BlueVine Business Bank Review: Checking Built For Small Business

BlueVine is a perfect fit for small businesses looking for a high-interest on their balance without paying monthly fees.BlueVine is a perfect fit for small businesses looking for a high-interest on their balance without paying monthly fees.

The post BlueVine Business Bank Review: Checking Built For Small Business appeared first on Money Under 30.

Source: moneyunder30.com

[Targeted] Bank of America: $100 Business Credit Card Spending Bonus

The Offer

No direct link to offer, sent out via snail mail

  • Bank of America is offering some business cardholders a $100 statement credit when they make $2,500 in purchases through April 14, 2021.

The Fine Print

  • Valid on purchases through April 14, 2021

Our Verdict

Overall not a bad spending bonus if targeted.

Hat tip to reader Celia

Source: doctorofcredit.com

Your Secret Credit Weapon: The Chargeback

Credit card being run through a card reader.

 

Credit cards can open numerous doors of opportunities, and many even offer great cash-back rewards. But credit cards can also give you a good defense against untrustworthy online sellers. In the event of a dispute with a merchant, it provides the ultimate ace up your sleeve: the chargeback.

What Is a Credit Chargeback?

If you didn’t receive something you ordered, if you received the wrong item, or you just feel otherwise wronged by a transaction, a chargeback can return the money you spend to your account when the merchant refuses to do so. To initiate a credit chargeback, you can file a claim with your credit card company against a merchant. If your card issuer deems your complaint has merit, it will remove the money you paid from the merchant’s account and put it back in yours. Your credit card company is kind of like a tough older brother, talking to the bully who took your lunch money and getting it back.

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Is a Chargeback the Same as a Refund?

A chargeback isn’t the same as a refund and shouldn’t be viewed as an alternative. A credit card chargeback should be requested only when a seller or merchant refuses to return your money of its own accord. If a product proves defective or never arrives on your doorstep, your first stop should be traditional channels—that is, the retailer’s customer service desk or phone number.

If, after that, the merchant refuses a rightful refund, you can bring in your bank. Your credit card issuer should have clear instructions for formally disputing a charge, with options including a phone call, a written letter or an online form. There are often time limits and other criteria that must be met so you can’t request a return of funds for a purchase made years ago.

What Qualifies for a Credit Chargeback?

Before you request a chargeback, it’s important to note that some situations qualify and some don’t. The Fair Credit Billing Act is a federal law that dictates how credit card fraud and billing disputes are handled. It defines a number of situations as billing errors, including “goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.”

In other words, if you order a product and it never arrives—or if you refuse delivery because it’s not what you expected to receive or it’s been damaged before getting to you—you’re entitled to your money back.

On the other hand, being unsatisfied with a purchase or a product isn’t a reason to request a credit chargeback. The National Consumer Law Center notes in its guide to credit card rights, “You cannot raise a complaint about the quality of merchandise or services you bought with a credit card in the form of a billing dispute.”

Your disappointment will probably help you get a refund, but involving your bank in petty grievances isn’t the way to go. Besides, cardholders who “cry wolf” too often and request too many credit chargebacks will have their requests taken less seriously and may even be put off for months.

Does a Chargeback Affect Your Credit?

A chargeback does not usually affect your credit. The act of filing a chargeback because of a legitimate cause for complaint against a business won’t affect your credit score. The issuer may add a dispute notation to your credit report, but such a notation does not have a negative effect on your credit. You may also be expected to make payments on the disputed charge until the investigation is completed, and late payments will affect your credit score.

However, if your complaint is illegitimate or determined to be fraudulent, your account can be closed by your credit provider, which can affect your score. Even if your charge is legitimate, sometimes the bank will side with the merchant, and then you’ll have to pay accompanying fees. Still, there usually isn’t any negative outcome for your credit score for simply requesting a credit chargeback.

How Do Banks Handle Chargebacks?

As long as the credit card issuer follows the guidelines set out in federal law, it can set its own procedures for how to handle disputes. Take, for instance, the timeframe in which cardholders must contact their issuers, which is set by the FCBA at a minimum of 60 days. Some institutions may extend the timeframe allowed to dispute a charge, but they cannot go below 60 days.

Banks can also ask for documentation to support the cardholder’s claim, including any documentation that will help the issuer fully inform the merchant about the nature of the dispute. So, don’t dispute a charge unless you have some evidence to back up your claim.

