Restoring price stability will cause some pain now, but will forestall the greater pain of higher inflation, Federal Reserve Chairman Jerome Powell said in a speech on Friday.
Powell, speaking at an economic policy symposium in Jackson Hole, Wyoming, made it clear that the Federal Open Market Committee (FOMC) would continue to be tightly focused on bringing inflation back down to its 2% goal. Although he didn’t specify how high the FOMC might raise the federal funds rate at their September meeting, markets reacted to the comments by falling sharply on Friday morning.
Powell noted that inflation was still running “well above 2%” and that although July’s numbers were better, “a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down.”
The Fed raised the federal funds rate by 75 bps in both June and July, driving mortgage rates sharply higher to more than 6% in a short period. The big question is whether we should expect a repeat in September.
“July’s increase in the target range was the second 75 basis point increase in as many meetings, and I said then that another unusually large increase could be appropriate at our next meeting. We are now about halfway through the intermeeting period. Our decision at the September meeting will depend on the totality of the incoming data and the evolving outlook. At some point, as the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases.”
HousingWire Lead Analyst Logan Mohtashami said that while housing isn’t the main focus of the Fed’s actions, it wants to fight back against the housing market’s perception that the Fed will cut rates next year as the market gets weaker.
“I think the Federal Reserve is frustrated that total housing inventory is not back to 2019 levels, even though mortgage rates have gone as high as 6%. They are frustrated and the fact that new home listings are now declining can’t be encouraging to them,” Mohtashami said. “Powell’s comments reaffirm their stance that they will hike rates and keep them high while looking to see what happens next.”
Powell’s short remarks emphasized the Fed’s responsibility to achieve price stability, calling it “the bedrock of our economy.”
“Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all,” Powell said.
“Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain,” Powell said.
The Fed Chair said that public expectations of continued higher inflation can become a self-fulfilling prophecy. “During the 1970s, as inflation climbed, the anticipation of high inflation became entrenched in the economic decision-making of households and businesses. The more inflation rose, the more people came to expect it to remain high, and they built that belief into wage and pricing decisions.”
Powell ended the speech by noting the Fed’s resolve. “We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored. We will keep at it until we are confident the job is done.”
We’re covering this important topic at our HousingWire Annual event Oct. 3-5.Register here to join us in Scottsdale, Arizona.
But few can compare to the Falcon Nest home in Prescott, Arizona.
And while the property may also be known as The Palsolaral House, we’re going to keep referring to it as the Falcon Nest — a title fit for a villain’s lair, a rather appropriate potential role for this quirky house.
The 10-story home, designed by Phoenix architect Sukumar Pal, is a unique residence that once held the title of “world’s tallest home”, which it lost in favor of the South Mumbai home of business magnate Mukesh Ambani — a true high-rise, counting 27 stories.
And if you want a home that’s truly unique (and don’t mind relocating to the Copper State), know that the Falcon Nest home is headed for auction on May 25. That means you can snag the architectural wonder for considerably less that the $1.5 million price tag, with the bid starting at $750,000.
10 Stories of Unique Living Space
The 6,200-square-feet of living space are neither common, nor forgettable.
Featuring expansive glass ceilings and striking views that stretch for miles, the Falcon Nest’s interiors are equally unique as its exteriors, making it a true architectural rarity.
With three bedrooms and four baths, the Palsolaral House also comes with an impressive 2,000-square-foot solarium, also equipped with two bedrooms, two baths, and a kitchen.
A hydraulic elevator provides access from the garage level to the sixth floor. With minimal energy consumption, a small footprint, and utilizing natural elements to heat and cool the home free from cost, the home exemplifies passive solar technologies and alternative power sources.
If you’re considering joining the auction that takes place on May 25, 2017 on Concierge Auctions’ mobile bidding app, here’s a photo tour of the unique property:
Iowa is a growing, thriving state with plenty of things to offer residents. With so many choices available, it can be tough to decide on the best bank. Once you’ve made sure your bank of choice is insured by the Federal Deposit Insurance Corporation, there are other factors to look at, including whether you’ll find branches in your area and what fees you’ll be charged. This list can help you decide.
11 Best Banks in Iowa
Before you open a new bank account, take a look around at the best banks in your area. Here are a few to consider.
1. Hills Bank
Hills Bank has branches in the Cedar Rapids, Marion, Iowa City, and Mount Vernon areas, but you can access funds nationwide through thousands of SHAZAM and MoneyPass ATMs. There are three tiers of checking accounts, but Free Checking has no maintenance fees and no minimum balance requirements.
Fees:
No monthly fees
$27 overdraft fee
Balance requirements:
No minimum balance
No minimum opening deposit
ATMs:
Free at Hills, SHAZAM, and MoneyPass locations
No fee for out-of-network transactions
Interest rates:
Up to 0.40% on savings accounts
Up to 4.43% on fixed-rate CDs
Additional perks:
In-person banking services available at branches throughout Iowa
Competitive rates on CDs
2. Bank Iowa
Bank Iowa is an Iowa-only bank with branches in five areas, including Iowa City, but there are no branch-based banking services in Cedar Rapids. You’ll find five checking account options, including two with no monthly maintenance fee or minimum balance.
Fees:
No monthly maintenance fees
$35 overdraft fee
Balance requirements:
No minimum balance
$10 minimum opening deposit
ATMs:
Free access at Bank Iowa ATMs and SHAZAM locations nationwide
$2 for out-of-network withdrawals
Interest rates:
Up to 0.19% on savings
Up to 1.28% on money markets
Up to 2.56% on CDs
Additional perks:
Checking accounts come with complimentary identity theft services
Competitive rates on personal and home loans
3. GO2Bank
If an online bank can meet all your banking needs, GO2Bank might be the best bank. You can easily manage your funds through the mobile banking app, and you’ll also have access to a nationwide network of ATMs and retailers for deposits and withdrawals. As long as your paycheck is automatically deposited, you’ll pay no monthly maintenance fees, but otherwise, it’s only $5 per statement cycle.
Fees:
No monthly fee with direct deposit
$15 overdraft fee for every transaction not paid within 24 hours
Balance requirements:
No minimum balance
No minimum opening deposit
ATMs:
Free access at AllPoint locations nationwide
$3 for out-of-network withdrawals
Interest rates:
Up to 4.50% annual percentage yield on savings account
Additional perks:
Deposit cash at more than 90,000 retailers nationwide
Earn up to 7% cash back on gift card purchases
4. Regions Bank
If you limit your travel to the southern and Midwestern U.S., Regions Bank might be a contender for your business. This regional bank covers Iowa, along with Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Texas.
As long as you have at least one $500 check deposited directly each month, you can get free checking. But banking services like loans and a financial advisor upon request make this bank really stand out.
Fees:
$8 monthly (waived with qualifying activity)
$50 minimum opening deposit
Balance requirements:
$1,500 minimum balance or $500 direct deposit to qualify for free checking
$36 overdraft fee
ATMs:
More than 2,000 ATMs
$2.50 per withdrawal at out-of-network ATMs
Interest rates:
Up to 0.01% APY on savings
Up to 4.75% on CDs
Additional perks:
Wide range of banking products
Wealth management services available
5. Northwest Bank
Based in Spencer, Iowa, Northwest Bank is a family-owned bank with locations in both Iowa and Nebraska. Northwest is considered one of the best banks in Iowa for its quality customer service and great rates on checking. Currently, Northwest Bank is offering a $100 bonus on each new checking account as long as you sign up for new products like e-statements, Zelle, and BillPay.
