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May 19, 2022

Can an Immigrant Who Is Undocumented Open a Bank Account?

If you’re a fresh arrival to the United States, you’ll be glad to know that even if you’re undocumented, opening a bank account is possible. Which is very good news; after all, taking care of bills and everyday purchases is a lot easier — not to mention safer — when your cash is safely stashed in a checking account.

However, you will have to follow certain steps and perhaps a work-around or two. Probably the most important is that you’ll just need to provide an alternative for the Social Security number you don’t have. You may well find that a Tax Identification Number, or ITIN, along with the other required identification, can get the job done.

Let’s take a closer look at how an undocumented immigrant can open a bank account and the benefits of doing so.

What Do Immigrants Need to Open a Bank Account?

Like anyone else who opens a bank account, immigrants will need to provide and verify basic identifying information, such as their name and date of birth, using government-issued identification. This requirement may be met by a driver’s license, passport, birth certificate, or consular ID — and you’ll likely need to provide two different types of identification.

In addition, you’ll need to prove your residence. This can probably be done by presenting a utility bill, lease contract, or other official statement that includes your current address.

Finally, you’ll need either a Social Security number (SSN) or Tax Identification Number (ITIN). As an immigrant, the latter may be easier to obtain.

So, to recap, to open a bank account, you’ll want to check the eligibility requirements of the financial institution to which you’re applying, but you’ll probably need:

• Official identification documentation

• Proof of address

• An SSN or ITIN

• Anything else the bank might require (such as a minimum opening deposit)

What Is an ITIN?

We mentioned an ITIN as an option to an SSN above. You may wonder what exactly that is. Here’s the scoop: ITIN is short for Individual Taxpayer Identification Number. It’s an official form of identification that the IRS (Internal Revenue Service) issues to immigrants in order to make it possible to file taxes.

But your ITIN has other perks, too — such as allowing you to open a bank account with financial institutions that accept this form of identification instead of an SSN. These days, there are plenty of banks that fit that category, but you should always contact the bank you’re considering to verify that they’ll process an account application without an SSN.

Keep in mind, too, that you aren’t automatically issued an ITIN once you arrive in the U.S. In order to obtain one, you’ll need to apply for one with the IRS directly. You can do this by mail or in person.

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How to Open a Bank Account With an ITIN Instead of a SSN

Here’s the good news: Once you have an ITIN, opening a bank account using it in place of an SSN should be a fairly straightforward process. You’ll simply supply that number instead of your SSN on that part of the application. If you apply online, the application process may take only a few minutes.

💡 Recommended: Can You Open a Bank Account Online?

The rest of the application will involve the bank gathering documentation, accepting your opening deposit, and issuing your bank account number and debit card. The process of establishing the account may take a couple of days. In addition, you may need to wait a week or more to receive your debit card in the mail.

And then, voila: You’re the proud owner of a U.S. bank account!

Benefits of Opening a Bank Account for Undocumented Immigrants

If you’ve been doing most of your financial transactions in cash for a while, you may wonder if going through the steps it takes to open a bank account is even worth it.

For many immigrants, it definitely is. A bank account makes it safer and easier to store and use your money. What’s more, it can also help you establish history and move toward legitimizing yourself as an American resident.

Personal Safety

Carrying cash is always risky. If you accidentally drop some (which can easily happen while you’re lugging bags in one hand and a coffee in the other), it’s gone forever. That’s not to mention the risk of others eyeing your cash. Paper money is liable to theft, and carrying large amounts of cash could even put you at risk of physical violence.

Having a checking account makes it possible to store larger amounts of money with a lower risk level. You’ll still be able to access cash when you need it using an ATM or your debit card. For these reasons, opening a bank account could increase your level of physical safety as an immigrant.

Establishing History

Opening a bank account shows people that you’re here on at least a semi-permanent basis, and may even help you establish state residency. While the process of naturalization is, of course, long and complex, having a bank account can be one small step toward legitimizing your status as a U.S. resident.

Ability to Save Money

Most banks offer both checking and savings accounts—the latter of which is an excellent vehicle for building up a rainy day fund. Having a separate savings account makes it a lot easier to put some money “out of sight, out of mind” so you’re prepared for an emergency. And, of course, it’s a lot more secure than stuffing cash into a coffee can or under the mattress.

Earning Interest

In addition to being physically safer, bank accounts also give you an edge against inflation. Here’s why: Many of them make it possible to earn interest on your balances—even on a checking account. The interest you earn might be pretty low, but it’s still better than no growth at all. Plus, it’s a low-risk investment given that money in a legitimate bank account is FDIC-insured up to $250,000.

The Takeaway

While it may take a few extra steps, it’s totally possible for an undocumented immigrant to open a bank account. You may just have to apply for an ITIN to use in place of your SSN, but once you get that taken care of, you’ll have access to a safe, potentially interest-earning place to stash your cash.

When shopping around for where you’d like to bank, may we suggest one option? SoFi Checking and Savings, which offers both kinds of accounts with no pesky monthly fees. If you set up direct deposit, you’ll earn 1.25% APY on your balances. (That’s at least 33 times the national average interest rate for a checking account, just in case you’re keeping score.)

Come see how simple and money-smart banking with SoFi can be.

FAQ

How do undocumented immigrants open a bank account?

An undocumented immigrant will need an alternative to the Social Security number, or SSN, in order to open a bank account. This number is called an Individual Taxpayer Identification Number, or ITIN, and you can apply for one through the RIS.

Can I open a bank account without an SSN or ITIN?

Unfortunately, you’ll likely need one or the other of these official, identifying numbers in order to open a bank account.

Can a U.S. citizen open a bank account abroad?

Yes, but it can be tricky. Many U.S. citizens have offshore bank accounts, though the process of applying for one may vary depending on which country you’re hoping to open an account in. It can involve a lot of paperwork, and starting this kind of account may have tax ramifications in both the U.S. and the foreign country in question.

Photo credit: iStock/Bilgehan Tuzcu

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Source: sofi.com

May 18, 2022

Dear Penny: Should I Dump My Husband Over a Stunningly Cheap Anniversary Gift?

Dear Penny,

I just discovered two new debit cards in my husband’s name. One is an Ally debit card, which means he has a secret checking account going on. The other is a PayPal debit card for his small business he does on the side. He has never told me about the PayPal one, but I understand this one. The other card is a complete surprise to me.

I have always found something peculiar and secretive about him. He is a quiet person and is not proactive about our bills, hence, why I pay the bills. He does not talk about what he is involved in. I have to draw it out of him to know what he is up to. I understand being quiet, but this is a marriage and it is not seamless in terms of anything.

What upsets me is that for our anniversary of 24 years, we decided not to spend too much on each other, as we just got my car fixed. I bought him some inexpensive shirts that did not break the bank. He, on the other hand, bought me protein granola bars! Seriously, no flowers or a candle, something to show he cared. Then I think of these other accounts he has and he buys me that?

Penny, what should I do? We have teenage daughters, but I am tired of this. I am just not happy with this marriage. I love him, but at the same time I feel alone, if that makes sense.

-L.

Dear L.,

Maybe your husband thinks you really love protein granola bars. Or maybe each of you had your own definition of what would constitute spending “too much” on an anniversary gift. But surely you know that this isn’t about protein granola bars, or even secret bank accounts.

After 24 years of marriage, your gut is telling you something is off. You know you’re unhappy. I can’t tell you whether to stay or go. What I can tell you is that you’ll stay unhappy if something doesn’t change.

Since you’re not happy in this relationship, it’s worth at least meeting with a divorce attorney. Some offer free consultations. You don’t have to take any action from there. Your goal is simply to get information about what the divorce process may look like.

