Categories
Financial Insurance

Car Insurance: 101 Guide to Everything

car insurance 101

Whether you’re on the hunt for better rates or shopping for the first time, car insurance can be intimidating. There are so many numbers thrown at you, and every provider claims to offer cheap car insurance or the most benefits.

How can you possibly choose? In this article, we’ll go over everything you need to know about car insurance and how to choose a policy that fits your needs.  

Type of Car Insurance Coverage

Before you can select any policy, you need to know about the different types of car insurance coverage. While some coverage is designed to protect you, other insurance pays for damages and injuries you cause to others. The following are just a few of the most common insurance coverage options:

Liability

This type of coverage is for others. Specifically, auto insurance providers design bodily injury liability to cover injuries or deaths that you caused with your car. Property damage liability covers vehicles or other property damaged by an accident you caused. Almost all states require drivers to carry a minimum liability policy.

Collision

If you want to cover your car’s damage when you cause an accident, you need collision insurance. It covers the cost of repairing or replacing your vehicle whether you hit a car,  pole, tree, or another object.

Medical Payments and Personal Injury Protection (PIP)

Several states also require that drivers carry insurance for medical payments or personal injury. This plan reimburses you for medical costs associated with an accident. They also cover lost wages for you and your passengers.

Uninsured Motorist

In the event of a hit and run, you will be thankful for this insurance. It provides you with coverage when the driver at fault lacks enough coverage to pay for the damages he or she caused.

Coverage Amounts

Once you know what type of coverage you need, you must choose the amount. As with the coverage types, your state often determines the minimum amount of coverage you must carry. It could be as low as $10,000 a person or $20,000 for a single accident. On the other hand, insurance companies can set maximum limits for liability coverage.

Obviously, you shouldn’t choose more coverage than you can afford, so you need to find the balance between your budget and your needs. Since many cars can cost upwards of $40,000, you should aim for at least that much in property damage coverage. If you own a more expensive vehicle, we recommend upping your coverage in case an underinsured driver hits you. These are just a few of the things you should consider when selecting your coverage amount.

Car Insurance Rates

Your car insurance premium can vary greatly from the next person’s—even with the same coverage and deductibles. We know that sounds crazy, but it’s true! Insurance providers don’t base your car insurance quote on those two factors alone. In fact, there are a lot of different things they take into consideration when calculating your payments, including:

  • Location
  • Age
  • Gender
  • Years of Driving Experience
  • Marital Status
  • Vehicle Type and Use
  • Claims History and Previous Coverage
  • Miles Driven
  • And More!

While your claims history and driving experience make sense, you might wonder, “what do my gender and marital status have to do with my insurance?” They are risk factors determined by claims data. For example, young drivers are statistically proven to be the riskiest drivers to insure. Therefore, your rates are much higher when your 16 than when you turn 25.

It’s important to note that while all of these factors are considered, they don’t carry the same weight. Each insurance company weighs them differently, which is why they charge different rates.

Choose Your Perfect Car Insurance Policy

Now that you know more about the types of coverage and factors that influence your rates, you can be better prepared to handle your search. If you’d like to learn more about car insurance coverage or how to lower your car insurance rates, we encourage you to check out some of our other articles.

Categories
Credit Financial

4 Best Unsecured Credit Cards for Bad Credit

credit cards for bad credit

You need a credit card.  You know your credit is not in the best shape but is anybody perfect? Maybe you’ve looked into getting one in the past only to be asked to pay an insane deposit for a “secured” card.  But are those the only type of credit cards you can get?

Of course not.  There are some great options for “regular” unsecured cards, even for those with bad credit.

The Best Credit Cards For Credit Scores Below 650

1.     Capital One Platinum Credit Cards

Why? It’s great for building credit.

This card is an excellent option for building credit because Capital One automatically reviews your account at six months.  As long as you make all of the payments “on time,” it is easy to get a higher credit limit.  You get an instant boost to your credit score so long as you don’t use too much of that higher limit. 

