The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Try to pay your credit card bill on or before the due date as often as possible. The due date is usually 20 to 25 days after your billing cycle ends.
Paying your credit card early can improve your credit. After your statement closes, your credit card issuer reports your balance to the main three credit bureaus (Equifax®, Experian® and TransUnion®). Paying your bill early lowers your overall balance, so the bureaus will see you using less credit in total.
If you’re wondering, “When should I pay my credit card bill?” know that it’s always best to pay as early as possible. According to the FICO® credit scoring model, credit utilization makes up 30 percent of your score. We’ll explain the factors that affect credit in more detail below and answer common questions about when to pay off your balances.
Key takeaways:
Making at least the minimum payment is good for your credit health.
Payment history and credit utilization make up 65 percent of your FICO credit score together.
Credit card grace periods usually last up to 25 days after a billing cycle ends.
Table of contents:
Why should I pay my credit card early?
To understand how paying a bill early could raise your score, you need to understand what factors affect your score and how your credit issuer reports to the credit bureaus.
The Fair Isaac Corporation (FICO) uses a unique credit scoring system to issue a FICO credit score to every individual. FICO scores consist of the following five categories:
Payment history makes up around 35 percent of your score. Late payments can negatively affect your score, so paying your bill on time or early can help improve it.
Credit utilization accounts for 30 percent of your score and represents how much of your available credit you’re currently using. You should aim to use 1/3 of your credit or less (e.g., if you have a total credit limit of $9,000, try to keep your balance below $3,000.)
Age of credit reflects your total credit history, and it makes up roughly 15 percent of your score. Your oldest accounts will influence this factor the most.
Credit mix measures the variety of open credit accounts you have, and it makes up 10 percent of your score. Having several cards and an auto loan or mortgage can help.
New credit makes up the last 10 percent of your score, and it considers your applications for new lines of credit.
After your monthly statement is issued with your balance, you have a grace period before the payment is due—ranging from 21 to 25 days. During that time, your credit card provider will report your balance to the credit bureaus. If you pay your balance before your statement closes, the total listed balance will be lower. Moreover, credit bureaus will see your overall utilization as lower, which could increase your score.
However, paying your credit card bill early may work differently if your card has a balance each month. Instead of paying your next statement early, you’re making an extra payment on your balance. Therefore, you’ll likely still need to pay the minimum amount on your next statement, or your payment could be considered late.
Is it bad to pay off a credit card early?
It is never bad to pay your credit card bill early, but the benefits you receive from doing so may vary depending on your circumstances. For example, if you carry a balance on your credit card every month, you may need to adjust how you handle early payments.
It’s also important to separate facts from credit myths when planning out your debt repayment strategy.
If you do carry a balance on your card each month, keep the following in mind:
Your early payment may not count as your minimum payment. If you have a balance from a previous month, your early payment will count as an extra payment on your outstanding balance.
You may not save money on interest and fees by making an early payment. For example, if you’re charged based on your average daily balance, simply paying at the end of the month may not help much.
All that said, it’s still usually a good idea to pay down your credit card debt if you have the funds available to do so. When considering how to build credit, remember that consistent, timely payments can help you eliminate debt and qualify you for better loans and cards.
When is the best time to pay your credit card?
The best time to pay your credit card bill is before the payment is late. While you may benefit from paying your bill early, you’ll definitely see negative effects if you pay your bill late.
Paying early keeps your payment history intact and may help lower your overall utilization, while paying your bill more than 30 days late will likely lead to a negative item on your credit report. And if you neglect to pay long enough, your account could get sent to collections.
If you do start paying your credit card bill early, begin checking your credit report regularly to see how your balance is being reported to the credit bureaus. Over time, you should see your utilization drop and your credit improve.
Understand your credit with Lexington Law Firm
While sifting through your credit report, look for inaccurate information like fraudulent accounts, incorrect negative items or factual mistakes. Any of these inaccurate items could be hurting your credit, but you can challenge them with the right credit repair services.
Lexington Law Firm helps clients repair and monitor their credit. Learn more about our services, which can help you address incorrect marks on your credit report. Start by taking our free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Sarah Raja
Associate Attorney
Sarah Raja was born and raised in Phoenix, Arizona.
In 2010 she earned a bachelor’s degree in Psychology from Arizona State University. Sarah then clerked at personal injury firm while she studied for the Law School Admissions Test. In 2016, Sarah graduated from Arizona Summit Law School with a Juris Doctor degree. While in law school Sarah had a passion for mediation and participated in the school’s mediation clinic and mediated cases for the Phoenix Justice Courts. Prior to joining Lexington Law Firm, Sarah practiced in the areas of real property law, HOA law, family law, and disability law in the State of Arizona. In 2020, Sarah opened her own mediation firm with her business partner, where they specialize in assisting couples through divorce in a communicative and civilized manner. In her spare time, Sarah enjoys spending time with family and friends, practicing yoga, and traveling.
Housing demand reached a new level of enthusiasm during the pandemic, with homebuyers benefitting from extremely low mortgage rates. From the summer of 2020 until much of 2021, average 30-year mortgage rates stayed under 3%. However, as more and more buyers jumped into the real estate market, months of inventory began to plummet and home prices surged. According to the U.S. Census Bureau and U.S. Department of Housing and Urban Development, the national average sales price in the US grew from $383,000 in Q1 2020 to a peak of $552,600 in Q4 2022 – a 44.3% increase in less than two years.
So if you purchased a home during the pandemic, how much is it worth now? To find out, Zoocasa analyzed median home prices in 30 major US cities from January 2020, 2021, and 2022, and compared them with the 2024 median price to see how much they’ve changed over the last 4, 3, and 2 years.
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Median single-family home prices were sourced from each city’s respective real estate board and are from January of each year. Average 30-year fixed rates were sourced from Freddie Mac and are from the first week of each month. The national average sales price in the US for each quarter was sourced from the U.S. Census Bureau and U.S. Department of Housing and Urban Development, Average Sales Price of Houses Sold for the United States [ASPUS], retrieved from the Federal Reserve Bank of St. Louis.
In 14 of the 30 real estate markets we analyzed, the median home price increased by more than $100,000 from 2020 to 2024. In those four years, Californian homes increased the most in value. San Diego and San Francisco homes bought in 2020 appreciated by $265,000 and $247,000 respectively. Los Angeles homebuyers also built a significant amount of equity, with the median home price rising by $211,500 to $750,000 in 2024.
Outside of California, 2020 home purchases in Boston and Miami experienced significant price growth, both increasing by more than $200,000 in four years. For homebuyers in Miami in 2021, the value of their homes experienced the second-highest increase over three years, at $170,000, just below San Diego’s increase of $195,000. But Miami isn’t the only city in Florida where home prices have grown substantially from 2020. In Tampa and Jacksonville, home values have increased by $151,500 and $129,900 since 2020, and since 2021 they have risen by $115,000 and $95,919 respectively.
Other cities where home values increased by more than $100,000 in four years include Denver, Nashville, Dallas, and Salt Lake City. Buyers who bought a home in one of these cities in 2021 also benefited from sizable price appreciation – with home values rising by $100,000 or more in three years.