But if you want to stay married and you don’t want to be miserable until death do you part, you’re going to need to work on communication. You can’t force your husband to be more open. But you can ask more questions and see how much resistance you get. You can also try to reach a mutual agreement on what needs to be communicated.

Obviously, it’s not going to be a productive discussion if you tell your husband you’ve always sensed something odd about him. Instead, you’re going to have to speak up and ask questions when something specific seems off. See if the responses reaffirm what your gut is saying.

The anniversary gift and the bank accounts are two good starting points for a discussion. You really don’t need to be accusatory.

Starting with the anniversary gift, you could say something like, “I’m just curious, but was there a reason you chose granola bars for my anniversary gift?” You’re allowed to say you were disappointed. But don’t expect him to be a mindreader. Tell him how he could make you feel cared for on future anniversaries.

Take a similarly straightforward approach with the bank accounts. This discussion needs to be separate from the anniversary gift discussion. “You have a secret bank account and all you bought me were these lousy granola bars” isn’t going to be a conversation that goes well.

Tell your husband you noticed he opened two new accounts and ask him point-blank what they’re for. Be as neutral as possible. A secret bank account conjures up all sorts of nefarious scenarios. But since your husband is a man of few words, is it possible that these new accounts are less of a deliberate secret and more something he failed to mention? For example, is it possible that he opened a new account to get a bank bonus and didn’t think you would care?

You need to establish clear expectations for what you need your husband to communicate to you. You probably don’t need to know the details of every financial transaction he makes. But it’s perfectly reasonable if you expect your spouse to tell you about any major purchases or new credit cards and bank accounts. You both should also know how much the other person earns and where that money comes from.

I think you also need to tell him you no longer want to manage the money alone. Ask him if he’d be willing to sit down together once a month to go over your finances. Review the money going into and out of your accounts, and ask questions about anything you don’t understand.

As you seek more clarity, listen carefully to your gut. Your husband isn’t going to morph into a chatterbox overnight. But if you feel like he’s hiding information from you or his explanations don’t quite add up, these are red flags you can’t afford to ignore.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected].

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Source: thepennyhoarder.com

May 18, 2022

6 Birds That Make Great Apartment Pets

If you’re looking to add an animal to your apartment, consider birds as they’re great companions and affectionate pets.

When you think of getting your first pet, cats or dogs are the first species of animals that come to mind. But, have you ever considered a bird? Birds are popular pets as they’re friendly and affectionate yet they don’t take up too much space in your apartment.

Birds are great pets for apartment dwellers because they’re low maintenance while still being extremely affectionate with big personalities. Whether you want a few smaller birds or one large parrot, it’s important to discover which popular pet bird species is right for you.

Throughout this article, we’ll talk to you about all the different species and help you decide which is the friendliest pet bird species for you.

Welcome to the bird world

Are you new to pet ownership? Don’t fret. There are several bird species and they all make for wonderful pets. But before you go to the local pet store or aviary, you need to ask yourself a few questions to determine which pet is the best one for you.

Does your apartment complex allow birds?

Before bringing any type of animal into your apartment, you need to read your lease agreement and talk to your landlord about the pet policy. The first thing to find out is if your apartment allows pets, and specifically if they allow birds.

If your apartment is not pet-friendly, don’t sneak a pet into the apartment as there are serious negative consequences. Once you get the green light that your apartment is pet-friendly, then you can continue your search for the perfect pet.

Can you afford it?

As with any pet, you need to do some math to ensure that your budget can stretch to accommodate your first bird. In addition to purchasing the cage, which varies in price, you’ll need to calculate the cost of birdseed, fresh fruit and veggies, toys for mental stimulation, veterinary care, cleaning and grooming costs and additional money for unexpected costs that may arise.

Different species can cost different amounts, too. Owning a bird can add up, so make sure you can afford the care needed to take care of your little feathered creature.

How much time do you have to care for it?

While some birds are more low maintenance than others, all birds need some human attention every day to thrive. Ask yourself how much time you actually have each day to care for your new pet and give it the human interaction it deserves.

If you only have an hour each day to dedicate to your pet, consider a parakeet as they’re a low-maintenance bird. On the other hand, if you have ample amounts of time at home to care for and train your bird, you may consider a parrot species.

Do your research to understand the level of training, stimulation and care each different bird species needs to thrive.

Where is it coming from?

We don’t just mean which pet store is your bird coming from. Unfortunately, birds are illegally obtained and sold. In fact, some birds — like the African grey parrot — are on the verge of extinction from the illegal bird trade. African greys are intelligent birds that people love as pets, but they face extinction in their natural habitat due to illegal activities.

Responsible pet owners will ask the breeder where the bird came from to ensure they aren’t contributing to the illegal bird trade. Another great option is to adopt a bird from a shelter. That way, you’re saving a life and helping to give a shelter pet a friendly new home.

Is the species compatible with children and other pets?

Are you looking to add some playful birds to your house? Well, if you have children or other animals in the house, you need to make sure that your new chirpy addition is good with other animals, children or other birds.

Don’t bring a new bird into the apartment and expect it to get along well with others. Some birds are great with other species while some are better suited alone.

For example, if you have a cat, it’s probably not smart to add a bird to the mix. The cat may view it as lunch. Save yourself some tears and heartache and make sure that all family members, pets included, are compatible with your new friend.

Top 6 best pet birds

OK, so you’ve decided that you want a pet bird and want to bring one home. But, what are the best pet birds for you? Here are some different options to consider.

Pionus parrots

Blue and green
Medium size
~30-year life span

The Pionus parrot is part of the parrot family and is originally found in South America. This is a great species for families to own as the species isn’t prone to attaching to a single person, as other parrots sometimes do. This intelligent one is sure to charm you as it’s relatively quiet and reserved. This pet bird does need a lot of attention, otherwise, it can get moody and demanding.

If you’re looking for a great companion for the whole family, the Pionus parrot is a good choice to consider.

Cockatiels

Gray, white and yellow
Small size
~ 20-year life span

These little birds are some of the most popular pets for bird owners. They’re friendly, lovable and great for apartment dwellers. They love whistling and will likely serenade you throughout the day. Part of the parrot family, they do require attention and stimulation but are on the smaller side, so they won’t take up too much space in your apartment. They cost anywhere from $30 to $250 to purchase.

If you’re a new pet owner, experts recommend getting a female cockatiel as they aren’t as moody and possessive as their male counterparts. They love company so you can even consider getting two so they have each other. If you want two cockatiels, a male and a female will work well together. Keep in mind that if you only get one, they may require more attention from you. However, you’ll have the perfect companion on your shoulder.

Hyacinth macaws

Blue
Large size
~30+ year life span

Native to central South America, the hyacinth macaws are the larger cousins to something like the Pionus parrot. These beautiful birds are spectacular and full of personality. They love to play and be seen. The hyacinth macaw definitely needs attention from its pet owner.

The hyacinth macaw can live for at least 30 years or more and cost anywhere from $5,000 to $12,000 to purchase. They need a large cage that’s at least six feet, as they’re the largest parrot in the world.

If you’re experienced with birds and can give these gentle giants the proper care, then they do make great pets. But, if you’re looking for a friendly pet to start off with, this is not the right creature for you.

Scarlet macaws

Blue, red and green
Large size
30+ year life span

When you think of a parrot, you probably imagine a rainbow-colored animal that can talk like and mimic humans. The scarlet macaw is that large, glorious, rainbow-colored bird. While they can talk, they don’t mimic the voice and tone (that’s the African grey!) of their owner.

