Credit Account – How To Occupy http://howtooccupy.org/ Mon, 21 Nov 2022 19:08:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://howtooccupy.org/wp-content/uploads/2021/07/icon.png Credit Account – How To Occupy http://howtooccupy.org/ 32 32 Will “buy now, pay later” push cash-strapped holiday shoppers too far? https://howtooccupy.org/will-buy-now-pay-later-push-cash-strapped-holiday-shoppers-too-far/ Mon, 21 Nov 2022 19:08:06 +0000 https://howtooccupy.org/will-buy-now-pay-later-push-cash-strapped-holiday-shoppers-too-far/ Online shopping features that allow consumers to pay for goods in interest-free installments have exploded during the pandemic, but new research calls into question the riskiness of these services: Are people putting themselves above their heads? Buy Now, Pay Later (BNPL) financing has snowballed and is especially popular with Gen Z shoppers in their teens […]]]>

Online shopping features that allow consumers to pay for goods in interest-free installments have exploded during the pandemic, but new research calls into question the riskiness of these services: Are people putting themselves above their heads?

Buy Now, Pay Later (BNPL) financing has snowballed and is especially popular with Gen Z shoppers in their teens and 20s. The payment method accounted for $97 billion, or 2.1%, of total U.S. e-commerce sales in 2020, a figure that is expected to double by 2024.

The BNPL is so lucrative that merchants pay fintech companies roughly double the amount they pay in credit card fees to offer short-term loans to consumers. And it’s no wonder: Consumers using the payment method often spend more than they would with a credit card, according to a new study by Harvard Business School professors Marco Di Maggio and Emily Williams, and HBS PhD student Justin Katz.

Now, with an inflation-laden holiday season approaching and the threat of a recession approaching, research urges caution. While these new payment methods may seem like a tempting way to give gifts, they can lead to the trap of overdraft fees and insufficient funds, especially for low-income shoppers who buy beyond their means. , say the authors in their working paper.

“Put yourself in the consumer’s shoes,” says Di Maggio, associate professor of business administration at the Ogunlesi family. “You see something you like, put it in the cart, and start checking out. Before, you were looking at $100 for the item, plus shipping, plus tax. Now the invoice [for the first installment] says $25. You say, ‘OK, now I’m going to buy it for sure.'”

Consumers spend more with BNPL

BPNL credit has burst onto the market in recent years, advertised by fintech providers like Klarna and Afterpay and tied to the point of sale of a particular product.

Paying with BNPL differs from credit cards. Rather than a revolving line of credit, consumers take out an installment loan from the retailer at the time of purchase, usually agreeing to pay the total in four installments. There is usually little to no credit checking and most loans charge no interest if bills are paid on time.

Retailers are willing to pay more to provide the service as nearly half of consumers spend between 10% and 40% more when paying via BNPL compared to a credit card, the authors note, citing a December survey 2020 from data company Cardify.

BNPL’s detailed consumer data was not easy to analyze previously, as transactions are not reported publicly or to credit bureaus. To track BNPL usage, the researchers mined data from a US aggregator for 10 million individual transactions from January 2010 to May 2021 across merchants, vendors and consumer bank accounts.

The authors then analyzed a sample of 400,000 consumers, half using BNPL and the other not. A separate Bandwidth.com dataset helped researchers track some 20,000 specific retailers to identify merchants using BNPL, including major US retailers.

Penalize low-income consumers

Loans create what the authors call “the fly swatter effect.” Consumers with healthy access to cash like credit cards or bank accounts spend more of their total budget on retail goods when using BNPL. High-income users are more likely to use BNPL for big-ticket items like appliances, the researchers note.

Low-income consumers, those who do not use or have access to a credit card, not only spend more on retail, but their total spending increases, making them more likely to incur overdraft fees and emptying their savings accounts, write the researchers. Consumers earning between $25,000 and $45,000 a year use BNPL more on average than other groups – and 20% incur overdraft fees and 17% pay low balance fees, the authors found.

“For all users — credit card users, credit card non-users, everyone — the share of retail spending is growing,” says Williams, an assistant professor in the finance unit. “But the increase in total spending is only coming from non-credit card users. And it’s only those users who incur overdraft fees and low [savings] sales.”

The growth of BNPL, whose suppliers do not face stringent financial regulations imposed by banks, caught the attention of the Consumer Financial Protection Bureau earlier this year. Fintech companies like Affirm, Quadpay, and Sezzle aren’t subject to the US Truth in Lending Act, so installment transactions don’t impact credit scores.

This means that consumers who use these services could have more debt than they appear, which can be a concern for traditional lenders, such as banks, note the authors.

How risky is the purchasing method?

The BNPL can prevent consumers, especially those who don’t have access to traditional credit, from getting the big picture of their spending this holiday season, Williams says. For example, if a shopper initially spends $25 on a $100 sweater, they may feel like they’re getting a bargain, Williams notes.

“But over the next two weeks apart — at two weeks, at four weeks, at six weeks — $25 automatically goes out of my account,” Williams says. “I forget about these $25 payments in a way that they’re tied to the sweater. And then it’s ‘Oh my God, money is coming out of my account.'”

Consumers who make multiple purchases may be served by different fintech providers, which can be more difficult to track than credit cards with a shopping list on a statement. Some buyers end up paying BNPL bills with savings or other forms of credit, the authors write.

In addition, inflation is dampening consumption habits as the number of defaults on BNPL loans increases. Add to that a potential recession, and the authors wonder if the model could prove riskier for consumers, investors and retailers in the future.

“The product was very popular [during the pandemic] because people were stuck at home. People were shopping, full of money. It’s like someone giving you free money. Why should that be bad, right? Especially if the alternative is to pay 20% interest on your credit card,” says Di Maggio. Now, however, “the existing portfolio of these products is likely to be very risky.”

