credit score, consider all the factors above and how you can change your behavior to score higher in each category. Itâs pretty easy to see how paying all your bills early or on time and paying off debt could make a big positive impact on your credit score when you consider that these two factors alone make up 65% of your FICO score.

If you want a way to track your progress, also look into an app likeÂ Credit Karma, one of my favorite tools. This app lets you monitor your credit progress over time and even receive notifications when your score has changed. Best of all, itâs free.

Should You Use a Credit Card to Rebuild Your Credit Score?

If youâre on the fence about picking up a credit card for bad credit, your first step should be thinking over your goals. What exactly are you trying to accomplish?

If youâre looking for spending power, the cards on this list probably wonât help. Some are secured cards, meaning you need a cash deposit to put down as collateral. Others offer low credit limits and high fees and interest rates, making them costly to use over the long-term.

If you really want to start over from scratch and repair credit mistakes made in the past, on the other hand, one of these cards may be exactly what you need. If youâre determined to improve your score, they can speed things along.

You may pay higher fees and interest rates along the way, but itâs important to remember that none of the cards on this list need to be your top card forever. Ideally, youâll use a credit card for poor credit to rebuild your credit and boost your score. Once youâve reached your goal, you can upgrade to a new card with better benefits and terms.

The post Best Credit Cards for Bad Credit appeared first on Good Financial CentsÂ®.

Source: goodfinancialcents.com

February 2, 2021

Hours of Work Needed to Pay Rent in the 25 Largest Cities â 2021 Edition

Image shows a blue house figurine on top of a stack of a few bills; these sit on a desk, next to a smartphone that shows the interface of a budgeting app. SmartAsset analyzed Census data to conduct this study on the hours of work needed to pay rent in the 25 largest U.S. cities.

According to the Census Bureau, almost 20 million renters allocate at least 30% of their household income towards rent, indicating that they are housing cost-burdened. This can be especially true in larger cities where the cost of living is higher. And if time is money, then many Americans will have to resort to working longer hours to make ends meet without having to use up any existing emergency funds.

In this study, SmartAsset measured the hours of work needed to pay rent in the 25 largest cities in the U.S. To determine our estimates, we considered data on the following metrics: average annual take-home pay, average hours worked per year and median monthly rent. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAssetâs fourth annual study on the hours of work needed to pay rent. Check out the 2020 version here.

Key Findings

56.6 hours. The average number of work hours needed to pay rent across the largest 25 U.S. cities is 56.6. In the six cities at the top of our list, renters must work at least 6% longer to pay rent alone. It takes more than 60 hours of work in all six cities to cover average rental costs.
California cities stay at the very top, but Los Angeles drops for the first time in recent years. In every version of this study since 2018, the three cities where the average worker needs to work the most to pay rent have been as follows: San Jose, Los Angeles and San Diego, California â in that order. In this yearâs study, however, San Diego jumps to the No. 2 spot and Los Angeles drops to No. 3.

1. San Jose, CA

In San Jose, California, it takes more than 76 hours of work on average to pay median monthly rent, which is $2,223 or almost $26,700 per year. The median worker earns $41,419 after taxes, with an estimated hourly wage of about $29.

2. San Diego, CA

The average annual take-home pay in San Diego, California is $34,157, or an hourly wage of less than $25. According to our estimates, the average worker in this city would need to work almost 74 hours to be able to pay a monthâs rent, which is $1,806.

3. Los Angeles, CA

In Los Angeles, California, the average worker needs to clock almost 73 hours to cover median monthly rent, which is $1,554. The average number of hours worked in the city is about 38 hours per week, which means that it would take this person almost two weeks to cover that total amount of time. The average worker in Los Angeles earns $34,669 before taxes and takes home about $28,815 â or a little more than $21 per hour.

4. Boston, MA

In Boston, Massachusetts, the average worker earns $35,800 after taxes, or about $25 an hour. The median monthly rent in Boston is $1,735, which means residents there will have to work more than 69 hours to pay for a monthâs rent. At an average of about 38 hours worked per week in Boston, it would take nearly 13 days for a worker to cover this amount.

5. New York, NY

New York City has the fifth-highest number of hours needed to pay rent across the 25 largest cities in this study. With a median monthly rent in the city of $1,483, a worker person would have to work 62.0 hours to cover rent. The average worker in New York earns $42,326 and takes home $32,608 after taxes, or $23.90 per hour.

6. San Francisco, CA

In San Francisco, California the median monthly rent is $1,959. This is the second-highest monthly rent amount across all 25 cities in our study, following only San Jose, California. The average worker in the city earns about $32 per hour, or $51,548 after taxes. This means that the worker would have to work 61.2 hours to cover rental costs. At an average of 40.2 hours worked per week in San Francisco, it would take this worker about a week and a half to do so.

7. Denver, CO

In order to cover the costs of the average rental apartment or home in Denver, Colorado, the average worker would need to work almost 60 hours. The median monthly rent in Denver is $1,433. The average worker in Denver earns $47,146 before taxes, with a take-home pay of $37,922 or $23.92 an hour.

8. Nashville, TN

The median monthly rent in Nashville, Tennessee is $1,191 or $14,292 per year. With the average worker there earning $31,889 after taxes or $20.77 per hour, it would take him or her approximately 57 hours of work to cover the cost of rent each month.

9. Austin, TX

The average worker in Austin, Texas earns $42,416 and takes home $35,739 or $23.34 per hour. Monthly rent costs in Austin reach $1,334 per month, or $16,008 per year. At that rate, it would take this worker more than 57 hours to cover rental costs.

10. Charlotte, NC

Median earnings for a worker in Charlotte, North Carolina are $38,528. This worker would take home $31,118 or $20.61 an hour. Charlotte has the lowest median monthly rent across the 10 cities on this list, at $1,174, resulting in a total annual rent of $14,088. To be able to pay for a monthâs rent in Charlotte, the average worker would have to work 57 hours.