Scarlet macaws are fun birds as they’re friendly, affectionate and intelligent. However, they’re not low maintenance and require a lot of time and human attention. The scarlet macaw will form strong bonds with you if it lives alone, just like it would bond with others if it were in the wild. If you’re looking for a long-term companion, consider this creature.

Green-cheeked conures

Green
Small or medium
~20-year life span

This smaller species is a popular pet for families. They’re friendly birds that are affectionate and will dole out sweet gestures, like cuddling, when properly tamed. The green-cheeked conure will chatter but they’re good for apartment dwellers as they aren’t too noisy. These small birds cost anywhere from $150 t0 $300.

The green-cheeked conure is a playful, energetic and cuddly creature. While they demand attention, they just want love and if they live in positive environments, they’ll become your feathered best friend.

Amazon parrots

Green
Medium to large
40+ year life span

Like most parrots, the Amazon parrot requires attention, proper mental stimulation and care. These mischievous birds like attention but are a great family pet. If you have the time to commit to it, the Amazon parrot is a friendly pet bird species to consider. You can teach it basic things and bond with this gorgeous creature.

What’s the easiest bird to have as a pet?

One of the easiest birds to have as a pet is the budgie, also known as a parakeet. These cute creatures are friendly pet bird species who love attention, food and play. If you’re looking for a new pet that’s easy but will give you love, cuddles and companionship, the bird world often recommends starting with a budgie.

Budgies want human interaction and don’t do well completely isolated. While they’re pretty low maintenance, they still want to interact with their humans and will be extremely affectionate with pet owners who show them love.

If you’re looking for an easy pet bird, consider the budgie or parakeet.

The best bird to have as a pet

What’s the best bird to have in your apartment? Well, that depends on what you’re looking for. Birds, in general, need attention, proper care and love from their owners. If you want a low-maintenance pet, then a parakeet is the best pet bird for you. If you want a lifelong companion you can train, then the African grey is a great option.

We can’t tell you the best bird as that depends on you and your lifestyle. But, we can walk you through all of the basic pros and cons to help you determine the best one for you.

Here are some of the common pros and cons bird owners share. Consider these when determining which feathered creature to take home.

Pros of having a feathered friend

Animals bring joy and birds are no exception. These are some of the best benefits of having a feathered friend in your apartment.

They can learn basic commands

Talking parrots aren’t just found on pirate ships. If you take the time to train your bird, you can teach it easy commands and different words and it’ll talk to you! This is one of the most fun and memorable aspects of owning a bird. We’d like to see a talking Golden Retriever!

They’re affectionate pets

You might think that only cats or dogs cuddle with their human, but you’d be wrong. Birds are affectionate creatures who will cuddle you if you love them. Let them perch on your shoulder or arm and you’ll have a featured friend who loves you just as much as you love them.

They’re extremely sweet

All birds have personalities and most are very sweet. Birds want love and attention, but in return, they’ll love you back. Some will charm you with little chirps while others will speak to you. They’re popular pets because of how sweet they are.

Cons of having a feathered friend

As with any pet, there are parts of pet parenting that aren’t so glamorous. Here are some cons to know.

They’re incredibly noisy

We all know that birds tweet, but some are very loud, especially when ignored. If you live in a small apartment space next to other neighbors, your bird’s continual chirping may not appeal to everyone.

They’re expensive

While some smaller birds cost $50 to purchase, their larger cousins can cost upwards of $12,000. And that’s just for the bird itself! That doesn’t factor in food, toys, vet bills, training and other pet-related costs. Birds are expensive to purchase and maintain, compared to other pets.

They require proper care and space

You don’t just buy a bird and call it good. Birds need the right cage with enough room to spread their wings, the right space and the right care. If you can’t commit to the proper training and attention needed, which is hours a day, then this is not the right animal for you.

Becoming a pet bird owner

Are you sold that these extremely sweet, feathered creatures are right for you? Make sure you’ve done your research, checked your budget and found the bird that you can grow to love and form strong bonds with. We know they won’t disappoint with their sweet and affectionate cuddles and beautiful birdsongs.

Source: rent.com

May 18, 2022

5 Ways to Make Your Money Work for You

Save more, spend smarter, and make your money go further

Making your money work for you is an important step on the road to financial security and independence. Earning money by trading your time is important, but it’s just as important to find a way to make money without having to be actively involved. While you might dream of being able to make money while you sleep, there are plenty of steps you can take that will help put your money to work.

Pay Down Your Debt

The most important thing that you can do to make your money work for you is to pay down and eliminate your high-interest debt. This includes things like credit card payments, some auto loans, and other types of consumer debt. You may be paying up to 20% or more in interest — which means that when you put money towards paying off that debt you’re getting a 20% return on your investment. It’s hard to beat that kind of guaranteed return.

Start a budget, figure out your income and expenses and start paying down that debt. The exact debt repayment strategy that you use is less important. What is important is that you make a plan and start sooner rather than later. Once you have eliminated your high-interest debt, you can start with the other suggestions in this article.

Open a High-Yield Savings Account

One place to start can be to open up a high-yield savings account that is separate from your checking account where you keep the money to pay your regular monthly expenses. This is important for two reasons. The first is that keeping your savings separate from the money you use for your regular savings helps keep you from raiding your savings to pay your bills.

The second reason is that a savings account may offer slightly higher interest rates than a checking account. Currently, interest rates are at historical lows. That is great for refinancing or taking out a mortgage, but not great for savings accounts. Still, a high-yield savings account is a great place to put your emergency fund money. For anything more than that, you’ll want to look at investments that offer higher returns.

Grow Your Wealth Through Investing

If inflation hovers around 2-3% every year, any investments you have should make at least that much. Otherwise, while you may have more money, that money will be worth less than it was the year before. If all of your money is in a savings account earning 1% interest or less, then you are actually LOSING money to inflation each year. There are many ways to earn residual income, and you’ll want to pick the one that makes the most sense for you. As one example, Investing in the stock market has historically returned around 7% per year.

Take Advantage of Credit Card Rewards

Another way to make your money work for you is to take advantage of credit card rewards. Many credit cards offer rewards of up to 5% back or more in certain spending categories. There are also several cards that offer initial welcome bonuses that are worth $1000 or more. Taking the time to strategically use credit cards can be a worthwhile investment. Check out our list of the best rewards credit cards to see if one of them might make sense for you.

Start a Passive Income Stream

The holy grail of financial independence is passive income. Passive income is income that continues to make money with little to no day-to-day involvement on your part. There are many different ways to generate passive income. A few passive income ideas might be creating and selling crafts, writing a guide or book, starting a blog, or investing in the stock market.

Investing time and money in real estate can also be a way to earn (relatively) passive income. While rental real estate is not without complications, when it is all working, each month you earn rental income. That helps pay down your mortgage balance, hopefully with some extra left over each month. If you think that becoming a landlord is not for you, another way to invest in real estate is through a Real Estate Investment Trust (REIT). REITs combine some of the best parts of real estate and investing in the stock market.

The Bottom Line

There is an important difference between earning money and having your money work for you. While earning money through a job is important, the real key to financial security is earning passive income. Pay down your debt, start investing and watch the returns come in. You may not make money while you sleep, but following these tips will help set you on the right financial path.

Save more, spend smarter, and make your money go further

Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 kids. More from Dan Miller

Source: mint.intuit.com

May 18, 2022

Understanding Usury Rates: What You Should Know

A usury rate is an interest rate that denotes the boundary between what is considered an acceptable rate and what is excessive. It’s important that consumers understand usury rates so they can protect themselves against predatory lending practices.