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What happens if you don’t activate a credit card? https://howtooccupy.org/what-happens-if-you-dont-activate-a-credit-card/ Fri, 18 Nov 2022 22:06:00 +0000 https://howtooccupy.org/what-happens-if-you-dont-activate-a-credit-card/ After you Apply for a credit card and be accepted, you will receive your card by mail. Typically, the card comes with an activation sticker affixed to it, showing a phone number and website. You will need to activate your card through one of these channels in order to start using it. Why do you […]]]>

After you Apply for a credit card and be accepted, you will receive your card by mail. Typically, the card comes with an activation sticker affixed to it, showing a phone number and website. You will need to activate your card through one of these channels in order to start using it.

Why do you need to activate your new credit card?

Credit card activation avoids credit card fraud, as it prevents would-be thieves from slipping cards into mailboxes and using them. Credit card activation also lets your credit card issuer know that you’ve received your new card and are ready to use your new line of credit.

It’s a good idea to activate your credit card as soon as possible, because you won’t be able to win credit card rewards or take advantage of credit creation opportunities until you activate it.

What happens if you don’t activate a credit card?

If you don’t activate your credit card, you won’t be able to use it to make purchases. You might find yourself at the grocery store with unexpected complications at the checkout.

Surprisingly, an unactivated credit card can still earn interest. If your credit card has a annual subscription, for example, the cost of the fee may be included in your first credit card billing cycle. Even if your credit card is not yet activated, your credit issuer may still charge interest on this balance if it is not paid.

A non-activated credit card could also affect your credit score. The Credit limit associated with the unactivated card will be reported to all three major credit bureaus, meaning it will appear on your credit report — and since you haven’t made any purchases under your new credit limit, your unactivated card could reduce your credit utilization rate and increase your credit score.

On the other hand, the Credit check associated with your credit card application will also be reported to major credit bureaus, and difficult credit applications have the potential to lower your credit score by a few points. You can’t avoid hurting your credit score by keeping the new card deactivated. The credit application becomes part of your credit file when you apply for the card, not when you activate it.

How to activate your credit card

Activating your credit card is a simple process and should only take a few minutes. If you received your new credit card in the mail, it should include instructions on how to activate it. In most cases, you’ll need to visit your credit card issuer’s website or call a specific activation number. Be prepared to provide identifying information such as your social security number or date of birth.

If you received a instant approval credit card, the activation process can take place when your application is approved, giving you the ability to start shopping immediately. In some cases, you will need to reactivate your new credit card after it arrives in the mail.

If you fail to activate your new credit card the day it arrives, don’t worry: you won’t be penalized if you don’t activate it immediately. But if you keep your credit card unactivated for more than a month, your credit card issuer may contact you to ask if the card has been received.

What happens if you close an account that has never been activated?

When you close a credit card account that has never been activated, the account is deleted from your credit file. This could have a negative effect on your credit score, as it will likely reduce your available credit and increase your credit utilization rate.

In some cases, a credit card issuer will close an unactivated credit card themselves. This is only likely to happen if you keep your credit account inactive for a significant period of time.

The bottom line

Before you can start using your new credit card, you need to activate it. Activating a credit card is a simple process and can often be done online or over the phone in just a few minutes.

If you don’t activate your credit card, you won’t be able to make purchases, but you’ll still receive a monthly credit card bill, and any credit card charges associated with your account may start earning interest. , making activating your credit card one of the best ways to get started use credit responsibly.

Editorial content on this page is based solely on objective, independent assessments by our editors and is not influenced by advertising or partnerships. It was not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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More than 401,300 families saved on childcare costs in September https://howtooccupy.org/more-than-401300-families-saved-on-childcare-costs-in-september/ Wed, 16 Nov 2022 10:23:49 +0000 https://howtooccupy.org/more-than-401300-families-saved-on-childcare-costs-in-september/ More than 401,300 families received government funding of £44.4million for childcare costs in September 2022, HM Revenue and Customs (HMRC) found. Compared to September 2021, the latest duty-free childcare statistics show the number of families using duty-free childcare increased by 85,475. But thousands of families are still missing out on the supplement that could help […]]]>

More than 401,300 families received government funding of £44.4million for childcare costs in September 2022, HM Revenue and Customs (HMRC) found.

Compared to September 2021, the latest duty-free childcare statistics show the number of families using duty-free childcare increased by 85,475. But thousands of families are still missing out on the supplement that could help them. save up to £2,000 per year per child in the cost of their childcare.

Tax-Free Childcare provides working families, earning up to £100,000 a year, with financial support for childcare. For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 from the government. This means they can receive up to £500 every three months (£2,000 per year) or £1,000 (£4,000 per year) if their child is disabled.

Top-up payments can be used to pay for any approved child care for children aged 11 or under, or up to age 17 if the child has a disability, whether your child attends daycare, have part-time child care or go to a vacation club.

Families can check their eligibility and view childcare assistance options on Childcare Choices.

Myrtle Lloyd, HMRCThe Managing Director of Client Services, said:

We know childcare can be expensive, which is why using duty-free childcare can make a huge difference to household finances. To find out more, search for “Tax-Free Childcare” on GOV.UK.

Families may be eligible for Tax-Free Childcare if they:

  • have a child or children aged 11 or under. They cease to be eligible on September 1 after their 11th birthday. If their child has a disability they can get up to £4,000 a year up to the age of 17
  • earn, or expect to earn, at least the national minimum wage or living wage for 16 hours per week, on average
  • each earns no more than £100,000 a year
  • do not receive tax credits, universal credit or childcare vouchers

A full list of eligibility criteria is available on GOV.UK.

Opening a Tax-Free Childcare account online is simple and can take around 20 minutes to register. Accounts can be opened at any time, money can be deposited and used immediately or when needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK to register and get started.

The government has launched an awareness advertising campaign to ensure that families receive the childcare support to which they are entitled. Visit Childcare Choices to learn more about the options and find the best childcare deal for families.

The government offers help to households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families may be eligible for.

More information

More information about Tax-Free Childcare and how to register.

The latest Tax-Free Childcare statistics were released on November 16, 2022. Data is available through September 2022.

HMRC produced an updated guide to tax-free child care for parents, which explains the reasons and benefits of joining the program.