Data and Methodology

To find out how many hours of work are needed to pay rent in the 25 largest cities in the U.S., we looked at data on the following three metrics:

Average annual take-home pay. This is the average workerâs earnings after accounting for income taxes. To find out how much each worker would pay in income taxes, we ran median workerâs earnings data through our income tax calculator. We assumed the average worker would contribute nothing to an IRA or 401(k), take the standard deduction and file as a single filer. Earnings data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.
Average hours worked per year. This is the number of weeks worked per year multiplied by the number of hours worked per week. Data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.
Median monthly rent. Data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.

First, we found the average hourly wage for each worker by dividing average annual take-home pay by average hours worked per year. Then we divided the monthly median monthly rent by the average hourly wage. This resulted in the average hours of work needed to pay a monthâs rent. Finally, we ordered the cities from highest to lowest based on the average number of hours needed to pay rent.

Tips for Managing Your Savings

How much are you really taking home? When budgeting how much to allocate to needs, wants and savings, itâs important to know how much youâre actually starting with. Use SmartAssetâs paycheck calculator to find out your post-tax earnings.
Budgeting is key. If the cost of living in an area is high and moving is not an option, consider using our online budget tool to make sure your expenses are all covered.
401(k) matching. Taking advantage of a 401(k) employer match program is an ideal way to build your retirement savings faster. When considering a new job always review the retirement plan offerings to be sure that itâs the right one for your needs.
Expert financial advice. You already work hard to make ends meet, so why put in any more hours than you need to in order to get expert help with your assets? Finding the right financial advisor doesnât have to be hard. SmartAssetâs free tool matches you with financial advisors in your area in five minutes. If youâre ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Questions about our study? Contact press@smartasset.com.

Photo credit: Â©iStock.com/mphillips007

The post Hours of Work Needed to Pay Rent in the 25 Largest Cities â 2021 Edition appeared first on SmartAsset Blog.

Source: smartasset.com

February 1, 2021

Expert Interview with Tiffany Aliche of The Budgetnista on Financial Planning

Financial Eduation is important for everybody regardless of their demographic, and yet it is frequently overlooked by both the young and those who are just trying to get get by.

Tiffany Aliche is passionate about financial planning, and shares that passion, as well as a lifetime of information and practice, on her blog,Â The Budgetnista.

Tiffany took a moment to tell us about The Budgetnista, how anyone can benefit from sound financial education, and how that education can enrich your life.

Can you briefly describe The Budgetnista for people who aren’t familiar with the site? How did you get started? What differentiates you from the other financial blogs out there?

The Budgetnista is an award-winning financial education firm established in 2008. We specialize in the delivery of financial literacy through seminars, workshops, curricula and trainings. The Budgetnista has been a brand ambassador and spokesperson for a number of organizations, and has served as the personal finance education expert for City National Bank.

I’m happy to say that I’m quickly becoming America’s favorite financial educator. I authored the #1 Amazon bestseller,Â The One Week BudgetÂ and created theÂ LIVE RICHER Challenge.

My love for financial education began at at home. I grew up in a financially-literate household, receiving weekly financial lessons from my CFO father. These lessons paired with my fun personality helped me create a fun, financial blog that resonates with thousands of women.

Who is your regular audience? What are some specific challenges they face, and how do they inform the things that you write about?

The Budgetnista’s audience is women aged 25-45. Their biggest financial issues are debt management, credit, and budgeting. When writing my blog, I focus on offering step-by-step guidance for these specific financial issues. In addition to women needing assistance, they also need encouragement. I try to not only be a source of information, but a source of inspiration as well.

What are some of the financial services The Budgetnista offers? Who is likely to utilize your services?

The financial services offered by The Budgetnista are keynotes, workshops and seminars on the following personal finance topics: money mindset, budgeting, savings, debt and credit. Many colleges, non-profits, and corporate entities utilize these services.

Each year, The Budgetnista also offers the LIVE RICHER Challenge; a FREE, online financial challenge created by The Budgetnista to help 10,000 women achieve seven specific financial goals in 36 days.

Your motto is “Live richer. To create a measurable lifestyle shift, through financial education.” First of all, can you briefly define financial education, and relate why it is so important? Secondly, how much of a noticeable shift has there been in your own lifestyle since you implemented this education?

Financial education through The Budgetnista provides participants with the tools they need to make sound financial decisions. It is essential because it grants people the power of choice, not just with their finances, but in other aspects of their lives as well.

In my own life, I’ve seen the power of financial education first hand. After a devastating job loss during the recession, I was able to create a business (The Budgetnista) and design the life I always dreamed of.

InÂ the long version of your bio, you’ve written, “By beginning to educate yourself, you’ve taken the first step towards financial empowerment.” How does that information translate into daily life? If this is the first step, what’s the next?

Education is the first step on your financial journey. The next step is to take action. Once you know how to manage your money – budget, save, reduce debt, and fix credit – you can use these skills to navigate your daily life.

One of the goals of The Budgetnista is to give someone a clearer understanding of how to more skillfully manage their money. What are a few basic tips people can use to get started?

Here are The Budgetnista’s top 3 tips to get started on managing your money.

3) Open a Bills Account: This is a FREE checking account (if possible), where you allocate your bill money each month. Separating your funds will help you to avoid “accidentally” spending money designated for bills.
2) Give and get an allowance: I bet you never thought you’d get one again. After creating your budget, decide which items you can pay for with cash each month and add the amounts up; then divide the total by four. That’s how much your new weekly allowance is. If you take weekly cash allowances, it will help to curb your spending. Also, give yourself a CASH allowance when shopping and leave the cards at home. This way when the cash is done, so are you.
1) Automate: By taking out the “flawed” human element (aka you), you’re more likely to stick to your budget. I’ve automated EVERYTHING; payments, bills, saving, investing, even giving to charity.