You definitely don’t want to be paying interest rates that are so high, you could wind up with a mountain of debt that endangers your financial future. So read on for a better understanding of what usury rates are, what the law says about usury, and how you can avoid paying too high interest rates.

What Are Usury Interest Rates?

What is a usury rate? Technically, a usury rate is the maximum interest rate that can be charged. Typically, these rates are determined by state law, not federal law. The practice of usury is charging an illegally high interest rate.

Let’s consider why states put these usury protections in place. By capping interest rates, the government is helping people avoid financial difficulties. Excessive interest rates can mean that consumers can’t pay off their debt, and sadly, it can snowball. Usury laws are particularly designed with predatory lending in mind, which typically occurs with payday and auto-title products. However, the laws also prohibit lenders from charging too high interest rates on lending products like personal loans.

Is There a Maximum Interest Rate for Credit Cards?

Have you ever wondered, “Is there a maximum interest rate that credit card issuers can charge?” The answer is yes. This is one way that governments try to prevent usury. As we mentioned, this interest rate cap is usually determined by state law. If, however, a credit card issuer or bank has branches nationwide, the state where its headquarters are designated will determine the state law that applies.

This means that scenarios are possible where you will pay more than the maximum rate mandated in your state. Here’s an example: if you live in a state where the maximum interest rate is 10%, but your lender is headquartered in a state that allows 15%, guess what? You can be assessed that 15% rate.

This is why it’s so important to carefully read a credit card or bank account agreement to make sure it’s crystal clear what interest rate you will be charged.

Real World Example of Usury Rates

How exactly does a usury rate work, you ask? Let’s take a look at a real world example of usury interest rates in action.

Every month in North Dakota, the North Dakota Department of Financial Institutions publishes what the usury rate for the upcoming month will be. Again, this usury rate is the maximum amount of interest that can be charged. This usury rate is 5.5% higher than the current cost of money. The current cost of money is represented by the average rate of interest payable in the U.S. Treasury Bills maturing within six months. However, the maximum allowable interest rate ceiling can’t surpass 7%, no matter what the current cost of money is. The North Dakota usury rate for the month of April 2022 was 7%.

Now, let’s say that someone named Ned in North Dakota is seeking a personal loan. Ned has a very low credit score and isn’t having much luck at local banks. A private lender could step forward and offer a loan at 17%, saying Ned is lucky to have access to funds at all given his credit score and what a poor risk he appears to be. That is over the usury rate, and would be an example of usury if Ned took the loan at that steep cost.

What Is Usury Law?

Usury laws are in place to stop lenders from charging too high of interest rates on lending products such as auto loans or personal loans. States have different laws and regulations that set usury interest rates on a state level. To whom usury laws apply can also vary on a state level.

For example, certain states have usury rate caps on how much finance companies (aka not banks) can charge consumers for small-value loans. Examples of these include payday and auto-title products.

How Do Usury Laws Vary From State to State?

As previously noted, usury rates are state-specific. The details of an interest rate cap and to whom these laws apply may vary. If you live in Massachusetts and your best friend is in Minnesota, it’s quite possible that you will have different usury rates and other legal guidelines.

What Is the Penalty for Violating Usury Laws?

Now, let’s look at what happens if someone extends credit at a too high rate. Remember our Ned in North Dakota example; what if he did borrow money at a rate 10% above the guideline? His lender could be in quite a bit of legal trouble. If a lender willfully receives interest in violation of the usury laws, they will be considered guilty of loan sharking. This charge is punishable by a fine (which could be returning interest plus a fee, for example) and/or imprisonment.

How Can I Tell if the Interest Rate on My Credit Card Is Illegal?

Maybe you’re shocked by how high your credit card’s interest rate is and wonder if it’s legal or not. Because the usury rate varies by state, it’s important for consumers to do some research on what the current usury rate is in their state. But, let’s remember that hitch we mentioned above: Your credit card issuer may be headquartered in a different state. You’ll need to see where that is, and check that location’s rate as well. Then, you can compare the interest rate listed in the account agreement to the current usury rate in the state where they are based. That will reveal if your rate is legal or not so much. Should you discover you’re paying too much, legal action is a possibility.

Is There Anything I Can Do About High Interest Rates?

Even if an interest rate is legal, it can still feel painfully high and make it a challenge to repay a loan. To help secure lower interest rates in the future, consumers can take steps to improve their credit score. The higher someone’s credit score is, the more likely they are to receive a lower interest rate. This can save them a considerable amount of money over the life of their loan (like a student loan). Having a good credit score in the 700s can make it easier to qualify for the best interest rates.

To improve a credit score, consumers can take the following steps:

• Make on-time payments. Making loan and credit card payments on time every single month improves a credit score over time. You might try using automatic payments from your checking account and electronic reminders to make sure a payment isn’t accidentally missed.

• Keep credit utilization rate low. Keeping their credit utilization rate (aka how much of your available credit they’re using) low can help boost a credit score. Aim for a balance that’s no more than 30% of your credit limit; 10% is even better. Paying off revolving balances each month can help keep this rate low.

• Double check credit report for errors. Mistakes happen! And an error on a credit report can be an expensive one; it can damage your score. It’s a good idea to review credit reports carefully from time to time to look for mistakes. It’s possible to dispute these errors and have them removed from the credit report, thereby improving your score.

It takes time to see the results from these efforts. But it’s wise to stay the course: Raising a credit score can make it easier to qualify for better lending products at more favorable interest rates.

The Takeaway

An usury rate is the maximum interest rate a lender is legally allowed to charge a borrower. Usury itself is the practice of charging excessively high interest rates, and this can have legal consequences. Because usury rates are state specific, it’s important to become familiar with what the usury rate in your state is, as well as the state where your lender is headquartered. By understanding interest rates and avoiding sky-high ones, you can take better control of your money and improve your financial health.

Here’s another way to boost your financial wellness: by partnering with a bank that doesn’t charge you fees and pays you an excellent interest rate. That’s what you’ll enjoy when you bank with SoFi. Sign up for a new bank account with direct deposit, and earn a fantastic 1.25% APY while paying zero account fees.

Come bank smarter with SoFi.

FAQ

What is the highest legal interest rate?

The highest legal interest rate a lender can charge varies state by state. This interest rate cap is known as an usury rate, and each state sets their own limits.

Is charging a high interest rate legal?

That depends on someone’s definition of a “high” interest rate. There are limits in place on how much interest lenders can charge (known as usury rates). These guidelines are designed to help consumers avoid predatory interest amounts.

What interest rate is predatory lending?

An interest rate that surpasses the usury rate (aka the highest interest rate a lender can legally charge) in the state the borrower or lender resides in is considered to be predatory lending.

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This article is not intended to be legal advice. Please consult an attorney for advice.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’swebsite .

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Source: sofi.com

May 18, 2022

Is Inflation Eating Your Budget? 13 Ways to Stretch Your Money

Follow these 13 actionable tips to stretch your money!

Whether you own or rent, there’s no doubt your budget has been feeling the effects of recent inflation. And while you’re powerless to improve the current economic changes, that doesn’t mean you can’t take action to combat higher prices. High inflation decreases your purchasing power, forcing you to spend more and get less in return. As a result, higher prices make it difficult to save money and reach your financial goals. Perhaps you’re not ready to take drastic measures like moving to a smaller apartment or taking public transportation. Instead, start with minor changes that will stretch your money so you get more bang for your buck.

1. Set financial goals

Goal setting is an important — yet often overlooked — step when trying to make progress with your finances. Don’t worry if it feels premature based on your current affairs. Setting goals and executing a plan to achieve them is powerful.