Each eligible child needs their own Tax-Free Childcare account. If families have more than one eligible child, they will need to create an account for each child. The 20% government top-up is then applied to deposits made for each child, not the household.

Account holders must confirm that their details are up-to-date every three months to continue receiving the government top-up.

Childcare providers can also open a Childcare Provider Account through GOV.UK to receive payments from parents and guardians through the scheme.

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Elon Musk says Twitter bankruptcy is possible, but is it likely? : NPR https://howtooccupy.org/elon-musk-says-twitter-bankruptcy-is-possible-but-is-it-likely-npr/ Sat, 12 Nov 2022 20:31:11 +0000 https://howtooccupy.org/elon-musk-says-twitter-bankruptcy-is-possible-but-is-it-likely-npr/ Twitter’s headquarters are shown in San Francisco on November 4, 2022. Jeff Chiu/AP hide caption toggle caption Jeff Chiu/AP Twitter’s headquarters are shown in San Francisco on November 4, 2022. Jeff Chiu/AP Before Elon Musk took over Twitter, it was hardly a gangbuster business. The business is only occasionally profitable. Its user base and ad […]]]>

Twitter’s headquarters are shown in San Francisco on November 4, 2022.

Jeff Chiu/AP


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Jeff Chiu/AP


Twitter’s headquarters are shown in San Francisco on November 4, 2022.

Jeff Chiu/AP

Before Elon Musk took over Twitter, it was hardly a gangbuster business. The business is only occasionally profitable. Its user base and ad revenue are small compared to social media rivals like Facebook and TikTok.

Still, the possibility of Twitter’s impending bankruptcy was not a fate that anyone had ever seriously discussed.

Now, however, under Musk’s chaotic leadership, the mercurial billionaire has reportedly told staff that bankruptcy could be near if Twitter doesn’t start making more money.

How could this be the case, and what exactly has changed?

By taking the company private in his $44 billion purchase of Twitter, Musk cashed out some of his Tesla stock and also burdened the social platform with $13 billion in debt, which is a huge liability. for a company the size of Twitter.

For context, the debt equates to about seven times the company’s projected earnings for 2022.

It’s basically a huge credit card, and the annual payment is $1 billion.

And that’s a problem for Twitter, given that its cash flow last year to pay things like debt repayment was only $632 million.

So where will the rest of the money come from?

Why bankruptcy might be in Twitter’s best interests

“It’s hypothetically possible that he could use more of his Tesla stock to bail out Twitter, or turn to his group of co-investors, who would likely have no trouble finding the money,” Andy said. Wu, an assistant professor at Harvard Business School who has studied the Musk takeover.

But if Musk and his supporters don’t think Twitter is worth investing more money in, the eye-popping debt payment could help make the case that bankruptcy is the best way forward for the company, said Wu.

“The saying ‘if you owe the bank $100, that’s your problem, but if you owe the bank $100 million, that’s the bank’s problem’ might apply here,” Wu said. , explaining that investors and other lenders could take control of the company. if Twitter went through bankruptcy proceedings, with Musk still serving as its chief executive. “Bankruptcy would also allow Musk to refinance debt, making the company more financially stable.”

Since Musk entered into the deal to buy Twitter, financial analysts have pointed out that he has grossly overpaid. Musk’s attempts to walk away from the deal show he had doubts about the $44 billion price tag.

Investment firm Wedbush Securities said the deal represented “one of the most overpaid tech acquisitions in history,” pegging Twitter’s fair value at more than $25 billion.

Knowing this, pushing Twitter out of business could at least help Musk restructure the debt in a way that’s more favorable to him.

The chaos unfolding internally is adding even more pressure on the company, with the departure of a large number of senior executives, some of whom were responsible for things like platform security and compliance with federal regulations.

Staff unrest, along with major advertisers like General Motors, Pfizer and United Airlines suspending advertising amid the chaos, added to the stress on the business. This despite Musk’s assurances to companies that he would not let Twitter turn into a “free-for-all hellscape”. Around 90% of Twitter’s revenue comes from advertising.

As rocky as Musk’s ownership is, Harvard’s Wu is skeptical Musk and his investors will ever let Twitter fully fold.

Even in the event of bankruptcy, Twitter itself would likely operate more or less normally, he said.

“In addition to the potential financial returns, I feel like Musk and his co-investors are driven by ideology, that they’re really driven by values,” Wu said.

Musk has described himself as a “free speech absolutist” and he has often criticized speech policing on platforms like Twitter which he says limits the market for ideas.

Wu said he felt Musk and his supporters were “ready to lose money for the sake of this fight.”

“Eight dollars is not prohibitively expensive for scammers”

The questions about Twitter’s long-term financial viability are real. Musk previously estimated that the company was losing $3 million a day.

Musk has made drastic efforts to make Twitter a cheaper place to run, such as laying off half of the company’s staff, or about 3,700 jobs.

But that hasn’t changed what Musk sees as a central problem for the company, which is that it has only one primary way to make money: online advertising.

It’s a sad reality for the business right now, considering it’s a miserable time to be in the online advertising business. A substantial decline in advertising spending rocked the tech industry. Facebook owner Meta laid off 11,000 people. Snap has laid off 20% of its staff. Other ad-dependent tech companies like Spotify and Google’s YouTube are feeling the pressure.

So Musk’s solution revamps a service called Twitter Blue by charging $8 per month for the once-coveted blue check. That way, Musk argued, being “verified” on Twitter is no longer reserved for the elite and more people using the service will be authenticated.

So far, launching the program has had exactly the opposite effect. A flurry of accounts posing as star athletes like Lebron James, former President Trump and companies like Eli Lilly and Pepsi have shed light on how quickly the blue check option for sale could be used to spread deception.

In an effort to tame the proliferation of copycats, Twitter appears to have paused Twitter Blue. The service is no longer available for purchase, and on his websiteTwitter notes that “accounts created on or after November 9, 2022 will not be able to subscribe to Twitter Blue at this time.”