Though 2020 and 2021 pandemic buyers experienced a significant increase in their home values, some homebuyers who purchased a home in 2022 – when interest rates started climbing – have yet to see equity build. From January 2022 to January 2024, home values dropped in San Francisco by $71,000 and in Brooklyn, they dropped by $51,000. 2022 homebuyers are currently down in six other cities: Washington DC, San Antonio, Memphis, New Orleans, St. Louis, and Salt Lake City. But this doesn’t mean homebuyers in those cities won’t build equity. According to the National Association of Realtors®, in 2023 the median time buyers expected to stay in their home was 15 years. This gives the average homeowner plenty of time for their home to appreciate, and with interest rates coming down, competition will rise and push home prices up once again.
The vast majority of pandemic buyers are in the green, even if they bought their home in 2022. With some of the highest median home prices in the country, it comes as no surprise that Boston, Miami, San Diego and Los Angeles lead the way for 2-year price increases – all up by $50,000 or more. Not every city experienced home price increases of those heights, however. 2022 homebuyers in Philadelphia and Tucson built home equity, but values increased by just $1,250 and $2,500 respectively in two years.
If you’re looking to find an affordable home this spring, give us a call! We can answer any questions you have about your local market and help you navigate the home-buying process.
Located in the heart of the Sonoran Desert, Phoenix offers a unique living experience characterized by its dynamic culture, diverse population, and striking natural landscapes. Known as the Valley of the Sun, Phoenix boasts over 300 days of sunshine annually, inviting residents to explore its vast outdoor recreational opportunities. From hiking picturesque desert trails to teeing off at world-class golf courses, there’s always something new to try. If you’ve been asking yourself, “Should I move to Phoenix, AZ?” you’re in the right place. In this article, we’ll discuss the pros and cons of living in Phoenix to help you decide if it’s the right place for you. Let’s dive in.
Phoenix at a Glance
Walk Score: 41 | Bike Score: 56 | Transit Score: 36
Median Sale Price: $455,000 | Average Rent for 1-Bedroom Apartment: $1,237
Phoenix neighborhoods | houses for rent in Phoenix | apartments for rent in Phoenix | homes for sale in Phoenix
Pro: Sunny weather
Phoenix basks in its reputation as one of the sunniest cities in the United States. This abundant sunlight is a major draw for residents seeking a warm and inviting climate year-round. The city’s sunny weather creates an ideal environment for outdoor activities such as hiking, biking, and picnicking. Moreover, the sunny days contribute to a generally cheerful and positive atmosphere, fostering a sense of well-being among residents. Additionally, the weather allows residents to have outdoor gatherings, festivals, and community events throughout the year. Overall, the sunny weather in Phoenix is not just a climatic feature but a defining aspect of the city’s lifestyle.
Con: Water scarcity
Phoenix’s location in the Sonoran Desert brings with it the challenge of water scarcity. The city relies heavily on a finite water supply from the Colorado River, which is under increasing stress due to prolonged droughts and overuse. This situation has led to heightened awareness and restrictions on water use, impacting everything from residential landscaping to public swimming pools. This issue continues to be a growing concern for the city’s sustainability efforts.
Pro: Proximity to natural attractions
Phoenix’s location offers unparalleled access to natural attractions and outdoor adventures. Just a short drive from the city, residents can explore the Grand Canyon, hike in the Superstition Mountains, or visit the red rocks of Sedona. This proximity to nature allows for spontaneous day trips or weekend getaways, making it an ideal home base for those who love to explore the great outdoors.
Con: Extreme summer heat
While the sunny weather is a significant draw, the flip side is the extreme heat Phoenix experiences. In fact, Phoenix currently ranks 5th for U.S. cities most at risk of extreme heat. Temperatures regularly soar above 100 degrees Fahrenheit, which can be uncomfortable and even dangerous. This intense heat limits outdoor activities to early mornings or late evenings for much of the summer, and significantly increases the cost of air conditioning and energy bills.
Pro: Lively cultural scene
The cultural scene in Phoenix is vibrant and diverse, offering a wide range of activities and events that cater to various interests. The city is home to numerous museums, such as the Phoenix Art Museum and the Heard Museum, which showcase both contemporary art and Native American cultures. Additionally, the downtown area hosts a variety of festivals, live music, and culinary events throughout the year, reflecting the city’s rich cultural diversity.
Con: Limited public transportation
With a Transit Score of 36, one of the challenges of living in Phoenix is the limited public transportation options. While the city has made efforts to expand its light rail system, the coverage is still not comprehensive. This makes it difficult for those without a car to navigate the city efficiently. This reliance on personal vehicles contributes to traffic congestion and can be a barrier for residents seeking accessible and affordable transportation alternatives.
Phoenix is known for its welcoming and inclusive community, with a diverse population that embraces newcomers. The city’s warm and friendly atmosphere makes it easy for a lot of residents to connect and engage with their neighbors, fostering a sense of belonging. Community events, local farmers’ markets, and neighborhood associations contribute to the vibrant social fabric of Phoenix, making it a great place to call home.
Con: Poor air quality
Due to its location in a valley and the high number of vehicles on the road, Phoenix often struggles with air quality issues. Dust storms, known locally as “haboobs,” along with ozone pollution, can lead to poor air quality days, particularly in the summer. This can be a concern for individuals with respiratory issues and contributes to environmental health challenges in the city.
Pro: Growing job market
Phoenix has experienced significant economic growth in recent years. The area’s job market continues to expand in sectors such as technology, healthcare, and finance. This growth has attracted professionals from across the country, contributing to the city’s diverse workforce. With an emerging startup scene and several Fortune 500 companies like Avnet, the city provides ample employment opportunities.
Con: Summer monsoons
While the monsoon season can bring much-needed relief from the summer heat, it also comes with its own set of challenges. The monsoons can produce sudden, intense storms that lead to flooding, power outages, and property damage. These storms, occurring from June through September, require residents to be prepared for rapid weather changes and their potential impacts.
Pro: Sports fan’s paradise
Phoenix is a haven for sports enthusiasts. The city hosts professional teams in all major sports, including the NFL’s Arizona Cardinals and the NBA’s Phoenix Suns. The city also offers a plethora of recreational activities, from golf courses and public parks to hiking trails in the surrounding desert landscapes. This blend of professional sports and outdoor recreation provides residents with endless options for entertainment and physical activity.
Con: Sprawling urban layout
The sprawling urban layout of Phoenix can be a drawback for those who prefer a more walkable city environment. The city’s extensive urban sprawl requires residents to rely heavily on cars for transportation, contributing to traffic congestion and making it challenging to foster a sense of community in some neighborhoods. This layout also impacts the accessibility of amenities and services for those living in the outer suburbs.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
An authorized user is an individual added to a credit card by the owner of the account or primary cardholder. The authorized user, also referred to as the additional cardholder, can make purchases using the credit card, although the responsibility to make payments falls on the primary cardholder.