Also, Capital One is known for extra benefits. You’ll never have to buy that extended warranty on electronics.  The one downside is there is no cashback.

2.     Capital One Quicksilver One Cash Rewards Credit Cards

Why? This one gives you rewards.

It gives you unlimited 1.5% cashback on everything.  You can easily earn back the annual fee and more. You also get all of those other advantages Capital One offers.

Be aware that this one does have slightly higher credit standards than the others. It is an excellent choice if you have already started the journey back from “bad” credit.

3.    Petal 2 Visa Credit

Why? There are no fees.

Once your credit score drops, annual fees are usually automatic.  With Petal, there are no yearly fees.  What’s more impressive is that they don’t charge any other fees either. There are no late payment fees, over the spending limit fees, returned payments fees,  or any other fees. 

Of course, this doesn’t mean it’s interest-free, but if your trying to adjust to living with credit cards, this no fees policy is a huge benefit.

It also offers some cashback features.  You start with 1% back on all purchases and graduate to 1.5% once you’ve made 12 payments on time.  They even look at more than just the simple credit score for approval. This makes Petal perfect for those without credit or credit history.

4.     Deserve Pro Mastercard

Why? It has more rewards.

Not only does this card give you unlimited 1% cashback on your purchases, but it also offers bonus rewards categories.  You can earn 3% back on any travel purchases and 2% back on dining purchases.  Just remember that you can only get the bonus rewards for the first $500.

As you can see, unsecured credit card options do exist for those with bad credit scores.  These are far from the only four cards available for this range of credit scores.  Keep a careful eye on interest rates and annual fees anytime you are shopping for an unsecured card, regardless of your credit score.

Categories
Debt Financial

The Not-So-Secret Strategies To Find Debt Relief

get debt relief

The early 21st century has found an increase in the debt of individuals in developed, First World countries mostly as a direct result of the American economic recession around 2008. Personal debt rose from $2.71 trillion in 2008 to $3.76 trillion in 2017. Therefore, if you’re one of the many that have some form of personal debt, know that there are means to get help.

There are a lot of different versions of debt depending on who you are and what you owe. In this context, we’re referring to an individual’s debt. The early 21st century has found an increase in the debt of individuals in developed, First World countries mostly as a direct result of the American economic recession around 2008.

Management

Managing debt is where most people have to start. This all comes down to working out a budget plan. Unfortunately, this plan only works best on unsecured debt, like credit cards, personal loans and overdraft fees. The credit counseling and debt management companies can negotiate with the unsecured debt lenders to reduce the total owed or monthly payments, which can be a massive help if you’re living paycheck to paycheck.

There are a lot of different ways to look at debt management, because it basically includes all of the other strategies in one package. Managing the debt begins at the source, with you, and on how you plan to spend your money while making ends meet. Creating a budget plan as early as possible will help you get started with handling debt.

Consolidation

Debt consolidation is one of the first and smartest avenues to seeking out debt relief. If you’re in debt from a few different bills with high interest rates, like multiple loans or a few credit cards, it’s possible to consolidate all of the bills into one lower-interest loan. This option both reduces your overall debt and makes it faster to pay off.

Consolidation isn’t a magic cure-all and won’t work if you’re unwilling to stick to a budget. If the debt is less than 50 percent of your income, your credit isn’t enough to qualify for a zero percent credit card or you’re unable to consistently cover payments, consolidation may not be the best option. Of course, speaking with banks, credit unions, or other loaners may give you a better idea of how to reach consolidation with your personal situation.

Debt Settlement

Debt settlement is risky business. While this means that you can pay less than the original amount owed without fear, this option is still basically a last resort. Debt settlements can ruin your credit and be extremely expensive to reach, not to mention taking years to even establish.

The only way you can be eligible for a settlement is if you’re unable to pay any amount on your debt. Collectors will be willing to take some amount of money rather than nothing but at a strong cost to you. This is only applicable with some types of debt, as houses can be foreclosed and cars repossessed, but debt like student loans can be settled. Options like income-based repayment plans should be considered before deciding on debt settlements.