Think of disputing your charge like you’re going to court. If you want to make a case against someone or some entity, you need solid, concrete evidence to even have that person arrested and charged. You’ll need some proof of the validity of your dispute for a credit card issuer to even consider your chargeback case.

Finally, it’s worth noting that some banks may go above and beyond the general dispute resolution guidelines to achieve optimal customer satisfaction. Some may even provide a courtesy credit to customers at a loss for the bank.

How Does a Visa Chargeback Work?

Every credit card company handles disputes and credit card issues in a different way. Visa, one of the largest credit card companies, changed its chargeback rules and techniques in 2018 in hopes to streamline and speed up the process.

Visa defines a chargeback as “the reversal of the dollar value (in whole or in part) of a transaction by the card issuer to the acquirer, and usually, by the merchant bank to the merchant.”

At one point, Visa chargebacks took over a month and a half to resolve. However, the process is now mostly automated, meaning customers and merchants don’t have to wait weeks for an issue to be settled.

The process Visa follows is mostly like other companies. When a customer disputes a charge, Visa asks the customer for information about the transaction. An acquirer can then forward that information to a merchant, giving the merchant the option to dispute the customer’s complaint with evidence of its own. The acquirer then collects all of the information and decides who is at fault.

Visa now addresses these disputes from an unbiased perspective, in contrast with its prior perspective as a representative of the customer. Visa’s automated systems act impartially and assign liability to whichever party it deems responsible.

What Is a Return Item Chargeback on a Bank Statement?

A return item chargeback isn’t actually related to the act of disputing a charge through a credit chargeback. A return item chargeback occurs when a bank charges a fee to a cardholder or consumer because of a bounced or rejected check.

A bank will attempt to cash or accept a check for deposit, but the other bank will refuse to make the funds available or a problem will be encountered with the check itself. Thus, a fee will be charged to the writer of the rejected check.

These return item chargebacks will show up on a bank statement as a fee. Consumers want to make sure to avoid this by regularly reviewing their bank statements and always ensuring they have adequate funds before writing a check.

Credit Chargebacks as Consumer Tool

Chargebacks are a potent tool in the consumer’s arsenal, to the point that even threatening a chargeback may scare shady merchants into resolving the disputes themselves. After all, businesses can be seriously hurt if too many chargebacks are requested, even to the point of a bank shutting down its account. Every chargeback also costs merchants a fee, so it’s understandable that merchants want to avoid these if possible.

If the retailer still doesn’t blink, however, don’t hesitate to follow through and take advantage of this key aspect of consumer protection.

 

The post Your Secret Credit Weapon: The Chargeback appeared first on Credit.com.

Source: credit.com

How to get the Southwest Companion Pass

#If you’re itching to voyage around the country and to bring a partner along on your adventures, the Southwest Companion Pass is an incredible deal. Believe it or not, with the Companion Pass, you can bring a friend or family member with you for free on every Southwest flight for up to two years.

You may have heard the news: On Jan. 1, 2020, Southwest officially boosted the points requirement for the Companion Pass to 125,000 points. This bump made the Companion Pass harder to earn for many less frequent flyers, though not impossible

With travel interruptions caused by the coronavirus pandemic, earning the Companion Pass for 2021 might seem completely out of reach. Luckily, Southwest is offering relief to those whose canceled plans throttled their hopes of achieving this coveted perk. Southwest has now twice extended statuses for Southwest Companion Pass members. Members who received an extension of their earned Companion Pass benefits through June 30, 2021, will have their benefits extended for another six months through Dec. 31, 2021. Additionally, Rapid Rewards members with an account opened by Dec. 31, 2020, are getting a complimentary boost of 25,000 Companion Pass qualifying points and 25 flight credits toward Companion Pass status. This shortcut, when combined with alternative ways to earn Companion Pass qualifying-points, means the benefit is still achievable in the current environment.

What is the Southwest Companion Pass?

The Southwest Companion Pass is a special benefit for elite members of Southwest’s Rapid Rewards programs. Once you earn 125,000 Rapid Rewards points or 100 qualifying flights in a year, you can designate a companion to bring with you for free (except for taxes and fees) on any Southwest flight that you purchase – with either cash or points. The earlier in the year that you earn the Companion Pass, the better because it’s good through the remainder of the year and the year after that.

