Category: Credit

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Children Credit Family Financial Tax Services

Is Child Credit Still Relief Bill’s Best-Kept Secret?

Is Child Credit Still Relief Bill’s Best-Kept Secret?

This post-lockdown world is changing a lot of things for a lot of people. Even though there are millions of Americans that may be eligible for the debut of the Child Credit, there are some indications that they may not even know they should be getting this money.

A Financial Lifeline?

There will be monthly payments of up to $300 per eligible child as part of a completely overhauled 2021 tax benefit that proponents are touting as a “financial lifeline” for millions of eligible families. Some other estimates suggest that this benefit may be able to slash child poverty by nearly 50%.

But the problem is the families who need this money the most don’t seem to know about it. Many of them are non-filers with the IRS. This means in order to get their money, they will need to sign up separately at a website. Thankfully, the website is said to be up and running and operating smoothly. Indications at local events, however, show that a huge portion of the families that need this money, don’t know they are owed these payments.

The Campaign for Working Families, which is a non-profit tax preparation service for low-income families and others who qualify, says that they have signed up far fewer people for the credit than they initially anticipated. They are hearing from those affected, that even if a particular family is eligible for and due the child credit, the information surrounding how to sign up or provide information has proven confusing at points.

The Official Word From The IRS

The IRS says that for most people, the payments will happen automatically and no action will be needed. There have been some official IRS evens in cities like Philadelphia that have higher rates of non-filers than many other areas. These non-filers will not usually have much information on file with the IRS since they are not required to file yearly returns, due to low income or other circumstances, which means the IRS has no way of getting those families their money. This can be solved in most cases by simply visiting the IRS site.

IRS Web Tools & Opting Out

The IRS is offering some web tools to manage payment status as well as provide other functionality. There is a portal for those who may be receiving the payments but do not want to accept them currently. Maybe, if they expect their situation to change before the next tax filing season.

There is a series of deadlines for opting out, for those who do not wish to receive the payments. The next deadline is the 2nd of August to opt-out for the payment due on the 13th of August. The IRS site will provide a means to determine if you are eligible for the payments in the first place. This site will also let users verify that they have been enrolled, as well as update their banking information.

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Credit Financial

Questions All First-Time Investors Have Answered

Questions All First-Time Investors have answered

Being a first-time investor can feel quite daunting, especially if you feel you have inadequate financial knowledge. The fact is that not all of us have studied business or finance related degrees and we all learn essential things along the way, so you really have nothing to fear.

Here are top 11 questions that first-time investors have answered.

Is Paying Off Debt Necessary Before Investing?

One needs to take stock of their personal risk tolerance, goals and financial situation. There is no answer to this question and you can only draw your conclusion by seeing your personal debt size, interest rates and how you will balance your investing goals with debt repayments.

Can You Define Risk Tolerance & How To Figure Out Mine?

Risk tolerance is merely how much you are willing to stake. You can figure out yours very simply. If you stay up at nights fearing that a down market may bring down your investment portfolio, then honestly, the risk is bigger for you.

If instead, you worry about missing an earning potential then you are making conservative investments. The best way to quantify your risks is to work with a financial advisor.

Where Do I Begin My Investment Knowledge & How Do I Increase My Confidence?

Most investment education is honestly self-taught and you can find a plethora of materials now for educating yourself. From online resources to scholarly journals or a single book like Bogleheads Guide to Investing, you can learn all you need here.

Basic knowledge and joining communities like Public can help will broaden your financial literacy and confidence.

What Will I Get By Investing In The Stock Market?

No market is risk-free. You must note that natural disasters, political events, consumer emotions, terrorism, earnings etc. can impact the markets. Over the long-term, you can enjoy annual return rates, corporate bonds, cash equivalents/cash and treasury bonds too.

When Is The Right Time To Invest?

The simple rule is to invest your money when you believe it will grow over a period of time. your goal must be to invest it into something that will appreciate over time, like stock shares, real estate, index fund, art collectibles etc.

Can I Lower My Risk Of Investing?

Being well diversified is one sure way of minimizing investment related risks. This method involves investing your portfolio in various assets, including cash, bonds, stock and real estate etc. Economic events have a different impact on how each of these assets will react.

Diversification is the way to ensure you get higher returns with lower risks.

How Much Should I Start With?

The truth about investing is that single stocks can cost you thousands of dollars. If you’re not up for that just yet, you can find several platforms that have removed account minimums to facilitate the beginners in investment. At the very least, you will surely get to enjoy fractional shares.

This way, even starting out with a $20 investment, including a small stock portfolio will give you hands-on experience, some returns and flexibility for your comfort level.