Fees:
No monthly fee
$28 overdraft fee
Balance requirements:
No minimum balance
$10 minimum opening balance
ATMs:
Free at MoneyPass ATMs nationwide
$2 per withdrawal at out-of-network ATMs
Interest rates:
0.01% APY on qualifying checking accounts
.001% APY on savings
Up to 2.25% APY on money markets
0.03% on CDs
Additional perks:
$100 cash bonus to qualifying new accounts
1.50% cash back on debit card purchases ($8 limit)
6. Chime
Another online and mobile banking option is Chime, which offers all the amenities of bigger banks without the cost. Online banking options include a checking account with autosave features to help you meet your financial goals. Chime’s savings accounts offer 2% APY, which is competitive with what other banks in Iowa are offering.
Fees:
No monthly fee
No charges for overdrafts
Balance requirements:
No minimum balance
No minimum opening deposit
ATMs:
Fee-free at Allpoint and MoneyPass ATMs
$2.50 fee for each out-of-network ATM transaction
Interest rates:
2% APY on savings accounts
Additional perks:
Pay accessible up to two days early
Automatically round up each debit card purchase to build your savings account
7. CIT Bank
Another online banking option is CIT Bank, which has no local branches. CIT’s bank accounts come without monthly charges, including no overdraft fees, but there is a downside. CIT Bank’s ATM network is nonexistent. You’ll be reimbursed up to $30 a month in out-of-network costs, though.
Fees:
No monthly fee
No charges for overdrafts
Balance requirements:
$25,000 minimum balance or $100 monthly deposit
$100 minimum opening deposit
ATMs:
Up to $30 in ATM costs refunded per month
Interest rates:
Up to 0.46% APY on savings
Up to 1.55% APY on money market
5% APY on CDs
Additional perks:
Great rates on CDs
Savings Builder account motivates you to save at least $100 monthly
8. Fidelity Bank & Trust
Fidelity Bank & Trust is a community bank with a hometown feel. It has more than 30 branches in Northeast Iowa, Northwest Illinois, and Southwest Wisconsin. The bank offers robust online and mobile banking options, as well as money management help through its investment services team.
Fees:
No monthly fee
$30 overdraft fee
Balance requirements:
No minimum balance
$50 minimum opening balance
ATMs:
Free at Fidelity Bank locations across Northeast Iowa
Free at SHAZAM ATMs nationwide
Interest rates:
0.05% APY on qualifying checking accounts
0.05% APY on savings
Up to 0.50% APY on money markets
Up to 4.77% on CDs
Additional perks:
myPIC debit card lets you add your photo to your card
Specialized Christmas and children’s savings account options available
9. Bank of America
Even though it’s a large national bank, Bank of America brings some of the benefits you get from a small bank. Customers can enjoy fee-free account types as long as they sign up for Preferred Rewards. But one of the biggest benefits is the nationwide network of branches and ATMs.
Fees:
$12 monthly fee (waived with qualifications)
$10 overdraft fee
Balance requirements:
$1,200 minimum balance or qualifying deposits to waive fee
$100 minimum opening balance
ATMs:
Free at Bank of America ATMs nationwide
$2.50 fee for each out-of-network ATM transaction
Interest rates:
0.04% APY on savings (with preferred rewards)
Up to 4.20% on CDs
Additional perks:
In-person service at branches and with virtual assistant at ATMs
Preferred Rewards programs offer discounts on accounts and loans
10. Bankers Trust
Based in Des Moines, Bankers Trust has banks in Iowa and Arizona. There are multiple accounts to meet your banking needs, including some checking accounts with tiered interest rates. New customers may be eligible for a $250 bonus by choosing a participating checking account.
Fees:
No monthly fee with at least 12 debit card transactions
$10-$30 overdraft fee
Balance requirements:
No minimum balance
$25 minimum opening deposit
ATMs:
Fee-free at Allpoint and MoneyPass ATMs
$2 fee for each out-of-network ATM transaction
Interest rates:
Up to 0.60% on checking
Up to 1.45% on savings
Up to 4.55% on CDs
Additional perks:
$250 bonus for new BreakFree or Direct Checking account
Education center provides training and information
11. MidwestOne Bank
If customer service is a priority, MidwestOne Bank is one of the best banks in Iowa. This regional bank has 45 branches across Iowa, as well as Minnesota, Wisconsin, Colorado, and Florida. You’ll also find great rates on auto and personal loans with MidwestOne.
Fees:
No monthly fee
$35 for overdrafts
Balance requirements:
No minimum daily balance
$100 minimum opening deposit
ATMs:
Fee-free at MoneyPass ATMs
$1 fee for each out-of-network ATM transaction
Interest rates:
Up to 0.75% APY on savings
Up to 1.00% APY on money market
Up to 2.47% APY on CDs
Additional perks:
Bank Your Change automatically rounds up debit purchases to put toward savings
Competitive rates on personal loans
Bottom Line
The best banks in Iowa offer great customer service and easy access to your funds. To ensure you make the right choice, consider not only these factors, but also the range of financial products, convenience, and technological innovation each bank provides. As you compare different banks, keep in mind your specific financial needs, preferences, and goals, such as low fees, high interest rates, or specialized services.
Once you’ve found the best bank, it’s essential to regularly review your account and stay informed about new offers and changes in rates and amenities. By doing so, you can maximize your financial benefits and adjust your banking relationship as your needs evolve. Ultimately, the best bank for you will consistently deliver on all fronts, helping you achieve financial stability and success in Iowa.
A fraud alert is a temporary alarm system set up on your credit account that will inform you if there are any changes in your account. A credit freeze is a freeze placed on your credit file that blocks lenders from viewing your report without authorization.
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.
Fraud alerts and credit freezes are two methods for protecting yourself from identity theft. But they’re not the same thing, and if you understand the pros and cons of each, you can decide which is best suited to your needs. A fraud alert requires creditors to verify your identity before allowing new credit accounts to be opened, whereas a credit freeze stops new credit accounts from being opened in your name.
So, what’s the right choice for you in the fraud alert vs. credit freeze debate? Keep reading for a complete breakdown of both options.
What is a fraud alert?
A fraud alert is when you put an added layer of security on your credit report that forces all lenders and financial institutions to verify your identify before approving a new credit account being opened. Typically, the creditor will call you whenever a new account request is initiated to confirm you’re the one asking for the account.
People typically use a fraud alert if they’ve been a victim of identity fraud or if they suspect their information has been compromised. While a fraud alert adds some protection to your account, it’s not a guarantee, and there are still ways scam artists can get around the identity check.
There are three main types of fraud alerts:
Standard fraud alert: A standard fraud alert typically lasts one year but can be renewed as many times as needed. Individuals don’t need to be victims of identity theft to activate this kind of fraud alert on their accounts.
Extended fraud alert: An extended fraud alert lasts for seven years. This option is only available to those who’ve been victims of identity theft. To qualify, you have to file a report with the police or the FTC’s IdentityTheft.gov website. In addition to verifying your identity with each new account request, the extended fraud alert will remove you from marketing lists for credit and insurance offers for the next five years. However, if you want to remain on this list, you can choose to do so.
Active-duty fraud alert: The active-duty fraud alert is only for military service members. When individuals go on active duty assignments, they can apply for this type of fraud alert to protect their accounts while they’re abroad. The alert typically lasts one year but can be renewed as long as the individual is deployed. In addition, they’ll be removed from marketing lists for two years unless they request otherwise.
Fraud alerts are self-imposed and free to add to your account.
How do you place a fraud alert?
You can place a fraud alert on your account by reaching out to one of the three major credit bureaus—Experian®, Equifax®, or TransUnion®. After you notify one bureau, it’s their responsibility to inform the others. You can set up a fraud alert online or contact any of the bureaus by phone with this request. You’ll need to submit your proof of identity to successfully set up the fraud alert.
