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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

But here’s the big takeaway: That money is yours, and those savings stay with you whenever you quit a job.

If you have less than $1,000 in your 401(k)

If your 401(k) has less than $1,000 when you quit a job, the IRS allows the plan administrator to automatically withdraw your money and send you a check, minus 20% in taxes, per the IRS.

You can also initiate a rollover: a direct transfer of your money from a 401(k) account to another tax-advantaged retirement account. (More on rollover deadlines and tax implications later.) The easiest way to roll over your money is to contact your 401(k) administrator and have them handle it.

Communicate your preferences quickly, though — if your 401(k) account has a low balance, most companies won’t delay closing the account and cutting you a check, according to CNBC.

If you have between $1,000 and $5,000 in your 401(k)

If your 401(k) has between $1,000 and $5,000 when you quit, your employer may move your money into an individual retirement account, or IRA, according to the IRS.

If you don’t have an IRA, some employers will automatically open an account for you and deposit your funds into the account. If you do have an IRA, you initiate the rollover by contacting your 401(k) administrator.

You can also withdraw your money, but you’ll pay 20% in federal income tax, as well as a 10% early withdrawal penalty (unless you’re at least 59 ½ years old), according to the IRS.

🤓Nerdy Tip

An IRA is a tax-advantaged retirement account that an individual typically sets up, unlike a 401(k) account, which an employer sets up.

If you have at least $5,000 in your 401(k)

If your 401(k) account has at least $5,000 when you quit a job, your employer isn’t allowed to move your money without your consent. What happens next is up to you. There are a few things you can do with your money, according to the investment advisor Vanguard:

  • Roll over your money into a new retirement account

  • Leave your money in your old 401(k)

  • Cash out your 401(k) — and potentially pay a 10% federal penalty tax

Let’s dig into those options.

Rolling your money into a new 401(k) or IRA

What is a rollover?

Reminder: A 401(k) rollover is the process of moving money from your 401(k) account into another retirement account.

So, say you’re leaving your job for a different position, and your new employer offers a 401(k) plan. You can roll over your old 401(k)’s funds into a new 401(k) account, if your new employer allows this, according to the IRS.

Or you can roll over your old 401(k) to an IRA. This type of account typically offers more investment options than a 401(k), says Christopher Manske, a certified financial planner and the president and founder of Manske Wealth Management in Houston.

“In your individual retirement account, you’re going to have a lot more flexibility to tailor the investments to the wide world of what’s available out there,” Manske says.

Whether you roll over your retirement savings into an IRA or new 401(k), moving your money to a single fund can make it easier to manage your money and keep track of your retirement savings.

That’s as opposed to simply keeping your old 401(k) open, which becomes one more account to manage. (We’ll dive into that option in a bit.)

How to roll over funds — and avoid tax missteps

If a rollover sounds like a solid option, contact the administrators of both your old 401(k) and the other retirement account — either your new 401(k) or an IRA. Tell them you’d like to roll over your funds.

They’ll collect information from you and initiate a direct rollover, which means one institution directly transfers funds to another institution, according to Fidelity.

This is as opposed to an indirect rollover, meaning your 401(k) plan administrator sends you a check, and you personally deposit the 401(k) funds into another retirement account. In that case, your plan administrator would likely withhold 20% of your 401(k) funds for taxes.

With this indirect rollover, you then have 60 days to deposit the complete 401(k) account balance — including the amount kept for taxes — into the new account. So to deposit the full amount, you would need to come up with the 20% portion yourself. Then you’d get a refund for that amount come tax time.

If you miss the 60-day deadline, you’d likely get penalized for early withdrawal and have to pay income taxes on the distribution, according to Capitalize, a 401(k) rollover resource.

One last important note: Whether you choose a direct or indirect rollover, if you move money from your old 401(k) account to a Roth IRA — a specific kind of IRA — you’ll have to pay income tax on that transfer, according to the IRS. (This doesn’t apply if you’re rolling over your funds from a Roth 401(k), though.)

Leaving your money in your old 401(k)

Another option? Do nothing.

Your 401(k) account isn’t going to disappear once you quit a job; that money will always be there. But once you leave the job that set up the 401(k) account, you can’t make any more deposits, per Vanguard.

While leaving your 401(k) on autopilot is the simplest option, it may not be in your best interest. Assuming you’ll continue investing in another account or have a new 401(k) at your next employer, it will be harder to track your finances in more places.

And some 401(k) plan providers may charge you fees if you’re no longer an active employee, according to Charles Schwab, the financial services firm.

“I can’t think of any pros of leaving it there,” Manske says. “You’re not really connected formally to that company anymore, so why would you keep your money there? They don’t have a reason to keep you happy.”

Cash out your 401(k) — which is rarely recommended

Yes, you can withdraw the cash from your 401(k) whenever you want. But there are significant downsides to this option.

Pulling out money from your 401(k) before retirement can trigger hefty taxes, says Joe Buhrmann, certified financial planner and senior financial planning consultant at Fidelity’s eMoney Advisor.

Any withdrawals from a 401(k) before you reach the age of 59 ½ are considered early withdrawals and are slapped with a 10% penalty tax, per the IRS. That’s in addition to federal income taxes and, depending on where you live, state income taxes.

“Hypothetically, on a $50,000 401(k), you might lose as much as $20,000 to taxes and penalties and be left with $30,000,” Buhrmann says.

If you urgently need cash, that might be a reason to withdraw some money from your 401(k). But doing so should be regarded as a last resort, Manske says.

There are other ways to get money quickly that don’t come with taxes and penalties, such as community loans, gig work, and more.