Building credit from scratch can be a difficult task, especially for those with limited credit knowledge. One way to get your feet wet with credit is by becoming an authorized user on someone else’s account. As an authorized user, you can leverage someone else’s positive credit habits to improve your own creditworthiness.
However, there are important factors to consider before becoming an authorized user yourself or adding an authorized user to your account. Read on to learn more.
Table of contents:
What is an authorized user?
An authorized user is a person added to someone else’s credit card account who has permission to make charges. The main user who owns the account is the primary cardholder, while an authorized user is sometimes referred to as an additional cardholder.
Who can be an authorized user?
Anyone can be an authorized user, provided they meet the card issuer’s requirements and the primary cardholder adds them to the account. Typically, the primary cardholder and authorized user have an established, trusted relationship.
Here are the most common scenarios where adding an individual to your account is beneficial.
Parent/child: Parents may add their children as authorized users to their account to help them build credit history and give them access to the line of credit for emergencies or family expenses.
Employer/employee: Business owners may add trusted employees as authorized users for business-related expenses.
Couples: Couples may designate one spouse as the primary cardholder and the other spouse as the authorized user, especially when one partner has a higher credit score than the other.
Is an authorized user responsible for credit card debt?
No, being an authorized user doesn’t make you responsible for paying credit card debt. While an authorized user can make purchases, payment responsibilities fall to the primary cardholder. Authorized users have no legal responsibility to make payments.
How does being an authorized user affect your credit?
Accounts you’re an authorized user of are typically included in your credit report, which can help you build credit history. Also known as piggybacking credit, this allows you to use the primary cardholder’s positive credit habits to build your credit.
While being an authorized user can help increase your credit score, it can also have the opposite effect. If the primary cardholder falls behind on payments or maintains a high credit utilization ratio, this can negatively impact your credit.
It’s important to note that not all credit card issuers report authorized user activity to the three major credit bureaus. Consider checking with the primary cardholder’s issuer before becoming an authorized user to make sure they report to the credit bureaus.
How to add an authorized user
To add an authorized user, reach out to your credit card company online, by phone or in-person. Your credit card company will likely require the authorized user’s name, address, birth date and Social Security number to add them to the account.
Once you add someone as an authorized user, your credit card company will mail you a second card that the authorized user can use, although you can decide whether or not you give it to them. Keep in mind that you don’t need to give the authorized user a physical card for them to receive the credit-building benefits.
Here are additional tips to remember when adding an authorized user:
Only add authorized users you trust since they will have access to your credit line.
If your credit card company offers this option, consider setting up spending limits for authorized users to prevent overspending.
Set up alerts to notify you when an authorized user makes a purchase.
How to remove an authorized user
You can easily remove an authorized user if your circumstances have changed. Similarly to adding an authorized user, just contact your credit card company and request the authorized user be removed from the account. Consider also contacting the authorized user to notify them that you’re removing them from the account.
Here are some circumstances in which you may want to remove an authorized user from your account:
There’s been a change in relationship: For example, if your partner is an authorized user on your account and you break up
The account has been misused: If an authorized user is overspending on your account and negatively affecting your finances. For example, if your teen’s spending habits are out of control
There are also scenarios in which you may want to remove yourself as an authorized user from someone else’s account, such as:
You achieved financial independence: If you’ve established a credit history and no longer need access to the account, consider removing yourself to manage your finances independently.
The primary cardholder’s poor credit habits are affecting your credit score: If the primary cardholder is falling behind on payments, your credit could also take a hit, so it’s best to cut ties.
Joint credit card vs. authorized user
A joint credit card allows two people to share one account equally. The main difference between an authorized user and a joint credit card is who is legally obligated to make payments. While both parties are responsible for paying debt on a joint card, an authorized user isn’t required to make payments.
Keep in mind that fewer credit card issuers are offering joint accounts since companies prefer that only one individual is liable for the account. Meanwhile, most credit card issuers offer the option to add authorized users.
Authorized user FAQ
Still unsure whether becoming an authorized user is right for you? We’ve answered some common questions below.
How old do you have to be to be an authorized user on a credit card?
Some credit card issuers have age requirements ranging from 13 to 16, while others have no minimum age requirement.
How long does it take for authorized user accounts to show on your credit report?
Authorized user accounts will typically appear on your credit report within 30 to 45 days after you’re added to the account, as long as your credit card issuer reports to the credit bureaus.
What is the difference between having a cosigner and becoming an authorized user?
A cosigner shares responsibility for repaying the debt, while an authorized user isn’t legally obligated to make payments.
Monitoring your credit as an authorized user
Becoming an authorized user is a great way to kick-start your credit journey. As you start to build credit, it’s important to monitor your credit and ensure that no inaccurate negative items are impacting your score.
When you sign up for a free credit assessment with Lexington Law Firm, you’ll receive your credit score, credit report summary and a credit repair recommendation. View your credit snapshot today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Brittany Sifontes
Attorney
Prior to joining Lexington, Brittany practiced a mix of criminal law and family law.
Brittany began her legal career at the Maricopa County Public Defender’s Office, and then moved into private practice. Brittany represented clients with charges ranging from drug sales, to sexual related offenses, to homicides. Brittany appeared in several hundred criminal court hearings, including felony and misdemeanor trials, evidentiary hearings, and pretrial hearings. In addition to criminal cases, Brittany also represented persons and families in a variety of family court matters including dissolution of marriage, legal separation, child support, paternity, parenting time, legal decision-making (formerly “custody”), spousal maintenance, modifications and enforcement of existing orders, relocation, and orders of protection. As a result, Brittany has extensive courtroom experience. Brittany attended the University of Colorado at Boulder for her undergraduate degree and attended Arizona Summit Law School for her law degree. At Arizona Summit Law school, Brittany graduated Summa Cum Laude and ranked 11th in her graduating class.
Gilbert, a city known for its charming neighborhoods and suburban feel, offers a variety of walkable areas for its renters. From the historic charm of the Heritage District to the modern appeal of The Islands, each neighborhood has its unique allure. Rentals are fairly expensive, though, with the average one-bedroom apartment costing $1,595.
In this ApartmentGuide article, we will explore the most walkable neighborhoods in Gilbert, providing a comprehensive guide for those who prefer to navigate their city on foot. So, get ready to discover the pedestrian-friendly charm of Gilbert.
All data sourced March 2024.
1. Heritage District
Walk Score: 55
Heritage District is the most walkable neighborhood in Gilbert, with a Walk Score of 55. Known for its historic charm, residents and visitors alike can explore the area and take advantage of its walkable layout. Notable attractions include the Downtown Gilbert Water Tower and the Gilbert Historical Museum.
Search for Heritage District apartments for rent.
2. Gilbert Commons
Walk Score: 50
Gilbert Commons has a Walk Score of 50, making it the second most walkable neighborhood in Gilbert. There’s a lot to love about the area, from its quiet residential streets to its proximity to shopping centers. While you’re walking around the neighborhood, check out the Copper Still moonshine Grill.
See Gilbert Commons apartments for rent.