The threshold for earning the Companion Pass is steep – amounting to thousands of dollars per month in airfare or multiple flights per week. However, you don’t need to be a rabid Southwest flyer to earn the pass. In the following guide, we’ll delve into the details of the Southwest Companion Pass and shortcuts to earning it.

The best card for Southwest flyers

Southwest Rapid Rewards® Priority Credit Card

Southwest Rapid Rewards Priority card

Why should you get it?

The Southwest Rapid Rewards Priority card is by far the best value for a frequent Southwest flyer, thanks to its $75 travel credit and 7,500-point annual bonus. Plus, the sign-up bonus of up to 80,000 points can help you toward the Southwest Companion pass.

Learn more

More things to know:

  • Earn 50,000 points after spending $2,000 in the first 3 months, plus earn an additional 30,000 points after you spend $10,000 in the first 9 months
  • 7,500 bonus points each year after your card anniversary
  • $75 annual Southwest travel credit
  • 4 Upgraded Boardings per year when available
  • 20% discount on in-flight purchases made with your card

Southwest Companion Pass rules

  • You must earn 125,000 qualifying points or fly 100 qualifying one-way flights each year to qualify.
  • Qualifying points include: revenue flights on Southwest, credit card points, base points earned through Southwest partners.
  • Qualifying points don’t include: purchased points, points transferred from other members, points converted from hotel and car loyalty programs, e-rewards, e-miles, Valued Opinions, Diners Club, points earned from program enrollment, tier bonus points, flight bonus points and partner bonus points.
  • You should designate a companion at least 21 days in advance to receive a Companion Pass card before your flight. You’ll need the card to board your flight, and it’s nontransferable.
  • You may change your designated companion up to three times each calendar year.
  • Once you qualify, you can begin booking flights with your Companion Pass immediately, and it is good through the remainder of the year and the next calendar year (up to two years, depending on when you qualify).
  • You must pay for your flight with cash or points before you book your companion’s pass.
  • Your companion can’t fly without you – they must be booked on the same flight and dates. If you cancel your ticket, their ticket will also be canceled. Also, he/she will be charged for the fare if you don’t make the flight.
  • You have to pay for your ticket to bring a companion (i.e., you can’t use a companion pass to fly with a partner also using a companion pass).

How to get the Southwest Companion Pass

You may be surprised to learn that Southwest flights aren’t the only way to earn points. In fact, there are faster ways to rack up the points that you need for the pass. Here are some of your best options:

Credit card bonuses

The best way to earn a lot of Rapid Rewards points all at once is to sign up for a Rapid Rewards credit card and earn the card’s sign-up bonus.

However, you should be aware of Chase’s rules on applying for Southwest credit cards before you hit submit. Due to Chase’s 5/24 rule, your application likely be denied if you’ve opened more than five credit cards (with any issuer) in the past 24 months. You can’t earn the bonus on a particular Southwest card if you’ve earned a bonus with that card in the past two years. Also, you’re prohibited from owning two consumer cards at once – which means you can’t sign up for, say, the Southwest Rapid Rewards® Plus Credit Card and the Southwest Rapid Rewards® Premier Credit Card to earn two bonuses in a single year.

However, you can own a consumer card and a business card at the same time. If you can qualify for a business card (which is not as difficult as you may think – any sort of side income may qualify you), signing up for a business card along with another Rapid Rewards card will give you most (or all) of the points you need to earn the Companion Pass – you can earn up to 180,000 points with two cards combined.

Sign-up bonus
Southwest Rapid Rewards Plus Credit Card 50,000 points if you spend $2,000 in first 3 months; plus 30,000 points if you spend $10,000 in first 9 months
Southwest Rapid Rewards Premier Card 50,000 points if you spend $2,000 in first 3 months; plus 30,000 points if you spend $10,000 in first 9 months
Southwest Rapid Rewards Priority Credit Card 50,000 points if you spend $2,000 in first 3 months; plus 30,000 points if you spend $10,000 in first 9 months
Southwest Rapid Rewards Premier Business Card 60,000 bonus points if you spend $3,000 in first 3 months
Southwest Rapid Rewards Performance Business Credit Card 70,000 bonus points if you spend $5,000 in first 3 months; plus 30,000 points if you spend $25,000 in first 6 months

Note, Southwest changes the sign-up bonuses on its cards frequently throughout the year. Before you sign up for a particular card, you should check the history of the bonus on that card to make sure it’s at its peak.