How do you remove a fraud alert?
Fraud alerts are automatically lifted from your account after the applicable deadline (one year for standard and active-duty alerts and seven years for extended alerts). However, if you want to remove the fraud alert earlier, you can. You’ll need to contact each credit bureau separately and request that the fraud alert be lifted. As was the case with setting up the alert, you’ll need to provide proof of your identity to remove the alert from your account.
What is a credit freeze?
A credit freeze offers even more protection than a fraud alert. Essentially, a credit freeze stops anyone from accessing your credit report. This effectively prevents anyone from being able to open a new account under your name, as creditors need to review your report before approving a new application. You’ll be able to open new accounts only when you “thaw” or “unfreeze” your account.
How do you freeze your credit?
To freeze your credit, you’ll have to contact each of the three major credit bureaus separately. Note that fees are usually associated with a credit freeze, with the exact amount varying by state. On average, expect to pay around $10 per bureau for a credit freeze. You can apply for a credit freeze online or via phone for all three bureaus.
When you’re setting up a credit freeze, you’ll be asked to set up a PIN or password, which can later be used to unfreeze your account.
How do you unfreeze your credit?
Your report will stay frozen until you choose to “thaw” it. This means that you need to unfreeze your credit before applying for more credit, and this is usually the driving factor that motivates people to thaw their accounts. Often, people want to get a new credit card, loan, or mortgage or apply for a rental lease or some other credit account and need to give the lender access to their credit report.
To unfreeze your account, you’ll need to contact each of the credit bureaus and provide your PIN. There may be a small fee associated with unfreezing your account with each agency. Once you put in a request to unfreeze your account, the change can take from as little as a few minutes to up to three days. As a result, it’s essential to give yourself plenty of time for the account to thaw before the lender goes to access your report.
If you lose your PIN, unfreezing your account will still be possible, but it’ll take longer to approve.
Do fraud alerts or credit freezes affect your credit?
No, fraud alerts and credit freezes don’t affect your credit. In fact, they can protect your credit from identity fraud attempts. Identity fraud is a serious situation that can significantly drag your credit score down and take months to years to clear up on your credit report.
Which option is right for you?
Ultimately, each individual needs to decide which option is right for them based on their situation. Some of the popular situations to consider that might call for either a fraud alert or a credit freeze are:
You’re in the process of or about to begin getting a mortgage, auto loan, lease, or another account: In this case, you don’t want to go through with a credit freeze, as access to your credit report will be necessary to approve your new application. Instead, a fraud alert should be sufficient to protect you.
You’ve been a recent victim of identity theft or know your information has been compromised: If you’re seriously concerned about identity theft, you should likely opt for a credit freeze, as it’s more protective.
If you know you don’t need new credit for a while: Older people often are settled with all their credit needs—a mortgage, car loan, credit cards, etc. Therefore, they can comfortably assume they won’t be applying for new credit anytime soon and might feel more protected with a credit freeze.
Note that you can have both hypothetically, although it might be somewhat redundant. Generally, most experts recommend choosing one or the other.
Even with a credit freeze or a fraud alert on your account, it’s still crucial for you to check for fraudulent charges on your cards and look for red flags on your credit reports. You never know when something could slip through, and if it does, it’s crucial to act quickly. The longer something remains on your credit report, the longer it will impact your credit and be harder to rectify.
If you don’t have the time or desire to check your credit reports, you can take advantage of the services provided by Lexington Law Firm. Our credit consultants will help you review your credit reports and file disputes if needed. Removing even one error from your credit report could result in a credit score increase. Get started 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.
Tuesday’s housing starts report clearly shows that homebuilders are going to be done with single-family construction until mortgage rates fall. Housing completion data is still struggling to get some traction, but in the coming months, builders should be able to get more housing completions done while housing permits and starts for single-family homes are in decline. If it wasn’t for solid rental demand boosting multifamily construction this year — 18% year to date —this data line would have looked much worse.
From Census:
Privately‐owned housing starts in July were at a seasonally adjusted annual rate of 1,446,000. This is 9.6 percent (±8.6 percent) below the revised June estimate of 1,599,000 and is 8.1 percent (±11.9 percent)* below the July 2021 rate of 1,573,000. Single‐family housing starts in July were at a rate of 916,000; this is 10.1 percent (±10.8 percent)* below the revised June figure of 1,019,000. The July rate for units in buildings with five units or more was 514,000.
Of course, housing starts today aren’t collapsing in the way they did from the peak of 2005 because we haven’t had a sales credit boom in recent years as we did from 2002-2005, which inflated new home sales toward 1.4 million.
Currently, we are in a much different housing recession than what we had from 2005-2011. The credit cycle looks much different now than the build-up from 2002-2005.
Why do I call it a housing recession? A recession is when total activity falls to a point where production reverses and jobs are lost. For now, the homebuilders will keep labor because they need to finish the homes they have in the pipeline. However, as new home sales have fallen, the future growth in construction is done until the builders feel comfortable building more single-family starts.
As we can see below, single-family starts are falling more noticeably than total housing starts, which is still being boosted by rental demand.
Total activity in the existing home sales marketplace is falling, which means less commission transfer in that sector. Loan originations are falling amid less demand from refinancing and purchase loans, which means jobs are lost in the mortgage industry. That aspect differs from the new home sales selector, which drives housing construction, construction jobs, and big-ticket purchases for those new homes. The recent decline in copper prices is very telling; even with a recent rebound in prices, things are slowing down on the housing construction side.
In March I wrote that the new home sales sector was at risk once the 10-year yield broke over 1.94%. Currently, the 10-year yield is at 2.81%, and mortgage rates above 5% have impacted this sector more significantly than the existing home sales market.
Recently I talked about how low rates have to go to get housing back in line. In the past, builders benefitted when mortgage rates fell toward 4% and below. While we have had more than a 1% + move in rates, we are still over 5%. We can see that the builder’s confidence data has collapsed recently, going below 50 for the first time in a while, with the last print being at 49.
NAHB:
I raised the fifth recession red flag tied to housing in June, knowing that the growth rate in construction was done for this cycle until mortgage rates fell again. In 2018, when mortgage rates rose to 5%, the builders paused construction for 30 months; they were mindful of supply in the new home sales sector. We have 9.3 months of supply but of that number, 6.22 months of supply is under construction and 2.24 months of supply hasn’t even been started yet
For sure, it’s a much different housing cycle because housing completion data has been prolonged during the COVID-19 recovery. Now that demand is falling, the builders will take their time finishing these homes to ensure they have buyers ready to move in once the homes are completed.
From Census: Housing Completions Privately‐owned housing completions in July were at a seasonally adjusted annual rate of 1,424,000. This is 1.1 percent (±14.8 percent)* above the revised June estimate of 1,409,000 and 3.5 percent (±15.5 percent)* above the July 2021 rate of 1,376,000. Single‐family housing completions in July were at a rate of 1,009,000; this is 0.8 percent (±12.2 percent)* below the revised June rate of 1,017,000. The July rate for units in buildings with five units or more was 412,000.
During the housing bubble years, housing starts, permits, completions, credit, and prices moved together. That is not the case here, as housing completions still lag, although things are improving on the supply front.
Over time, housing permits will fall more noticeably as long as mortgage rates stay high. When the homebuilders’ confidence turns, housing permits should stimulate growth. We aren’t there yet, but the builder’s confidence data will give us the first clues when things are improving.
From Census: Building Permits Privately‐owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,674,000. This is 1.3 percent below the revised June rate of 1,696,000, but is 1.1 percent above the July 2021 rate of 1,655,000. Single‐family authorizations in July were at a rate of 928,000; this is 4.3 percent below the revised June figure of 970,000. Authorizations of units in buildings with five units or more were at a rate of 693,000 in July.