Keeping a specific goal in mind makes you more intentional with your working, saving and spending. In addition, focusing on your financial goals will give you the necessary clarity to make sound money decisions and the motivation to push forward.

2. Live on a budget

Getting good at making your money go further requires a certain level of financial awareness. Once your paycheck hits your bank account, do you have a plan for how you’ll spend your money, or do you go with the flow?

Having a plan is crucial, and a budget is a spending plan. The act of creating a budget is simply making a plan for how you’ll spend your money. Learning to live on a budget means you consistently create a spending plan and take steps to stick to that plan throughout the budget period.

Budgeting is a marathon

The first step to successful budgeting is to expect a learning curve. Becoming a budgeting master is a valuable skill that takes time to develop. So, commit to pushing through the tough months even when it feels like you’re doing it all wrong.

Budget your way

A quick Google search on “how to budget” will display many budgeting types and options — don’t get overwhelmed. As your budgeting prowess grows, you’ll begin to learn what methods do and do not work for you.

Approach budgeting as one-size-fits-some rather than one-size-fits-all. There are many different ways to budget. And, when used consistently, each of them will move you closer to reaching your goals. You may realize you prefer to manage your money with digital tools or use a budget binder to organize a more traditional paper budget.

Humans have a pesky habit of overcomplicating things, but budgeting doesn’t require anything elaborate or complicated. If you’ve tried percentage-based budgeting and it was an epic fail, there are simpler options to help you stretch your money further.

We’ve discovered that many folks gain more control over their finances when they manage their money using a zero-based (or zero-sum) budget.

In its simplest form, a zero-based budget looks like INCOME – EXPENSES = 0.

Assign every dollar of your income to carry out a specific financial “job.” Each dollar must serve a purpose, and it’s up to you to decide whether that purpose — spend, save, invest or give. Once you’ve given each of your dollars their assignments and your total income minus your total expenses equals zero, you have implemented a proper zero-based budget.

3. Track your spending

If you often wonder where your money went, it’s time to track your spending. While you may have a general idea of where your money goes each month, how clear are you on the specifics? For example, do you know how much money you actually spent on groceries, fuel and dining out last month?

Get clear on exactly how much you’re spending in each budget category. Having a better grasp on your spending is especially important when deciding how much rent or car payment you can afford each month.

Grab your phone or a notebook and add an entry each time you spend money. Exclude fixed expenses as you’ll be tracking those in your actual budget. Instead, focus on logging your Target trips, grocery runs and coffee pitstops.

Track your spending for a solid month, if possible. If you can’t swing a month, aim for at least two full weeks. At the end of your tracking period, enter your spending data on a spreadsheet or grab a few highlighters to color-code your spending.

Total each category to see exactly how much you’ve spent and compare it to your budget. The information you’ll gather from this exercise is invaluable and helpful when you want to stretch your money in a more balanced way. Your total spend numbers will point to where most of your spending is.

Your spending should reflect your values and priorities. If you discover this is not the case for you, what adjustments you need to make will be clear.

4. Avoid overspending

Overspending can creep up on you. What may feel like $10 swipes of your card a few times a week can quickly amount to high credit card balances or going over budget.

Consider these simple changes to reduce overall spending:

Order groceries online to avoid impulse purchases
Reduce online shopping frequency (e.g., order from Amazon only once per month)
Keep a running “wishlist” of items you want or need. When you come across a great deal, check your list — if the thing is on your list, buy it. If it’s not, move on.
Unsubscribe from retail emails that tempt you to spend
Add a personal spending category to your budget. Allocating a specific amount of money to spend in any way you see fit, guilt-free.

It’s not about money

Overspending is often misleading. The reality is overspending is rarely about the actual spending and is almost always caused by an emotional trigger. Therefore, the key to curbing overspending is identifying your trigger(s) and avoiding it (them).

Think back to the last time you felt shame or guilt for overspending. Then, go deeper to understand the underlying emotion that drove your spending? Were you tired? Did you have a bad day at work? Did you fight with your partner?

Retail therapy may feel helpful because we get a boost of adrenaline when we spend. However, you only perpetuate the problem when you avoid dealing with the emotions driving your spending habits. Instead, pay attention to exactly how you’re feeling the next time you experience the urge to spend money.

Once you’ve identified your spending triggers, create a plan to avoid them and break your pattern of overspending.

5. Negotiate your bills

A great way to stretch your dollar is to negotiate your bills each year. You’ll be shocked by how many of your service providers are willing to lower your rates with a simple request.

Review your monthly expenses and make a list of providers to contact. You can call the company or use their live chat feature if they have one. Explain to the representative that you want to reduce your monthly payment and inquire about their best deal. Expect a few “nos” and many a “yes,” especially if you’re kind and polite when requesting a discount.

This strategy is perfect for saving money on your:

Utility bills
Cell phone bill
Cable bill
Car insurance bill
Credit card and bank fees
Other insurance premiums
Rent

Regarding medical expenses, your best bet is to contact the billing department and offer to pay them a percentage of the total balance. Often, the provider is willing to accept a fraction of the amount owed to settle the account.

6. Pay off debt

Debt payments, especially those with high-interest rates, can eat up your income quickly. Creating a debt payoff plan will give you a road map to paying off your debt and keeping the money you previously sent to your debtors each month.

In addition, if you have a good payment history, contact your credit card servicers and request a lower interest rate. Refinancing is also an excellent option for securing a lower mortgage payment or reducing your minimum payment on personal loans or federal student loans.

Avoid future debt

As you work to get out of debt, it’s good practice to avoid taking on future debts. Trading old debt for new debt is counterproductive and will keep you stuck in a perpetual debt cycle.

7. Plan ahead

Planning into the next quarter, or even an entire year, can help you maximize your savings. In addition, saving a full three to six months of living expenses as an emergency fund will prepare you for any emergencies you experience.

Maintaining an emergency fund will protect your finances against increased expenses in the future, possible sickness, accidents or loss of income.

Forecast your upcoming expenses for the next 6-12 months and determine which you can begin saving for now. Items, such as Christmas gifts, birthdays, tuition, vacations, annual bills, etc., are all expenses you can save for, using sinking funds.

Save a small amount each month (or paycheck) until you save enough money to cover the expenses in full. Keep your sinking funds in a separate savings account to avoid accidental spending.

8. Try a savings challenge to stretch your money

Challenges and competitions are very motivating. And when otherwise unpleasant activities feel like a game, even adults can find enjoyment. Get started with a simple challenge, such as saving each five-dollar bill you receive or tossing your loose change into a jar for a predetermined time.

Are you competitive by nature? Ask some close friends or family members to join you. You’ll all benefit from holding each other accountable and boosting the competition factor.

9. Plan your meals

More than any other suggestion on this list, meal planning has the potential to stretch your money further. You’ve likely noticed your grocery bill increasing month after month. Plan out your meals and use that plan to create a shopping list.

Making a mental note of meals you’re hungry for while grocery shopping does not constitute meal planning. More often than not, heading to the grocery store without an intentional plan will cause you to go over budget.

Food waste accounts for 30-40 percent of the food supply in the United States (as of 2021). Shopping for groceries without planning often leads to a fridge full of unused fresh fruit and produce at the end of the week. If your food budget is $1,000 per month, that means $300-$400 of that budget will probably be wasted, if you’re not planning.

10. Stretch your money by ditching your cable

One of the easiest ways to maximize your money is to cancel your cable service. Today, 56 percent of U.S. homes no longer rely on cable or satellite boxes for content.