Referral bonuses are another great way to rapidly accumulate points toward the Companion Pass. Chase offers 10,000 points per each friend who is approved for a Southwest card, up to 50,000 points per year. Even better, Chase recently updated its refer-a-friend offer for Southwest so that you earn a bonus on any card that your friend chooses to apply for, including the business cards, even if you don’t own that particular card. You can log into the Chase site to grab your Refer-a-Friend link to share with friends, family, and of course social media.

Southwest flights

Besides credit card bonuses and referral bonuses, flying frequently on Southwest Airlines is your next best bet for stacking up Rapid Rewards points. Depending on the fare, you can earn between 6 and 12 points per each dollar that you spend on Southwest airfare. You would need to spend between $9,167 and $18,333 on airfare to earn enough points for the pass.

Rapid Rewards points earned
Wanna Get Away fares 6 points per dollar
Anytime fares 10 points per dollar
Business Select fares 12 points per dollar

Rapid Rewards partners

Southwest has several travel and shopping partners through which you can earn Rapid Rewards points. For instance, many of Southwest’s car rental partners offer 600 Rapid Rewards points per rental. Also, the Southwest hotels portal is a great way to earn up to 10,000 Southwest points per night – all of which qualify for the Companion Pass.

Credit card spend

Your spend with the Southwest credit cards also earns points that count toward the Companion Pass. Most of the Southwest cards offer the same earning rate: two points per dollar on Southwest purchases (on top of your base point earnings), Rapid Rewards hotel purchases and car rental partner purchases, and one point per dollar on everything else.

Unfortunately, the overall earning rate with most Southwest cards is very low – amounting to around 1.08-percent per dollar for the average cardholder. At that rate, you’d have to spend around $101,851 on average on a Southwest card to earn the pass just through credit card spending – not a very realistic amount for most cardholders. Still, using your Southwest credit card is a good way to add incrementally to your earnings, especially for purchases that earn double points.

Additionally, the Southwest Rapid Rewards Performance Business Credit Card has a slightly higher earning rate than the rest of the airlines co-branded offerings. The Performance card earns 3 points per dollar on Southwest purchases, 2 points per dollar on social media and search engine advertising, internet, cable and phone services, and 1 point per dollar on all other purchases. That means small business owners who spend a significant amount in these areas can get a bit more value.

Southwest Rapid Rewards Dining

The Southwest Rapid Rewards Dining program is another good way to add incrementally to your point balance. You can earn up to two Rapid Rewards points per dollar by eating at qualified restaurants.

This is an especially valuable option for those who cannot travel right now due to current restrictions. You’ll still earn points for purchases made with qualifying restaurants when you order takeout or delivery from the restaurant itself.

Rapid Rewards shopping portal

You can earn Rapid Rewards points that stack on top of your credit card points (as well as other deals and discounts) by clicking on a retailer’s link through the Rapid Rewards shopping portal. The Rapid Rewards site includes many major retailers, such as Best Buy and Bed Bath and Beyond. The number of points that you earn varies quite a bit by retailer, but tends to range between one to four points per dollar. For instance, Bass Prop Shops is currently offering four Rapid Rewards points per dollar on online purchases. At that rate, you’d have to spend around $27,500 to earn 125,000 Rapid Rewards points.

Earning the Companion Pass on a moderate budget

While 125,000 points seems like a daunting number, when you add all these earning opportunities together, it’s actually quite feasible to earn the Companion Pass with a moderate amount of spend.

For instance, consider you earn the up to 80,000-point sign-up bonus and refer two friends to Southwest credit cards. Those two actions alone can earn you 100,000 points – a significant portion of the way toward the pass. To earn the other 25,000 required for the pass, you can leverage high-earning categories like Southwest flights and purchases in the shopping portal – putting all spend on your credit card to ensure you earn as much as possible.

Additionally, you can maximize your Southwest points by using your Southwest card on planned, recurring payments like select gas purchases or certain utility bills.