Tax Debt Relief

Tax debt is a bit different from your average debt. This is money owed to the IRS and can be serious stressor, especially if you have debt accruing from previous years. Every month tax debt is unpaid adds a 0.5 percent interest penalty, so things can add up fast. The IRS even has the power to put a lien or levy on your property, meaning they can take the proceeds if you sell or just take the property and sell it themselves.

There are a lot of companies out there and a lot of scams who say they’ll help you get out of tax debt. One of the best steps that can be made is to speak to a worker at the IRS directly to set up a payment plan. There will be penalties and interest to come with the plan but these are better than not paying at all. You can also seek out an office in compromise or OIC, which is similar to a debt settlement as it’s a way to reduce your payment if you can’t repay at all. As with the settlement option, the IRS suggests you try all payment plan options before considering the OIC.

Getting out of Debt

The idea of debt has been around since ancient historical times, even mentioned in the Book of Leviticus. So long as economy and debt has been around, so has debt forgiveness. Anyone can reach debt relief, but the stress coming with the trouble is a different problem.

Categories
Legal Social Security Disability

SSDI Claim Not Accepted? 7 Common Reasons Why

SSDI Benefits

It is no secret that the acceptance rate for Social Security Disability Insurance (SSDI) has been decreasing steadily for the last 15 years. In 2001, the award rate for SSDI was 46%. By 2006, the award rate had dropped all the way to 38%, and by the end of 2015, less than one third – just 32% – of all applications were awarded benefits. At the same time, the number of benefits being terminated has increased each year since 2011. So how can you make sure your claim is accepted? Here are 7 common mistakes to avoid that will help ensure you get the awards benefit you deserve.

  1. Too much income: Individuals who are currently making over $1,130 per month in income will not be eligible to collect SSDI. However, this limit does not apply to unearned income, such as investments, interest, or any other household income not earned directly by the individual applying for disability.
  2. Temporary disability: Any disability that is not expected to impact the applicant’s ability to work for at least 12 months will automatically be denied by the Social Security Administration (SSA).
  3. The SSA was unable to reach you: Although it may sound obvious, it is important that the contact information on your application is accurate, and that you respond to any and all efforts from the SSA to reach you. Many SSDI claims are denied every month because the SSA is unable to contact the applicant.
  4. Technical rationale: This means that the applicant may be qualified to perform alternative duties and functions to maintain employment in some other role. This is typically referred to as residual functional capacity (RFC). If the SSA determines that your RFC does not prevent you from performing the necessary tasks for certain jobs – i.e., clerical data entry – you may be denied SSDI benefits.
  5. Place of residence: Believe it or not, where you live matters. Sometimes the reason for an SSDI award or denial can be as simple as the presiding judge. In certain areas or jurisdictions, the person deciding the case may be very lenient or very strict. Therefore, two people facing otherwise very similar circumstances may end up with very different judgements.
  6. Not complying with SSA requests: Sometimes a SSDI application may need additional documentation or medical records to support the claim. If the SSA contacts you about missing information, or asks that you submit additional forms, it is important that you follow up as quickly as possible. Failing to comply with such a request will almost always result in a denial.
  7. Application errors: Perhaps the most common reason why an application is denied is because it contains errors. Even a small error can cause the SSDI application to be denied. It is important to make sure you take the time to read the application entirely, fill it out to completion, and double check for any mistakes or omissions.

Of course, if your claim is denied, that does not mean the fight is over. Too many people who receive a denial just give up. However, over 65% of the people who file for an appeal and get a hearing are awarded benefits. But perhaps the most important thing you can do to make sure your claim is approved is to get help before you apply. You don’t have to go through the process alone, and finding the right guidance can be the difference between a quick approval or a lengthy battle.

Categories
Legal Social Security Disability

SSDI Commonly Rejected Disabilities

ssdi common disabilities benefits

There are many reasons why your Social Security Disability Insurance claim may be denied. In 2015, less than 1/3 of all applications were awarded benefits in 2015. The reasons for denial may be technical or medical. In recent years, technical denials have been increasing, but 20% of all claims still end with a medical denial. Below are 5 common medical conditions that are typically denied SSDI benefits.