Twitter, which appears to have no communications staff following the massive layoff, did not respond to a request for comment.

For the moment, Twitter Blue is far from the lucrative initiative hoped for by Musk. But for Rachel Tobac, who runs Social Proof Security, a company focused on preventing manipulation of social media sites, if Twitter Blue is relaunched, the money generated by the new service is the least important thing.

“Eight bucks isn’t prohibitively expensive for scammers,” she said. “It is essential that Twitter understands this whole issue official or not.”

Imagine, Tobac said, if an emergency service account with a blue check was opened by a copycat and started dispensing harmful advice on, say, where to seek refuge during a natural disaster.

Tobac also fears that disinformation agents will pay $8 to sow confusion and discord in an election – something fresh on his mind as the country awaits the final outcome of a number of election races. mid-term keys.

“Right now we have people making jokes, impersonating the president, impersonating Nintendo and Elon Musk is laughing at these jokes because he thinks they’re funny right now,” he said. she declared. “What’s not going to be funny is someone impersonating an election official and interfering and causing interference in the election results.”

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More than 1 in 4 workers earning $200,000 or more now say they live paycheck to paycheck. So even the rich find it hard to save, and the pros offer 3 solutions https://howtooccupy.org/more-than-1-in-4-workers-earning-200000-or-more-now-say-they-live-paycheck-to-paycheck-so-even-the-rich-find-it-hard-to-save-and-the-pros-offer-3-solutions/ Sat, 05 Nov 2022 13:27:00 +0000 https://howtooccupy.org/more-than-1-in-4-workers-earning-200000-or-more-now-say-they-live-paycheck-to-paycheck-so-even-the-rich-find-it-hard-to-save-and-the-pros-offer-3-solutions/ According to a report, as many as 93% of rural consumers and 92% of urban consumers say they are noticing higher prices due to rising inflation. Getty Images/iStockphoto Banking does not mean you have loot saved in the bank. About 45% of those earning more than $100,000 report living paycheck to paycheck; 47% of those […]]]>

According to a report, as many as 93% of rural consumers and 92% of urban consumers say they are noticing higher prices due to rising inflation.

Getty Images/iStockphoto

Banking does not mean you have loot saved in the bank. About 45% of those earning more than $100,000 report living paycheck to paycheck; 47% of those who earn between $150,000 and $200,000 a year; and 28% of those earning more than $200,000, according to a new report from PYMNTS.com. Additionally, a 2022 survey from LendingClub found that 30% of those earning $250,000 or more live off a paycheck. And that’s a shame, because many savings accounts are now paying more than they’ve done in a decade – see the highest rates you can get on a savings account now here.

“The combination of taxes and inflation leaves little buying power,” says Gary Zimmerman, CEO of MaxMyInterest, who notes that a $100,000 salary isn’t what it used to be. So how do these high earners start spending less and saving more? We asked the pros.

One way “to save more is to add discipline.”

“To break out of the paycheck-to-paycheck cycle, you need to earn more or spend less — and preferably both,” Zimmerman says, adding that while that may seem unrealistic in today’s economy, one way to regain control is to “‘save more is add discipline.’

How? “Automatically deduct a portion of your paycheck every two weeks to go directly into a savings account,” Zimmerman says. “Or, better yet, choose to save as much of your income as possible by directing it to a 401(k) plan, which is tax-efficient and often matched by your employer. If you don’t see the funds in the first place, you won’t miss them and you certainly won’t spend them.

See the highest rates you can get on a savings account now here.

This is backed up by research: A recent study by professors from Harvard, Yale, Brigham Young and William & Mary found that people who automatically signed up for a company pension plan still had higher levels of debt. similar to those who chose to save on their own. “We found that there was no difference between the two groups in the amount of credit card borrowing,” said Yale finance professor James Choi, who helped compile the report. “There was no difference in credit scores and their measures of financial distress.”

Revisit your spending habits and reduce your lingering debts

Seek to pay off expensive debt as quickly as possible, and make big changes to big-ticket items like rent, food, travel, and more, if you can. In particular, NerdWallet data analyst Elizabeth Renter suggests looking for ways to reduce credit card debt. “When you carry over a balance from month to month, you needlessly punish yourself with interest, and interest rates go up,” says Renter. “Consider opening a credit card with balance transfer so that the balance is paid off for an initial period without interest.”

The Tenant adds that you should also try to limit luxuries such as streaming accounts, branded foods and dining at sit-down restaurants.

See the highest rates you can get on a savings account now here.

Consider additional income via the “gig economy”

Even if you earn a lot on paper, if you live paycheck to paycheck, it can be helpful in boosting your income. “Raising income has become easier now with the gig economy we find ourselves in,” says Vanessa N. Martinez, founder and CEO of Em-Powered Network, a financial counseling and mentoring program for women. For a professional, this could mean taking on a consulting role of some kind.

Whether you decide to adopt any of the strategies above, it’s clear that all consumers, including high earners, are feeling the pressure. According to the PYMNTS.com report, up to 93% of rural consumers and 92% of urban consumers say they are noticing rising prices due to rising inflation. In response, its authors say that people of almost every socioeconomic class will need to take certain steps to adapt. “With inflation expected to continue, it will likely put additional pressure on consumers of all financial lifestyles, and time will tell how well they continue to adjust.”

Any advice, recommendations, or rankings expressed in this article are those of MarketWatch Picks, and have not been reviewed or endorsed by our business partners.

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9 Low Income Loans: Personal Loans for a Tight Budget https://howtooccupy.org/9-low-income-loans-personal-loans-for-a-tight-budget/ Tue, 01 Nov 2022 21:59:36 +0000 https://howtooccupy.org/9-low-income-loans-personal-loans-for-a-tight-budget/ Getting approved for a low income loan can be difficult if your budget is tight. Lenders want to know that you can afford to repay your loan on time and repay the full amount you borrow. If your budget doesn’t have much wiggle room, the lender may have reservations about approving your loan. Fortunately, some […]]]>

Getting approved for a low income loan can be difficult if your budget is tight. Lenders want to know that you can afford to repay your loan on time and repay the full amount you borrow. If your budget doesn’t have much wiggle room, the lender may have reservations about approving your loan.