The housing construction data looks right to me; the downtrend in activity in permits and starts should still be with us for some time. The homebuilders don’t build for charity — they’re here to make money. Also, they are facing more competitive inventory since the number of existing homes is increasing, and those are cheaper. So, they will take their time to build the homes already under construction and those homes they haven’t started on yet.
When mortgage rates fall, the narrative can change, but we aren’t there yet. Solid rental demand is keeping the multifamily construction going, but the weakness in single-family starts is here to stay; expect single-family starts to have their first decline since 2011.
We’re covering this important topic at our HousingWire Annual event Oct. 3-5 where Logan is a featured speaker. Register here to join us in Scottsdale, Arizona.
Would you like to open a checking account, but you’re worried that your bad credit and past banking history might get in the way? With these issues, it can be difficult to open a new bank account.
20 Best Bank Accounts for Bad Credit
Regardless of your banking history, there are numerous banks and credit unions that offer bad credit checking accounts, all with unique features and benefits.
1. Chime
Our Top Pick
No minimum opening deposit or monthly service fee
Over 60,000 fee-free1 ATMs
Get paid up to 2 days early with direct deposit2
No credit check or ChexSystems
With Chime®, a bad credit score is no longer a deal-breaker. They offer an award-winning financial app and debit card with no credit check.
You can open a Chime Checking Account online with no monthly fees. And by that, we mean no overdraft fees, no monthly maintenance fees, no foreign transaction fees, and no minimum balance fees—ever.
Chime also offers a new way to build your credit with the Chime Credit Builder Secured Visa® Credit Card7. It’s a secured credit card with no annual fees, no credit checks, and no interest1 charges.
They offer access to over 60,000 MoneyPass® and Visa® Plus Alliance ATMs. Plus, you can get your paycheck up to 2 days earlier with direct deposit. You can also deposit cash for free at over 8,500 Walgreens.
Chime is definitely the best option on this list.
2. U.S. Bank
$400 sign-up bonus
Monthly service fee can be waived
Over 40,000 fee-free ATMs
$25 minimum opening deposit
U.S. Bank is now offering the Bank Smartly® Checking account, a popular choice that can be applied for online in 26 states throughout the U.S.
If you’re based in any of the following states – AR, AZ, CA, CO, IA, ID, IL, IN, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, UT, WA, WI, or WY – you’re eligible to apply.
By opening a Bank Smartly® Checking account and a Standard Savings account, and completing qualifying activities, you have the potential to earn up to $400. Subject to certain terms and limitations. Offer valid through June 20, 2023. Member FDIC.
The account itself provides a variety of benefits, including a complimentary debit card that can be locked or unlocked if ever misplaced or stolen. U.S. Bank ATMs offer free transactions, as do over 40,000 MoneyPass Network ATMs.
Although U.S. Bank uses ChexSystems, it’s typically known to be more accommodating with its regulations than many other banks. Unless there’s a history of fraud or any money owed to U.S. Bank, opening a checking account is a possibility.
The checking account requires just a $25 minimum opening deposit, with a monthly service fee of $6.95. The monthly fee can be waived by maintaining a minimum balance of $1,500, or by having a minimum monthly Direct Deposit of $1,000.
3. GO2bank
4.50% APY on savings up to $5,000
No minimum opening deposit
Build credit with no annual fees
Overdraft protection up to $200
GO2bank is a neobank developed by Green Dot, is a neobank developed by Green Dot, a well-established fintech known for its prepaid debit cards and banking services.
The bank offers a checking account with savings subaccounts known as vaults, and the best part is that there is no minimum balance required to open an account online.
The savings account offers an attractive 4.50% APY on savings up to $5,000. Additionally, you can deposit cash at any of the 90,000 retail locations or withdraw funds from any of the 19,000 fee-free ATMs.
You can also use the mobile app’s check deposit feature to deposit checks directly into your checking account.
With direct deposit, you can even receive your pay up to 2 days early or your government benefits up to 4 days early. Opt-in for overdraft protection and be eligible for up to $200 in coverage with eligible direct deposits.
Responsible use of the GO2bank Secured Visa Credit Card can also help you build your credit over time.
If you receive a payroll or government benefits direct deposit in the previous monthly statement period, your monthly fee is waived. Otherwise, it is only $5 per month.
4. Chase
$100 bonus after 10 purchases in 60 days
No credit check or ChexSystems
Over 16,000 fee-free ATMs
$4.95 monthly fee
Chase is one of the most popular banks in the U.S. And now, they offer an account called Chase Secure Banking that doesn’t require a credit check, doesn’t use ChexSystems, and doesn’t charge overdraft fees.
Account holders also get access to over 16,000 ATMs, free online bill pay, and free money orders and cashier’s checks.
With 4,700 locations across the country, this is an excellent option for anyone who prefers having access to physical branches.
Opening a Chase Secure Banking account comes with a $100 cash bonus when you use the card for 10 purchases within 60 days.
Account approval is immediate and you’ll receive your debit card within days. There is a small monthly service fee of $4.95; however, there is no minimum deposit to get started.
5. mph.bank
Earn 4.70% APY on unlimited savings
No minimum balance to open
Get paid up to two days early
Free withdrawals at over 55,000 ATMs
mph.bank, created by Liberty Savings Bank, F.S.B. and a Member FDIC, is a banking option that truly stands out for its unique approach. MPH, which stands for ‘Makes People Happy’, is not just a slogan – it’s a philosophy that permeates every aspect of their banking services.
They offer five different bank accounts, but the standout offering is their Future Account. This account lets you earn an impressive 4.70% APY on your savings, with no minimum balance to open and no maximum balance for the rate.
Alongside this, mph.bank offers a Spend account that allows you to receive your paycheck two days earlier.
Accessing your money is easy with mph.bank, as they are part of the Allpoint network, offering you free access to over 55,000 ATMs.
In addition to these features, mph.bank has a host of financial tools available. From planning for your future to managing your finances on one page, mph.bank ensures that you have the necessary resources at your fingertips.
6. Current
No credit check or ChexSystems
No minimum deposit or maintenance fees
Get paid up to two days faster
Overdraft up to $200 without any overdraft fees
Current is one of the fastest-growing mobile banking solutions in the U.S., with over one million members. However, Current is a financial technology company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit.
Some features of the Current mobile app and debit card include fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance or hidden fees.
You can also get paid up to two days sooner with direct deposit and earn up to 15x points, and get cashback.
7. Walmart MoneyCard
No monthly fee with direct deposits of $500 or more
Earn up to 3% cash back on purchases
Overdraft protection covering up to $200 with eligible direct deposits
2% APY on savings
The Walmart MoneyCard is a prepaid debit card that offers a robust alternative to traditional checking accounts.
This card stands out with its cash back rewards program, offering up to 3% cash back when shopping at Walmart.com, 2% at Walmart fuel stations, and 1% at Walmart stores, up to a total of $75 each year.
Users can also enjoy the peace of mind offered by the overdraft protection feature, covering up to $200 for purchase transactions with opt-in and eligible direct deposits.
The ASAP Direct Deposit feature is another great perk, allowing users to receive their pay up to two days earlier and benefits up to four days earlier.
Additionally, with the Walmart MoneyCard, you can earn a 2% APY on savings and have chances to win cash prizes each month. The monthly fee of $5.94 can be waived with a direct deposit of $500 or more in the previous monthly period.