3. Higley Park
Walk Score: 49
Higley Park is the third most walkable neighborhood in Gilbert. There are numerous walkable areas and attractions throughout Higley Park, like the neighborhood’s namesake park and the Rocker Pointe Community Pool. And if you’re in the mood for an adventure, you’re not far from the Discovery District Park.
Find Higley Park apartments for rent.
4. Gilbert Ranch
Walk Score: 48
Gilbert Ranch has plenty of amenities a resident might need within walking distance. From grocery stores like Sprouts, to restaurants like Isabel’s Armor, you’re sure to find something to love. A notable amenity is the Ashland Ranch Neighborhood Park, which is a great spot for locals and visitors alike.
Browse Gilbert Ranch apartments for rent.
5. Park Village
Walk Score: 46
As the fifth most walkable neighborhood in Gilbert, Park Village is known for its peaceful atmosphere. Consider exploring Park Village Park or grabbing some ice cream at Handel’s. There are plenty of other amenities in this welcoming community as well, like the Freestone District Park.
Discover Park Village apartments for rent.
6. Val Vista Lakes
Walk Score: 42
Val Vista Lakes has a Walk Score of 42, making it the sixth most walkable neighborhood in Gilbert. Known for its beautiful lakes and community amenities, residents and visitors can choose from walkable amenities such as Val Vista Lakes Clubhouse and Village Square at Dana Park. While you’re out, check out the Riparian Preserve at Water Ranch.
Look for Val Vista Lakes apartments for rent.
7. The Islands
Walk Score: 38
The Islands is the seventh most walkable neighborhood in Gilbert. This serene community has quite a few hotspots for residents to visit on foot, including The Islands Community Park and Mr. Zeke’s restaurant. While you’re walking, take a moment to enjoy the scenic views of the lake.
Search for The Islands apartments for rent.
8. Spectrum at Val Vista
Walk Score: 37
Spectrum at Val Vista has a Walk Score of 37, making it the eighth most walkable neighborhood in Gilbert. There’s a lot to love about the area, from grabbing brunch at First Watch, to taking a walk at Spectrum Park. If you’re up for a longer outing, nearby San Tan Village shopping center is very popular among locals.
Find Spectrum at Val Vista apartments for rent.
9. Dave Brown Lamoreaux Farms
Walk Score: 35
The ninth most walkable neighborhood in Gilbert is Dave Brown Lamoreaux Farms. Pedestrians can enjoy the variety of restaurants, cafes, and shops, like Tap N Tikka, Mythical Coffee, and the Great Gadsby Bakery. It’s also easy to walk over to the Heritage Trail for a great day out.
Peruse Dave Brown Lamoreaux Farms apartments for rent.
10. Silverhawke
Walk Score: 35
Silverhawke is the tenth most walkable neighborhood in Gilbert. Local attractions here include the Sand Volleyball Court, Oaktree Park, and the nearby shopping centers, providing residents a spot to get together and enjoy their community.
Discover Silverhawke apartments for rent.
Check out more walkable cities in Arizona.
Methodology: Walk Score, a Redfin company, helps people find walkable, bikeable, and transit-friendly places to live, rating areas on a scale from 0-100. To calculate a Walk Score for a given point, Walk Score analyzes thousands of walking routes to nearby amenities, population density, and metrics such as block length and intersection density. Points are awarded based on the distance to amenities in each category.
The economic landscape of the United States is experiencing a significant shift, marked by a new event: the average FICO credit score has dropped for the first time in a decade.
In a recently released report on credit score data from October 2023, major credit reporting company, FICO, says that the national average credit score has decreased for the first time in a decade from 718 to 717.
Why did credit scores drop?
The decrease in average credit scores may be attributed to several key factors:
Increased Missed Payments: There has been an increase in missed borrower payments, showing serious financial strain among consumers. The FICO report shows that, as of October 2023, more than 18% of the population was late on payments.
Rising Consumer Debt Levels: Consumer debt, particularly credit card debt, has risen to over 1 trillion. This indicates that more consumers may be leaning on credit cards to cover everyday expenses.
Slowing New Credit Activity: New credit activity – consumers applying for new lines of credit – has slowed down.
What this means for you
It’s hard to say what this will mean moving forward, but at this moment it’s too soon to say – or worry too much. In a statement given to Bloomberg, Ethan Dornhelm, VP at FICO, said that “This isn’t a blinking red light, but it certainly is a yellow light.”
Whatever happens in the future, it’s important to take steps to try to protect your credit. Here are some strategies:
Reduce Credit Utilization Rates: Your credit utilization ratio is the amount of available credit you have compared to the amount of credit you’ve used. Generally, the best practice is to keep your credit utilization ratio below 30%, if you can.
Consolidate Debt: If you’re worried about tracking different payments, consider consolidating your debt into one payment to avoid the risk of missing a payment. A missed payment is a negative mark on your credit, and can stay on your credit reports for 7 years.
Protect Your Credit History: Length of credit history is a significant factor in how your credit score is calculated. Closing a credit card that you’ve had for a long time, for example, might actually hurt your credit score. If you can, try to keep lines of credit – especially revolving credit accounts, like credit cards – open.
If You’re Rejected, Pause Before Applying Again: If you’ve been rejected for a line of credit in the past, like an auto loan or a credit card, pause before immediately applying again. Multiple “hard inquiries” – when a lender pulls your credit to evaluate your creditworthiness – in too short a time could potentially harm your credit.
Good credit is always important
If you’re worried about your credit, the best thing you can do is consistently check and monitor your credit – not just your score. Be on the look out for any changes to your credit reports and score, whether expected or unexpected, and make sure that everything in your credit profile is accurate. You can get started with a free credit assessment at Lexington Law for a snapshot of what’s in your credit profile.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
To build credit as an immigrant, you need an SSN or ITIN to open a bank account and apply for credit cards. You may also be able to transfer your credit score from your home country with a global credit scoring bureau.
Immigrants have always been a key part of what makes the United States a great country. A recent study shows that roughly 13.7 percent of the U.S. population consists of immigrants. Unfortunately, as an immigrant, it can be difficult to build a credit score and get access to funds, as well as other services that might require individuals to have a credit score.
Although it’s difficult to build credit as an immigrant, it’s possible. Here, we go over how to start building credit, the importance of having a credit score, and ways to improve it. With this information, you may be able to access credit cards, get loans, and potentially purchase a home. Keep reading to learn more about building credit as a new immigrant.
Why should immigrants build their credit score?
Having a credit score and good credit history can help you rent an apartment and purchase a vehicle or a home. Some employers might check your credit, and your credit may also affect how much of a deposit you need to put down to rent or access services like utilities.
Once you establish credit, it’s important to continue improving your credit score. A better credit score means lower interest rates, lower deposit amounts, and access to more funds. A good credit score starts at 670 using the FICO® scoring model, but it can go as high as 850 and as low as 300.
To get started, you can either transfer your credit score from a global bureau or go through the process of getting a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
Does your credit history transfer from your country of origin?