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Credit Financial

Credit Card Points: Rule of Thumb for Redeeming

Rule of Thumb to Redeem Credit Card Points

Are you unsure of how to redeem credit card points? If yes, let us discuss the rule you probably didn’t know about.

The saying goes that the best way to redeem your credit card reward points is by ensuring you secure as much value as is possible. If we were to give you a comparison, we’d say credit card points are an unofficial and unique form of currency. Hence, the rule of thumb here is to select redemption options equaling at least a cent each.

Often the most confusing aspect here is for people to decide which redemption option is the absolute best and will give the most value. History also proves that comparatively merchandise and gift card options are not the best ways to redeem your points. It would be better to choose cash back or travel options instead, if deriving maximum value is your goal.

If you want to measure your point’s value, you can divide your reward’s dollar value with the number of points you need to get it. Once you have a figure, if you manage to earn more than a cent for each of your point, trust us, you’re on the right track.

However, if you’re earning less than a cent, there is no doubt that you’re making wrong choices and getting bad end out of the deal.

Rule of Thumb

Here are a few tips to help you get the most out of your credit card points:

  1. Your primary aim must be to ensure that your rewards are aligning with your interests. If your goal is to use your income better, you’d be wise to choose a card that has a cash-back option on basics, such as purchasing from your regular stores, topping your fuel/gas etc. if you like traveling, you may want to choose a credit card that offer airline miles beyond your local hub.
  2. The trick is not choosing a rewards program that does not cater to your interests or needs. Be watchful for rewards that are actually a trap in disguise to make you spend more than you can afford, such as a sign-up bonus etc.
  3. Never underestimate the power of cash back rewards. They provide you with the most basic currency there is to spend just as how you desire. You can go back in recent history and check the stats that prove cash back is the favorite credit card reward of consumers.
  4. Do not get a credit card on an impulsive decision. Always take the time and effort to compare an offer with other credit cards. At the same time, you must always remember to check the rewards terms as well of the cards you’re already using.
  5. Do not make the mistake of carrying too many reward cards at a time. You may end up diluting your rewards value because of the way your spending goes haywire with owning several cards at a time.

Conclusion

When redeeming your credit card points, your primary goal must be to select an option that maximizes the value of your rewards, to a cent each or even more but nothing less than that.

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Children Credit Family Financial

Should Teens Have Credit Cards?

Should Teens Have Credit Cards?

Credit cards give you convenience, with an aim to build a positive credit history so that your teen can qualify for a car loan or mortgages when the time comes. It may also help to rent an apartment or pay some educational expenses. So, consider getting low-interest rates on all forms of loans if you meet the requirements. That is one of the best things about credit cards.

Is it worthwhile to know more about whether teens should have credit cards? Let us find out.

1. Teach Them About Its Lows

Many young people end up in debt and have a poor credit score for using credit cards without fully understanding the consequences. It may take years for them to pay off and rectify the credit card history.

In order to avoid such disasters, better you may explain to them how it works and what are better ways to use it. Fully elaborate them its low and high points. Make them realize how the misuse of credit cards can affect their credit scores.

2. How to Build Positive Credit History

It may take time to build a decent and positive credit history. It becomes more complex for teenagers living with a thin credit line. Instead, parents allow teenagers to use their credit line.

That means:

  • Every timely payment will reflect in payment history
  • Minimal use of a credit card will teach your teenagers how to spend wisely
  • Your credit age will increase with your teenager’s credit file and accounts for a long history which is a good credit score

This may be a good way for teaching your teen to use the credit line, the way it should be.

3. Observe Credit Card Usage During an Emergency

You may hope your teenager doesn’t use a credit card during an emergency.

There are situations where it becomes inevitable to use a credit card. Like your young adults or teenagers vehicle breaks down or they find themselves in an immediate need for cash. A credit card will make their life easier at that point. If they use it appropriately, this will give you peace of mind that your teenager is ready to face an emergency and come of it as well.

4. Monitor Credit Card History

Mostly you will able to see your teen’s credit card purchasing history. You should look carefully to observe the nature of his spending. You can explain it’s a bad idea to spend every penny they earn. Save something by the end of each month.

You should do this with a diplomatic approach without letting your teen feel you are micro-managing.

5. Convenient and Secure

Credit cards are good for payment methods. Many credit cards offer protection on every purchase you make. In the meantime, if you lose your credit card you inform the bank and get it cancelled and wait for its replacement. This is a safer option than your teenager carrying cash around.

Make your teenager realize this significant point.