How to use the Southwest Companion Pass

Register your companion

As soon as you qualify, go to the Southwest website and designate a companion for your next flight. Make sure you register your companion well in advance of your flight – your companion needs the pass to board the plane, and it takes up to 21 days to mail. You aren’t stuck with one flying companion – you can change your designated companion up to three times per year. (You can do this online or instantly over the phone.)

Book a flight

To book a free flight for your companion, first, go to the Southwest Airlines website and book your own airfare with cash or points. Once your ticket is booked, you can add your companion to your reservation by clicking on the “Add Companion” option on Southwest.com. (Or you can call Southwest’s reservations line to book your flight and have a companion added over the phone.)

Check in at the airport

You must bring your Companion Pass to the airport to check in. You’ll be asked to present a photo ID for yourself and your companion. Be sure not to stand your partner up at the last minute – if you don’t show up at the airport, your companion will be charged the full price of the fare.

Tips for earning the Southwest Companion Pass faster

  • Sign up for credit bonuses when they hit a peak – Wait until the bonus on a particular card hits a peak, and then apply for it.
  • Sign up for two Southwest credit cards – Consider signing up for both a Southwest business and consumer card within the same year to earn all the points you need from sign-up bonuses.
  • Look for special deals – If you keep an eagle eye on the Rapid Rewards program, you can find some incredible deals that can allow you to get a large influx of points or even earn the pass with a much lower threshold. For example, Southwest sometimes offers additional points on airfare purchases. Also, in 2017, Southwest ran a promotion in California that allowed residents there to immediately qualify for the pass if they signed up for a Southwest credit card.
  • Take advantage of all your point-earning opportunities – Stick to flying Southwest Airlines (even for business trips) and make every car rental, credit card expense, online shopping experience and hotel stay count toward earning the pass.

Bottom line

That Southwest Companion Pass is in closer reach than you think, even while travel is currently restricted. The points boost for Rapid Reward members in 2020, plus earning options like the online shopping portal and dining program, keep the perk within reach for Southwest flyers. By keeping a keen eye on credit card sign-up bonuses and taking advantage of all the earning opportunities, many Southwest enthusiasts successfully earn the pass each year.

See related: What are Southwest points worth?, Southwest credit cards, Best ways to earn Southwest points, Best ways to redeem Southwest points, Southwest Airlines partners, Southwest A-list status, How to book a Southwest Rapid Rewards flight, Rapid Rewards Shopping guide

Source: creditcards.com

Tips to Consolidate Credit Card Debt

Tips to Consolidate Credit Card Debt

Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

If left unchecked, extensive amounts of credit card debt can cripple your finances. The good news is there are many ways to handle debt, though each requires a dedicated effort on your part. But if you can manage to consolidate credit card debt, you will reduce your burden relatively quickly. In the process, you’ll avoid the exorbitant interest rates that accompany most credit cards. Below we take a look at some of the most effective techniques you can use to make this goal a reality.

Find Out Your Credit Score

Before you can work on improving your credit and minimizing your debt, you have to know where you currently stand.

Many credit card issuers allow cardholders to see their FICO® credit score free of charge once a month, so check out if any of your cards include that free credit score. The three major credit bureaus – TransUnion, Experian and Equifax – also give out free annual credit reports. If that’s not enough, websites like Credit Karma™ and Credit Sesame provide a free look at your credit score and reports as well.

It is vital to review your credit report with a fine-tooth comb to ensure the accuracy of the information. If you find errors be sure to let the credit bureau in question know so the issue can be eradicated as soon as possible.

Zero Interest Balance Transfer Cards

Although it might seem counterintuitive to apply for another credit card to lessen your debt, a zero interest balance transfer card could really help. These cards typically include an introductory 0% balance transfer Annual Percentage Rate (APR) for six months or more. This ultimately allows you to move debt from one account to another without incurring more interest. However, once the introductory offer concludes, any leftover balances will revert to your base APR.

These offers aren’t totally free, though. Most cards also charge a balance transfer fee that’s usually between 3% and 5% of the transfer. Even with this initial payment, you will almost always still save money over leaving your debt where it stands currently.