Depression

Although depression is the most common, non-fatal medical cause of disability, it is still a rarely accepted condition for benefits and requires evidence of severe impairment. For some, their depression may be so severe that it can inhibit their ability to function in everyday life. This can include family and work activities. The SSA provides a list of symptoms. If an individual with severe depression also experiences at least four of the listed symptoms on a recurring basis, they may be approved for SSDI benefits. However, most cases are not severe enough to qualify someone for disability benefits.

Hypertension

Hypertension, or high blood pressure, is not usually a qualifying disability for SSDI benefits. Even for individuals who perform manual labor and may be more at risk. The primary reason for this is because many cases of hypertension can be controlled with drugs. The drugs lower blood pressure to normal risk levels. Therefore, the impairment is not typically considered severe enough to qualify for SSDI. There may be certain cases that do qualify. For example, if a patient does not respond to treatments or they are unable to take the normally prescribed medication due to other complications.

Impaired Vision

Nearsightedness and farsightedness, while potentially disabling, are both usually correctable with glasses or contact lenses. Therefore, they would not usually qualify for SSDI. However, the causes of vision impairment can vary widely. Certain complications, like severe macular degeneration or other retinal diseases that can’t be improved with corrective lenses, may be awarded SSDI benefits.

Adult Eating Disorders

Adult eating disorders can be a serious affliction, and they affect millions of Americans each year. However, in most cases, adult eating disorders do not qualify for SSDI even though both anorexia and bulimia are listed as disability conditions for those under 18. In some cases, an adult may qualify if their eating disorder causes severe symptoms similar to other qualifying disabilities. For instance, adult eating disorders can cause other problems such as heart failure and arrhythmia, or lead to increased fractures or broken bones. These conditions may allow someone to be awarded benefits. Additionally, someone may qualify for an equal disability listing such as weight loss due to a digestive disorder. However, usually because it is not technically a digestive disorder, it is usually not accepted on its own. It typically requires that the applicant is currently seeking treatment.

Short-term Injuries

One of the main qualifying factors for SSDI is the length of time your disability will last. For example, someone with severe anxiety or depression may qualify for disability because it can be an ongoing disability. On the other hand, an individual with a severe injury, such as a broken neck or spine, may not qualify for disability if they are expected to recover in 12 months or less. Even if the individual was in a hospital for a few months and was unable to attend work, they may not be considered sufficiently disabled to receive benefits.

Categories
Legal Social Security Disability

Social Security Disability FAQ

social security disability faq

Navigating the world of Social Security can be confusing and frustrating for anyone. If you are disabled and in need of assistance, it may seem like they have purposely made it difficult for you to get the help you need. Understanding the different programs and knowing if you qualify is an important first step to getting your claim approved.

Q: Do I need SSDI or SSI and what is the difference?

A: Both Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are services managed by the Social Security Administration. Both are aimed at helping disabled individuals with financial assistance. However, beyond those similarities, the programs are quite different. SSI was created to help individuals over the age of 65 who have very limited financial assets and may have a difficult time paying for basic necessities due to disability or blindness.

SSDI, on the other hand, is an earned benefit, or entitlement program. It is available to individuals under the age of 65 who are deemed too disabled to work. Because it is an earned benefit, the amount each individual may receive from SSDI is dependent upon their earnings record. In other words, the more income an individual previously earned, the higher their benefit will be. By contrast, SSI is a relatively fixed benefit and may actually be reduced if the recipient receives other income.

Q: Who qualifies for Social Security Disability?

A: Anyone under the 65 who has paid into Social Security for at least 10 years may qualify for SSDI. However, most award recipients are between the ages of 50 and 63. All applicants for SSDI must be sufficiently disabled to prevent them from working. Even in a reduced capacity and the impairment must be expected to last at least 12 months or longer.