8. Revolut
No monthly fee
Earn up to 4.25% APY on savings
Cash withdrawals at more than 55,000 ATMs
Commission-free stock trading
Revolut is a financial app that comes with a prepaid debit card from Visa or Mastercard. However, you don’t need to wait for the physical card to get started. You can use the digital card right away on Apple Pay or Google Pay.
The Revolut debit card gets you fee-free access to over 55,000 ATMs, and no cost out-of-network ATM withdrawals up to $1,200 per month. You’ll also get 10 zero-fee international transfers per month.
This account offers cashback, discounts from top brands, a savings account, and more. Plus, your funds are insured by the FDIC for up to $250,000.
* Please note that Revolut is frequently updating its products and features, see the Revolut Terms and Conditions for the latest offerings.
* Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank, (Member FDIC).
9. TD Ameritrade
No monthly fee
Unlimited fee refunds for U.S. ATMs
Free TD Bank debit card
Free checks and unlimited check-writing capabilities
TD Ameritrade offers a brokerage account with a comprehensive cash management checking account. As a client, you get unlimited checks. Once you open the brokerage account, you can complete the checking account application online.
A Cash Management account also gives you access to free online bill pay, as well as a free debit card with nationwide rebates on all ATM fees.
In addition, there is no monthly fee if you maintain a $100 minimum daily balance. However, it’s important to note that a TD Ameritrade checking account is not FDIC-insured or bank guaranteed.
10. Albert
No minimum balance
Cash advances up to $250
No maintenance fees
Free ATMs at over 55,000 locations
Albert is an innovative fintech banking platform that presents a powerful alternative to traditional bank accounts.
It sets itself apart with its attractive cashback rewards program attached to its free Mastercard debit card, making it your perfect shopping companion.
Moreover, it offers an around-the-clock personal finance help feature, “Ask a Genius”, ensuring you’re never in the dark about your money matters.
In addition, with Albert, you can have your paycheck up to 2 days early thanks to the direct deposit feature. This takes financial planning to a whole new level by ensuring you’re always ahead.
Albert is also a cost-saving alternative. There are no minimum balance requirements, no monthly maintenance fees, and you enjoy access to more than 55,000 ATMs, fee-free if you’re a Genius subscriber.
Finally, Albert ensures your money’s safety with FDIC protection up to $250,000. This adds an extra layer of security to your funds, allowing you to bank with confidence.
11. SoFi
With the SoFi Checking and Savings account, you won’t have to worry about being charged any overdraft fees, minimum balance fees, or monthly fees.
Plus, it offers free access to ATMs at over 55,000 locations within the Allpoint® Network. Similar to Chime and Current, you can get your paycheck up to two days sooner when you set up direct deposit.
You’ll also get a 1% APY on your checking and savings accounts and up to 15% cash back at local establishments with your SoFi debit card.
12. Navy Federal Credit Union
If you are an active-duty or retired member of the military, including the Armed Forces, National Guard, Coast Guard, or Department of Defense, you may be eligible for Navy Federal Credit Union membership.
NFCU doesn’t utilize ChexSystems or EWS. They also offer a free checking account alternative with no monthly service fees for those with qualifying direct deposits.
Additionally, NFCU offers its members convenient access to over 30,000 ATMs situated at both credit unions and retail locations across the United States and Canada through the CO-OP Network.
13. Aspiration
With the Aspiration Spend & Save account, you get an online checking account and savings account that has the potential to earn up to 5% APY.
Aspiration also offers unlimited cash withdrawals at over 55,000 ATMs. The minimum initial deposit is $10. Deposits are FDIC insured and you can get paid up to two days sooner.
The Aspiration debit card is made from recycled plastic. Deposits are 100% fossil fuel-free. And this online bank even gives you the option to plant a tree with every card swipe.
14. Southwest Financial Federal Credit Union
Southwest Financial presents a reliable banking option that prioritizes the financial wellbeing of its members. With no monthly service fees, it offers a cost-effective solution to managing your everyday finances.
Opening an account is easy and requires no minimum deposit. As a member of Southwest Financial Federal Credit Union, you enjoy the convenience of accessing your funds through a shared network of ATMs.
15. FSNB
FSNB (formerly Fort Sill National Bank) offers a hassle-free Basic Checking account to its customers, with a $5 minimum deposit requirement.
With the Basic Checking account, you need to maintain a minimum daily balance of $75. Otherwise, you’ll be charged a monthly fee of $5.50.
This account comes with a host of convenient features, including a Visa CheckCard that allows you to make purchases and withdraw cash at ATMs worldwide. Additionally, FSNB offers free online banking services, giving you access to your account from the comfort of your home or office.
16. Wells Fargo
Wells Fargo’s Clear Access Banking offers a practical, accessible checking account designed to suit various banking needs. While there is a $5 monthly service fee, this fee is waived for primary account owners aged 13 to 24.
With a minimal opening deposit of just $25, setting up Clear Access Banking is straightforward and affordable. As an account holder, you’ll have the convenience of accessing your funds through Wells Fargo’s extensive network of 13,000 ATMs and 5,300 branches across the country.
17. United Bank
United Bank has locations in Maryland, Ohio, Pennsylvania, Virginia, West Virginia, and Washington, DC. You can open a bank account with a $50 minimum initial deposit. You do not have to maintain a minimum balance and they don’t charge monthly fees.
You can also upgrade to rewards checking, where you earn cashback rewards on debit card purchases. You also get discounts on movies, theme parks, and prescriptions. The monthly service charge is $10, but you can have it waived if you reach 15 purchase transactions monthly or have a minimum of $500 in regular deposits.
18. Huntington National Bank
Huntington has locations in Arizona, Colorado, Illinois, Indiana, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin.
Huntington Bank uses ChexSystems, but you can still qualify for a checking account as long as you don’t owe the bank any money. However, applicants with an EWS record may not qualify.
For Huntington’s basic account, there is no minimum opening deposit and no minimum balance requirement.
19. Varo
Varo is an online-only bank that offers a hassle-free banking experience with no monthly fees. As a Varo customer, you’ll gain access to early direct deposit payments, which means that your funds will typically be available on the same day they’re received.
Varo Bank knows that just because you need second chance banking doesn’t mean you want sub-standard service. The checking account comes with a free Visa debit card, access to over 55,000 Allpoint ATMs, and free paper check mailing.
20. Regions Bank
You’ll need a minimum opening deposit of $50 to open a Simple Checking Account at Regions Bank. This account doesn’t come with too many bells and whistles. However, it’s a suitable option for anyone with bad credit who wants a basic checking account.
Regions Bank will lower your monthly maintenance fee from $8 to $5 if you sign up for online statements. And you’ll have the option to open a savings account through Regions Bank as well.
What is a bank account for bad credit?
A bank account for bad credit is a type of account designed for people with negative banking records. These people are usually turned away from traditional banks and credit unions because of past instances of bounced checks, overdrawn accounts, or unpaid non-sufficient fund fees.
Fortunately, some financial institutions provide bad credit bank accounts that offer basic banking services such as a debit card, online banking access, and check writing privileges. Direct deposit is also available with some of these bank accounts, which makes it easy to access your income sources.
Bad credit checking accounts are typically easy to open, with minimal fees and most importantly, no credit checks or ChexSystems reports.
How do banks evaluate new account applications?
Opening a bank account can be a straightforward process, but it’s not uncommon for applicants to be turned down or offered limited options. That’s because financial institutions have criteria they use to determine who qualifies for a bank account and what type of account they can offer.
One of the most important factors that banks consider when you apply for a new account is your banking history. To assess this, most banks will check your ChexSystems report, which is a database of your past banking transactions. This report includes information such as any unpaid fees or overdrafts, closed accounts due to fraudulent activity, and other negative marks.