If you want to consolidate credit card debt, here are three different balance transfer credit cards you could apply for, with varying introductory interest rates and transfer fees:

Balance Transfer Credit Cards Card Intro Balance Transfer APR Balance Transfer Fee Chase Slate 0% APR for first 15 months; then 16.49% to 25.24% Variable APR, depending on your creditworthiness No fee for first 60 days; then $5 or 5% of each transfer, whichever is greater Citi Double Cash Card 0% introductory APR for 18 months from date of first transfer when transfers are completed within 4 months from date of account opening; then 15.49% to 25.49% Variable APR, depending on your creditworthiness $5 or 3% of each transfer, whichever is greater BankAmericard® credit card 0% APR for first 15 billing cycles; then 14.49% to 24.49% Variable APR, depending on your creditworthiness No fee for first 60 days; then $10 or 3% of each transfer, whichever is greater Take Out a Personal Loan

Tips to Consolidate Credit Card Debt

The thought of taking out another loan probably doesn’t sound too appetizing to consolidate credit card debt. But a personal debt consolidation loan is one of the speediest ways to rid yourself of credit card debt. More specifically, you can use it to pay off most or all of your debt in one lump sum. That way, your payments are all merged into a single account with your lender.

The APR and length of the offered loan and the minimum credit score needed for approval are the main factors that should go into your final decision on a lender. By concentrating on these three components of the loan, you can map out what your monthly payments will be. As a result, you can more easily implement them into your financial life.

Applying for a personal consolidation loan can have a detrimental effect on your credit. Unfortunately, most institutions will run a hard credit check on you prior to approval. However, many online lenders don’t do this, which might ease your mind depending on the severity of your debt situation.

These loans are available through a wide variety of financial institutions, including banks, online lenders and credit unions. Here are a few examples of some of the most common debt consolidation lenders:

Common Debt Consolidation Lenders Banks Wells Fargo, U.S. Bank, Fifth Third Bank Online Lenders Lending Club, Prosper, Best Egg Credit Unions Navy Federal Credit Union, Unify Financial Credit Union, Affinity Federal Credit Union Auto or Home Equity Loan

If you own assets like a home or car, you can take out a lump-sum loan based on the equity you hold in them to consolidate credit card debt. This is a great way to reuse money you paid toward an existing loan to take care of your debt. When paying back your auto or home equity loan, you’ll usually pay in fixed amounts at a relatively low interest rate. Even if this rate isn’t great, it’s likely much better than any offer you’d receive from a card issuer.

Equity loans are technically a second mortgage or loan, meaning your house or car will become the loan’s collateral. That means you could lose your house or car if you cannot keep up with your equity loan payments.

Create a Budget

Tips to Consolidate Credit Card Debt

To build a budget, you first need to figure out your approximate monthly net income. Don’t forget to take into account taxes when you’re doing this.

You can then start subtracting your variable and fixed expenses that are expected for the upcoming month. This is where you will likely be able to identify where you’re overspending, whether it’s on food, entertainment or travel. Once you’ve completed this, you can begin cutting back where you need to. Then, use your surplus cash to pay off your debt one month at a time.

It shouldn’t matter if you’re dealing with substantial credit card debt or not. A monthly spending budget should always be a part of how you manage your finances. While this is likely the slowest way to eliminate debt, it’s also the most financially sound. At its core, it attempts to fix the problem without taking funding from an outside source. This should leave very little financial strife in the aftermath of paying off your debt.

Professional Debt Counseling

Perhaps since you’ve found yourself in serious debt, you feel like you want professional help getting out of it. Well the National Foundation for Credit Counseling® (NFCC®) is available for just that reason. The NFCC® has member offices all around the U.S. that are certified in helping you consolidate credit card debt.

These counselors won’t only address your current financial issues and debt. They’ll also work to create a plan that will help you avoid this situation again in the future.

Agencies that are accredited by the NFCC® will have it clearly displayed on their website or at their offices. If you’re not sure where to look, the foundation created an agency locator that’ll help you find a counselor nearby.

Borrow From Your Retirement

Taking money early from your employer-sponsored retirement account obviously isn’t ideal. That’s means borrowing from your retirement is a last-ditch alternative. But if your credit card debt has become such a handicap that it’s affecting all other facets of your life, it is a viable option to consolidate credit card debt.

Because you are technically loaning money to yourself, this will not show up on your credit report. Major tax and penalty charges await anyone who has trouble making payments on these loans though. To make matters worse, if you quit your job or are fired, you’re typically only given 60 days to finish paying it off to avoid incurring a penalty.