Buhrmann encourages individuals to not just consider the immediate losses that come with withdrawing your 401(k), but also the long-term earnings they’re missing out on.

“They’re not just having to pay some taxes and pay some penalties,” Manske says.

Source: nerdwallet.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

Buying your own debt for pennies on the dollar might seem like a great way to get out of debt fast. However, you can’t actually do this due to how debt buying works. Debts of this nature are sold in large bundles to debt collectors and other agencies. Learn more about how debt buying works, why it’s not an answer to your debt concerns, and what you can do to handle debt instead below.

In This Piece

How Debt Buying Works

Debt buying occurs when creditors gather old debts—also sometimes called bad debts—into portfolios. They sell these portfolios of debts to debt buyers at a fraction of the original value of the debt. 

For example, imagine a credit card company that has thousands of delinquent accounts. It may gather 1,000 old accounts that are 180 days or more past due. Say the average owed on each of these accounts is $1,000—that would be a total of $1,000,000 in old debt.

The credit card company might sell the debt at a fraction of that value, such as 15 cents on the dollar. In that case, the debt buyer would purchase the debt for $150,000.

Once the debt buyer purchases this portfolio of debt, they can either try to collect on the original debt or sell the debt. In many cases, the debt buyers go through the portfolio, keeping debts they think they can collect and selling off others in a similar method. 

If the debt buyer is able to collect any of the debt, the money is theirs to keep. So, in the hypothetical example above, if the debt buyer collects $250,000 of the original $1,000,000 in debt it purchased, it makes a profit of $100,000.

Why Are Debt Buyers Used?

The reason original creditors use debt buyers is that at some point, they consider debt uncollectible. They don’t want to spend any more of their own resources trying to collect on the debt. They could simply write the debt off and be done with it, but if they sell the debt to a debt buyer, they’re able to recoup at least some of their losses. 

Many common types of debt can be sold to debt buyers. These include but aren’t limited to:

  • Credit card debts
  • Medical debts
  • Unpaid utility bills
  • Debts related to auto loans or mortgages

Can You Buy Your Own Debt?

You can’t buy your own debt because no one sells individual debts. It doesn’t make business sense on either side to do so. Instead, debts are sold in huge portfolios that cover many accounts. It would be difficult to impossible to discover what bundle of debt your debt would be placed in before the lender sells it off, never mind that you would likely pay more than your debt is worth to purchase both your debt and the debt of hundreds of other people.

For the creditor, selling off large sets of old, uncollected debt is a way to write things off the books while getting at least some payment. For the debt buyer, buying a large portfolio of debt at pennies on the dollar is a conservative gamble. Debt buyers hope that by investing in many accounts they’re able to collect money on some of them.

How to Deal With Debt Buyers

Because you can’t buy your own debt, someone else might. Here are some things you can do to deal with debt buyers if they end up holding your old debts:

  • Make sure it isn’t a zombie debt. These are debts that have already aged out of the statute of limitations for collection. However, they’ve risen to the top of a debt buyer’s or collector’s books, and someone is trying to resurrect them. 
  • Negotiate to settle the debt. Debt buyers didn’t buy your debt for full price, so they don’t have to collect the full amount to make a profit. They’re often motivated to settle at less than the amount owed if you could pay them immediately.
  • Stand up for your rights. Your rights as a consumer are protected under federal and state laws. Make sure you understand your rights so you can stand up for them as you deal with debt buyers and collectors. 

Manage Your Debt Better

Managing your debt in a responsible and proactive way can help you avoid debt buyers altogether because you never let your debts get so delinquent they might be sold. Some things you can do to manage your debt include:

  • Creating and sticking to a budget. When you’re spending within your means and making debt decisions that work with your budget, you’re less likely to fall behind on payments.
  • Pay all your debts on time. Use tools such as debt management apps to reduce the chance you might forget a debt or lose track of one.
  • Being proactive with debts. If you find yourself in a position where it’s impossible to keep up with a debt, such as being temporarily unemployed or dealing with a medical crisis, reach out to the creditor immediately. Many creditors have programs and options to help you deal with this type of issue.
  • Know what’s on your credit report. Keep up with your credit report so you don’t end up with old debt you thought was paid off coming back to haunt you. You can get a copy of all three of your major credit reports and track 28 of your credit scores when you sign up for ExtraCredit.

Source: credit.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

A personal loan is money borrowed from a lender that can be used for almost any purpose, from debt consolidation to home improvement projects.

Most people don’t have $5,000+ sitting in their bank accounts—that’s where personal loans come in. Just like a mortgage or auto loan, personal loans allow you to cover large purchases or expenses under the terms that you’ll pay off the loan over time, typically with interest.

If you’re considering taking out a personal loan, here’s all you need to know to ensure you’re making the right money moves to fund your future investment.

What Is a Personal Loan?

A personal loan is money borrowed from a bank, credit union, or other financial institution that can be used for virtually any personal expense. Like any other installment loan, personal loan borrowers are expected to pay the money back over a set period.

The typical amount you can take out for a personal loan can range anywhere from $1,000 to $50,000, depending on several factors. Interest rates are just as variable—they can be as low as 6% and as high as 36%, depending on your unique financial situation. The current average interest rate for personal loans is 11.04% as of May 2023.

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Why Would I Need a Personal Loan?