The United States isn’t the only place that uses credit scores, so you may have a credit score from another country. Credit scoring models can vary between countries, so if you have a credit score from your home country, you’ll need to work with a global credit scoring bureau to transfer it.
Where to start building credit in the U.S.
To start building credit as an immigrant in the United States, there are steps that you need to take. You can then build credit to buy a home or a vehicle or use it to access additional funds to start a business or make purchases.
Apply for a Social Security number (SSN): An SSN is often needed to open bank accounts and apply for loans. If you can’t get an SSN, you may be able to use an Individual Taxpayer Identification Number (ITIN).
Open a U.S. bank account: Bank accounts don’t affect your credit, but some credit card issuers require a bank account. You may also be able to use the bank from your home country if they have locations in the U.S.
Apply for a credit card: A credit card is the first big step toward building credit. Without credit history, the amount may be low. If you have a low score or no credit history, you can get a secured credit card.
5 ways to build credit as a new immigrant
Once you establish a credit score, there are some credit hacks that you can use to strengthen it. Below are five ways to start building credit or improve poor credit.
1. Get a secured credit card
There aren’t specific credit cards for immigrants, but as we mentioned, if you have no credit or bad credit, a secured credit card can be one of the best ways to start building it.
Unlike a standard credit card, where you borrow money from the issuer, a secured credit card uses your own funds. With a secured credit card, you make an initial deposit, which becomes your credit limit. As you use it, your issuers will report the payments (or lack thereof) to the credit bureaus, impacting your score.
2. Become an authorized user
One of the reasons it’s difficult to get a credit card as an immigrant with no credit history is that banks may see you as high risk. If you have a friend or family member with a credit card, they can add you as an authorized user to their account. Becoming an authorized user gives you a credit card that’s linked to the primary cardholder’s account. As long as this person is making the payments on time, you benefit from their credit history.
You don’t have to use the card to benefit from the primary cardholder spending and making payments. However, you can harm their score if you’re late or miss payments for transactions you made with the card.
3. Report your rent and bills
Typically, rent and bills don’t impact your credit score, but some services allow you to report your rent and other bills for a slight boost. These services include Credit.com’s ExtraCredit service or Experian® Boostcredit builder loans can help. These loans are specifically for those trying to build credit—as you repay your loan, the creditor reports the payments to the credit bureaus. Unlike a traditional loan, you get access to the funds after you pay it off.
How long does it take to build credit in the U.S.?
The amount of time it takes to build your credit will differ for everyone. For example, if you can transfer your good credit score from your home country, it may not take much time. If you’re starting with bad or no credit, it may take months to build your credit. Once your payments start getting reported, you should begin seeing changes to your credit score.
Start building credit as a new immigrant today
If you’re a new immigrant trying to build your credit in the United States, the best place to start is educating yourself. Your credit score, as well as the details of your credit report, can give you an idea of where you stand and where you need to improve. Here at Lexington Law Firm, we have various tools to help you better understand your credit score. Get your free credit assessment today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Unstable borrowing conditions and a lack of affordable properties kept homeownership out of reach for many Americans in 2023. However, as the spring buying season approaches and signs that the market is recovering emerge, buyer sentiment is shifting. According to the National Association of Realtors®, national existing home sales in January 2024 were up year-over-year by 1.3%. Housing supply is also improving, with national inventory up by 3.1% year-over-year and 2% month-over-month.
These positive changes are setting the stage for an active spring market in the US. But as competition increases, so do home prices. The national median price for a single-family home in the US increased by 5.1% year-over-year in January to $379,100. This begs the question: where can prospective homebuyers find the best deals this spring?
To better understand where homebuyers can find pockets of affordability, Zoocasa analyzed home prices in 50 metropolitan statistical areas across the country to determine which are below the national median and where the most growth is happening. Median single-family home prices were sourced from the National Association of REALTORS® and are from Q4 2023, except the national median home price which is from January 2024.
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It’s usually said that the further outside of an urban center you go, the more affordable the home price. But of the 33 metropolitan statistical areas with a median home price below the national median, 15 have populations above 2 million, and five have populations above 5 million. The largest urban center with a median home price below the national median is Chicago, IL with a median home price of $343,300 in Q4 of 2023. Despite the city experiencing year-over-year price growth of 6.2%, Chicago’s median home price is still $35,800 below the national median.
Of the 50 markets we analyzed, Cleveland, OH came out on top for affordability. Cleveland’s median home price of $190,700 is an impressive $188,400 below the national median and is one of the few areas on our list where the median home price dropped from last year. Other markets where the median home price fell from last year include Myrtle Beach, SC, Houston, TX, San Antonio, TX, and Memphis, TN. Alabama’s capital, Montgomery, was the only other market on our list besides Cleveland with a median home price below $200,000. Homebuyers here can snag a home for approximately $185,700 below the national median.
It’s worth noting that five out of the six markets that experienced year-over-year price growth of more than 9% have home prices below the national median. These markets include Rochester, NY, Hartford, CT, New Haven, CT, Oklahoma City, OK, and Cincinnati, OH. This means that homebuyers of all price ranges, including those purchasing lower-priced homes, can still expect to build a significant amount of equity.
Markets that have experienced significant year-over-year price growth also present good investment opportunities. For instance, single-family homes in Philadelphia, PA have experienced year-over-year price growth of 7.2% and are still $20,100 below the national median price, making this sought-after city a good option for first-time investors. Kansas City, MO is an emerging market that would make a great first-time investment location. The city garnered a lot of media attention last year thanks to the city’s football team and frequent Taylor Swift visits, resulting in the median home price rising by 5.9% year-over-year. Despite its growing popularity, the median home price in Kansas City remains one of the lowest on our list at $315,800.
Homebuyers with their hearts set on a particular destination, especially one of the largest and most sought-after cities in the US, would benefit from considering smaller markets relatively close to their dream location. While the Big Apple might be out of reach for the average buyer, with a median home price of $659,200, New York’s second and third-largest cities still maintain affordable prices. Buffalo and Rochester have median home prices of $243,500 and $230,500 respectively. This is nearly $150,000 less than the national median, compared to New York City, where the median home price is more than $280,000 above the national median.
Though San Francisco, CA, and Los Angeles, CA have notoriously high home prices, at $1,251,000 and $884,400 respectively, California homebuyers still have affordable options. At just $26,600 above the national median, Fresno’s median home price is one of the more affordable options in California. But for savvy buyers looking for a deal in California, Bakersfield presents the best option with a median home price of $11,800 below the national median.
In Florida, motivated buyers on the hunt for affordable prices will have to look outside of the vibrant Miami market, which has a median home price more than $200,000 above the national median. Tampa’s median home price exceeds the national median by just $30,900, while Daytona Beach and Tallahassee offer more affordable housing, with median prices $16,700 and $57,100 below the national median, respectively.
Planning to enter one of these markets this spring? It’s important to speak with a local realtor who is familiar with your local real estate market. Give us a call today to discuss your home-buying plans.
Looking for the best business ideas for teens? Whether you’re a teenager trying to find ways to make extra money or if you’re a parent trying to help your child start a business to learn about money, there are many positives of starting your own business young. Whether it’s in the summer, after school, or…
Looking for the best business ideas for teens?