You recently wrote a blog post about how toÂ start planning for retirement now. First of all, why is this important? Secondly, does it seem like this is something that young adults are neglecting?

Retirement is critical for anyone who wants to maintain their lifestyle after they stop working. Many young adults neglect this because there is a disconnect between their present self and their future self.

You also recently wrote aboutÂ a budget trip to JamaicaÂ you get to take. What are some fun things that you’ve gotten to do simply by getting your finances in order?

My favorite thing to do, as a result of getting my finances in order, is travel. In the past few years, I’ve been to 16 different countries. Learning to master my money has given me the freedom to actively design and live my life.

You’ve talked aboutÂ how to make a budget for people who don’t have a regular paycheck. What were some of the basics of that article, and do you feel this is a reflection of the changing economy we’re living in, and if so, how?

Budgeting on an irregular income can be difficult. Here are some tricks to help you.

Calculate your Financial Baseline: Your financial baseline is how much your life costs you each month without the bells and whistles.
Be Like the Squirrel: Squirrels are super-smart savers. When acorns are plentiful, they work their hardest and gather as many as possible. Squirrel away your money when times are good, and live off of your stash when things aren’t.
Pay Yourself: Once you identify how much you spend each month, pay it to yourself from your business/savings account. Your clients/income provider should “pay” your savings account, then you pay yourself a regular income from the money that sits in that account.
Live by Percentages: Those that receive a regular paycheck can live by exact amounts; but for those of us with irregular incomes, we have to live by percentages. Allocate a percentage of your income to different categories: bills, savings, investing, spending, etc.
Separate to See: The best way to gauge how close you are to achieving your financial goals is to house your money in different bank accounts.
Systemize: Automate everything: transfers, bills, saving, giving and investing.

You’ve also offered some travel tips forÂ traveling on a budget. What are some ways people can save while they’re traveling? How possible is it to have fun on the cheap?

My top 3 Budgetnista travel tips are:

Be flexible: Sometimes travel deals spring up on sites. The more flexible you are about your travel destination and timeframe, the more likely you’ll be able to take advantage of those deals.
The right sites: My favorite deal sites are:Â theflightdeal.com,Â jetradar.com,Â europeandestinations.comÂ andÂ airfarwatchdog.com
When to book: The best day to book a domestic flight is Tuesday at 3pm (this is when the sales hit). The cheapest day to fly domestically is Wednesday.

Financial education is not a one-off event; it is an ongoing process that requires practice to perfect. For more education and inspiration, like The Budgetnista onÂ FacebookÂ , connect onÂ LinkedIn, follow her onÂ Twitter, and subscribe toÂ The Budgetnista YouTube Channel.

The post Expert Interview with Tiffany Aliche of The Budgetnista on Financial Planning appeared first on MintLife Blog.

Source: mint.intuit.com

February 1, 2021

5 Online Banking Myths Debunked

When’s the last time you made an appearance at a bank branch? With the latest digital technology, there’s almost no reason to step inside a physical bank: Nearly three-quarters of Americans bank primarily online or from their mobile device, according to the American Bankers Association.

But you might still like the idea of having a checking account at a bank with a branch nearby. Why? Maybe you think online banks aren’t as convenient as stopping by your neighborhood branch to get cash (free coffee aside), the perks aren’t as good as with traditional banks or that online banks aren’t insured. Actually, these are three of several big myths about online banking.

Not being able to deposit checks or get cash easily are common myths about online checking accounts.

âPeople who say online bank accounts are inconvenient may not know how they work,” says Monica Lam, founder of money-saving blog Lucky Mojito. âI can mobile deposit a check into my account at any time without having to drive to the bank and wait in line.”

Lam wishes she hadn’t fallen for common online banking myths and took the benefits of online checking accounts more seriously sooner. âIf someone had told me I could avoid using gas or spending time going to the bank to deposit my checks,” Lam says, âI would have switched a long time ago.”

By now you’re probably wondering, “What are the most common myths about online banking?” We reveal themâand debunk themâso you can understand why opening an online checking account might be right for you.

Myth 1: They’re inconvenient

Don’t just take Lam’s word that inconvenience is an online banking myth. Patricia Russell, a certified financial planner at FinanceMarvel, agrees. âSome online accounts offer 24/7 access to many features of the bank. You can open your account, view your balance, deposit checks, apply for loans and pay billsâall from the convenience of the mobile app or website,” Russell says.

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Nearly three-quarters of Americans bank primarily online or from their mobile device.

– American Bankers Association

In fact, some online banks make it easy and convenient to open an account. âOnline accounts are extremely easy to open,” says Miguel A. Suro, founder of the financial blog The Rich Miser. âAll you have to do is go to the website or download the app and follow the simple prompts.”

If convenience is on your mind, you may also worry about the ability to access cash without a physical bank branch, but online banks may have a large network of ATMs that you can use, Russell says. For instance, with Discover’s online checking account, called Cashback Debit, you can use your debit card at over 60,000 no-fee ATMs. How’s that for debunking myths about online checking?

Myth 2: The perks aren’t as good as with traditional banks

If you believe this, you’ve fallen for one of the most common myths about online banking.

Suro thinks one reason you may be able to score benefits from some online banks is that low overhead often means incentives can be passed down to the consumer.

One such incentive that disproves this myth about online checking is that many online banks charge low or no fees.

“You may be able to pay no fees for routine banking,” Suro says, “such as just having an account, ordering checks, ATM access and most money transfers.”

Discover Cashback Debit, for example, charges no fees. Period. That means you won’t be charged an account fee on your online checking account.¹ Imagine, a host of potential fee-carrying features you no longer have to worry about!

Why should credit cards
have all the fun?

Now you can earn cash back with your debit card.