Fortunately, some lenders offer personal loans with little or no minimum income requirements. You will need good or excellent credit to qualify for the best loan terms. Otherwise, you’ll likely pay a lot more interest over the life of the loan, unless you find a more affordable alternative to access the funds you need.

These lenders offer flexible personal loan solutions with competitive rates to consumers on tight budgets:

Before 9.95 percent 12 – 60 months
best egg 7.99 percent 36 – 60 months
Figure 5.74 percent 36 months or 60 months
happy money 8.99 percent two to five years
loan club 8.30 percent three to five years
Marcus of Goldman Sachs 6.99 percent 36 – 72 months
Prosper 6.99 percent two to five years
Upgrade 7.46 percent 24 – 84 months
Reached 5.6% three or five years

Before

You can get a personal loan with Avant with a monthly income as low as $1,200. It’s easy to check your loan options and your credit rating won’t be affected. Even better, you could have the loan proceeds deposited into your bank account one business day after approval. And there are prepayment penalties if you decide to pay off the loan early.

best egg

Best Egg does not require a minimum income. However, you must earn enough money to demonstrate your ability to make timely loan repayments. You can take out a loan for as little as $2,000 and the starting interest rate is one of the lowest in the industry.

Figure

The figure has a slightly higher loan minimum of $5,000, which is higher than many others on this list. Still, it’s worth mentioning because you can enjoy low APRs whether you have good or excellent credit. The lender also offers a simple online application process, fast funding times, and a low interest rate for borrowers who sign up for autopay.

happy money

Happy Money also has a starting loan amount of $5,000. The minimum interest rate is at the lower end of what you will find among lenders. Plus, you can customize your loan terms to make sure they work for you, and you’ll have access to various money management tools to help improve your financial health. Remember that its loans can only be used for credit cards and debt consolidation, so they may not be the best solution.

loan club

Lending Club personal loans are also available to low income borrowers as there are no minimum income requirements. These loans, ranging from $1,000 to $40,000, are available in all 50 states and feature low minimum APRs and fast funding times. You can customize your loan offer, including rate, term, and payment options, to suit your financial situation.

Marcus of Goldman Sachs

Marcus does not charge application, origination or prepayment fees on its loans. Plus, its interest rates are low, making it a cost-effective option for low-income borrowers. You will also have the option to skip a payment after making 12 consecutive payments without accruing interest or fees.

Prosper

You will need proof of income to qualify for a personal loan with Prosper, but the site does not disclose a minimum amount. The advantage is that you can borrow as little as $2,000 and get a loan term of up to five years, which equates to a more affordable monthly payment. There are no prepayment penalties and co-applicants are welcome to apply. And you’ll get a 0.25% rate reduction when you sign up for AutoPay to help you save even more money.

Upgrade

Upgrade offers personal loans at competitive rates. Loan amounts start at $1,000, so you won’t have to worry about overspending by borrowing more than you need and struggling to keep up with monthly payments. Even better, there is no minimum income limit to qualify. You could have the loan proceeds in your bank account within a day of approval.

Reached

Upstart has flexible eligibility criteria for consumers looking for personal loans. You could be approved if you earn at least $12,000 per year and there is no minimum credit score requirement. Loan amounts start at $1,000 and interest rates are also reasonable, so you could get a monthly payment that doesn’t stretch your budget too much.

Regardless of the loan amount you plan to apply for, check your credit report and score to see where you stand. If you spot errors in your credit report, file disputes to have them removed, as they could lower your credit score. Also, remember that the most competitive interest rates on personal loans are usually reserved for borrowers with good or excellent credit. So the higher your score, the better your chances of approval and your chances of being offered the best terms.

Avoid submitting other credit applications before applying for the loan. Each leads to a serious credit investigation, which could lower your score by a few points. And if you apply for too many credit accounts in a short period of time, your score could take a hit. In addition, you will be perceived as a greater credit risk in the eyes of lenders.

Most importantly, take a look at your spending plan and calculate how much of a loan repayment you can comfortably afford. Since there is little wiggle room, you want to be realistic about your current expenses and income to determine an accurate figure. It’s also helpful to use a personal loan calculator to estimate expected monthly payments based on loan amount, term and interest rate.

If money is tight and a low-income loan isn’t right for you, consider these alternatives:

  • Credit Union Loan: Some credit unions offer emergency loans to their members in small amounts. These loans are often referred to as alternatives to payday loans. They are sometimes reserved for people with low incomes or with credit problems who would find it difficult to qualify for a personal loan elsewhere.
  • Payday Loan: These short-term loans are for borrowers with bad credit, but come at a high cost and should only be used as a last resort. You could pay up to 400% interest, and most loans are capped at $500, payable on the day of your next payday.
  • Secured personal loan: You will need collateral to obtain a secured personal loan. He will be at risk of foreclosure if you fail to repay the loan. Yet, some consumers take out these loans because they have less stringent eligibility requirements. You may qualify for a lower interest rate than a traditional unsecured personal loan.
  • Pawnbroker: Also secured by collateral, pawnbrokers are available for low-income borrowers. You’ll need to turn your item over to the pawnbroker to get the money, and they’ll retain custody of it until you repay the loan in full (plus any applicable interest). But if you miss the payments, the pawnbroker will sell your item to recoup their losses.

Many lenders have small personal loan minimums, but only some are worthy of your business. So explore what each has to offer when shopping. Pay attention to the interest rates and loan terms they offer, as well as the fees you will pay when taking out a loan. Since you are working on a small budget, you should avoid lenders that charge application, origination, processing or other fees to avoid stretching your budget too much.

Also find out about the eligibility requirements to make sure the lender is a good fit. Be sure to review the ratings of past and current borrowers and confirm that they are licensed to do business in your state to ensure they are a reliable option.