We’re fortunate to have the unique opportunity to stop paying for dozens of channels we don’t watch and customize our viewing experience. In addition, the number of available streaming services has exploded in recent years, with live sports and bundles finally being an option without cable packages.

Have an attachment to traditional cable and refuse to go without it? Keep your subscription but use tip No. 5 to negotiate a better deal.

11. Get a programmable thermostat

Unfortunately, energy costs are on the rise, too. Depending on your location, you’ll experience increased costs throughout the summer months (even if you’re trying to stretch your money). However, an Energy Star Certified programmable thermostat can cut your utility costs by up to 8 percent per year (around $50/year).

Not only will a programmable thermostat save you money but buying a “smart” model that works with Amazon’s Alexa or Google’s Home systems will also offer the convenience of allowing you to control the temperature with your voice.

Double your savings

Some programmable thermostats can cost upwards of $200, but more affordable options are available. In addition, many natural gas and electricity providers offer rebates for switching to a programmable thermostat.

In some instances, the rebate amount may even exceed the thermostat price. Contact your providers before purchasing your thermostat to determine which models qualify for rebates in your area.

12. Use an app

Looking for more convenient ways to stretch your money? There’s an app for that! Using mobile apps to save money or earn cashback on purchases are easy ways to combat higher prices.

Apps are available to save money on groceries, household items and even fuel. Other apps offer cashback when shopping online and in-store with your favorite retailers. There are even apps that will reward you for exercising.

Keep in mind that using cashback apps won’t make you rich. But using them consistently will help you save money on your everyday purchases, plus earn cashback rewards you can redeem for gift cards or cash.

13. Get a side hustle

There’s no doubt that cutting costs and saving money is a solid strategy to help stretch your money. But, focusing on increasing your income at the same time will boost your finances into overdrive. Plus, finding new, creative ways to earn small amounts of money in your free time will diversify your income and put you on the fast track to reaching your financial goals.

Monetize your passion

Here’s the good news: we live in an era where you can make money in countless unique, exciting ways. You no longer have to work overtime at a job you hate to make your rent payments each month.

People are turning their passions into full-time incomes from side hustles, such as pet-sitting, baking and even posting on social media. Brainstorm a list of your favorite hobbies and different ideas to monetize them.

The bottom line

Rest assured, if you’re feeling increased financial pressure, you’re not alone. Understand that maintaining financial stability in these uncertain economic times is still possible. Lowering your expenses and making a margin in your budget will allow you to spend your money on the things that matter most.

Source: rent.com

May 17, 2022

Swimming Pool Financing: What to Know and Best Pool Loans

Who doesn’t love a relaxing dip in the swimming pool on a sweltering, hot day? And when that swimming pool is in your backyard, it’s even better.

You could bring your friends together over the summer by hosting pool parties. You could teach your kids to swim right at home. If you rent out your place on Airbnb or Vrbo, you could fetch top dollar for the additional amenity.

Sounds like a dream.

If your house didn’t already come with a pool when you moved in, there’s still a possibility of turning your pool fantasies into reality if you have enough space.

And if you don’t have tens of thousands of dollars upfront to spend on a pool construction project, there’s always pool financing.

What Is Pool Financing?

Pool financing is when you borrow money from a financial institution or lender to cover the costs of building a pool. Pool construction typically costs anywhere from $17,971 to $46,481 with the average cost being around $32,059, according to HomeAdvisor.

Of course, the cost will vary based on the size, the type of pool, your location and where you plan to build the pool on your property. Adding a small plunge pool to a cleared, flat space in your backyard will cost considerably less than adding a resort-style pool with waterfalls and a jacuzzi to your property that requires you to cut down multiple trees and level the land.

Besides the personal enjoyment that comes along with having a pool, this addition to your home could boost your property value and make your home more desirable to future buyers, renters or short-term guests.

The high cost to install a pool means that many people rely on pool financing. There are several ways to go about getting a loan for a pool.

Options for Pool Financing

If you want to add a pool to your property, but don’t have the cash upfront, you have several options.

You could get a personal loan (sometimes referred to as a pool loan), a home equity loan, a home equity line of credit or a cash-out refinance. Some pool builders or retailers offer in-house loan programs through their partner lenders. You might also consider using a credit card as your method of financing.

Personal Loans (AKA Pool Loans)

Pool loans are unsecured personal loans offered by banks, credit unions and online lenders. You may be able to get a pool loan through the financial institution where you already have existing accounts, or you might choose to get financed from an online lender or financing consultant company that deals exclusively with pool loans and home improvement loans.

One of the benefits of personal loans is that you don’t have to offer up any collateral. If you stop making payments and default on your loan, you don’t have to worry about your house being foreclosed — though the lender still could sue you. If approved for an unsecured personal loan, you can usually receive funds within a couple of days, much quicker than some other financing options.

Because you don’t have any collateral backing the loan, however, these financing options can come with higher interest rates. Interest rates can start around 3% and go up to about 36%.

A borrower’s credit score, credit history, income and existing debt load all affect the interest rate.

Personal loan terms generally range from about two to 12 years — though some pool loans can have terms up to 20 years or more. You can get loans from $1,000 to over $200,000 to fund simple above-ground pools or elaborate in-ground pool projects.

Home Equity Loans

Home equity loans are essentially when you tap into the equity you have in your home and take out a second mortgage. If you have a significant amount of equity, you could finance your pool project this way.

Home equity loans generally have lower interest rates than personal loans because your home is used as collateral. If you default on your loan, the lender could foreclose on your home.

Also, with home equity loans you’ll face additional fees, like a home appraisal cost and closing costs, so be sure to factor that into your decision making.

Home Equity Line of Credit (HELOC)

A home equity line of credit or HELOC also taps into the equity you have in your home, but it’s a revolving line of credit that you can use for several years instead of a loan that provides you with one lump sum of cash.

With a HELOC, you can pull out funds as needed to finance your pool construction and other home improvement projects. While you’ll only pay back what you borrow, the interest on HELOCs are usually adjustable rates rather than fixed rates. That means your monthly payments can increase during your repayment period.

Cash-Out Refinance

A cash-out refinance is essentially when you replace your existing mortgage with a new mortgage that exceeds what you owe on the house and you take out the difference in cash.

You can then use that lump sum to pay for your pool, and you’ll pay it back throughout the course of your new mortgage — over the next 10 to 30 years depending on your loan terms.

A cash-out refinance might make sense if you’re able to get a lower interest rate than your current mortgage. However, just like with a home equity loan or HELOC, your home is being used as collateral, and you’ll face additional fees involved in the refinancing process.

In-House Financing from the Pool Builder

Some pool companies may directly provide you with pool financing offers, so you don’t have to search for financing on your own. The pool companies typically aren’t offering the loan to you themselves, but they’ve partnered with a lender or network of lenders to provide you with financing options.

This type of financing is the same as applying for a personal loan or pool loan. The benefit is that you get a one-stop-shop experience instead of having to reach out to lenders individually. Your pool contractor may even be able to assist you through the loan process.

The downside is that you could potentially miss out on a better deal by only getting quotes from the pool company’s partnered lenders.

Credit Cards

Because of their high interest rates, credit cards are usually not recommended as options for financing a new swimming pool. However, there can be situations where it’d make sense.

If you’re able to open a zero-interest credit card and pay the balance back before the zero-interest period expires, paying with a credit card can be a great option — especially if it’s a rewards card that’ll give you points, airline miles or cash-back for spending or a bonus just for opening the account.

If you choose this financing option, be sure that you’ll be able to pay off the balance in a relatively short period of time. Most credit cards only offer zero-interest periods for the first 12 to 21 months. After that your interest rate could go up to 18% or more.