Whether you’re a teenager trying to find ways to make extra money or if you’re a parent trying to help your child start a business to learn about money, there are many positives of starting your own business young.
Whether it’s in the summer, after school, or on weekends, having a small business can be a fun and educational thing to start.
I did many different things as a teen to make extra money, and they all taught me so much. There are many different ways for teens to make money, as you will learn below.
Best Business Ideas for Teens
There are many business ideas for teens listed below. If you want to skip the list, here are some ways for teens to make money that you may want to start learning more about first:
Below are the best small business ideas for teenagers to start.
Recommended reading:
1. Babysitting
Babysitting is an obvious job for teenagers, and it can be a great way to make money. I was a babysitter when I was a teenager and regularly earned over $1,000 a month by babysitting (mainly in the summer).
Starting a babysitting business is a smart choice for teens as it’s simple to start with very few costs. Your main investment is the time and effort you spend taking care of children.
To get started, you’ll need to let people know you’re available. Reach out to your parents’ friends, neighbors, or family members. After a while, word of mouth can help you find more jobs.
Safety is really important too, of course. So, you will most likely want to get certified in first aid or CPR. This not only makes you more trustworthy but also helps you handle emergencies.
2. Car washing services
Starting a car washing business can be a great business for a teen entrepreneur.
To start, you just need basic supplies: a bucket, a soft sponge, window cleaner, and cloths for drying and polishing.
With a straightforward service like car washing, you can operate right in your driveway or travel to clients’ homes for convenience.
3. Start a blog
Starting a blog is a great way for you to share your thoughts and ideas while potentially earning money. Your blog can cover any topic you’re passionate about, whether it’s fashion, sports, technology, or your daily experiences.
While I was around 21 years old when I started my blog, I know a few people who started theirs as teenagers.
A blog can be a great business idea to start when you’re young, as you can decide how to build your blog, how you earn an income, and the schedule you put toward it.
You can easily learn how to start a blog with my free How To Create a Blog Course.
Here’s a quick outline of what you will learn:
Day 1: Why you should start a blog today
Day 2: What topic to blog about
Day 3: Tutorial on how to start a blog on WordPress
Day 4: How to make money with your blog
Day 5: How to make passive income on your blog
Day 6: How to get pageviews to your blog
Day 7: Tips to see success with your blog
Out of all of these business ideas for teens, blogging is by far my favorite. It does take more time to start making money, but it’s very flexible and fits with any kind of schedule.
4. Tutoring and teaching
If you’re a teen who’s really good at a certain subject, tutoring could be a great way to start a rewarding business. You can use your knowledge to help others do well in areas you’re good at.
Your friends or younger students might find it helpful to have one-on-one sessions where you explain difficult topics in simple ways.
Subjects you may be able to tutor in include:
Math
Science
Foreign languages
English
Many tutors are teenagers, so this may be a great fit for you!
5. Photography
If you love capturing moments through a lens, starting a photography business could be a perfect fit for you.
Starting a business as a photographer can kick off with a relatively low investment. Initially, you might need to spend between $500 to $2,000 on equipment like a good camera, lenses, and editing software. But, if you already have a camera, then that is the bulk of the cost.
You can take pictures at events like birthdays or graduations, capture stunning portraits, or create art through landscape and wildlife photography.
6. Home care services in your neighborhood
When you start a home care services business, you’re stepping into a role that helps busy homeowners manage their households.
This can include a range of services that assist with the upkeep of a home, such as:
Housecleaning – You can offer to dust, vacuum, and clean the different areas of a home. People always appreciate coming back to a sparkling clean space.
Laundry – Washing, drying, and folding clothes are tasks that many would gladly outsource to you. Organizing wardrobes or ironing clothes can be added services.
Plant care – Have a green thumb? Offer to water plants, prune leaves, and take care of any garden needs.
Raking leaves – Raking leaves is a good business idea for teens, especially during the fall. Trees drop their leaves and many homeowners need help gathering and disposing of them.
Errand runner – As an errand runner, you’ll help people in your community with tasks they might not have time for, like grocery shopping, picking up prescriptions, or mailing packages.
When I was a teen, I had a friend who was a personal assistant for someone in her neighborhood. She would pick up their dry cleaning, take care of their plants, walk their dogs, and more.
7. Pet care (pet sitting and dog walking)
If you’re a teen who loves animals, starting a pet care business can be a great way to earn some extra cash. Pet sitting and dog walking services are in high demand and can be both fun and rewarding.
To start, you can join a dog walking app-based service. Rover is a user-friendly option that connects you with pet owners. You can create a profile, set your own prices, and specify the types of services you feel comfortable providing, such as dog walking or pet sitting.
You can typically earn between $15 and $30 for each hour spent with a pet, considering you might need to commute to the pet’s location.
8. Graphic design
If you’re interested in art and technology, you can start a graphic design business.
Graphic design is about creating visual content for companies and individuals. You’ll use software to make logos, social media graphics, posters, and much more.
As a teen graphic designer, your income will vary. Typically, you can make anywhere from $5 to $100 per project when starting. As your skills grow, so can your rates. The market for design work is expanding, making room for you to succeed.
9. Music and art lessons
Can you play piano, guitar, or violin? Or maybe you’re skilled in drawing or painting?
If you’re a teen with a talent for music or art, teaching art or music lessons can be a great business idea. Whether you play an instrument or paint like a pro, other kids and parents might pay for your expertise.
10. Sell handmade goods and crafts
If you like being creative and making things with your hands, selling arts and crafts can be a great business idea for teens.
Here are some crafts that teens can create and sell for extra money:
Jewelry – You can make necklaces and bracelets.
Homemade candles – Candles are simple to make and can be sold to people who like to add a cozy feel to their homes.
Paintings – If you like to paint or draw, you can create artwork to sell.
Slime – Slime is really popular and fun to play with. Teens can make and sell their own slime in different colors and maybe even add things like glitter to make it unique.
Soap – Homemade soap is always nice to have, and people love to buy it.
Stickers – Everyone loves stickers and this can be a fun way to make extra money on Etsy or in person.
You may be able to sell your homemade items at local craft fairs or online on Etsy.
Recommended reading: 16 Best Things To Sell On Etsy To Make Money
11. Providing technical support
If you’re good with technology, starting a technical support service can be a choice to look into. Lots of people have trouble with technology and need help. As a teen, you can meet this demand by selling your tech-savvy skills and knowledge.
Services you can sell include:
Software installation and updates
Virus and malware removal
Hardware troubleshooting
Help with using different programs and apps
You can market your business by telling your friends, family, and neighbors about your services, and even by creating flyers to distribute and post on local community boards and at local businesses.
12. Start a YouTube channel
Making a YouTube channel is a way for you to share what you love, your talents, and your ideas with the world. It can also become a fun way to earn some money.
Most people know about YouTube, and almost everyone has seen at least one video on the platform. According to YouTube, there are over 2 billion people who watch at least one video on YouTube every month.