At the end of the line

If you’re on a tight budget and need a personal loan, some lenders can help. Be sure to research lenders and get at least three loan quotes before formally applying for a loan. But if you can’t get approved for a low-income loan, consider a credit union loan, as it’s a cost-effective alternative. Or if you are facing a serious financial emergency, a secured personal loan, payday loan or pawnbroker can be used as a last resort.

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Does closing a bank account affect your credit? https://howtooccupy.org/does-closing-a-bank-account-affect-your-credit/ Sat, 29 Oct 2022 20:02:16 +0000 https://howtooccupy.org/does-closing-a-bank-account-affect-your-credit/ (NerdWallet) – Ready to close a bank account, but worried about losing your credit score? Do not be. By taking a few simple steps and adopting good banking habits, you can prevent your credit from being affected by a bank account closure. Here’s what you need to know. Generally, closing a bank account does not […]]]>

(NerdWallet) – Ready to close a bank account, but worried about losing your credit score? Do not be.

By taking a few simple steps and adopting good banking habits, you can prevent your credit from being affected by a bank account closure. Here’s what you need to know.

Generally, closing a bank account does not affect your credit

Simply closing a bank account has no direct impact on your credit. The Consumer Financial Protection Bureau confirms that the three major credit bureaus – Experian, Equifax and TransUnion – generally do not include checking account history on their credit reports. But your credit could suffer if you’re not careful when closing an account.

Your credit score could drop if your bank account is not in good standing

Certain imperfections in your bank account history could affect your credit. For example, if you close an account while the balance is negative or a bank closes your account because it’s overdrawn for an extended period of time, the negative balance could go to a third-party collection agency. This could hurt your credit report.

“If the bank sends this unpaid debt to a collection agency, it could be reported to one of three credit bureaus,” said Marguerita Cheng, certified financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland, in an email. “Collections can trigger a drop in your credit score.”

How to close your bank account so your credit isn’t affected

You will need to ensure that your account is in good standing and remains so even when you close it. Here are the steps to properly close your bank account:

1. Make a list of recurring deposits and withdrawals. Periodically record invoices and payments paid by direct debit from your account. It is equally important to note all the deposits you receive, even if they are only occasional. You don’t want your tax refund going to a closed bank account, for example, Miguel Gomez said in an email. Gomez is a wealth advisor at Lauterbach Financial Advisors in El Paso, Texas, and host of the “Dinero en Español” podcast.

2. Open your new account and transfer money and automatic transactions to it. “If you have automatic payments taken from the account you’re closing and you don’t update them before you close the account, it can affect your credit due to missed payments,” Gomez said.

3. Pay off any balance on your old account. You should leave money in your old account to cover any pending transactions you might have overlooked, Cheng said. You can also contact your bank to ask if you have any outstanding balances. If you opened an account to take advantage of a cash bonus, make sure your account has been open for the minimum time required to avoid an early closure penalty fee.

4. Close your old account and confirm its closure. Once you have ensured that there are no pending transactions, you can close your account. You may be able to close online, but some financial institutions require you to complete a mail-in form, visit a branch, or call to close your account.

The bank may send you an email to confirm the account has been closed, or you may contact a representative by phone or in person to confirm that the account has been closed and request confirmation in writing.

Note that if your account earned interest or a cash bonus during the year, you will need to obtain the appropriate documents from the bank for your taxes.

Follow these steps when you close your bank account and you’ll avoid fees, missed bills, and credit issues.

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Two-Thirds of Private Student Loan Borrowers Who Refinanced Say It Improved Their Finances | Student loans and advice https://howtooccupy.org/two-thirds-of-private-student-loan-borrowers-who-refinanced-say-it-improved-their-finances-student-loans-and-advice/ Wed, 26 Oct 2022 13:38:00 +0000 https://howtooccupy.org/two-thirds-of-private-student-loan-borrowers-who-refinanced-say-it-improved-their-finances-student-loans-and-advice/ Private student loans can give borrowers a way to fill the funding gap when federal aid doesn’t cover the full cost of college, but high amounts of student debt can make it difficult for recent graduates to reach their other financial goals. In order to pay off stubborn college debt, many borrowers choose to refinance […]]]>

Private student loans can give borrowers a way to fill the funding gap when federal aid doesn’t cover the full cost of college, but high amounts of student debt can make it difficult for recent graduates to reach their other financial goals. In order to pay off stubborn college debt, many borrowers choose to refinance their student loans on better terms.

Student loan refinancing is a tool borrowers can use to lower their interest rate, get out of debt faster, or consolidate multiple payments into one loan. But does refinancing private student loans actually improve a borrower’s finances?

To answer this question, US News conducted a nationwide survey of 1,240 respondents between October 12-13, 2022, via PureSpectrum. Only borrowers who refinanced private student loans answered the questions.

We asked respondents a series of questions to find out why they refinanced their private student loans, how they prepared for student loan refinancing, how they chose a lender, if they received any financial benefits, and what regrets they had. Here is what we found:

  • The #1 Reason Borrowers Refinanced their private student loans were to pay off their debt faster (46.9%), followed by lowering their monthly payments (39.8%) and lowering their interest rate (35.1%).
  • About two-thirds of borrowers who have refinanced private student loans (67.3%) say that their financial situation has improved since doing so. Among them, the most common achievement was the ability to repay other debts.
  • Over a third (36.9%) of borrowers regret refinancing their private student loans. Among those who experience regret, many borrowers report that their new interest rate is higher than expected.
  • Student loan refinancing has helped borrowers reduce your outstanding debt. Fewer borrowers have higher loan balances today than before they refinanced, and about a third (34.9%) have less than $5,000 in student loan debt.
  • During the refinancing process, the majority of borrowers (62.5%) shopped around with multiple lenders to compare interest rates. Yet 57.6% of respondents ended up refinancing through the lender who originally held their private student loans.

Dive deeper into the data in the sections below to see how borrowers approach student loan refinancing — and how it affects their debt repayment strategy.