If you’re planning on making a big purchase, getting a better handle on your debt, or have run into some unexpected expenses, applying for a personal loan can help cover the costs. People usually take out personal loans for:

  • Debt consolidation
  • Unexpected medical expenses
  • Home remodeling
  • Emergency expenses
  • Vehicle repairs or financing
  • Moving expenses
  • Vacations
  • Wedding expenses

While you could technically use this type of loan for, well, anything, there are a few things you should avoid using a personal loan for, like:

  • College tuition: It’d make more financial sense to use a federal student loan vs. a personal loan to pay for college tuition. Federal student loans typically come with lower interest rates, plus most don’t require a credit check. You may even qualify for a subsidized loan or an income-driven repayment plan.
  • Home down payment: Most mortgage lenders won’t accept a personal loan as a down payment, and even if they did, the increase a personal loan could cause to your debt-to-income ratio might disqualify you from the loan anyway.
  • Starting a business: Taking out a personal loan to open a business won’t help you build business credit since the loan is in your name. Instead, consider applying for a business credit card to start building credit so you can apply for a business loan down the road.
  • Everyday expenses: If you’re strapped for cash now, taking out a personal loan to cover bills and other living expenses may just create a bigger problem in the long run since you’ll have to repay the loan amount plus interest. Consider re-budgeting or finding ways to increase your income instead.

Personal Loans vs. Lines of Credit vs. Payday Loans

Personal loans, personal lines of credit, and payday loans are all money-borrowing options that can help you manage your finances or cover a significant expense.  However, they’re typically used for different purposes.

  • Personal loans vs. lines of credit: Personal loans are typically used to cover large purchases or expenses since all the money is available upfront. On the other hand, personal lines of credit allow the borrower to use the credit available as needed and pay it off on their own timeline, so they’re more ideal for smaller everyday purchases.
  • Personal loans vs. payday loans: Whereas personal loans allow you to borrow a large sum of money with a loan term typically spanning several years, payday loans offer borrowers a small amount of cash—typically around $500 or less—at a higher interest rate that has to be repaid within 2-4 weeks. Payday loans are best if you have an urgent expense and know you can repay the loan within the term offered.

Definition

What it’s best for

Personal loan

Supplies the borrower with a large sum of money upfront that must be paid back in fixed monthly payments throughout the loan term

Large purchases or expenses

Personal line of credit

Lets the borrower use credit as needed and pay it back on their own timeline with a variable interest rate

Building credit on everyday purchases

Payday loan

Gives the borrower a small sum of money—around $500 or less—at a high-interest rate that usually has to be repaid within 2-4 weeks

Quick cash for urgent needs, especially if the borrower does not qualify for a traditional loan

Types of Personal Loans

Before you apply for a loan, research the type of personal loan that will best serve your unique financial needs. Your credit history, credit score, and reason for needing the loan will determine which is best for you.

Here’s a quick breakdown of the seven most common types of personal loans:

Type of personal loan

Definition

Who it’s best for

Unsecured personal loans

Do not require any sort of collateral to qualify

Borrowers with excellent credit and a steady source of income

Credit-builder loans

Allow you to take out a small sum of money to demonstrate that you’re a reliable borrower by making regular on-time payments

Borrowers with low or no credit history looking to improve their credit score

Debt consolidation loans

Typically can be borrowed at a lower interest rate than most credit cards or other bills you plan to consolidate, saving you money on interest

Borrowers with multiple debt balances or balances with high interest rates

Co-signed and joint loans

Allow a co-signer to assume responsibility for a loan if the borrower does not qualify

Borrowers who do not qualify for a traditional loan or are hoping to be approved for a lower interest rate

Fixed-rate loans

Come with an interest rate that does not change over the repayment term, so the borrower pays the same amount every month

Borrowers who plan on paying off their loan over an extended period

Variable-rate loans

Come with a fluctuating interest rate that could increase or decrease monthly payments over time, but rates are sometimes lower vs. fixed-rate loans

Borrowers who only need to borrow funds for a short period

How Do Personal Loans Work?

You have to receive a personal loan through an authorized lender, typically a bank or credit union. Here’s how the personal loan process works:

  1. You must first apply for a personal loan. The lender will decide if you qualify based on your creditworthiness, income, and the type of personal loan you’re interested in.
  2. If you qualify for a loan, your lender will usually set a loan term to determine how long you have to pay the money back. This can range anywhere from months to years, depending on the lender and your needs. A fixed or variable interest rate—the cost of taking out the loan—will also be applied to your monthly payments.
  3. If you qualify for a loan, you’ll be issued a lump sum deposited into your bank account. You’re free to do with the money as you wish, but you’re expected to make regular monthly payments until the loan is paid off.

How to Apply for a Personal Loan

Personal loans are a great tool for financing some of life’s most important—and unexpected—milestones. If you’re ready to apply for a personal loan, follow these steps:

  1. Check your credit: Your credit history will be one of the biggest determinants of whether or not you’re approved for a loan, so it’s important you know where you stand. Most lenders will want to see a “good” credit score (620) or above to ensure you can be trusted to meet your loan terms.
  2. Decide how much to borrow: You may qualify for a $50,000 loan, but before you sign on the dotted line, you need to know how much you can realistically afford to borrow. Carefully consider your current and future financial situation before jumping into any personal loan.

Pro tip: Try our loan payment calculator to easily estimate monthly payments for different personal loan options.

  1. Know your consumer rights: According to the Truth in Lending Act, lenders must disclose the APR finance charges, principal amount, and any fees and penalties associated with a loan offer. If you come across a lender that refuses to share this information, you’ll want to look for a different lender.
  2. Gather essential documents: In addition to your credit report, potential lenders may also want to see the following documents to speed up the application process.
    1. Proof of your annual income
    1. Your debt-to-income ratio
    1. Your Social Security number
    1. Recurring monthly debt (like your house payment)
    1. Employer information
    1. Your cosigners financial information (if applicable)
  1. Research loan options: Personal loan requirements and terms vary by the type of loan and lender, so you’ll want to research before applying. Details that may sway your decision include the loan amount, APR, monthly payments, loan term, secured or unsecured, and more. Ask lenders for this information in advance before applying for a personal loan.
  2. Submit your application: Once you’ve settled on a loan that meets all your requirements, fill out your application, read it carefully for typos or errors, and submit it to your potential lender. You’ll likely know whether your application was approved within a day or two whether your application was approved.