Pool Loan Comparisons

Getting quotes from multiple lenders will help you select the best deal for your pool construction project. Here’s what a few top lenders are currently offering.

Lyon Financial

Best for Long Loan Terms

4.5 out of 5 Overall

Key Features

Pays the pool contractor directly
600 minimum credit score
Offers military discounts

Lyon Financial is a financing consultant that has been in business since 1979 and works with a network of lenders to provide loans for pool and home improvement projects. Unlike personal loans that provide the borrower with the funds upfront, Lyon Financial disburses the funding directly to the pool builder in stages as the project progresses.

Lyon Financial

APR (interest rates)

As low as 2.99%

Maximum loan amount

$200,000

Loan terms

Up to 25 years

HFS Financial

Best for Large Pool Loans

4 out of 5 Overall

Key Features

Provides loans up to $500,000
Most loans are funded within 48 hours
No prepayment penalties

HFS Financial is a financing company that partners with third-party lenders to provide homeowners with the money to construct pools on their property. Use their “60 second loan application” to kick off the loan process. Funds are typically dispersed within 48 hours.

HFS Financial

APR (interest rates)

As low as 2.99%

Maximum loan amount

$500,000

Loan terms

Up to 20 years

Viking Capital

Best for Customer Service

4.5 out of 5 Overall

Key Features

Supports a network of pool builders
650 minimum credit score
Offers military discounts

Viking Capital is a family-owned business that has been in operation since 1999. The company acts in the capacity of a financial consultant, and partners with a network of lenders to provide multiple loan offers for pool construction projects.

Viking Capital

APR (interest rates)

As low as 5.49%

Maximum loan amount

$125,000

Loan terms

Up to 20 years

5 Steps to Securing Pool Financing

Follow these steps to secure a loan for your pool.

1. Determine What Monthly Payments You Can Afford

Before you dig into your pool financing options, you should be clear on what monthly payment you can afford. Having a pool is a luxury. You don’t want a pool construction project to jeopardize your ability to pay your bills and meet your needs.

Figure out how much disposable income you have to work with by comparing your monthly earnings to how much you typically spend each month.

Don’t forget to factor in maintenance and additional utilities usage when estimating how much you can afford to go toward pool costs.

2. Check Your Credit History

When you’re financing a pool, having a good or excellent credit score will help you secure a loan with a low interest rate. Ideally, your credit score should be 700 or above.

Some lenders may offer you financing if you have fair or poor credit, however you may have to pay a lot more over time due to higher interest rates.

To boost your credit score before applying for a pool loan, follow these steps.

3. Get Cost Estimates for Your Pool

Talk with pool builders to get estimates on the total cost of your desired pool project. Get estimates from multiple pool companies so you have a better idea of what options exist.

If the estimates come in higher than you expected, consider scaling down the size of your pool project or using different materials.

Make sure any additional work — like constructing safety fencing — is included in your estimate.

4. Choose What Type of Financing Your Prefer and Shop Around For Lenders

After you figure out what options are available within your budget, it’s time to decide on what type of financing you prefer.

Will you be applying for an unsecured loan or do you plan to tap into your home equity or refinance your mortgage? Are you going to purchase a small above-ground pool that you could pay off in 15 months using a zero-interest credit card?

Once you know what type of financing you’ll go with, reach out to multiple lenders so you can compare offers and choose the best deal. You may be able to use a competitor’s lower offer to get a lender to reduce their offer even further.

5. Complete Loan Application and Sign Off on All Paperwork

The final step to get your pool project financed is to complete any additional paperwork and sign off on the dotted line. Expect to provide information about your income and other existing debt.

Your credit score may take a dip after taking on new debt, but it should rebound as you make regular, on-time payments.

Alternatives to Pool Financing

Taking on debt for a new pool doesn’t have to be your only option.

You could put off your pool construction project for a few years and save up for the expense in cash. Open a high-yield savings account to use as a sinking fund and don’t make withdrawals from the account until you’ve reached your savings goal.

If you think you’re outgrowing your current home — or are looking to downsize — wait until you’re ready to move and then look for a new home with an existing pool.

Or if you’re okay with not having a pool in your backyard, you’ll save money by visiting public pools or renting private pools from Swimply on occasion. This is a good option if you think you wouldn’t get much regular use of having your own pool.

Frequently Asked Questions

How many years can you refinance a pool for?

You can finance a pool over 20 to 30 years, depending on the type of financing you secure. If you need decades to pay back the loan, you might consider refinancing your mortgage or taking out a second mortgage. Private, unsecured loans typically need to be repaid sooner, however some have loan terms of 20 years or more.

What is the best way to finance a pool?

It all depends on your individual circumstances and preferences. If you’ve built up a ton of equity in your home and want to spread your debt payments over a lot of time, you might lean toward a home equity loan or HELOC. If you’ve got excellent credit and would qualify for a low-interest personal loan (unsecured loan), that might be the better option.

What credit score do you need for pool financing?

Ideally, you’ll want to have a credit score of 700 or higher to get the best interest rates for pool financing. Some companies, however, will accept lower credit scores. As a result, your loan may have a higher interest rate.

What is a good interest rate for a pool loan?

An interest rate around 5% is a good deal for a pool loan. You may be able to find rates even lower if you have excellent credit.

Nicole Dow is a senior writer at The Penny Hoarder.

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Source: thepennyhoarder.com

May 16, 2022

8 Things You Can Do Today to Stop Stressing About Money

Save more, spend smarter, and make your money go further

A little stress is a good thing. It keeps us on our toes, challenges us to improve and can even lead to healthier brain function. A life without any stress at all would be pretty boring.

But when it comes to money, most people are dealing with more than just a little bit of stress. On this end of the spectrum, the upsides of stress are replaced with even more downsides – poor sleep, increased anxiety, decreased immunity and more. Just about everyone could benefit from stressing less about money.

That might be easier said than done, but there are some tried and true strategies we can recommend. Here are some of our favorites.

Adjust Your Withholding

Emily Guy Birken, author of “End Financial Stress Now,” said one of the fastest ways to add more money in your budget is to adjust your tax withholding at work. If you’re used to getting a large tax refund, you can change your tax withholding status to make your regular paycheck larger.

Talk to your HR department about how to change your tax withholding and use the IRS tax withholding calculator to see what you specifically need to change. Depending on when your employer implements the changes, they could come into effect during your next paycheck or the one after.

“The only caveat you need to remember is that you’ll get a smaller or no refund in April,” Guy Birken said.

Start a Money Journal

Research has shown that journaling about your problems can lead to reduced stress and anxiety. If you’re worried about money, take a notebook and start writing down what you’re worried about. Consider it a brain dump exercise; just start writing and don’t worry about having all the information perfectly laid out.

Once you’re done, go through the entries and prioritize your stressors. Are you more worried about saving for retirement or establishing an emergency fund? Are you more worried about your student loans or your credit card balance? Try to list items in order from most important to least important.

After prioritizing the items, start a new list and break down the steps you need to take. Then, you can start tackling those tasks and reduce your stress.

Call Your Credit Card Provider

If you have a credit card balance, try calling your provider and asking for a lower interest rate. Remind them that you’ve been a long-time customer and that you’ve never missed a payment. A lower interest rate will prevent more interest from accruing and help you pay off the balance faster, which should help alleviate some financial stress.

Switch to a Lower Student Loan Payment

Lowering your monthly student loan payment can provide some breathing room in your budget. If you have federal student loans, you can switch to an income-driven repayment (IDR) plan which may result in a lower payment. IDR plans also offer loan forgiveness after 20 or 25 years, depending on the plan and type of loan.