If you have a negative history in ChexSystems, such as unpaid fees or a history of overdrafts, it can be more challenging to open a bank account. In some cases, the bank may decline your application altogether or offer you a limited account that doesn’t allow you to write checks or use a debit card.
Another factor that banks make consider is your credit history. Some banks may pull your credit report from the three major credit bureaus Equifax, Experian, and TransUnion, but most don’t.
Your credit report is typically accessed by credit card issuers and lenders to assess your creditworthiness when you apply for loans or credit cards. But for bank accounts, your ChexSystems record is generally more important.
What is ChexSystems?
ChexSystems is a consumer reporting agency that collects user data from banks and credit unions. One of the things this data is used for is to create consumer reports that financial institutions can use to screen customers.
When attempting to open a new bank account, most financial institutions will pull your ChexSystems report. This report will show your past banking history including overdrafts, bad checks, check fraud, negative balances, or excessive withdrawals.
If you’ve had any of these issues in the past five years, it will likely be on your ChexSystems record. Fortunately, there are several reputable banks that don’t use ChexSystems or check credit to qualify customers. There are also numerous banks that offer second chance checking accounts for people with bad credit.
Can you open a bank account with no credit check?
Opening a no-credit-check bank account is easier than ever, with plenty of reliable banking services to choose from. There are two types of bank accounts for bad credit: banks that don’t use ChexSystems and second chance checking accounts.
Banks that Don’t Use ChexSystems
Some banks simply do not use ChexSystems to evaluate new accounts. These banks offer no-credit-check bank accounts for people with bad credit or a negative banking history.
The good news is that these accounts come with the same features as regular bank accounts offered to everyone else. You can expect to have access to online banking, direct deposit, and a debit card.
Second Chance Checking Account
With a second chance bank account, financial institutions may conduct a credit check or refer to ChexSystems, but they’re willing to give you a second chance regardless of your banking history. Second chance bank accounts usually come with a monthly maintenance fee.
The best second chance checking accounts still have some of the same features as ChexSystems banks and credit unions, such as overdraft protection, online banking, and bill pay. Additionally, it should be possible to upgrade to a standard checking account after demonstrating responsible banking habits.
What to Look for in a Bad Credit Checking Account
If you’re struggling with poor credit history, you might be wondering how to find a checking account that meets your needs while also helping you rebuild your financial reputation. Fortunately, there are several banks that offer checking accounts for bad credit. Here are some key factors to consider:
No Credit Checks
The first thing to look for is a bank or credit union that doesn’t look at your credit report or ChexSystems record when opening a checking account.
Many institutions also offer “second chance” or “fresh start” checking accounts designed specifically for individuals with poor credit or past banking issues. These checking accounts provide an opportunity to rebuild your financial standing, and often offer the option to upgrade to a traditional checking account after a certain period of time.
Low or No Minimum Balance Requirement
When you’re trying to rebuild your credit, every dollar counts. Look for a checking account that doesn’t require you to maintain a specified balance. This way, you won’t be charged fees for falling below a certain balance threshold. This will help you keep more money in your pocket and avoid unnecessary expenses.
Reasonable Account Fees
It’s important to be aware of the fees associated with checking accounts, especially if you have bad credit. Be sure to compare the monthly maintenance fees, overdraft fees, and any other charges associated with the account.
Many online banks offer checking accounts with no monthly fees or waive them if certain conditions are met, such as maintaining a minimum account balance or setting up direct deposit.
Online and Mobile Banking Features
In today’s digital age, having access to online and mobile banking is essential. Look for a checking account that offers a user-friendly mobile app and website, enabling you to manage your money on-the-go. These features should include the ability to check your balance, transfer money, pay bills, and deposit checks remotely.
Account Alerts and Notifications
Opt for a checking account that offers customizable account alerts and notifications. These can help you stay on top of your account activity, track your spending habits, and avoid a potential overdraft fee. You can typically set up alerts for low balance, large transactions, or unusual activity.
Overdraft Protection
Overdraft fees can be a significant burden, especially for people with bad credit. Look for a checking account that offers overdraft protection, which can help you avoid costly overdraft fees. Some banks may offer linked accounts, lines of credit, or small-dollar loans to cover overdrafts.
FDIC or NCUA insurance
Ensure that your checking account is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This insurance protects your cash deposits up to $250,000 per account holder in case the bank or credit union fails.
Opportunities for Financial Education
Finally, look for a financial institution that offers resources and tools to help you improve your financial literacy. This might include budgeting tools, educational articles, or workshops. The more you understand about managing your money, the better your chances of rebuilding your credit and maintaining a healthy financial future.
Bottom Line
Having poor credit doesn’t mean you can’t get a bank account. But, it does mean that your selection will be somewhat limited. We also show you how to clear your name and remove yourself from ChexSystems so that you can get a bank account anywhere.
It may take some time to get your name removed. Meanwhile, some of the banks we’ve listed above are just as good, if not better, than any account on the market right now. So, it’s a good idea to start with one of those.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
7. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
For college seniors, the spring season means looking forward to graduation – and life beyond the college campus.
To help college graduates as they look both for work and a new place to live, Apartment Guide consulted with Indeed, the number one job site worldwide, to bring together information to match the perfect apartment with the right job.
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Together, Indeed and Apartment Guide have researched the top cities with the most entry-level job openings, along with average rents for one and two bedroom apartments in these cities.
Here’s the list.
Top Ten Cities for Most Entry-Level Job Openings*
1. Washington, D.C.:
2-bedroom average rent: $1,755, average sq. ft: 985
1-bedroom average rent: $1,402, average sq. ft: 705
2. New York, NY:
2-bedroomaverage rent: $2,067, average sq. ft.: 1,014
1-bedroom average rent: $1,611, average sq. ft.: 722
3. Houston, TX:
2-bedroom average rent: $1,121, average sq. ft.: 1,024
1-bedroom average rent: $854, average sq. ft.: 660
4. Chicago, IL:
2-bedroom average rent: $1,318, average sq. ft.: 990
1-bedroom average rent: $1,013, average sq. ft.: 700
5. San Francisco, CA:
2-bedroom average rent: $2,337, average sq. ft.: 946
1-bedroom average rent: $1,864, average sq. ft.: 663
6. Dallas, TX:
2-bedroom average rent: $1,100, average sq. ft.: 1,024
1-bedroom average rent: $822, average sq. ft.: 673
7. Austin, TX:
2-bedroom average rent: $1,191, average sq. ft.: 1,006
1-bedroom average rent: $947, average sq. ft.: 655
8. Los Angeles, CA:
2-bedroom average rent: $2,011, average sq. ft.: 1,013
1-bedroom average rent: $1,566, average sq. ft.: 693
9. Atlanta, GA:
2-bedroom average rent: $962, average sq. ft.: 1,103
1-bedroom average rent: $795, average sq. ft.: 746
10. Phoenix, AZ:
2-bedroom average rent: $831, average sq. ft.: 967
1-bedroom average rent: $703, average sq. ft.: 705
A renting conundrum for the new graduate So these are the great cities where the most jobs are available, but can a recent graduate – and new employee – realistically afford to live in them?
Here’s the rub for the entry-level employee: overall, these metros are on the expensive side. All but two of these major cities cost over a grand to rent a two bedroom apartment, on average – and in two, the cost is over two thousand a month.
There are trade-offs, of course, between having a little more space and how much more you’ll pay in rent for that space. Note the difference in rents and square footage between one and two bedroom apartments in these cities.
An often-quoted rule of thumb is to try to keep the rent within 30 percent of overall income. For recent grads starting out in new careers, these rents and the overall cost of living in these places might present a real challenge to this goal, at least in the short term. That said, these are also amazing cities to live in. They offer a great quality of life, IF you can afford it!