How to Qualify for a Personal Loan

Each lender is different, so minimum requirements for personal loans vary. However, if you’re hoping to qualify for a large unsecured personal loan with a competitive interest rate, here are a few general requirements most lenders will want to see:

  • A minimum credit score of 620
  • A positive and established credit history
  • A debt-to-income ratio less than 36%
  • A steady income with proof of employment

Again, these requirements vary from lender to lender. In some cases, you may qualify for a loan with no credit at all. Some lenders even prioritize things like education and work history when evaluating applicants. Inquire with potential lenders before you apply for a personal loan to better understand what you need to qualify.

Personal Loan Alternatives

If credit history, high interest rates, or substantial fees are preventing you from applying for a personal loan, there are money-borrow alternatives that may be a better fit, like:

  • Home equity loans: Home equity loans or lines of credit (HELOC) are secured by the equity a borrower has built in their home. Because this is a type of secured loan, interest rates tend to be lower compared to an unsecured personal loan. The repayment terms are also longer than most personal loans, sometimes up to 20 years.
  • Credit Cards: Credit cards allow borrowers to use credit and pay it back as they go, offering more flexibility than personal loans. Many credit cards also offer rewards like cash back or airline miles for money spent.
  • Personal lines of credit: Like credit cards, personal lines of credit allow you to borrow money and pay it back as you go. However, personal lines of credit have a set draw period—once the period is over, you won’t be able to tap your line of credit and will need to pay back your balance. Interest rates for personal lines of credit are typically lower than credit cards, so they’re ideal for large ongoing projects.
  • Retirement loan: If you’re looking for more relaxed loan requirements, you may be able to borrow from your employer-sponsored retirement plan in the form of a 401(k) loan. This is a great alternative for borrowers with less-than-stellar credit, but keep in mind that you’ll be restricted to your current retirement accounts, and you may have to repay the loan early if you leave your current job before the loan term ends, often with penalties.

FAQs

Still weighing your personal financing options? We answered some of the most frequently asked questions about personal loans to help with your decision.

Will a Personal Loan Affect Your Credit Score?

Applying for a personal loan may cause a light dip in your credit score because lenders will run a hard inquiry on your credit. While a hard inquiry shouldn’t affect your credit score too much, it’s important to narrow down your options before applying to avoid multiple hard inquiries from multiple potential lenders.

It’s also wise to wait to apply for a personal loan if you’ve just opened another line of credit, which could cause an even bigger drop in your score.

Do You Need a Down Payment for a Personal Loan?

You do not need a down payment for a personal loan. However, In the case of a secured loan, you’ll need collateral, such as a car or money in a savings account.

Can You Use a Personal Loan for Whatever You Want?

A personal loan can be used for just about any purpose. Some lenders may want to know what the money will be used for, but others just want to be certain you’ll be able to pay it back. However, a better financing option may be available if you plan on using your loan for things like tuition or daily expenses. Research your options before applying for a personal loan.

How Big of a Loan Can I Get With a 700 Credit Score?

You’ll likely be able to borrow higher limits with a 700 credit score or higher, but other factors, including your income, employment status, and the type of loan you’re applying for will also impact how big of a loan you qualify for.

How Often Can You Apply for a Personal Loan?

There is no limit to how often you can apply for a personal loan. You can have multiple personal loans open at once, but remember that too much existing debt may lead lenders to disqualify you from taking out more loans or opening new lines of credit.

Researching personal loans can be daunting, especially if you’ve run into sudden unexpected expenses. The best loan for you will depend on your unique financial situation. Check out the personal loans at Credit.com to quickly compare options and see potential APR, terms, and maximum loan amounts.

Source: credit.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

According to IBM’s annual Cost of a Data Breach report, the average cost of a data breach to an organization in 2021 was 4.24 million dollars. That’s the highest average figure in its 17-year history. Most of these breaches were the result of compromised user credentials (where an attacker is able to gain unauthorized access to an account) and are often more costly where remote working is involved.

cyber attack

These breaches aren’t just costly for large enterprises, though. Many small organizations fail to recover from a serious data breach (where the average cost is just under $700,000), with 60% of them going out of business within 6 months of an attack. 

But of course, we can also fall victim to cyber attacks as individuals, and the cost to us can be significant, too. If you’ve been unlucky enough to have been a victim of a data breach, or (worse), identity theft, you’ll know that you can lose eye-watering and potentially crippling sums: this hacking victim lost over $13k in 2020.

But when we talk about the cost of a cyber attack to an individual, we’re not talking simply about financial losses. 

How to Avoid a Cyber Attack

Psychologically, the after-effects of a cyber attack can be damaging. The feeling that you’ve been manipulated by a stranger (and your personal data has been ‘invaded’) can be deeply unsettling. It can lead to a serious loss of confidence, and make you increasingly wary of trusting others. It can cause embarrassment, too, as a victim of a hack can be made to feel as if it’s their fault. 

  • I just watched a documentary on the dark web, and I will never feel safe using my credit card again!

  • Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.

  • I need that peace of mind in my life. What else do you get with ExtraCredit?

  • It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.

  • It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.

  • …we live in Oklahoma.

In the most extreme cases (where a cyber attack has led to a significant loss of funds or even the loss of a job) the effect can be even more harmful, leading to stress, anxiety and even depression. Whatever the financial cost of an attack, the emotional cost is often far more significant in the long run.