Learn More

Discover Bank, Member FDIC

Another perk on the online checking account sceneâdiscrediting this myth about online checkingâis cash back rewards, which have more traditionally been associated with credit cards. With Discover Cashback Debit, you can earn 1% cash back on up to $3,000 in debit card purchases monthly.² That means your monthly cash back earnings could yield $360 in total rewards each year. This perk could be covering a good portion of your coffee habit!

You may also find this online banking myth refuted with the fact that some online checking accounts offer higher yields compared to traditional banks, Lam says, which means you can potentially make some cash while your funds are stashed.

Myth 3: You have to be tech savvy to use online accounts

While you need to have a computer, tablet or smartphone to use an online bank and access an online checking account, one of the top myths about online banking is that you have to be a techie.

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âThere is no need to know a lot about technology to have an online account,” Russell says. âSome banks know the importance of easy-to-use websites and mobile apps, so they often have a design that is simple and straightforwardâeven for those claiming not to be tech savvy.”

Lam, who recently opened a new online bank account, also challenges this myth about online banking. âI went online and filled out a simple form and instantly had access to my account,” she says.

Suro has had an online bank account for 10 years and has not found the technology to be challenging, debunking this myth about online checking. âIf you can manage your traditional bank’s account online via its website or app, you can manage an online-only account,” Suro says. âIt’s the same basic experience.”

.block-quote_100back { background-image: url(https://865cd2fc18498405a75a-f8cbe8cb758c89f0cd738fe08520ecb9.ssl.cf5.rackcdn.com/online-banking/banking-topics/wp-content/uploads/2017/09/100back-730×500.jpg); } @media (min-width: 730px) { .block-quote_100back { background-image: url(https://865cd2fc18498405a75a-f8cbe8cb758c89f0cd738fe08520ecb9.ssl.cf5.rackcdn.com/online-banking/banking-topics/wp-content/uploads/2017/09/100back-1600×600.jpg); } }

âIf you can manage your traditional bank’s account online via its website or app, you can manage an online-only account. It’s the same basic experience.”

– Miguel A. Suro, founder of financial blog The Rich Miser

Myth 4: You won’t be able to talk to a human if there’s a problem

Another online banking myth is that you won’t be able to access good customer service for your online checking account because you can’t walk into a branch to talk to someone. Not so fast.

Some online banks have customer service representatives that you can call, and some may even have this service available around the clock (no need to even leave the comfort of your home if you have a question). For instance, Discover’s customer service is available 24/7.

âYou no longer have to make it to the bank before it closes, you can actually contact the bank in the evening and get an answer,” Russell says.

If you're worried an online bank will provide bad customer service, you should know that's another online banking myth.

If you’re all about communication from your favorite device, note that some online banks offer digital customer service through the bank’s website or app, calling into question this myth about online checking. âMany online banks offer [live] chat,” Russell says. You may also be able to contact an online bank’s customer service through social media.

Despite the face-to-face opportunity, Suro doesn’t think bank branches are necessarily better at providing customer service. He once needed to send a wire transfer and easily figured out how to do it online. When his relative went into a branch to do the same thing, he got held up. “The whole thing turned into an ordeal that took over 45 minutes,” Suro says.

Myth 5: Online checking isn’t insured

One final online banking myth is that deposited money isn’t insured.

Online banks can be members of the FDIC, which means they insure your money up to $250,000 or the maximum allowed by law, Lam says. Before you open an account, you’ll want to make sure that the online bank is FDIC-insured. One way to do this is to call the FDIC’s toll-free number at 1-877-ASK FDIC (1-877-275-3342) and ask a deposit insurance specialist to confirm that the online bank in question is FDIC-insured. The FDIC’s online tool BankFind also allows you to search banks by name and informs you of their FDIC number and status, among other information. Banks often include language on their websites and in marketing materials noting if they are members of the FDIC, so be sure to look for that as well.

The belief that online checking accounts aren't safe or secure is one of the many myths about online banking.

No myths about online bankingâonly a new reality

“Despite the benefits of online banks, many people don’t open accounts because of all these misconceptions,” Russell says.

Now that some of the common online banking myths have been challenged, you can more easily see the simplicity of online accounts and the time saved by banking onlineâtwo key reasons Suro is a huge proponent.

âThat’s why banking online is one of my core strategies for effortlessly saving money and moving through life more efficiently,” he adds.

¹ Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.

² ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^Â® and PayPal^TM, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

The post 5 Online Banking Myths Debunked appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

February 1, 2021

BlueVine Business Checking Account Review – The Simple Dollar

BlueVineâs free business checking account comes with no fees, no minimum deposits and even earns interest on account balances over $1,000.

Source: thesimpledollar.com

January 27, 2021

How to Save More Money in the Stay-at-Home Economy by Focusing on What Matters Most

Love it or hate it, many Americans are spending more time at home. The coronavirus pandemic not only accelerated the work-from-home trend to warp speed, but it also shuttered schools and summer camps, scratched travel plans and canceled brunch and dinner reservations across the country.

Jen Dawson, a certified financial planner and managing director in Chicago, found that the uncertainty and stay-at-home lifestyle created by the pandemic prompted her clients to look at their financial situations in a new light.

âI think it just gives opportunities for people and families to reflect,â Dawson says. ââWhat do we want out of life? What do we want from our money?â Those conversations are really valuable.â

As Dawsonâs clients reflect on their goals, they (and many others) are also wondering, âHow should I adjust my household budget if weâre spending more time at home?â

Creating a household budget can help you reduce the financial uncertainty of the stay-at-home lifestyle.

How to optimize your budget for the stay-at-home economy in 4 steps

Ellen Rogin, a former wealth advisor and now a speaker, author and entrepreneur, notes that people across the country were affected by the pandemic in very different ways. While many workers were able to keep their jobs as they transitioned to working from home, many were not.