There’s also the roommate solution. When you can split the rent, you and a roommate can experience a more expensive city together without breaking the bank. You might even choose to focus your search on cities where the rent is more affordable. In Atlanta, splitting a rent of just under one thousand a month makes this great Southern capital a reasonable place to pay for an apartment. For another cheaper, warm weather option, consider Phoenix.
A little support at home As you’re starting a new life around a new job in, perhaps, a new city, you deserve some support. After all, just moving to a new place is stressful enough. Apartment communities that offer helpful amenities can make settling in a little easier.
Many apartment communities offer services key to new professionals. A full-time Business Center can be an invaluable backup to a home office. A friendly space with shared wi-fi on-site can make connecting feel like more of a shared experience. Communities which offer electronic rent payment make that monthly responsibility a little easier to take care of.
All of these amenities and more can be searched via ApartmentGuide.com to help you find the right apartment for your needs, straight out of college.
*Methodology: Indeed.com looked at their job posting dataand determined these cities based on the number of postings per city associated with an Indeed.com search for “entry level” in March 2014. Apartment Guide looked at their internal listing data to determine the average rent and square feet for both a one-bedroom and two-bedroom apartment in these locations.
“He’s my little ball of sunshine,” Mallory Bartels says of her 13-year-old Boston terrier, Buddha. With his shiny black coat and white spots on his paws that look like socks, Bartels describes him as a sweet pup with a playful personality.
Buddha’s zest for life was apparent when he jumped off the couch in Bartels’ home near Seattle. The leap landed Buddha in urgent veterinary care with a ruptured disk and paralyzed legs that required spinal surgery.
On top of being “a bawling mess” at the vet, Bartels also received a vet bill for over $5,000. “I didn’t have savings or cash to pay for it,” she says.
According to the American Pet Products Association, Americans spent nearly $36 billion in veterinary care, surgical procedures, medication and other products through vet clinics in 2022. The APPA expects that number to increase by $1 billion in 2023.
How do pet owners pay for emergency pet care? Here are options plus tips to prepare when Fido or Fluffy takes a tumble and needs urgent help.
Ways to pay for emergency pet care
Savings
Savings is one of the best ways to pay for emergency vet care, says John Boyd, a certified financial planner and the founder of MDRN Wealth in Scottsdale, Arizona. He suggests clients have an emergency fund that totals three to six months of living expenses and includes money for pet care.
The type of pet can influence how much to put away. “If you’re like me and you have a Great Dane, and they’re prone to stomach issues that could cost up to $2,000, factor that into the equation when it comes to how much to save,” Boyd says.
Vet financing plans
Many vets and pet clinics offer financing plans, typically through a third party that partners with the vet. Some plans offer 0% interest financing and a quick approval process. Read the fine print to check the interest rate on the plan, and note that approval may require a hard credit check that will cause your score to dip a few points.
CareCredit Card
CareCredit is a financing option that specifically covers health care expenses for your family, including pets. You can apply online, and CareCredit typically offers 0% interest for six, 12, 18 or 24 months for expenses of $200 or more. However, if you don’t repay the full amount by the end of the promotional period, you’ll be charged interest retroactively from your original charge date.
Bartels used an existing CareCredit credit card to pay the vet bill for Buddha’s surgery. Because the account was already open, Bartels was outside the initial 0% interest period. She understood she’d be charged interest on the vet bill she put on CareCredit.
Credit cards
A credit card can be a convenient way to pay for emergency veterinary care if you have the available credit. However, credit card rates can be high, so paying off any accrued balance as soon as possible is important to avoid high-interest charges.
To save on interest, Bartels transferred her CareCredit balance to a credit card with a 0% annual percentage rate for 12 months. She paid a balance transfer fee, which was offset by the savings in interest. She had to add the monthly payments to her household budget, but the balance transfer card gave Bartels breathing room to pay it off.
Pet loans
Banks, credit unions and online lenders offer personal loans that can help pay for unexpected veterinary expenses. Personal loans typically have interest rates from 6% to 36% and two- to seven-year repayment periods. Depending on how much you qualify for, loans start at $1,000 and go up to $50,000 or more. For quick cash, such as in the case of a pet emergency, some lenders provide next-day funding.
For borrowers with strong credit, a personal loan may have a lower interest rate than a credit card to pay large vet bills. A shorter loan term can mean higher monthly payments but less total interest cost. Use a personal loan calculator to estimate monthly payments based on the rate and term.
Local animal welfare organizations
Animal welfare organizations in your local area can be another option for caring for your pet. These organizations typically provide services at a lower cost than a regular vet, thanks to private funding and donations.
Regarding pet care, “we understand that not everybody has the money all the time, and we try to meet people halfway,” says Erin Johnson, clinic manager for the Society for the Prevention of Cruelty to Animals in Tulsa, Oklahoma.
In addition to preventive care, vet assistants at the SPCA offer a minor-needs clinic for pets that are feeling unwell, have an infection, are in minor pain or need an X-ray.
While the SPCA can help with minor injuries, Johnson recommends knowing where your nearest urgent care vet is in case of a major accident. “Have a relationship with a full-service vet so that when something does go wrong, you have somebody to go to,” Johnson says.
What about pet insurance?
Signing up for new pet insurance won’t help if you’re uninsured in an emergency, but depending on the plan and provider, pet insurance can cover a future accident.
Boyd says pet insurance can make sense if you don’t have enough emergency funds or if you have cash flow but not savings. In that situation, monthly premium payments can help provide coverage and peace of mind if something happens to your pet.
On the other hand, if you have savings for pet emergencies, “I would ditch the pet insurance and just self-insure, essentially,” Boyd says.
Buddha back in action
“He’s just been like a little pillar in my life,” says Bartels, who was relieved to have Buddha home after his operation. Although his spinal surgery was successful, the costs didn’t end. Bartels bought an orthopedic bed for Buddha to recuperate more comfortably and stairs to make it easier for him to go up or down from furniture.
Having learned the hard way about sudden emergency bills, Bartels opened a separate checking account for Buddha’s expenses. She deposits money monthly and uses the checking account’s debit card to pay for vet trips, food and other Buddha-related purchases.
“It helps me feel more comfortable that if we were put in the situation again, we’d at least have a cash buffer to help us out,” Bartels says.
Lead image credit: Jeremy Blair/The Luxury Level & Kris Krüg via Wikimedia Commons
Canadian ice hockey legend Wayne Gretzky is looking for a buyer for his sprawling Colonial Revival-style estate in Thousand Oaks, Calif.
The gated (and highly private) compound has 13,000 square feet of luxury living space spread across a 6-bed, 8-bath main house and two guest houses, which Gretzky and his wife, Janet, are hoping will fetch them $22.9 million.
Gretzky is parting ways with the Thousand Oaks home for the second time, after first selling it in 2007 to baseball star Lenny Dykstra, who went bankrupt just a few short years later. At the time, Wayne Gretzky and his wife, Janet, moved to Arizona where Gretzky was coaching the Phoenix Coyotes.
More than a decade later, when the property came back on the market, the couple couldn’t resist the appeal of the home that they had built for themselves, so they bought back the estate.
Emotional connection aside, it’s easy to see why the ice hockey star and his wife wanted their old home back. The property sits on a 6.5-acre promontory within the prestigious Sherwood Country Club Estate — a premier lakeside, gated community near Los Angeles.
More sports celebrity homes
Past its gated entrance, there’s a motor court with stunning 360-degree panoramic views of the Santa Monica Mountains and Lake Sherwood, pairing stunning views with the ultimate privacy.
And we haven’t even gotten into the merits of the house itself, which is a timeless gem that’s bound to win the heart of anyone that crosses its doors.