Fortunately, there are a number of steps you can take to secure your data and ensure you’re aware of the threats you might face while online. 

Check If Your data Is at Risk

Without knowing it, your data might have already been involved in a breach. A breach usually occurs when a hacker gains access to the data­base of a service or company which contains users’ private information, including (but not limited to) usernames, passwords, email addresses and, in the worst cases, bank account details. If you’ve been involved in a data breach, some of your personal information might have been made public without you realizing, which could put you at risk of identity theft.

But don’t panic. You can check if your email address or phone number has been exposed in a data breach by going to Have I Been Pwned. If any of your accounts may have been compromised, change those passwords immediately, and make sure you’re not reusing the same passwords across multiple accounts.

Use Strong Passwords

Speaking of passwords, nearly a quarter of Americans have admitted to using a password like “password” or “123456”. These should clearly be avoided, as they’re easily guessable and won’t take long for a hacker to crack. The longer and more complex a password is, the stronger it is. You can check the strength of your passwords at Security.org.

Using a “passphrase” (a series of unrelated words with spaces in between) is often more effective than using a simple combination of letters and numbers, as these can be harder to crack. This can help to protect your accounts from threats like brute-force attacks, in which attackers will submit vast numbers of possible passwords in an effort to guess correctly.

Protect Your Website(s)

This action may not apply to you, of course — but if you happen to run a website (for a small business, perhaps, or even just a hobby such as blogging) then your personal information is inextricably linked to it, and it can be a huge point of vulnerability. If someone gains access to it through a CMS exploit or a comparable weakness, they can learn your passwords, uncover private information, or even hold the site hostage in an effort to extort you.

Keeping extortion efforts at bay is largely a matter of investing in technical safeguards. Top managed hosting platforms are particularly good at keeping ahead of potential attackers, and some (e.g. Cloudways with its 2022-launched Cloudflare CDN integration) are investing in native features that make it all but impossible for run-of-the-mill hackers to gain access. Overall, though, the biggest thing you can do is refrain from storing any sensitive information on your website. Anything intended for public viewing inevitably makes a bad storage vault.

Beware of Suspicious Emails 

One of the most common ways individuals fall victim to cyber crime is through phishing attacks, a type of ‘social engineering’ where an attacker sends a fraudulent email to an intended victim enticing them to click a suspicious link or hand over personal information. Phishing emails often appear as though they’re from a legitimate organization (like your bank, for example) but there are some classic signs to look out for.

Check the email domain (the bit after the @ symbol) to see if it looks legitimate. If it’s misspelled (or a public domain like gmail.com) it could be a scam. Next, check for poor spelling and grammar in the body of the email, as phishing attempts are often shoddily written. If you have the slightest suspicion that the email may not be legitimate, do not respond or click any links in the email. To ensure you’re aware of the telltale signs, IT Governance has produced a handy guide on the ways to detect a phishing email.

Update Your Software

Cyber threats are constantly evolving, with hackers developing newer, more sophisticated ways to gain access to our devices and our personal data. That’s why it’s so important that our operating systems and software programs are always updated to the latest available versions. These newer versions will fix previously discovered vulnerabilities and offer greater protection against emerging threats.

If you’re still using an outdated operating system, for example, it may contain weaknesses that can quite easily be exposed by an attacker, especially if those weaknesses are public knowledge. Use a tool like Soft4Boost to check for out-of-date and potentially vulnerable software, and update to the latest supported versions where necessary.

Secure Your Devices

It’s also important to protect our physical devices, as a lost or stolen device could present an easy opportunity for an attacker to gain access to your personal data. Ensure a password or PIN is always required to access the device (and don’t use anything easily guessable like 0000 or 1234). Many devices now enable facial recognition or fingerprint access, so enable these functions where possible. When you’re not using your device, make sure it’s locked.

Backing up your data is essential, too, so that it can be recovered in the event of a data breach. Most computers will include a backup facility, while mobile phone data can usually be backed up using cloud storage. Finally, beware of unsecured public Wi-Fi networks (where no password is required for access) as these are often prime targets for an attacker, and disable your Bluetooth function when you’re not using it.

Source: credit.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” NAR chief economist Lawrence Yun said. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales … [Read more…]

Posted in: Refinance, Savings Account Tagged: 30-year, 30-year fixed mortgage, All, big, double, existing, Fannie Mae, Financial Wize, FinancialWize, fixed, Freddie Mac, growth, home, home market, Home Price, home price gains, home prices, Home Sales, house, impact, in, job, Lawrence Yun, LOWER, Make, market, median, Mortgage, mortgage market, MORTGAGE RATE, NAR, needs, pandemic, price, Prices, rate, Rates, read, rising, sales, short, South, stable, will

Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

“U.S. home prices continued to rally in July 2023,” Craig Lazzara, managing director at S&P DJI, said. “Our National Composite rose by 0.6% in July, and now stands 1.0% above its year-ago level. Our 10- and 20-City Composites each also rose in July 2023, and likewise stand slightly above their July 2022 levels.”

“Although the market’s gains could be truncated by increases in mortgage rates or by general economic weakness, the breadth and strength of this month’s report are consistent with an optimistic view of future results,” Lazzara added.

In July, prices rose in all 20 cities after seasonal adjustment, and in 19 of them before adjustment. 

Chicago (+4.4%), Cleveland (+4.0%) and New York (+3.8%) posted the largest price gains on a year-over-year basis, repeating the ranking we saw in May and June.

At the other end of the scale, the worst performers were Las Vegas (-7.2%) and Phoenix (-6.6%).