âThere are people who have lost their jobs and are being forced to make difficult decisions,â Rogin says. âAnd there are people who are still employed and earning the same income they did before, who have more options as they decide how they’re spending their money now.â

Even if youâve been spared serious financial challenges, you should still consider updating or creating a household budget or spending plan. This will allow you to determine how to save more money in the stay-at-home economy.

You can determine how to save money in the stay at home economy by defining a household spending plan.

Rogin and Dawson encourage you to use this opportunity to ensure youâre at least staying on track to meet your savings goalsâand at best, shortening your savings timelines. Itâs also a chance to make sure that your spending habits, which have likely changed as youâve spent more time at home, are maximizing your happiness.

Below, we break down insights from Rogin and Dawson into four actionable steps you can take to save money in quarantine while living the best life possible. It all starts with taking an objective look at how your spending habits changed as you transitioned to a more domestic lifestyle.

Read on to see how to save more money in the stay-at-home economy by creating a new household budget:

1. Compare your spending trends before and during quarantine

As you set about creating a household budget for an at-home lifestyle and determining how to save more money in the stay-at-home economy, start by reviewing your spending.

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âMost people donât really know how much money theyâre spending, whether times are good or bad. But it can really make you feel calmer to know what it takes to run your lifestyle.â

– Ellen Rogin, speaker, author and entrepreneur

Dawson encourages you to refer to your debit and credit card statements to analyze the differences between your spending before staying home became the norm, and after. âYou can compare it and contrast and have observations and discussions around what changed,â she says. âWhat do you like that you want to keep going, and what do you not like about it?”

All you need, Dawson says, is a spreadsheet to total up your major expenses, such as housing, utilities, transportation, food and dining, travel, shopping and entertainment. Then, subtract the sum of those costs from the money you earned (aka income) over the same timeframe.

Do this exercise for three months of spending before quarantine and then again for three months of spending during quarantine. Youâll be able to compare the data to see whether you have more or less disposable income as a member of the stay-at-home economy.

Analyzing your total expenses, like entertainment and travel, is the first step toward saving money in quarantine.

Rogin notes that it can be a little scary to examine your finances like this, but thereâs no reason to feel anxious.

âMost people donât really know how much money theyâre spending, whether times are good or bad,â she says. âBut it can really make you feel calmer to know what it takes to run your lifestyle.â

If you see that your disposable income decreased while in quarantine (or that you no longer have disposable income at all), then youâll need to find ways to cut back on spending if you want to keep your savings goals on track. If your extra cash increased and youâre actually saving more money in quarantine, then you can start to consider how you might hit some or all of your savings goals more quickly.

Either way, you still have work to do as you consider how to save more money in the stay-at-home economy. Rather than focusing on external factors that are out of your control, Rogin and Dawson recommend that, as a next step, you ask yourself what matters most to you.

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2. Ask yourself how your spending habits impact your happiness

Rogin considers the distanced, more remote way of life as a chance to reflect on whatâs really important in order to create your household budget. One example she points to is how many people have been cooking at home far more often than they once did.

âMaybe youâre spending more on groceries, but thatâs less than you were spending on eating outâand you enjoy it,â she says. âYouâre spending more time with your family. Youâre eating more healthily. So it gives you the opportunity to really assess your budget in a different way.â

Another example is travel. Rogin says that some people have told her that they really miss it, but others have been surprised to find how happy they are to pump the brakes on their jet-setting ways. In addition to saving money in quarantine from reimbursed travel and no more expensive trips, itâs allowed them to slow down and enjoy their time at home with family.

For her part, Rogin found that she wore the same two pairs of shoes during quarantine because theyâre comfortable, and no one can see them when sheâs video conferencing during work. As a result, Rogin cut this expense from her stay-at-home budget.

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When creating a household budget, look for savings from expenses you don't miss in quarantine.

Whether youâre facing a cash shortage or surplus from more time spent at home, Rogin says that extending this line of thinking into a âvalues-based spending planâ for the stay-at-home economy will allow you to direct your money to what matters most to you, while diverting funds away from what doesnât.

Once you add up the expenses that are no longer necessary in your stay-at-home budget, itâs time to put that money to work.

Tip: When looking at quarantine spending, donât get too granular

Dawson underscores that evaluating spending patterns can be an emotional exercise. If youâre reviewing your finances with a family member, partner or spouse, try to resist the urge to nitpick every purchase. The trends should be easy enough to spot from a birdâs-eye view.

3. Put your stay-at-home savings toward your financial goals

Dawson and Rogin recommend having a plan when youâre trying to figure out how to save more money in the stay-at-home economy. That plan should include what youâre saving for, as well as where youâll keep the funds as they add up.

Rogin recommends framing your financial goals from a positive angle. For example, when you create a household budget, instead of focusing on cutting spending, you can set a goal for how much extra money you want to save.

Approach creating a household budget by setting a goal for how much extra money you want to save.

If you have children or live with a partner or spouse, Dawson notes that this goal-oriented approach can help get them involved. The objective might be to start an emergency fund to ride out unexpected headwinds. Or, the focus could be on saving up for a big vacation to look forward to when travel restrictions ease.

When deciding where to keep your savings, a standard checking account wonât allow your money to grow like a high-yield online savings account will. Rather than pooling the money youâve saved in quarantine into one account, Dawson suggests opening multiple savings accounts, one for each of your savings goals.

âBe really clear about what each savings account is for,â she says. âThen youâre more likely to fund it.â

Of course, luxury savings goals like a vacation should not take priority over your long-term savings goals, such as retirement or college funds.

4. When saving money in quarantine, remember to support those in need if you can

If you are saving money in quarantine, Rogin suggests considering all the benefits of earmarking extra cash for philanthropic causes. It could go directly to the local small businesses you love that are hurting for revenue. Or it could go to any number of nonprofit organizations that are doing good in the world.