Conclusion

It may be a tough and daunting task for parents to hand over additional responsibilities to their children, particularly teenagers. It covers all aspects of giving them your car, access to the internet or letting them use your credit card.

For you, it may be a big step but it’s a smart way to prepare your teenagers for taking on adulthood responsibilities.

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Bankruptcy Credit Financial Legal

How to Rebuild Credit After Bankruptcy

How to Rebuild Credit After Bankruptcy

Deciding to declare bankruptcy is never an easy choice. It is painful, nerve-wracking, and embarrassing. However, it is ultimately the right choice for millions of people. Why should you declare bankruptcy? There are multiple reasons why it might be the right approach for someone suffering from financial woes. But the biggest reason why someone should declare bankruptcy is because it ends the impossible task of paying off debts you cannot overcome.

In many ways, bankruptcy is giving you a clean slate with your finances and the ability to finally start rebuilding and stop beating back against an endless tide of financial stress. But it can cause a huge hit to your credit. Make no mistake, declaring bankruptcy is one of the worst things you can do for your credit score. However, rebuilding that score isn’t impossible after bankruptcy. There are ways to come back from bankruptcy and have a good credit score again.

Invest in a Credit Product

Have you ever heard of a secured loan or secured credit card? These are just two tools that can greatly help your credit after you declare bankruptcy. These cards and services will slowly build your credit back up. With the secured credit card, you put a deposit into the card and then use it like you would a credit card. It’s your money but you are helping your credit score by spending it. While these cards can be super helpful, they also carry a high interest rate too so be forewarned and be prepared to use the secured credit card for the near future but only the near future.

Practice Good Credit Habits

Once you do land a credit card, secured or not, you need to be extra careful when spending and paying it back. Now is your chance to have good credit habits. The best piece of advice to follow with your new credit card? Pay on time! Don’t spend too much credit, do not overspend and use money you don’t have. Look at these cards as a tools to rebuild credit, not as a way to live lavishly.

Have a Co-Signer Get You a Card or Loan

A co-signer is a great way to get yourself a credit card or loan after you have declared bankruptcy. They will sign off on you and help you get the card of loan and put themselves on the line. That is a big risk they are taking but if you are really serious about staying on top of your finances, it is a choice that will help you and not hurt them in the slightest. Make sure your co-signer is someone you can trust and someone who can trust you. Perhaps a family member or life long friend. A co-signer is a great way to get a new card or loan and that is a major step to starting to rebuild your credit. Once you have secured your card or loan because of the co-signer, make them proud by paying it back on time and show them that you were an investment worth making.

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Business Career & Education Credit Financial

What are the Best Cards for Small Businesses

What Are The Best Cards For Small Businesses

Starting a small business is exciting, fun, and nerve-wracking. It can also be truly terrifying if you are not sure where you are getting your funds from. Some business owners find their financing through a bank, others from loans by brokers or family and friends. Then others get their companies up and running by using one of the many business credit cards on the market.

If you are looking to fire up your own small business and want to rely on a credit card to get things moving, you have a lot of choices to pick from. Which one is right for you? Which card has the best features, the best rates and the greatest rewards? Be sure that you make the right choice because, frankly, the future of your business depends on it.

American Express Blue Business Cash Card

A 0% annual fee? 2% cash back on all purchases up to $50,000? 0.0% intro APR purchases for the first 12 months? The American Express Card is a great way to finance your new business. It is a wonderful way to buy furniture, make down payments or secure rent. The 2% cash back is a great feature and it lasts for an entire year. After that, it will drop down to 1% which is still quite nice. It is made for people with really good credit, so you need to keep that in mind when applying. But it is a powerful, handy and reliable card from one of the biggest card companies in the world.

Capital One Spark Cash for Business

The Capital One Spark Cash for Business card is a great tool to create and sustain your business in its opening year. People know that the first few years of a company are the most challenging time for it, and the Spark Cash for Business card helps out tremendously. How? By providing $0 annual fee for the first year and an unlimited 2% cash back on every single purchase you make. Plus, the card gives a one-time $500 cash bonus once you spend $4,500 within 3 months of opening your account. If you need to make a foreign purchase, this card is also great for you because it has absolutely no foreign transaction fees. For all these reasons and more, you can’t go wrong with the Spark Cash for Business card.

The Blue Business Plus Credit Card from American Express

Everyone is wild about reward points with their credit cards. They are all the rage. The Blue Business Plus Credit Card from American Express is full of rewards. In fact, you earn 2X Membership Rewards points on business purchases for the first $50,000 purchases per year and then 1 point per dollar spent after that. That alone is enough to sell many business owners and have them sign up for the card. But the 0% intro APR on purchases for 12 months is another great reason to take a look at this card when you are getting your new business up and running.