The Midwest (+3.2%) continued as the nation’s strongest region, followed by the Northeast (+2.3%). The West (-3.8%) and Southwest (-3.6%) remained the weakest regions.

“The Case Shiller index indicates that the typical home price in July 2023 is about 45% higher than it was four years ago in July 2019,” said Bright MLS Chief Economist Lisa Sturtevant. “This is about the same rate of price growth that occurred during the 2002 through 2006 period when subprime lending drove exuberant housing demand. 

“But that is where the similarities end. Today’s housing market is very different from the one that led up to the 2008 financial crisis and ultimately a 20 to 40% home price correction. Inventory is still very low by historic standards and buyers who are able to handle higher mortgage rates are still finding the market very competitive. Mortgage holders are well-qualified and subprime loans are rare. Housing equity is at an all-time high, providing homeowners a very deep cushion against a downturn. Demand is strong, driven by the large millennial population that is in prime first-time homebuying age.”

The rental market has offered a more extended break in pricing

Indeed, rents dipped for a fourth month compared to a year ago, Hale said. However, the cumulative drop in rents remains relatively modest nationwide, only down 2% from the peak. Furthermore, regional trends vary, with some markets still seeing relatively robust rental growth. Meanwhile, a record-high number of multi-family units are on the way, which will provide some relief over the next several months, even as multi-family starts slow, Hale concluded.

Source: housingwire.com

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Apache is functioning normally

September 27, 2023 by Brett Tams
Apache is functioning normally

I can’t wait to curl up on the couch with a book and a cozy blanket once the weather cools down! I don’t do a lot of seasonal decorating, but I am looking forward to incorporating a few fall touches throughout our home. I love decorating our front porch with lots of mums and and adding a few things in each room to bring some autumn vibes inside! I rounded up some of the best Target fall home decor finds that are a simple and affordable way to refresh your home for fall.

Grid Knit Throw Blanket // Wreath // Woven Pumpkin // Stoneware Crock // Wicker Tray // Ceramic Table Lamp // Octagon Doormat // Herringbone Throw Blankets // Plaid Accent Rug // Ceramic Vase // Woven Storage Bench // Block Print Throw Pillow // Linen Throw Pillow

How cute are these $5 woven mini pumpkins?! They’re the perfect understated nod to the season. Arrange them on an entry console, coffee table, or dining table for a simple fall touch. They also make a great addition to any fall tablescape! Bringing in accents in warm earthy tones like burgundy, rustic orange, and soft browns is an easy way to make your home feel more autumnal. Elevate your favorite reading nook with a few textured pillows on your couch and a plush throw to create a cozy spot you’ll love to sit and wind down in with a good book or needlepoint project.

And of course you can’t forget the front porch. Like I mentioned earlier I love giving our front porch a fall refresh by adding mums along our front steps. You can also add a seasonal wreath like this one to your front door and a simple doormat to add that touch of warmth to your front porch without going too cheesy.

SHOP THE POST


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Source: carlyriordan.com

Posted in: Bank Accounts Tagged: accent, affordable, autumn, bench, best, blankets, book, coffee, coffee table, couch, cozy, Decor, decorating, dining, entry, Fall, Financial Wize, FinancialWize, front, front door, Giving, good, great, home, Home Decor, in, Make, More, or, orange, pillow, pillows, porch, print, project, reading, room, seasonal, simple, storage, target, weather

Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

The Offer

Direct link to offer 

  • Chase is offering some cardholders spending bonuses for spend between October 1 through December 31, 2023
    • United: 5x on Gas, Grocery, and Amazon
    • Hyatt: 5x on grocery
    • Southwest:
      • 10x on utilities, internet, cable, and phone services, insurance, local transit and commuting, or fitness club and gym membership payments
      • Get 6,000 bonus points if you spend $6,000+

Our Verdict

Some good categories and deals, worth checking to see if you’re targeted.

Source: doctorofcredit.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Does being an authorized user affect your credit? Well, becoming an authorized user can help you build your credit under the right circumstances. Before you agree to be an authorized user or add an authorized user to your account, it’s important to understand the potential risks and benefits. This article provides more information about how adding an authorized user works and how it could impact your credit.

In This Piece

What Is an Authorized User?

An authorized user is a person who has the authority to use another person’s credit card account. In many cases, the authorized user receives a credit card in their name. Unlike co-signers and joint account holders, authorized users aren’t financially responsible for making payments.

Typically, cardholders only add someone they trust, such as a child or significant other, as an authorized user. There are a few reasons a cardholder might want to add an authorized user to their account, including:

  • To help the person build their credit history
  • To make it easier for the authorized user to make payments when the cardholder isn’t available
  • To allow someone to make purchases on the cardholder’s behalf

The primary reason a person wants to become an authorized user is that they’re unable to secure a credit card on their own. For example, a child may not have the established credit to get a credit card, so a parent adds their child as an authorized user under their account.

Authorized Users Versus Joint Accounts

Authorized users aren’t the same as joint account holders. Authorized users can charge money to your account, but they can’t add other authorized users and they can’t dispute charges. They also can’t request credit limit increases, transfer balances, or close your account.

In contrast, joint account holders can do all of those things and more. Joint account holders are jointly liable for the account, and they’re also jointly liable for repayments.

How Do Authorized Users Work?

The process of adding an authorized user to your account varies between credit card companies. Some credit card providers may have age and other requirements that must be met before you can add an authorized user. You may also be able to set limits on how much the authorized user can charge to your credit card.

You’ll need basic information about the person you’re adding, such as name, date of birth, and Social Security number. You should contact your credit card company directly to see how this process works.