Find the best student loans for you

Borrowers set tangible goals when refinancing student loans

Private student loan refinancing can help borrowers repay their debt on different terms to achieve one or more goals. When asked to identify their main reasons for refinancing, nearly half of respondents (46.9%) wanted to pay off their debt faster. Refinancing a student loan for a shorter term can result in significant savings on interest costs over the life of the loan, although it can often result in higher monthly payments in the short term.

The second most popular reason borrowers refinanced was to reduce their monthly student loan payments, cited by 39.8% of respondents. Although it is possible for borrowers to refinance a longer-term loan to lower their monthly payments, extending the debt repayment period may cost more in the long run, unless the borrower is able to lock in a much lower interest rate. Fortunately, about a third (35.1%) of borrowers refinanced in an effort to lower their interest rate.

Erika Giovanni

More than a quarter of borrowers (26.5%) refinanced in order to consolidate several loans into one. This can combine two or more student loans into one monthly payment and interest rate, which can streamline the debt repayment process.

Other goals included moving from a variable interest rate to a fixed rate (19.5%) and removing a co-signer from the loan (16.3%).

Most borrowers (but not all) are better off after refinancing

More than two-thirds of private student borrowers (67.3%) say refinancing has helped improve their financial situation. Of this group, 34% were able to pay off other debts, 27% improved their savings, 18.9% saved more for retirement and 15.7% increased their other investments.

Erika Giovanni

Yet this positive sentiment is not shared by all student borrowers. More than a third of borrowers (36.9%) regret having refinanced their private student loan.

The most common complaint among those who experienced regrets is that their new interest rate was higher than expected (29.9%). Many of these borrowers also report that their student loan repayments are taking longer (27.3%) or that their new monthly payments are too high (21.7%).

A small percentage (15.6%) of borrowers who regret having refinanced their private loans say they are unhappy with their new lender. This underscores the importance of reading consumer reviews and researching complaints through the Better Business Bureau and the Consumer Financial Protection Bureau before choosing a lender.

Erika Giovanni

Student loan refinancing reduced outstanding debt balances

Private student borrowers who refinanced successfully repaid their debt. Fewer borrowers have higher loan balances than before refinancing, and more borrowers have smaller loan balances after refinancing.

More than a third (34.9%) now have a balance of less than $5,000, compared to 20.1% who borrowed that amount initially. Similarly, the proportion of borrowers with loan balances of $20,000 or more fell from 14.8% initially to 11.7% after refinancing.

Erika Giovanni

Savvy borrowers did their homework before refinancing

When refinancing private student loans, it can be beneficial to compare offers from multiple lenders. Being prequalified with a soft credit check allows a borrower to see an estimated interest rate and loan eligibility without negatively impacting credit score.

The majority of private student borrowers (62.5%) shopped around with multiple lenders to compare interest rates. About half of those who compared lenders (49.6%) prequalified with three lenders, while 30% evaluated two lenders. A fifth (20.4%) shopped with four or more lenders.

Although many shopped around to compare offers, most borrowers (57.6%) refinanced through their original private student lender.

Erika Giovanni

Additionally, 62% of borrowers took steps to improve their credit score before refinancing their private student loans. Since a higher credit score can lead to lower interest rates, this is a smart strategy to reduce overall borrowing costs. Of those who took action, they did the following:

Another way to lock in a lower rate is to bring in a creditworthy co-signer, such as a trusted friend or relative. The majority of borrowers used a co-signer, with a quarter (24.6%) of respondents having refinanced their private student loan with a spouse. A similar percentage (23.5%) used another family member, such as a parent or sibling.

About one in six (17.1%) refinanced with a creditworthy co-signer who was not a spouse or family member. Meanwhile, 34.9% did not refinance with a co-signer.

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Exercise caution during National Cybersecurity Awareness Month – Hamilton County Reporter https://howtooccupy.org/exercise-caution-during-national-cybersecurity-awareness-month-hamilton-county-reporter/ Sun, 23 Oct 2022 07:46:28 +0000 https://howtooccupy.org/exercise-caution-during-national-cybersecurity-awareness-month-hamilton-county-reporter/ Posted By: The Journalist October 23, 2022 Rokita Indiana Attorney General Todd Rokita warns Hoosiers against predatory cybercriminals during National Cybersecurity Awareness Month. “Cybersecurity has been a big issue for years, but after COVID-19 businesses and schools have increasingly relied on technology,” Rokita said. “This makes them even more vulnerable to these types of attacks, […]]]>

Rokita

Indiana Attorney General Todd Rokita warns Hoosiers against predatory cybercriminals during National Cybersecurity Awareness Month.

“Cybersecurity has been a big issue for years, but after COVID-19 businesses and schools have increasingly relied on technology,” Rokita said. “This makes them even more vulnerable to these types of attacks, and I encourage Hoosiers to educate themselves and stay alert.”

Implementing proper cybersecurity controls has become a necessary part of doing business in today’s economy. The average cost to a business from a data breach is now over $4 million, and the average cost of a healthcare data breach has skyrocketed to over $10 million.

Cyberattacks do not only affect schools and businesses, but they also affect individuals and can potentially destroy the lives of honest and hardworking people.

Security breaches involving your personal information, also known as data breaches, can create a significant risk of fraud or identity theft if the information is acquired by the wrong person.

To protect you and your family, Attorney General Rokita encourages Hoosiers to follow this advice:

  • Watch your credit. Credit monitoring services track your credit report and alert you whenever a change is made, such as a new account or a large purchase. Most services will notify you within 24 hours of any changes to your credit report. Most major credit cards now offer these monitoring services at no cost to the consumer.
  • Consider placing a free credit freeze on your credit report. Identity thieves will not be able to open a new credit account in your name while the freeze is in place. You can place a credit freeze by contacting each of the three major credit bureaus:
  • Place a fraud alert on your credit report. A fraud alert tells lenders and creditors to take extra steps to verify your identity before issuing credit. You can place a fraud alert by contacting any a from the three major credit bureaus.
  • Contact Attorney General Rokita. If you think you have been the victim of identity theft, visit in.gov/attorneygeneral or call us at 1-800-382-5516. For additional guidance, you can also visit identitytheft.gov, a site operated by the Federal Trade Commission.