Many people have goals of starting a YouTube channel and making money, but not many people ever actually start.
You can learn more at How I Grew From 0 Subscribers To Over $100,000 On YouTube In Less Than One Year.
13. Design and sell print-on-demand products
Starting a print-on-demand business lets you be creative and make money. You can make products that are inexpensive to create, such as posters or custom-designed mugs.
To begin, design things that show your interests or what customers like. After that, use a service like Printful to put these designs on different products. The company takes care of everything else, from printing to shipping.
14. Lawn care business
Starting a lawn mowing business is a great way for teens to make money and is one of the popular small business ideas for teens. It’s easy to get started, and you can make cash during spring and summer (or even year-round depending on where you live, like Florida, Texas, Arizona, and California).
All you need is a lawn mower, some fuel, and basic gardening tools.
You can talk to neighbors, family, and friends to find new lawn mowing jobs.
I know many families with teenagers who mow lawns to make money. Some even turn it into a full-time business as they grow up.
15. House sitting
For teenagers, starting a house sitting business is a smart way to make money. You’re responsible for looking after someone’s home while they’re away, which is a big job.
Trust is important due to this, and homeowners must feel sure that their property and pets are safe in your care.
When I was a teen, I had a friend who was a regular house sitter for several people. She would water their plants, walk their dogs, and stay overnight in their homes to make sure everything was fine with the house.
16. Sell printables on Etsy
If you want to earn money from home and be your own boss with low startup costs, creating printables could be a great option for you.
A printable is a digital product that can be downloaded and printed at home. You create them once and then sell them on a platform like Etsy for people to purchase. You don’t have to physically print anything; you’re just selling the digital download.
Printables include things like grocery shopping checklists, weekly meal plans that people can put on their fridges, gift tags, and quotes to be framed. These are digital products that users can download and print for their use.
Making money at home as a teenager through creating printables is great because you create one digital file download for each product, and then you can sell them an unlimited number of times.
I recommend reading about this further at How I Make Money Selling Printables On Etsy.
Important note: To sell on Etsy, you need to be at least 18 years old. If you’re between 13 and 17, you can still sell on Etsy with the proper permission and under the direct supervision of your parent or legal guardian. The Etsy account should be registered using the parent or legal guardian’s information.
17. Social media influencer
If you enjoy being in front of the camera and are good at connecting with people, you could possibly make money as a social media influencer.
This can include platforms such as TikTok, Instagram, and more.
Now, this is not a guaranteed way to make extra money as a teen, as not everyone makes it. But, you won’t know unless you give it a try.
It’s all about your image and your message (and some luck too, of course). Ask yourself, what are you passionate about? Fashion? Gaming? Fitness?
You’ll want to keep your posts consistent (for many platforms, this will include posting at least once a day) and your voice authentic. This is how you’ll attract followers who can’t wait to see what you post next.
You’ll also want to interact with your audience. Reply to comments, ask questions, and listen to what they want. An engaged audience is a loyal one, and brands notice this. The more you connect, the more your followers trust you.
As your following grows, companies might pay you to talk about their products. That’s because they see value in your ability to reach and engage with a dedicated audience.
You can learn more at How I Make Money On TikTok – How I Grew To 350,000 Followers and Made $60,000 In 6 Weeks.
18. Videography
If you love making videos, starting a videography business could be a perfect idea for you. As a young entrepreneur, you can begin this business idea with just a smartphone or a basic camera.
You can start this small business idea by practicing filming different events like school activities or community gatherings. This will help you to create a portfolio that highlights your unique style and skills.
19. Streaming
If you like playing video games and have a fun personality, you may be able to make money streaming. With platforms like Twitch, you can create a channel where you showcase your gaming skills or entertain an audience with your commentary.
Once you gather a following, you can monetize your channel through subscriptions, ads, sponsorships, and donations. Selling branded merchandise is another way to earn money.
Recommended reading: How Much Do Twitch Streamers Make?
20. Baking
If you love making treats that leave your friends and family asking for more, starting a baking business could be your path to success.
You could bake things like cookies, cakes, bread, and more.
Before selling, make sure you understand the legal requirements, such as if you need a permit or license.
21. Proofreader
A proofreader is someone who reads through written stuff like articles, books, or ads to find and fix any mistakes. Your job is to make sure everything’s correct before people see it.
If you love reading and often spot mistakes in written content, you might want to explore becoming a proofreader.
Freelance proofreading is a flexible and detail-oriented job that only requires a laptop or tablet, an internet connection, grammar skills, and a good eye for finding mistakes.
If you want to find online proofreading jobs, I recommend watching this free 76-minute workshop all about how to get started proofreading.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
22. Buy and sell flipper
Reselling items online on platforms like Craigslist, eBay, or Facebook Marketplace can be a great way to run your own business and make extra money.
Plus, it’s something that anyone can start because many of us own things that we could probably sell.
And, there are always things you can buy for a low price and potentially resell for a profit. You might even find free items that people are throwing away and sell those too.
There is a helpful free webinar that I recommend – Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days.
23. Answer online surveys
Okay, so this isn’t a business, but it is a way to make money online.
Taking surveys won’t make you rich, but it can help you earn a bit of extra money during your spare minutes throughout the day.
Companies pay you to take surveys because they want to know what people think about their product and their company. They want real opinions from real people.
Here are some of the survey companies that are open to teenagers (along with their minimum age requirements):
American Consumer Opinion – Age minimum – 14 years old
Survey Junkie – Age minimum – 12 years old
Branded Surveys – Age minimum – 16 years old
Swagbucks – Age minimum – 13 years old
InboxDollars – Age minimum – 12 years old
User Interviews – Age minimum – 16 years old
Things To Think About as a Teen Entrepreneur
As a teen wanting to start a business, it’s important to think about things like balancing schoolwork, managing finances, and making sure that you are staying safe.
Balancing school and business
Your school schedule is a priority, and finding a balance between it and your new business venture is important, so it’s important to plan out your week.
I recommend creating a visual where you can see your school time, study hours, and time for your business.
Example of a weekly schedule:
Day
School Hours
Study Time
Business Hours
Free Time
Monday
8 a.m. – 3 p.m.
4 – 6 p.m.
7 – 9 p.m.
Remaining
Tuesday
8 a.m. – 3 p.m.
4 – 6 p.m.
7 – 9 p.m.
Remaining
…
…
…
…
…
Sunday
None
Optional
Flexible
Flexible
Financial planning
It’s important to understand the basics of financial planning when it comes to your business so that you can make sure you are making money and not wasting money.
So, I recommend listing the resources and materials you’ll need along with their costs. This also includes keeping track of all your expenses and income using a spreadsheet or even just writing your expenses down.
Working safely
You should always be safe, and make sure not to fall for any scams or fall into business with someone that you do not want to. Keep parents up-to-date on what is going on in your business and make sure to meet strangers in public/safe places.
Frequently Asked Questions
Below are answers to common questions about starting a business as a teen.
What are some easy-to-start business ideas for high school students?