Once the application process is complete, the authorized user receives their card. They can use it just like any other credit card. Depending on the specific credit card company and your preferences, you may be able to give the authorized user access to your account information so they can track packages and report a lost card, errors, or potential fraud. Keep in mind that giving the authorized user access to your account may also allow them to see your purchase history and redeem special rewards.

It’s important to note that authorized users don’t receive credit card bills and aren’t responsible for making payments. This responsibility lies solely with the cardholder.

Can I Build Credit as an Authorized User?

For a long time, authorized users were able to build credit by “piggybacking” on the primary account holder’s own good credit record. Many modern scoring models no longer recognize this loophole—but a few still do. If you’re hoping to build credit by becoming an authorized user, you need to do two things:

  1. Check if the card company reports authorized users to credit bureaus.
  2. See if authorized users are reported as if they’re account holders.

If the account holder’s card company does report authorized user activity, you’ll see an individual account on your credit report. Providing the primary cardholder continues to make payments and handle the account responsibly, you’ll likely benefit from the listing.

Can Adding Authorized Users Hurt Your Credit?

Before adding an authorized user to your credit card account, you need to ask yourself several questions.

  • Does adding an authorized user affect my credit?
  • Will adding an authorized user hurt my account?
  • Will adding an authorized user help their credit?

The answer to these questions depends a lot on your specific credit card company. Not all credit card companies report authorized users to the credit bureaus. If your credit card company doesn’t report authorized users, adding them to your account will have no impact on their credit score. If, on the other hand, your credit card company does report authorized users, it can help them start building up credit.

Either way, adding an authorized user to your credit card account shouldn’t automatically effect your credit history. However, there are several ways taking this step could hurt your credit score over time.

First, if the authorized user charges too much to your credit card, you may have difficulty making your monthly payments. Payment history makes up 35% of your FICO score. So if you can’t make your monthly payment because of charges accrued by an authorized user, your credit profile, and wallet, could take a hit. If possible, set limits for how much your authorized user can charge to your credit card account. This step can help to reduce the risk of overspending.

Secondly, additional charges to your credit card account can also increase your credit utilization ratio. The more you charge to your credit card, the higher your credit utilization ratio is. Your outstanding debt accounts for about 30% of your overall credit score. You should try to keep your debt ratio under 30%.

What if an Authorized User Misuses Their Card?

Let’s imagine you are the primary account holder, and your teenager is the authorized user. What would happen if they decided to buy a new wardrobe without telling you? The answer is simple—you’d be on the hook for the whole amount. Your wallet could take a serious hit.

Does Removing an Authorized User Hurt Their Credit?

If your authorized user doesn’t behave, you can remove them from your account pretty quickly. At that point, they can no longer use their card and can’t charge any more money to your account.

Credit age history makes up 15% of your credit score. If your credit card company previously reported the authorized user as an individual account holder and they suddenly get removed from your account, the removal might look like a closed account, regardless, it will likely be removed for age calculations. In that case, the formerly authorized user’s credit score could dip.

Does Being an Authorized User Affect Your Credit?

Becoming an authorized user could affect your credit if the credit card company reports your status to the credit reporting agencies. If the credit card company doesn’t report your authorized user status, taking this step won’t impact your credit score at all. However, you’ll still have the benefit of charging purchases to a credit card.

How being an authorized user impacts your credit depends largely on the cardholder’s payment history. If the cardholder has a strong history of making on-time credit card payments, it could help you build your credit and increase your credit score. On the other hand, if the cardholder has frequent missed or late payments, it could hurt your credit score.

It’s important to understand the cardholder’s credit history before agreeing to become an authorized user. It’s also important to repay the cardholder for any purchases you make as quickly as possible. This step will help the cardholder make their payments on time.

How Long Does It Take an Authorized User to Show Up on Credit Report?

It takes about 30 days for your authorized user status to reflect on your credit report. However, not all credit card companies report authorized users to the credit bureaus. In these cases, your credit report may never show that you’re an authorized user.

What to Consider About Authorized Users

If you want to build your credit by becoming an authorized user, start by talking to friends and family members you trust. Be sure the cardholder has good credit and makes on-time payments.

If a friend or family member agrees to add you as an authorized user, it’s important to set clear boundaries right from the start. For example, determine your specific credit limit right away and whether the cardholder wants you to ask for permission before using the card.

You also need to make a clear payment agreement. Determine exactly how much you’ll pay each month and the date monthly payments are due. Make sure you create a budget so you know exactly how much you can afford to pay each month. Also, be sure to track your purchases so you know exactly how much you owe.

It’s crucial to have this agreement in place before becoming an authorized cardholder. This agreement allows you to know exactly what’s expected of you. It can also help you determine if this is the right option for you.

Four Tips to Bear in Mind

  1. Set clear spending rules before you make family members authorized users.
  2. Talk to prospective authorized users about credit, including credit utilization.
  3. Set up text message alerts to make sure you know when authorized users make purchases.
  4. Remove authorized users if they don’t stick to the rules you make.

Simply Adding Authorized Users Won’t Hurt Your Credit—but Be Careful

Ultimately, authorized users aren’t a threat to your credit unless they misuse your credit card account. Many authorized users coexist happily with main account holders for many years. Problematic authorized users, unlike joint account holders, can be easily removed.

If you’re thinking of adding an authorized user and you want to keep track of your credit, why not subscribe to ExtraCredit from Credit.com? ExtraCredit is great if you’re an authorized user—tools like Build It can help you strengthen your credit profile by letting you add rent and utilities as trade lines to your credit history.

Source: credit.com

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Apache is functioning normally

September 26, 2023 by Brett Tams
Apache is functioning normally

Your credit score communicates with lenders your level of credit trustworthiness. As a result, those with higher credit scores qualify for higher credit limits and better interest rates. Your credit score will play a major role if you plan to purchase a house or apply for a loan in the future.