Tips To Consolidate Credit Card Debt

  • If you take the time to come up with a budget, don’t let it go to waste. While you might find it tough to stick to, especially if you’re trying to cut back, it is the best way to manage your money correctly. Even if a budget becomes habit, stay vigilant with where your money is being spent.
  • Although a financial advisor will cost money, he or she might be able to help you keep your finances in check while ultimately helping you plan for the future as well. However, if this isn’t an option for you financially, stay on track with your NFCC® debt counselor’s plan.
  • There are so many ways to gain access to your credit score that there’s virtually no excuse for not knowing it. It doesn’t matter if you do it through one of the top three credit bureaus, FICO® or one of your card issuers. Just remember to pay attention to those ever-important three digits as often as possible.

Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

Photo credit: ©iStock.com/Liderina, ©iStock.com/ferrantraite, Â©iStock.com/cnythzl

The post Tips to Consolidate Credit Card Debt appeared first on SmartAsset Blog.

Source: smartasset.com

Does Paying Off a Loan Early Hurt Your Credit Score?

A woman in a red shirt sits in front of her laptop with her head in her hands.

Paying off debt to build credit is a pretty well-known strategy. It can help improve your credit score, especially if you’re carrying a large balance on your credit cards. So if you have other types of debt, like car or home loans, paying off those accounts might seem like a step in the right direction.

But here’s the thing—having a mix of accounts in your credit history is goodfor your credit score. You’ll actually want to have a good mix of revolving and installment loans. So does paying off a loan early hurt credit?

Does Your Credit Score Drop When You Pay Off Debt?

Unfortunately, paying off non-credit card debt early might make you less credit-worthy according to scoring models. When it comes to credit scores, there’s a big difference between revolving accounts (such as credit cards) and installment loan accounts (such as a mortgage or student loan).

Paying an installment loan off early won’t improve your credit score. It won’t necessarily lower your score, either. But keeping an installment loan open for the life of the loan could help maintain your credit score.

Credit Cards vs. Installment Loans

Credit cards are revolving accounts, which means you can revolve a balance from month to month as part of the terms of the agreement. Even if you pay off the balance, the account stays open. A credit card with a zero balance—or a very low balance—and a high credit limit is good for your credit score because it helps lead to a low credit utilization rate.

Installment loan accounts affect your credit score differently. An installment loan has a set number of scheduled payments spread over a predetermined period of time. When you pay off an installment loan, you’ve essentially fulfilled your part of the loan obligation. The balance is brought to $0, and the account is closed.

Does Paying Off a Loan Build Credit?

Paying off an installment loan as agreed over time does build credit. In part, that’s because 35% of your credit score is based on timely payments. And if you make timely payments for five or more years on an installment loan, that’s a lot of goodwill for your credit score.

Types of Credit and Length of Credit History

Credit scores are typically better when a consumer has had different types of credit accounts. It shows that you’re able to manage different types of credit. Your credit mix actually accounts for 10% of your credit score.

The age of your credit impacts your credit score. It accounts for around 15% of your score. Eventually, closed accounts fall off your credit score, which can reduce the age of your overall credit—and subsequently, your credit score.

Does Paying Off a Loan Early Hurt Credit?

If you’re thinking about paying off an installment loan early, take some time to think about it. Could you keep it open? It could be an active account with a solid history of on-time payments. Keeping it open and managed shows creditors that you can maintain the account responsibly over a period of time.

Consider other possible consequences of paying off a loan early. Before you pay off your loan, check your loan agreement for any prepayment penalties. Prepayment penalties are fees that are owed if you pay off a loan before the term ends. They’re a way for the lender to regain some of the interest they would lose if the account was paid off early.

Paying Off a Mortgage Loan Early

Sometimes paying off your mortgage loan too early can cost you money. Here are steps you can take to lighten those expenses:

  • When paying extra toward a mortgage each month, specify that the extra funds should be applied toward your principal balance and not the interest.
  • Check with the mortgage lender about prepayment penalties. These penalties can be a percentage of the mortgage loan amount or equal to a set number of monthly interest payments you would have made.
  • To help protect your future credit score, always make sure you have money set aside for emergencies and only pay extra if you can afford to do so.