If you're successfully saving money in quarantine, consider earmarking some to support local small businesses or nonprofits.

âSo many people are in need now,â Rogin says. âThere are so many beautiful ways that can help you feel like youâre making a difference for people by reallocating some of that money towards causes and people that you want to support.â

How will you start saving money in quarantine?

The stay-at home lifestyle may not have been in your plans, but you have the opportunity to gain control of your finances inside your home by creating a household budget that works for you in this new reality.

When you analyze, assess and optimize your spending and consider how to save money in quarantine, youâll be in as strong a financial position as possible when life gets back to normal.

If youâve been fortunate enough to save money in quarantine, consider starting or adding to your emergency fund. Not sure where to store your savings? Check out the four best places to keep your emergency fund.

Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

The post How to Save More Money in the Stay-at-Home Economy by Focusing on What Matters Most appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

January 27, 2021

4 Questions to Ask Before Choosing a Checking Account

You’ve probably had a checking account for most of your life and never gave it much thought. It’s just there to store your everyday cash, right? Not necessarily.

If you’re considering questions about checking accounts as you take a closer look at your current setup and explore opening a new one, it’s important to note that checking accounts are designed with different and unique features. Some may even be more beneficial to you than you realize.

For starters, most checking accounts offer a host of conveniences, providing customers the ability to set up automatic payments for routine bills, schedule electronic transfers and make all deposits and transfers via a smartphone app. Some accounts even allow you to earn cash back on your debit card purchases.

âA checking account can have a long-term impact on your financial well-being, so it’s worth taking the time to figure everything out,” says Jeff Kreisler, money expert and author of the personal finance book “Dollars and Sense.”

You may not even think you have questions about checking accounts if you've had your account for a whileâbut reviewing your account features can help you decide if you need to switch.

At this point, you might be thinking, “What questions should I ask before opening a checking account?” To help you decide which account is right for you, here are four key questions to ask yourself:

1. What types of checking accounts should I consider?

Before you open a new checking account, do a little homework to learn about the different types of checking accounts offered by banks, Kreisler says. There’s the standard personal checking account that allows you to write checks and make payments with your debit card or electronically. But when thinking about questions to ask when opening a checking account, go beyond the basic features to find an account that best fits your lifestyle and financial goals. Here are some examples:

Online checking account: Ready to bypass the teller lines with the benefits of an online bank? Then this is the checking account for you. Doing your banking from any computer or mobile device is sweetâand since online banks don’t have brick-and-mortar locations, they can often pass their savings from overhead down to you. Just verify that the online bank or credit union supplying the checking account is backed by the FDIC or the National Credit Union Administration.
Rewards checking account: One question to ask before choosing a checking account is if you can earn rewards or incentives for certain activity. Discover Cashback Debit, for example, lets you earn 1% cash back on up to $3,000 in debit card purchases each month.¹ That means your monthly cashback earnings could yield $360 in total rewards each year (finally, dinner and drinks at that new French bistro in town!). Some banks may also offer a checking account bonus just for opening a new account, while others have a variety of reward options based on certain qualifying purchases. A rewards checking account works for almost anyone looking to maximize their debit spend or a balance they regularly hold in their checking account.

Say hello to
cash back on debit
card purchases.

No monthly fees.
No balance requirements.
No, really.

See Details

Discover Bank, Member FDIC

Joint checking account: Most checking accounts can be opened as a joint checking account, which is an account held by two or more people. This can be a convenient solution for couples, minors and their parents and even seniors and their caregivers who are trying to manage a household budget. It does require good record keeping and communication, so make sure you understand the ins and outs of joint accounts before choosing this option.

The above checking accounts are the most standard and usually have appealing benefits. But if you have more questions about checking accounts, there are options that can cater to more specific needs. However, they often have less flexibility. For instance:

Interest-bearing checking accounts are available for those who want to earn some money while their cash is parked in the account. The rate of return is usually low and minimum balance requirements high.
Student checking accounts are often low-cost, but they could come with limitations. Whether or not a student account is available may be a good question to ask before choosing a checking account if you’re looking for a starter account for yourself or your child.
Second-chance checking accounts could be a fit for those who may not be able to get a standard checking account due to their banking or credit history; however, they often have higher fees.

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“A checking account can have a long-term impact on your financial well-being, so it’s worth taking the time to figure everything out.”

– Jeff Kreisler, money expert and author of Dollars and Sense

2. Are there fees associated with the checking account?

This is one of the most commonly asked questions about checking accounts. Before choosing a checking account, be sure to research its fees, says Marc Bernstein, financial planner and strategist for MWealth Advisors. Types of fees and fee amounts can vary greatly from bank to bank, and even among accounts at the same bank.

A question to ask when opening a checking account is if the account charges fees for ATM use, automatic bill pay, monthly maintenance, ordering checks, replacing a debit card or ordering official bank checks. Banks may charge any combination of these feesâor none. Discover Cashback Debit comes with no fees. Period.² That means you won’t be charged a fee for any of these services.

Asking about fees is one of the most important questions to ask before choosing a checking account.

Along with including the fee topic on your list of questions to ask before choosing a checking account, you should also consider obtaining “a document outlining the fees you’ll be paying, in case you have any questions, and check the fine print,” Bernstein says. You can also typically find a list of fees (if any) on the bank’s website or in the account agreement.

3. Is there a minimum balance requirement?

According to Bernstein, among the questions to ask when opening a checking account is if it requires an initial minimum balance to open. You’ll also want to know if a minimum balance needs to be maintained to avoid a fee.

Bernstein suggests looking for an account with no minimum balance requirement if you tend to keep less than $1,000 in your account or like to have flexibility when making large withdrawals.

If you’ve asked this question about checking accounts and are still comparing accounts that have a minimum balance requirement, realistically determine how much you can keep in your account per month and what you will be charged if you can’t keep that balance.