If you’re in high school and want to start a business, you can sell services like lawn care, dog walking, or car washing. These types of businesses require minimal money from you to get started and can be managed around your school schedule.
What are the business ideas for teens online?
For online business ideas for teens, there are many things you could do such as selling printables, starting a blog, online tutoring, selling handmade crafts on Etsy, and more.
What are the top business ideas for young adults?
The top business ideas for young adults include babysitting, car washing, lawn mowing, online tutoring, and starting a YouTube channel.
What types of businesses are suitable for 13 to 17-year-olds?
Teens between 13 and 17 can look into babysitting, pet sitting, tutoring, or crafting and selling homemade goods.
Business Ideas for Teens – Summary
I hope you enjoyed this article on the best business ideas for teens.
Starting a business when you’re a teenager can be fun and help you make some extra money. This can help you to save money for college, buy things that you want, hang out with your friends, buy clothing, and more.
Plus, it’s a chance to learn important skills and a good work ethic.
You can do different things to earn cash, like doing chores at home or trying out creative online projects. If you enjoy outdoor work, you can wash cars or take care of lawns. If you’re into technology, you might want to start a blog or a YouTube channel.
There are lots of options depending on what you like and what you’re good at!
What other business ideas for teens would you add to this list?
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
If you’re considering taking out a loan or credit card, you’ve probably checked your credit score to weigh your odds of getting approved. But what if it’s different depending on which scoring model you check?
Since you have multiple types of credit scores, the number can vary based on the scoring model. Continue reading to learn more about the different credit scores, including FICO® and VantageScore®.
Table of contents:
What is a credit score?
A credit score is a three-digit number that predicts your credit risk based on data from your credit report. Lenders use credit scores to determine who to approve for loans and at what interest rates. Credit scores typically range from 300 to 800 points. A high credit score indicates that you’re more likely to pay back your loans, while a lower credit score signals that you may be a risky borrower.
What are the different credit scoring models?
FICO and VantageScore are the two most popular scoring models used in the United States. Both models calculate your score based on a set of factors that assess an individual’s credit risk. However, the two models use different algorithms and assign different weights to each factor.
Let’s look at the different types of credit scores and how they stack up.
FICO scoring model
The FICO score was the first consumer credit score developed by the Fair Isaac Corporation (FICO) in 1989. According to myFICO, 90 percent of top lenders use FICO scores to determine loan approvals, interest rates and credit limits.
A good FICO score will help you secure better loan terms and rates. The latest FICO model categorizes your score based on these ranges:
800+: Exceptional
740 – 799: Very good
670 – 739: Good
580 – 669: Fair
<580: Poor
VantageScore model
The VantageScore model was developed in 2006 by the three credit bureaus—Experian®, TransUnion® and Equifax®—as an alternative scoring model.
Like the FICO scoring model, VantageScore ranges from 300 to 850. According to Experian, here’s how the newest VantageScore model groups scores:
781+: Excellent
661 – 780: Good
601 – 660: Fair
500 – 600: Poor
<500: Very poor
Other credit scoring models
While FICO and VantageScore are the most widely used, they aren’t the only scoring models out there. Here are some lesser-known credit scoring models you may encounter:
TruVision Credit Risk: Developed by TransUnion, TruVision aims to broaden credit opportunities with insights beyond traditional credit information. The model combines “traditional, trended, blended and alternative data.”
OneScore: Unveiled in 2023 by Equifax, OneScore is a new scoring model aimed to paint a more comprehensive picture of loan applicants. According to a recent press release, OneScore is a “robust, multi-data score that leverages traditional credit history and differentiated alternative data.”
CE Credit Score: Created by CE Analytics, CE is an independent credit scoring model that uses advanced analytics and behavioral trends.
How are credit scores calculated?
Your credit scores are calculated based on a set of factors from your credit report. However, each scoring model assigns a certain weight to each factor to calculate your score.
Let’s look at how the FICO and VantageScore models calculate credit scores.
How is your FICO score calculated?
With the latest FICO scoring model, your history of paying past accounts on time is the most important factor when determining your credit score. Other factors include how much of your available credit you’re using, how long you’ve had your accounts, the different types of loans you have and how many new accounts you have.
Here’s exactly how FICO calculates your score:
Payment history: 35 percent
Amounts owed: 30 percent
Length of credit history: 15 percent
Credit mix: 10 percent
New credit: 10 percent
How is your VantageScore calculated?
Like the FICO model, payment history is the most significant factor when calculating your VantageScore. Additional factors include the age of your accounts, how much credit you use, total balances on your accounts, new accounts you’ve opened and how much credit you have available.
Here’s a look at the factors that determine your VantageScore:
Payment history: 41 percent
Depth of credit: 20 percent
Credit utilization: 20 percent
Balances: 6 percent
Recent credit: 11 percent
Available credit: 2 percent
Why are my credit scores different?
It’s normal for your credit scores to be different. Here are a few of the main reasons credit scores vary:
Your score is calculated using different scoring models: Your credit scores may vary because there are multiple different types of credit scoring models. Since scoring models weigh certain factors differently, your score may vary slightly depending on which credit score you check.
There are different versions of credit scoring models: Each scoring model has multiple versions that periodically update. For example, FICO 8 and FICO 9 have key differences, such as the impact of third-party collections and rent payments.
Not all lenders report to all three credit bureaus: Another reason your credit score may vary is because some lenders don’t report to all three credit bureaus. As a result, one of the credit bureaus could be missing information that either increases or decreases your score.
Credit scores update frequently: When you check your credit score can play a role in what number you see. Credit scores generally update at least once a month and sometimes even multiple times per month. So even if you’re using the same scoring mode, it’s normal for your credit score to fluctuate over time.
How to check your credit score
Accessing your credit score doesn’t have to be a hassle. Here are the easiest ways to check your credit score for free:
Credit bureaus: You can check your credit score via any of the three major credit bureaus—Experian, TransUnion and Equifax.
Your bank or credit card issuer: Most banks and credit card issuers provide customers with complimentary access to their credit score.
Third-party platform: Some third-party platforms provide free credit scores. For example, Lexington Law Firm provides a free credit snapshot, which includes your credit score and credit report summary.
Regularly checking your credit score and credit report can help notify you of inaccurate information that may be hurting your credit. If you notice errors on your credit report, it’s important to investigate and address them with the credit bureaus.
Learn how Lexington Law Firm’s services could help you effectively manage and monitor your credit today.
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Reviewed By
Alexis Peacock
Supervising Attorney
Alexis Peacock was born in Santa Cruz, California and raised in Scottsdale, Arizona.
In 2013, she earned her Bachelor of Science in Criminal Justice and Criminology, graduating cum laude from Arizona State University. Ms. Peacock received her Juris Doctor from Arizona Summit Law School and graduated in 2016. Prior to joining Lexington Law Firm, Ms. Peacock worked in Criminal Defense as both a paralegal and practicing attorney. Ms. Peacock represented clients in criminal matters varying from minor traffic infractions to serious felony cases. Alexis is licensed to practice law in Arizona. She is located in the Phoenix office.