As part of the application process, you may be required to submit medical records. These will verify your condition and diagnosis. Certain conditions may automatically qualify you for SSDI, while others may require a more significant review process.

Additionally, anyone who is still able to work in a limited capacity and currently earning over $1,130 per month will not be eligible for SSDI.

Q: How can I make sure my claim is accepted?

A: The acceptance rates for SSDI can vary widely depending on where you live. Nationally, the acceptance rate has decreased almost every year since 2001. The total number of individuals receiving benefits has also been reduced in recent years. Meanwhile, the termination rate for SSDI benefits has increased steadily since 2011.

SSDI applications can be denied for a number of reasons. The most common reason is if the information is entered incorrectly. This can be the result of misunderstanding the question or form. It can also be simply due to the length and time it takes to complete the application. In either case, a small mistake or omission can be the difference between an acceptance or a denial. There are numerous services designed to help you with the application process. They also can hopefully answer any questions you may have along the way. Taking advantage of these services can go a long way to ensuring your claim is accepted.

Categories
Financial Savings

Earn Money With A Checking Account

Checking Account

We have been conditioned to think that even though bank accounts are necessary that they are a drain on our resources. For example, most bank accounts come with high monthly fees, unless a user maintains a significant minimum monthly balance or meets other restrictions. Users may also be hit with heavy fees if they overdraw their accounts. Many banks charge overdraft fees in excess of $30. 

But, not all bank accounts are costly. In fact, some checking accounts may actually earn users money. This primarily happens via bonuses that customers receive when they open checking accounts.

Checking Accounts With Bonuses

Not all banks offer bonuses for customers to open new checking accounts, and not all bonuses are created equally. This means that it is important for a customer to shop around. Comparison shopping also means looking at more than just the upfront bonus. Customers should also consider how they will likely be using the account and what the long-term associated fees will be.

The bonuses that are offered generally range from $100 to $250. However, some banks may offer even more attractive bonuses, particularly to high net worth customers. For example, HSBC Bank currently offers a $750 bonus for its premier checking account. However, customers need to be aware that they will be charged a $50 monthly fee unless they maintain a $100,000 minimum account balance. This minimum is outside the means for most customers.

The Best Bonus for You

When opening a checking account, particularly one with good bonuses attached, they may want to check your credit score up front. If they use a hard pull on your credit, this will make your score dip lower temporarily. If your score was already not the best and you were planning on using it soon, like if you were considering buying a car or renting an apartment, then you may want to check with other banks first or hold off on the checking account until things are settled.

Banks aren’t known for giving money away for free, so don’t expect this to come without other types of attachments. For instance, there’ll be fees on the account like monthly maintenance charges which might take up the whole bonus, if not more. Not to mention that the bonus is technically considered interest, so the government will want to take out taxes on this so-called free money. Lastly, consider interest rates at various banks. Some banks that offer no bonuses but has competitive rates may earn you more money than vice versa.

Other Caveats For A Checking Account

Minimum monthly balances are only one issue that consumers need to take into account when they are shopping for a new checking account with a sign-on bonus. Banks often put other requirements or caveats on these accounts, some of which are more stringent or restrictive than others. Many of these accounts will require that customers have at least one direct deposit enter their account each month. Since most employers now pay via direct deposit, this is not a difficult requirement to meet.

Another requirement that customers need to take note of is the minimum amount of time that an account needs to be open. Many banks require customers cashing in on these sign-on bonuses to keep an account for six months or more, while some banks set the minimum to one year. Customers who close their accounts before then may be required to pay back their initial bonus.

These aren’t reasons turn away an account with a sign-on bonus. They are simply buyer-beware caveats. Make sure to read the fine print about any account before opening one.

In the End

Customers should treat shopping for a new bank just like they treat any other shopping experience. They should work to collect as much information as possible and weigh this information against their own unique needs. What works for one customer may not be the appropriate answer for another. Consumers have the opportunity to pick the bank account that best meets their long-term needs, ideally one that offers an attractive account opening bonus for new customers.