Even if your account falls below a minimum requirement, there could be a way to save on fees. If you have multiple accounts at one bank, the bank may allow you to combine the balances to waive checking fees.

The total average cost of withdrawing cash from an out-of-network ATM is $4.68. That’s 36 percent higher than it was 10 years prior, with no signs of decreasing.

– Bankrate’s 2018 checking account and ATM fee study

4. What ATM fees could I incur?

If you frequent the ATM to take out cash, a good question to ask before choosing a checking account is: Where are the bank’s ATMs located in relation to your home and work?

Availability of ATMs is an important question to ask when opening a checking account that can really affect your wallet. For instance, if you decide to withdraw money from an ATM that’s not in your bank’s network, you can get hit with two separate charges: a surcharge from the ATM owner (since you’re not a customer) and a fee from your own bank.

And those fees can really add up. According to Bankrate’s 2018 checking account and ATM fee study, the total average cost of withdrawing cash from an out-of-network ATM is $4.68. That’s 36 percent higher than it was 10 years prior, with no signs of decreasing.

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One way to get cash without paying an ATM fee is to use your own bank’s ATMs. The more ATM locations that your bank offers that are conveniently located, the less likely you are to use one that’s out-of-network and rack up unnecessary charges. If you can’t always use your own bank’s ATM, one of the questions to ask when opening a checking account is whether your bank allows you to use a broader ATM network for no-fee transactions.

Find the best checking account for you

Opening a new checking account is an important step toward establishing, or rebuilding, your financial foundation.

Now that you can ask the right questions about checking accounts, you’re one step closer to choosing an account that fits your individual needs. And that feels like money in the bank.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^Â® and PayPal, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

² Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.

The post 4 Questions to Ask Before Choosing a Checking Account appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

January 27, 2021

BlueVine Business Checking Account Review

Source: thesimpledollar.com

January 20, 2021

Save money (and stay connected) with the best budget smartphones

The post Save money (and stay connected) with the best budget smartphones appeared first on Penny Pinchin' Mom.

I remember my first cell phone. It was a Nokia 3360.

Back then, it was all the rage, and coming from battery-draining car phones, it was a step up.

A lot has changed since my indoctrination into the world of mobile devices. Cell phones are no longer just phones.

Todayâs smartphones are handheld computers that can connect you to information and people around the world in mere seconds.

But, with the development of its supercomputer functionalities, mobile phones have also exponentially increased in price.

Though my Nokia 3360 now sells for a mere $25 on eBay and can probably be listed as a historical artifact, todayâs most popular smartphones start in the hundreds of dollars.

In fact, youâll find most prices quoted as a monthly payment so as not to deter consumers from the actual price tag that theyâll be financing.

Regardless, owning a smartphone doesnât have to break the bank. There are budget options available that can save you money while still allowing you to stay connected.

It’s possible to buy a budget smartphone and save yourself some expense. Since most people finance their phone through their cell phone bill, buying a budget smartphone — like an iPhone SE or an older model like an iPhone 6s — can lower your monthly phone bill. It’s also possible to buy a budget phone — whether it be an Apple phone or an Android Phone — that still has advanced features like extended battery life and a fingerprint sensor.

Here are 3 budget smartphones that you can purchase to save money.

Motorola Moto e6

The Motorola phones rank high among tech reviews for economical smartphones. The Moto e6, in particular, is one of the brandâs most affordable phones.

Motorola describes it as having all of your standard smartphone features, but at an unbelievably low price.

This particular phone starts at only $99.

Nokia Android Phones

If youâre looking for a tried and true mobile phone brand, Nokia has definitely stood the test of time.

These Android phones have the same standard features and overall sleek look as their more costly counterparts.

Nokia offers its smartphones starting at just $50.

Samsung Galaxy A0

This popular Android makes the list of budget-friendly smartphones as well, starting at $99.

The Samsung Galaxy is one of the most popular Android phones — repeatedly making tech lists for best Android phones.

Though much cheaper than its most popular models, the A0 can be a great alternative.

If your budget is a bit higher than $100, then you may consider other options from these brands as well.

A higher, yet still reasonable budget can also afford you an older model iPhone. Walmart offers Appleâs popular iPhone 7 as a prepaid option for just $199.

What to consider when budgeting for a smartphone

The amount of money that you budget for your phone should be based on how you plan on using it.

What you use your cell phone for will determine which features you will need on your phone. And, as expected, the features will impact the overall cost.

For instance, if you want to use your phone solely for talking, then the camera capabilities wonât matter as much.

Similarly, if youâre purchasing a phone for a child who just wants to play games and use it for emergencies, then speed and storage space should be the factors that are important to you.

For a child, an old phone may work just fine. Kids don’t need to store a credit card on their phone or have face ID. You can avoid getting a flagship phone and do less damage to your checking account by buying budget Android phones. Set a financial goal and be willing to sacrifice features like a front camera or wireless charging in order to to get them.

A cheap Android device or older iPhone can still access mobile data, make calls, and send texts. You can keep your fixed expense low with a cheap phone. It may be short on internal storage, lack a fingerprint scanner, only have a rear camera, and still have a headphone jack (a positive that newer phones lack) but it should be able to do most, if not all, of the things you need it to do.

Where to find budget smartphones

You can always find budget-friendly smartphones online.

To ensure that youâre actually getting what youâre paying for, I suggest going directly to the manufacturerâs website and not a third-party site.

Nonetheless, if youâre looking for a better deal and the ability to negotiate with the seller, consider purchasing from sites like eBay.

Cell phone carriers like Verizon, T-mobile, and Sprint also carry less expensive smartphones within their stores. So, if you want to try one out before you purchase it, just visit a local store.

Weigh all of the costs when purchasing a smartphone

The cost of a smartphone doesnât just stop with the purchase price.