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Credit Financial Tech & Media Technology

Apple To Introduce Card Sharing

Apple To Introduce Card Sharing

To allow customers to share the benefits of a single line of credit, Apple has introduced card sharing. The system would allow multiple customers to use the same Apple credit card, thus benefitting from one shared credit record.

Explained

This is the first time Apple has done something like this, but the move is not unprecedented. Apple has long focused on building a more equitable and flexible credit program. This is why they have a low-fee credit on its Apple Card along with no annual or late fees.

The program will also allow parents to have children over the age of 13 on the Card with them. This means that they would be able to track their children’s spending. This is a great way to get children learning about credit within the confines of a safe, parent-supervised system.

According to Apple, the card was created in an attempt to overhaul the way spouses and family members share credit cards and build credit. In particular, it would like to tackle the problem of uneven credit divisions. Normally, the primary account holder gets the benefits of a shared credit card and credit history. However, the Apple Card Family program would allow credit sharing.

Who Can Get The Card?

The Apple Card sharing program is not only open to members of a family, either. According their announcement, the program will allow the card to be shared with any eligible customer over the age of 18. This means that convenient single monthly bills could be split between not only family but friends as well.

The sharing program would not keep financial matters private however. Instead it opts to give members of the shared card a significant level of transparency in being able to see who spent what. The graphic Apple provides on their website shows a program with graphs and metrics. It’s somewhat like the Screen Time section of settings, but with money instead of minutes.

How It Works?

Theoretically, customers sharing an Apple Card could tally up their spending, divide them into percent payments, and make payments fairly and according to their overall spending. This means that a member who barely used the card would not have to pay as much as a member who overused.

Credit history will be shared among all the members of the shared card program. This means that if an account’s credit history sheds a positive light on the participants’ worthiness, it would be reported to credit bureaus and used as part of each member’s credit history.

The possible downside to this program is that negative credit history will go on the accounts of all members. So, regardless of whether or not they spend responsibly and pay bills elsewhere, their credit could still be affected. Credit history will be shared across the entire card-sharing group.

Conclusion

According to Apple, the program is meant to help all cardholders achieve a healthier financial life through its transparency. Hypothetically, a card-sharing group could track one another’s payments, and make plans and adjustments accordingly, talking to one another and discussing spending to come to better financial decisions.

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Credit Financial

Credit Repair: How to fix bad Credit in 6 Easy Steps

Credit Repair: How to fix bad Credit in 6 Easy Steps

There are dozens of services that claim they can fix your bad credit for you. This is technically true. But what they don’t tell you is that everything they do, you can do yourself.

So, how do you go about fixing your own bad credit? There are at least six things you can do that are easy as pie.

1.  Take out a Credit Card (That you Never Use)

This tip sounds strange, but the purpose behind this becomes clear if you focus on the fact that you should never use this card.

You see, your credit can be improved in a number of ways. One of these ways is by having your debts paid and your credit even. If you take out a card, reports view this as a risk. After all, if you overcharge your card, your credit will suffer.

But if you don’t use the card at all, you won’t incur any negative credit. The existence of the risk will improve your score, even as you refrain from actually taking part in the risk.

2.  Dispute Inaccuracies in Your Credit Reports

There will tend to be more inaccuracies in your reports than you might expect. Disputing them is stressful, but it is absolutely worth it.

The most common inaccuracies come from car payments. Sometimes banks just will not register that you have paid for your car, even after you have finished your payments.

They are legally obligated to do this, however, so you can be certain they’ll capitulate to you if you apply any amount of pressure on them to recognize your status.

3.  Request Higher Credit Limits

This method requires a credit card, but again, you can have a card without using it.

The logic here is that a higher limit implies a greater risk. It’s basically you “calling your shot” and saying how much money you plan to spend.

The more you borrow, the more impressive it is when it’s paid off. So if you raise your limit, then pay it off or don’t use it, it will raise your score.

4. Become a Friend’s Co-Signer

This method relies on you having a friend with good credit. It doesn’t have to be exceptional either—if they follow all the steps on this list, you can help each other out.

Co-sign a loan they’re getting or become an authorized user on their card. Then, you are both participating in the “risk” associated with that credit. Hence, you will both be credited for it being paid off.

5.  Mix up Your Credit

There are many different types of credit. Bills and cards are on thing, while loans and property are another. If you have only one of these four, consider investing in the other three. Diversity builds more credit than reliability.

6.  Pay Your Bills!

This is the most obvious way to improve your score, and the one you have the most control over. But if you don’t pay your bills, you can’t expect anyone to take your credit seriously.