Paying Off an Auto Loan Early

If you’re looking to pay your auto loan off early, there are several ways you can do so. When paying your loan each month, it might be beneficial to add an extra $50 or so to your payment amount. That lets you pay off the loan in fewer months and pay less in interest over the loan term. If possible, specify that the extra amount is to pay principal and not interest.

Another option is to make a single, large extra payment each year. Mark the payment as an extra payment toward principle. Do not skip another auto payment because you made this one, as your lender might consider you late if you do.

Repaying and Paying Off Student Loans

There are no prepayment penalties on student loans. If you choose to pay student loans off early, there should be no negative effect on your credit score or standing. However, leaving a student loan open and paying monthly per the terms will show lenders that you’re responsible and able to successfully manage monthly payments and help you improve your credit score.

The Bottom Line: Will Paying Off a Loan Improve Credit?

Paying off a loan and eliminating debt, especially one that you’ve been steadily paying down for an extended period of time, is good for both your financial well-being and your credit score. But if you’re thinking of paying off a loan early solely for the purpose of boosting your credit score, do some homework first to ensure it will actually help. If paying a loan off early won’t help your score, consider doing so only if your goal is to save money on interest payments or because it’s what’s best for your financial situation.

The post Does Paying Off a Loan Early Hurt Your Credit Score? appeared first on Credit.com.

Source: credit.com

Credit.com Review For 2021

Credit.com offers free credit scores as well as paid services surrounding credit advice. The website offers helpful tools, most of which are free. Keep reading to see if Credit.com can help you track and fix…

The post Credit.com Review for 2021 appeared first on Crediful.

A Guide For Victims Of Tax Related Identity Theft

Being a victim of tax related identity theft can leave you scrambling to take the proper steps to set things right. Here’s are the things you need to do.

The post A Guide For Victims Of Tax Related Identity Theft appeared first on Bible Money Matters and was written by Peter Anderson. Copyright © Bible Money Matters – please visit biblemoneymatters.com for more great content.

Source: biblemoneymatters.com

Credit Card Payoff Calculator: When Could You Reach Financial Freedom?

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Have credit card debt? You’re not the only one. It’s reported that 43 percent of households carry credit card debt month after month. While credit cards can be a great tool to build your credit score, they can easily impact your budget. If you’ve detoured from your financial goals and racked up a hefty bill, now is the perfect time to create a payoff plan. Use our credit card payoff calculator to see when you could be financially free.

Credit Card Payoff Calculator

Enter your card details to calculate your payoff timeline.

Choose One

Please enter your desired payoff date.

Please enter your monthly payment.

Time to Payoff

30 Months

Debt-Free Date

Apr 2023

Monthly Payment

$250.00

Total Paid$7,493.77

Total Principal

$5,000.00

Total Interest

$0.00

See where the rest of your budget is going

to pay off debts that have the highest interest rates to save on added expenses. Use our credit card payoff calculator to see which accounts would cost you more in the long-term.

2. See What Payments Work for Your Budget

Once you have an idea of which accounts you’d like to focus on, figure out the right payments for your budget. Keep in mind, you should still make the minimum payments on debts to keep your credit score in good shape. To calculate how comfortable you are with these payments, download our app and evaluate your budget.

3. Negotiate Your Credit Card Terms

If you have a strong credit score and loyalty to your credit card company, you may be able to negotiate your terms. For example, if you’d like your payment to be due on the 25th instead of the 10th of every month, call a representative and see what they can do. You may not always get what you ask for, but you won’t get what you don’t ask for!

4. Reprioritize Your Budget

After you get a better idea of what your budget looks like, prioritize your expenses. As your wants and needs change, adjust your budget accordingly.

Paying off credit card debt may not be as appealing as buying a new car, but it can be a more responsible financial choice depending on your situation. To ensure you’re staying on track with your biggest financial goals, always keep track of your budget using our app.

The post Credit Card Payoff Calculator: When Could You Reach Financial Freedom? appeared first on MintLife Blog.

Source: mint.intuit.com

5 Tips for First-Time Commercial Real Estate Investors

Are you thinking about taking the plunge and investing in your first commercial real-estate deal? Even if you’re a veteran investor in residential properties –…

The post 5 Tips for First-Time Commercial Real Estate Investors first appeared on Century 21®.

Source: century21.com