There are other factors that will need to be taken into account when youâre trying to budget for a cell phone.

Here are some things to consider:

Service fees

Unless you plan to use a prepaid cell phone, youâll need to plan for monthly service fees from a cell phone carrier.

This will include the cost of cellular data usages, activation fees, taxes, and more.

Accessories

Though smartphones come with the basic accessories to operate, like a charger, youâll have to purchase other items separately.

Accessories such as a case, screen protector, earphones, and an additional charger are items that youâll need to consider in your budget for your phone.

These items can be purchased from third parties to save on costs.

Repairs

Iâve dropped enough smartphones to know that damage is unavoidable. Even with the best protection, you may still need to repair your phone.

Mainstream phone carriers will offer insurance coverage options that can add to the overall cost of your phone. Although, in many cases, you will still have to pay for a portion of your repair costs even though youâre covered.

A cheaper alternative is cell phone repair shops or kiosks that can handle quick repairs, like a broken screen.

Tips for saving money on your smartphone

Still need some help with saving money on your phone? Here are my final tips.

Donât purchase the latest model

If youâre trying to keep costs at a minimum, avoid purchasing the latest model of any smartphone.

Technology is ever-evolving and changing at a rapid pace. So even if you own the newest release, by the next day it’s already old technology.

This means that you might as well save your money and purchase a model that is a bit older.

As long as it functions and does what you need it to do, an older model will suffice.

Shop during the holidays

Itâs no secret that the best deals happen during the holiday season.

If youâre in the market for purchasing a new phone, consider waiting until Black Friday or the day after Christmas to see some real discounts.

Also, consider shopping on sites like Woot to take advantage of flash sales and deep discounts on electronics.

Use wifi

This tip is one that will help you once youâve purchased your smartphone.

To avoid unnecessary fees with your carries, be sure to leverage wifi as much as possible.

This means that instead of using your cellular data to search the internet or to use apps on your phone, you connect to wifi instead.

This is quite simple to do, as most public establishments have free wifi options for patrons. Use it to your advantage to save some extra money.

You can save money

Be smart about spending your money on smartphones. There are reliable, yet budget-friendly phones that can meet your needs.

Use these tips to find one thatâs right for you!

–By Fo Alexander

The post Save money (and stay connected) with the best budget smartphones appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

Options for PayingÂ Credit CardÂ BillÂ with Another Card

Cash AdvanceÂ andÂ Convenience Checks

Using aÂ Balance Transfer

HowÂ Balance TransfersÂ Work

Paying Off aÂ Credit CardÂ with Bad Credit

1. Improve YourÂ Credit Score

2.Â Credit Counseling

3. Debt Consolidation

4. Debt Settlement

Best Cards for Bad Credit This Year

#1: Total VisaÂ®

#2: Discover itÂ® Secured

#3: Credit One BankÂ® VisaÂ® Credit Card

#4: Secured MastercardÂ® from Capital OneÂ®

#5: MilestoneÂ® Gold MastercardÂ®

#6: Credit One BankÂ® Unsecured VisaÂ® with Cash Back Rewards

The Downside of Credit Cards with Bad Credit

Benefits of Improving Your Credit Score

How to Improve Your Credit: Slow and Steady

Should You Use a Credit Card to Rebuild Your Credit Score?

Can you briefly describe The Budgetnista for people who aren’t familiar with the site? How did you get started? What differentiates you from the other financial blogs out there?

Who is your regular audience? What are some specific challenges they face, and how do they inform the things that you write about?

What are some of the financial services The Budgetnista offers? Who is likely to utilize your services?

InÂ the long version of your bio, you’ve written, “By beginning to educate yourself, you’ve taken the first step towards financial empowerment.” How does that information translate into daily life? If this is the first step, what’s the next?

One of the goals of The Budgetnista is to give someone a clearer understanding of how to more skillfully manage their money. What are a few basic tips people can use to get started?

You recently wrote a blog post about how toÂ start planning for retirement now. First of all, why is this important? Secondly, does it seem like this is something that young adults are neglecting?

You also recently wrote aboutÂ a budget trip to JamaicaÂ you get to take. What are some fun things that you’ve gotten to do simply by getting your finances in order?

You’ve talked aboutÂ how to make a budget for people who don’t have a regular paycheck. What were some of the basics of that article, and do you feel this is a reflection of the changing economy we’re living in, and if so, how?

You’ve also offered some travel tips forÂ traveling on a budget. What are some ways people can save while they’re traveling? How possible is it to have fun on the cheap?

Myth 1: They’re inconvenient

Myth 2: The perks aren’t as good as with traditional banks

Myth 3: You have to be tech savvy to use online accounts

Myth 4: You won’t be able to talk to a human if there’s a problem

Myth 5: Online checking isn’t insured

No myths about online bankingâonly a new reality

How to optimize your budget for the stay-at-home economy in 4 steps

1. Compare your spending trends before and during quarantine

2. Ask yourself how your spending habits impact your happiness

Tip: When looking at quarantine spending, donât get too granular

3. Put your stay-at-home savings toward your financial goals

4. When saving money in quarantine, remember to support those in need if you can

How will you start saving money in quarantine?

1. What types of checking accounts should I consider?

2. Are there fees associated with the checking account?

3. Is there a minimum balance requirement?

4. What ATM fees could I incur?

Find the best checking account for you

Motorola Moto e6

Nokia Android Phones

Samsung Galaxy A0

What to consider when budgeting for a smartphone

Where to find budget smartphones

Weigh all of the costs when purchasing a smartphone

Service fees

Accessories

Repairs

Tips for saving money on your smartphone

Donât purchase the latest model

Shop during the holidays

Use wifi

You can save money

No myths about online bankingâonly a new reality

Tip: When looking at quarantine spending, donât get too granular

Donât purchase the latest model