Your credit is in your hands, and no one is more qualified to improve it than you. Hopefully, you will have some idea of how to improve things now.

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Credit Financial

Credit Cards: Best Low-Interest Cards of 2021

credit cards with low interest rates

When you qualify for a low credit card interest rate, you qualify to reduce the overall cost of your debt over a longer period. When you borrow money or use credit, you usually have to pay a premium on that borrowed money in the form of interest.

Citi Diamond Preferred Card

This is a card with a 0% introductory rate, but the great part about the introductory rate is that it lasts for a year and a half. A full 18 months of zero interest can be a goldmine if you have some debt to catch up on. Once the intro period is over the interest rate will revert to the rate stated in the terms, generally a 14%-27% variable APR. To qualify for this card the applicant will need excellent credit and a FICO of between 720 and 850.

Discover Cash Back

Discover has reinvented itself in recent years as a very competitive card company, and this card is another reason why. The $0 annual fee and 0% APR intro period for a robust 14 months make this an attractive card that you do not need to have nearly-perfect credit to qualify for. They will accept applicants with a credit score as low as 690 with improving terms for scores up to 850.

Chase Freedom Unlimited

The Chase Freedom Unlimited card is another great card with a 0% APR for 15 months on purchases. It also has an entry point for consumers with credit scores from 850 down to just 690, so if you have faced some credit challenges this card might be a great match to get caught up.

In the first 3 months, spending $500 on purchases earns a $200 bonus, a legitimately nice return. The customer also earns 5% on travel purchases, 3% at restaurants, other dining, and drugstores. There is no minimum to redeem the cashback, like on some other cards.

Blue Cash Everyday Card

For a card with a great 0% APR intro period, and nice cash back benefits beyond that, the Blue Cash Everyday card is an enticing option. The intro period is a leisurely 15 months, and the APR after that can range from 13.99% up to 23.99%.

If you spend $1,000 in the first 3 months, you get $200 back. Additionally, you 3% back at grocery stores, up to $6,000 in a year, 2% back from gas stations and select department stores, and 1% back on other purchases.

U.S. Bank Visa Platinum Card

If you are one of the few who can qualify for the U.S. Bank Visa Platinum card, you should certainly consider having one. They provide a 0% intro APR for a massive 20 months, and a variable APR of between 14.49% and 24.49% after that. You’ll need a credit score of 720-850 to get in the door. Additionally, paying with the card provides up to $600 to protect against cellphone damage and theft.

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Credit Financial Loans

Auto Loans for People With Bad Credit

auto loans for bad credit

We’ve all been there at one point or another: you need a new vehicle badly, but your credit history has not been looking the best these past few years. While that may have been a crippling issue just a decade ago, these days there are more and more options for getting auto loans to those with bad credit.

While there are sometimes bad credit loans available from popular lenders, there are some lenders that have specifically entered the market to help those with credit problems and limitations. The downside to these loan programs is that they often require higher interest rates and as a result, higher payments on the loans themselves. But there are still some great benefits to some of these lending programs, take a look:

New Roads Auto Loan

New Roads is a direct lending division of Consumer Portfolio Services Inc. Consumer Portfolio Services Inc. is a general finance company that offers indirect automobile financing to consumers with bad credit. They also can help consumers with low incomes or limited credit histories.

New Roads has loan programs for both new and used vehicles, refinancing, as well as lease buyout options. While they do not require a down payment, financing without one means you finance a larger amount. This can increase the amount you pay over the life of your loan.

They consider applications from consumers who still have a repossession or bankruptcy (open or closed) on their credit reports. They also make allowances for co-buyers as well. One downside is that New Roads is only available in 30 states, so depending on where you live, you may not have access to them.

Capital One Auto Finance

One of the biggest draws to Capital One, in addition to their willingness to work with less-than-stellar credit, is the ability to prequalify for a loan, before having them do a hard pull to confirm. As people trying to rebuild their credit know, a hard inquiry can affect your credit score if you have too many within too short of a time. With Capital One you can get a pre-qualification and can check the estimated terms and payments before deciding if you want to commit to a full application.

They offer loans for all types of vehicles both new and used, and they offer to refinance existing loans from other loan servicers as well. They have a minimum loan amount of $4,000, and the loans can only be used at a participating car dealership, though there are 12,000 of those. In order to apply and qualify, you will need to be 18, have an income of between $1,500 and $1,800 monthly, and live within the lower 48 states.

The maximum loan amount you will be approved for will depend heavily on your income, credit history, and other factors. However, when you are approved, you will be able to use the Auto Navigator tool to find your vehicle of choice.