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How to Get a $2,000 Personal Loan – Forbes Advisor https://howtooccupy.org/how-to-get-a-2000-personal-loan-forbes-advisor/ Thu, 20 Oct 2022 17:25:12 +0000 https://howtooccupy.org/how-to-get-a-2000-personal-loan-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Borrowing a $2,000 personal loan could help you out of a tough spot, whether you need to cover a medical bill, a car repair, or some other expense. While some lenders require […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Borrowing a $2,000 personal loan could help you out of a tough spot, whether you need to cover a medical bill, a car repair, or some other expense. While some lenders require you to take out a larger loan, there are banks, credit unions, and online lenders that offer $2,000 loans. You might even be able to get financing in as little as one business day.

Follow these five steps to get a $2,000 loan.

1. Consider qualification requirements

Most personal loans are unsecured, so a lender bases their approval decision primarily on your credit and income. Here are some common qualification requirements for getting a $2,000 loan:

  • Credit. A lender will look at your credit history and credit score when evaluating you for a loan. Borrowers with strong credit are more likely to qualify for more favorable terms. A good FICO score starts at 670, a great score starts at 740, and an outstanding score starts at 800. You can check your credit score with the three major credit bureaus, use a credit monitoring service, or go through your credit provider. credit card. You can also view your credit report at AnnualCreditReport.com. If you spot reporting errors, challenge them to have them removed.
  • Revenue. You will need to meet a lender’s income requirements to qualify for a $2,000 loan. A lender may ask you to upload pay stubs when you apply to ensure you have the funds to repay your loan.
  • Debt-to-income ratio (DTI). Your DTI ratio compares your monthly debt payments with your monthly income. This is another indication of your ability to repay a loan. If your DTI is too high, a lender might reject your loan application. Lenders generally prefer a DTI of 35% or less.
  • Co-applicant. Although a co-applicant is not required to borrow a $2,000 loan, some lenders allow you to add one to your application if you cannot meet the credit and income requirements on your own.
  • Collateral. Most personal loans are unsecured, meaning they don’t require collateral. However, you can find secured loans, especially if you don’t meet a lender’s credit and income criteria. Secured loans are secured by collateral, such as a car title or bank account. However, you could lose your guarantee in the event of late payment.

2. Prequalify with multiple lenders

Although a $2,000 loan is a relatively small sum, it’s still worth shopping around for the best deal. Many online lenders allow you to prequalify for a loan, which means you can check your rates without affecting your credit score.

All you have to do is provide some basic personal information and the lender will show you loan offers. These offers aren’t locked in until you submit a complete application, but they can give you an idea of ​​your rates.

3. Compare your offers

Compare offers from various lenders to find the one with the lowest interest rate and fees. Here are some factors to consider when comparing $2,000 loans:

  • Annual percentage rate (APR). The APR of your loan measures both the interest rate and the fees, allowing you to compare loans on an apples-to-apples basis. The loan with the lowest APR should be the most affordable.
  • Repayment Terms. Consider how many months or years you will need to repay the loan. Since your loan amount is small, your repayment terms may be shorter than they would be for a larger sum.
  • Monthly payments. Review what your monthly payments will be on each loan offer to make sure they fit your budget.
  • Funding time. Find out how long it will take to receive the funds, especially if you have an immediate need for the loan.
  • Customer service and reviews. Check out lender reviews to see what other borrowers have to say about the loan process and customer service. Make sure the lender offers customer support via phone, email, and/or online chat in case you have questions or run into problems.

4. Complete and submit your application

Once you’ve found a loan offer you like, fill out and submit a full application. This application will be more complete than the pre-qualification form.

You will provide your personal information and upload all required documents. Sample documents include pay stubs, W-2 forms, and bank statements, although requirements vary by lender.

Many lenders allow you to complete the application online, although some offer the option of applying over the phone or in person.

5. Manage and repay your loan

After you submit your application, the lender will review your information and initiate a credit investigation to check your credit. This rigorous credit check could temporarily reduce your credit score by a few points.

Assuming the lender approves the loan, you will receive the funds less any origination fees charged by the lender. You will also start repaying the loan according to the agreed repayment term. Consider setting up automatic payments to make sure you don’t miss any.

How to get a $2,000 loan with bad credit

Bad credit can limit your options for a $2,000 personal loan. Since most personal loans are unsecured, lenders rely on your credit and income to determine your risk as a borrower.

That said, it’s always worth shopping around to see if a lender is willing to work with you. Universal Credit, for example, requires a minimum score of 560, while Upgrade and Avant require scores starting at 580.

You can also check with your current bank or credit union to see what they can offer. Some lenders will also let you apply with a co-signer or opt for a secured personal loan if your credit isn’t up to scratch.

Finally, you can seek out a peer-to-peer loan or alternative payday loan (PAL) from a credit union, both of which may have more flexible credit requirements than traditional personal loans.

Beware of loans that don’t require a credit check, as these can be payday loans with exorbitant interest rates and fees. Payday loans typically require repayment within weeks and can have fees equivalent to APRs of 400% or more.

Where to get a $2,000 loan

Long-term costs of a $2,000 loan

The long-term costs of a $2,000 loan vary depending on your interest rate, fees, and repayment terms. The lower your rate and fees, the lower your borrowing costs will be.

You can also reduce your borrowing costs by opting for a shorter loan term. The downside of choosing a short-term loan, however, is that your monthly payments will be higher.

For example, let’s say you borrow a $2,000 personal loan at a rate of 10%. With a repayment term of one year, your monthly payment would be around $176 and you would pay $110 in total interest charges. Over a two-year term, your monthly payment would be $92, but your total interest charges would almost double to $215.

Use our personal loan calculator to estimate both your monthly payments and your long-term costs under different repayment terms. Searching for a $2,000 loan offer can also help you find a loan that fits your budget.

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