Gretzky’s house was designed by “Megamansion King” Richard Landry
The home was designed by renowned architect Richard Landry who, just like Gretzky, is a Canadian-born sensation. Famous for his high-end residential projects, Landry has designed over 500 private homes, including some for Michael Bolton, Rod Stewart, and Tom Brady, boxing legend Sugar Ray Leonard as well as other athletes, celebrities and corporate moguls.
This, along with his ultra-luxurious designs, earned him the nickname of “The King of the Megamansion”.
Best described as timelessly elegant, the Colonial Revival-style estate boasts exquisite craftsmanship wherever you look.
At the entrance, you’re greeted by a dramatic entryway with crown moldings, a sweeping staircase, and arched doorways that lead into the formal space, with a chandelier-topped living room and a beautiful, marble-decked chef’s kitchen.
As expected, the former NHL player’s house comes with a mile-long list of amenities, including a primary suite with a sitting room and dual baths, screening room, fitness facility, billiards room, office, championship tennis court, outdoor entertainment area, wood-burning pizza oven, wood and gas barbecue, and formal gardens.
This is the 2nd time Gretzky is selling the mansion
Funny story: the NHL Hall of Famer and his wife Janet built the Colonial-style mansion soon after his retirement in 1999.
They then sold the property in 2007 to Lenny Dykstra, a former professional baseball center fielder who played in Major League Baseball for the New York Mets and Philadelphia Phillies. Dykstra paid $18.5 million for 6.5-acre property.
Following Lenny Dykstra’s very public financial fall, the opulent estate went into foreclosure and, after switching owners a couple more times, landed right back in Gretzky’s arms — who swooped in and bought it back for $13.5 million in 2018. Which means he basically he got it back for $5 million less than he had sold it for a decade earlier.
If the home sells for an amount even remotely close to the current asking price of $22,900,000, Gretzky stands to make a huge profit — for the second time. To lock in that goal, he hired Arvin Haddad with The Agency to help him sell the property.
Nicknamed “The Great One”, Wayne Gretzky has often been hailed as the greatest hockey player ever by many sportswriters, players, and the NHL itself. He played 20 seasons in the National Hockey League for four teams from 1979 to 1999.
After retiring from the NHL, Wayne Gretzky went on to coach and used the earnings from his highly prolific career to built a business empire.
He’s now said to be worth $250 million, and has invested in many sports teams over the years. Gretzky is also a partner with First Team Sports, a sports equipment manufacturer.
More beautiful celebrity homes
The Fabulous Homes of Your Favorite F1 Drivers Serena Williams’ House in Florida is Bold and Beautiful, Just Like HerThe Playboy Mansion: Hugh Hefner’s Party Home is Now Part of Modern HistoryWhere does LeBron James live?
On average, it costs $23,890 a year to attend an out-of-state school versus $9,410 for an in-state school. That’s $14,480 more per year you could pay — just to attend a college in a different state than where you grew up.
Source: Giphy.com
Over four years, you could end up paying $60,000 more than someone who attends school in-state. So, what are some ways you can lower the cost of out-of-state tuition? Here are seven of our biggest tips.
What’s Ahead:
1. Research Regional Reciprocity Programs
Many schools have “regional reciprocity agreements” or “tuition exchange programs” that let you attend certain out-of-state colleges for in-state rates.
For instance, 18 colleges in Georgia offer in-state tuition to residents of border states. This includes Alabama, Tennessee, North Carolina, South Carolina, and Florida.
On a much broader scale, several states have banded together to create regional reciprocity programs that give you reduced out-of-state tuition at hundreds of public and private schools.
The four biggest regional reciprocity programs include:
Midwest Student Exchange — Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and Wisconsin.
The New England Regional Student Program — Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
Academic Common Market — Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
Western Undergraduate Exchange — Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the Commonwealth of the Northern Mariana Islands.
Some schools will offer in-state tuition to any student in a neighboring state, while others may require you to meet certain criteria — such as having a specific high school GPA or declaring a certain major.
MU30 Tip: Already have a few colleges in mind? Look on their websites or contact financial aid to see if they have any tuition exchange or reciprocity programs in place.
2. See If You Qualify for a Tuition Waiver
In some cases, you may be able to get a tuition waiver that allows you to attend an out-of-state college at a reduced rate. Tuition waivers are usually granted to students with special circumstances:
You (or someone in your immediate family) is a veteran or active duty military member.
You were valedictorian or a high achiever.
You’re enrolled in a special degree program, such as STEM or health care.
You work for the school you wish to attend.
You were or are a part of the foster care system.
You’re a nontraditional student.
You’re of Native American heritage.
You have a financial hardship.
To see if you qualify, search for the phrase “tuition waiver” on your favorite schools’ websites. This should pull up a list of all the tuition waivers currently available. (For example, I found 13 waivers on the University of Washington’s website.)
3. Apply for Out-of-State Scholarships
There are several scholarships specifically for students who are attending college out-of-state. These scholarships can help you cover the costs of tuition, room and board, and other expenses.
To find out-of-state scholarships, start by checking with your college’s financial aid office. There’s a good chance the school has scholarships earmarked for nonresidents.
From there, do a scholarship search using a tool like the College Board Scholarship Search or Fastweb. You may find some private scholarships to help lower your out-of-pocket costs.
Read more: Scholarships and Grants: How To Score Free Money for College
MU30 Tip: Does your parent or guardian work in higher education at one of these Tuition Exchange member schools? If so, you can apply for a reciprocal scholarship that lets you attend hundreds of schools in the U.S., Canada, Greece, Morocco, the United Arab Emirates, and Switzerland at a free or reduced rate!
4. Think About Becoming a Resident Assistant
If you’re planning on attending college out-of-state, one way to lower your costs is to become a resident assistant (RA). RAs typically receive free or reduced-cost housing in exchange for their duties, which can include things like leading tours and organizing social events.
So while you may not get a tuition discount, it could help you save on housing while you’re there.
To become an RA, start by talking to your college’s housing office. They should be able to tell you about any open RA positions and their requirements. You may also need to fill out an application and go through an interview process.
5. Negotiate Out-of-State Tuition With the Financial Aid Office
It’s not widely advertised, but you can technically negotiate the cost of tuition and fees with the financial aid office. In fact, doing so could save you anywhere from 5% to 15%. On a four-year degree that costs $60,000, that’s a savings of $3,000 to $9,000.
Beyond negotiating, the financial aid office is also a way to find out what types of aid are available to you as an out-of-state student.
Read more:
6. Become an In-State Resident
This tip may seem a little far-fetched, but hear me out. If you’re taking a gap year, for instance, and have time to establish residency in the state where you want to attend college, it could be worth it.
Every state has different requirements for residency, but you’ll typically need to live there for at least a year before you can apply for in-state status.
Start by researching the requirements for the state you want to move to, then get working on completing them. This could include getting a job or an apartment in the state, getting a driver’s license, and more.
7. Look for Schools With Lower Out-of-State Tuition Rates
If all else fails and there’s no way for you to get reduced out-of-state tuition, another option is to simply look for schools that charge lower rates for out-of-state students.
MU30 Tip: Want to see which colleges have the lowest tuition rates? Check out this affordability calculator from the U.S. Department of Education.
Once you have out-of-state tuition rates for different colleges, you can start to compare your options and make a decision about which school is the best fit for you.
Read more: Not Enough Financial Aid? Here are 10 Ways To Pay for College
Bottom Line
Out-of-state tuition can be costly, but there are ways to minimize costs without racking up a ton of student loan debt. Use these tips to see how much you can save.
Featured image: Alexander Lukatskiy/Shutterstock.com