Understanding credit scores and what they mean can improve your financial literacy. We gathered the following credit score statistics to help you get a better sense of where your credit score stands compared to other Americans.

Key findings:

  • The national average FICO® Score is 716 as of April 2022 (FICO)
  • About 10% of the U.S. population doesn’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau)
  • Ages 76 and up have the highest average credit score at 760. (American Express)
  • Women’s and men’s average FICO Scores are virtually the same. (Experian)

Average U.S. credit score

The national average FICO Score is 716 as of April 2022. This is the same as when FICO last reported on it a year ago.

Average credit score by state

While your location doesn’t affect your credit score, some states have a higher average credit score than others as seen in the statistics listed below.

  • While 31 states (and the District of Columbia) have average FICO scores that are higher than the national average of 716, the upper Midwest and New England continue to have the best average FICO Scores. (FICO)
  • Minnesota, Vermont, New Hampshire and Wisconsin all have scores that are 23 points higher than the national average, with scores of 742, 739 and 737, respectively. (FICO)
  • Mississippi, Louisiana, Alabama and Arkansas have the lowest credit scores at 662, 668, 672 and 673, respectively. (WalletHub)

Average credit score by age

Since credit history length is a factor that influences your credit score, it makes sense that the average credit score increases with age as seen below.

  • Approximately 58% of consumers with the highest credit score are between the ages of 56 and 74. (Money Geek)
  • The average score for adults aged 18 to 29 increased by 24 points between April 2017 and April 2022; 19 points for those aged 30 to 39; 19 points for those aged 40 to 49; 13 points for individuals in their 50s; and 10 points for those aged 60 and older. (Nerd Wallet)
  • As of 2021, ages 18-24 have the lowest average credit score at 679. (American Express)
  • Ages 76 and up have the highest average credit score at 760. (American Express)

Average credit score by race

Average credit scores can differ across demographics like race. However, keep in mind that race doesn’t directly influence your credit score.

Average credit score by gender

Although women couldn’t legally apply for credit until 1974, women’s and men’s average FICO Scores are still very close in range at 705 for men and 704 for women as of 2019, according to Experian.

Average credit score by income

A common credit score myth is that your income contributes to your credit score. Although this is untrue, the statistics below show a correlation between income and credit score.

  • Approximately 25% of low-income consumers don’t have enough knowledge to raise their credit scores. (Consumer Federation of America)
  • The median credit score of 658 for lower income individuals suggests that many borrowers are unlikely to have access to affordable credit as those with scores above 720. (Federal Reserve Bank of New York)
  • Those considered high income have the highest average credit score at 774. (American Express)

Average FICO Score in the U.S.

FICO is an analytics firm that developed the credit scoring models used today. The national average FICO Score is 716 as of April 2022, the same as when FICO last reported on it a year ago. Here are some FICO statistics.

Average FICO Score by generation

  • The Silent Generation (ages 77 and up) has the highest average credit score at 760. (Experian)
  • The average credit score of baby boomers (ages 58-76) is 742 in 2022, up two points from 2021. (Experian)
  • Generation X (ages 42-57) has an average credit score of 706. (Experian)
  • The average credit score of Millennials (ages 26-41) is 687. (Experian)
  • Generation Z (ages 18-25) has an average credit score of 679 in 2022, the same as 2021.  (Experian)

Generation

Average credit score (2022)

Silent Generation

760

Baby Boomers

742

Generation X

706

Millenials

687

Generation Z

679

Average VantageScore in the U.S.

VantageScore is the second most popular credit scoring model in the U.S. As of September 2022, the average VantageScore was 697.

Credit card utilization statistics

Credit utilization refers to the amount of your available credit you’re currently using. Your credit utilization ratio is calculated by adding up your balances and then dividing by the total of your credit limits. Keeping your credit utilization ratio low can help raise your score.

  • Individuals with credit scores 800 to 850 have an average credit utilization ratio of 5.7%. (Experian)
  • Consumers with credit scores considered “very good” (740-799) have an average utilization ratio of 12.4%. (Experian)
  • Those with credit scores in the “good” range (670-739) have an average credit utilization ratio of 32.6 %. (Experian)
  • 47.6% of the population opened at least one new credit account in the last year. (FICO)
  • Approximately 26 million U.S. adults, or 10%, don’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau)
  • 19 million Americans have a credit history but lack a credit score because their report is insufficient or out of date. (Consumer Financial Protection Bureau)
  • The 15% growth in credit card balances from 2021 to 2022 is the highest in more than 20 years. (Federal Reserve Bank of New York)
  • Currently, 83% of American people own at least one credit card. (Zippia)
  • There are currently 26.5% more credit card holders in 2022 than there were in 2017—just five years ago. (Zippia)

FAQ

Whether you’re new to credit or just need a refresher, we’ve answered some common questions about credit scores below.

What is a good credit score?

According to FICO, a good credit score is 670-739 or above, while a very good credit score is 740-799. A credit score that is 800 or above is considered exceptional.

How to check your credit score

To check your credit score, order a free copy of your credit report from each of the three credit bureaus. You can also check your credit score for free by visiting Credit.com.

What contributes to your credit score?

The factors that contribute to your credit score are payment history, amounts owed, credit history length, credit mix, and new credit.

What is the highest credit score?

The highest credit score is 850 for most FICO and VantageScore models.

How to work on your credit score

You can see from the above credit score statistics that everyone’s credit varies. If you checked your credit score and it’s currently low, we have resources available to help educate you about your credit so that you can qualify for the best rates available.

Source: credit.com

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