Here’s how much of a difference you might see every month. Let’s say you owe $50,000 in federal student loans with a 5.28% interest rate and a 10-year term. If you switch to one of the IDR plans, your monthly payment would be $256 compared to $537 on the standard 10-year plan.

The main downside of an IDR plan is that your repayment term is extended, and you may owe taxes on the forgiven amount when the term is over. But it’s a good temporary fix if you need a lower payment. You can always switch back to the standard plan if you want to repay your loans faster.

Lower your Bills

If you need more breathing room in your budget, try negotiating with your internet, cable and cell phone providers. You may also be able to lower any outstanding medical bills if you call the billing department and ask for a discount.

“Internet and cable service is an easy place to start because they’re used to be negotiated with,” Guy Birken said.

Some tenants have had luck negotiating their rent during the pandemic, especially if they live in a city where people have moved out in droves.

Examine your Transactions

A 2020 Mint survey found that 65% of Americans don’t know how much they spent last month. While ignorance may feel like bliss, the anxiety that comes with being unaware of your spending feels more like misery.

Print out or download your credit card and bank statements from the past month and parse through them. You may discover that you’re still paying for a makeup subscription box or gym membership you thought you canceled. You may also find transactions you don’t recognize, which could be evidence of fraud.

Cancel any subscriptions you no longer use and ask for a refund if the expense has gone through within the past month. Be persistent about canceling. Sometimes it can take weeks for the request to go through, so set a calendar reminder to double-check that the subscription has been canceled.

Start a Budget

If you discover that you’re spending more than you earn, you need to make some radical changes. Start by making a budget, which can help you track spending and free up money to save, pay off debt and meet your other financial goals.

You can use Mint to create a budget. Mint will suggest categories based on your current spending and show how much you spend on average. You can then decrease or increase the amounts depending on your goals. When you’re close to exceeding the budget, you’ll get an email notification.

If you’re new to budgeting, don’t be surprised if you keep going over budget in certain categories. It takes time to change your financial habits, so be patient with yourself.

Close Old Accounts

A common stressor is having to manage multiple accounts. You can forget about one and end up with an overdrawn bank account or some fraudulent activity. If you have several accounts you don’t need or use regularly, consider consolidating them. After you do that, set up your bills, credit cards and loans on autopay so you don’t have to worry bout missing a due date.

“It made it easier to maintain the financial aspect of our lives because we didn’t have a sprawling mess to manage and many of the ‘day to day’ activities were on autopilot,” said Jim Wang of Wallet Hacks.

Save more, spend smarter, and make your money go further

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok

Source: mint.intuit.com

May 16, 2022

The Tally App Will Help You Pay Off Your Credit Cards

¹Can save ,185 in 5 years with Tally+ – We calculated the savings estimates in March, 2021 based on Tally’s records for borrowers who enrolled in Tally from November 2018 through October 2020. We calculated the interest users would pay if they had received and accepted a Tally+ line of credit and compared that to the interest they would pay without Tally until their credit card balances are fully repaid. For each borrower we used: (a) their average APR weighted by their initial credit card balances and APRs; (b) an average monthly payment of 3% of their credit card balance(s); (c) average monthly credit card transactions of 0.8% of their credit card balance(s). We assumed the borrower received Tally+ discount credit every month and we deducted annual fees from any potential savings. Actual savings will vary based on factors such as each user’s credit card APRs, the total payments made, and additional credit card charges. Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states. The APRs on Tally’s credit lines range from 7.9% to 29.99%, depending on your credit history. Credit card debt is like a money-grubbing evil spirit that never goes away and drains your bank account dry. Choose from Tally Basic or Tally+, whichever is right for you. If you’ve got credit card debt weighing on you, it’s easy to see how much money you’d save this way. Ready to stop worrying about money?

No Waiting on Approval

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. In the app stores, this app is labeled “Tally: Fast Credit Card Payoff,” and it’s called that for a reason: It’s really fast. If you are eligible, (you generally need a FICO score of 580 or higher) , you can get a line of credit pretty much immediately. There’s no waiting around, like if you’re waiting to see if a bank approves you for a personal loan. That can take days, or even a week. Tally quickly does a soft credit check that won’t affect your credit score. The average American family has four credit cards and more than ,000 of credit card debt, according to data from Experian and the Federal Reserve. That adds up to a lot of interest, which is how credit card companies make their money. Tally credit lines are available in every U.S. state except Maine, Montana, Nevada, Vermont, West Virginia and Wyoming. If you’re in this boat, you need to check out a mobile app called Tally. It pays off your high-interest credit cards by giving you a line of credit with a better interest rate. You consolidate all your credit card bills into one monthly payment, and you pay less interest.

Signing Up to Get Rid of Credit Card Debt

It’s the most expensive kind of debt you can have. First you start falling behind on your monthly payments. Next thing you know, they’re gouging you something fierce by charging you more than 20% interest on your balance. You end up paying so much interest that you can never pay off what you owe.

Download the app.
Open an account with your email address.
Apply for a credit line. You’ll be asked for basic info like your income and birthday.
Add your credit cards. Type in the info or scan your credit cards with your phone.
Say yes. Accept the offer and link your bank account.

Get the Penny Hoarder Daily If your new credit line can replace all your credit card debt at a better APR, then Tally will pay off all your cards. Instead of paying your credit cards, you’ll make a monthly payment to Tally instead. Depending on your credit history, your available line of credit will range from ,000 to ,000. You don’t pay interest on all that. You pay interest only on the amount of credit you use. There are even more benefits with the Tally+ membership. It costs per month or 0 per year, but you get a bigger credit line and a lower APR. Applying for Tally’s lower-interest credit line takes just minutes, depending on how many cards you have: That’s why the average Tally+ member saves ,185¹ over five years, according to Tally. Use Tally’s debt calculator to find out how much you could save and if Tally’s the smarter choice for you. You can operate everything through the mobile app, which is designed to be easy to use. Tally won’t charge you any late fees or balance transfer fees. If your new credit line can’t cover all your credit card debt, Tally will automatically pay off the highest-interest cards first, while making minimum monthly payments on the others. It’ll do your thinking for you. Depending on how much you owe, you could save hundreds or even thousands of dollars this way. You can also get out of debt faster. Source: thepennyhoarder.com <!– –>

Posted on May 14, 2022
American Women Quarters Program

Save more, spend smarter, and make your money go further

While a handful of women have appeared on coins and special-edition bills throughout the years – Susan B. Anthony, Sacagawea and Helen Keller, for example – the number of women featured on U.S. currency is about to be significantly expanded.

Beginning in 2022 and continuing through 2025, the U.S. Mint will issue up to five new quarter designs each year featuring historically prominent women. Here are the women being honored in 2022.

Maya Angelou

Celebrated author and poet Maya Angelou is most well-known for her autobiography, “I Know Why the Caged Bird Sings.” The book was named as one of TIME Magazine’s 100 best and most influential non-fiction books.

A recipient of the Presidential Medal of Freedom, Angelou also worked with Dr. Martin Luther King as a coordinator for his organization, the Southern Christian Leadership Conference. She was also the first African-American woman to read an original poem at a presidential inauguration.

Dr. Sally Ride

The first American woman in space, astronaut Dr. Sally Ride inspired generations of girls to pursue careers in science and technology. Ride flew on the Space Shuttle Challenger in 1983 and 1984.

In 2013, President Barack Obama awarded her a posthumous Presidential Medal of Freedom. After her death, it was revealed that Ride was a lesbian, making her the first LGBTQ person to appear on a US quarter.

Wilma Mankiller

As the Principal Chief of the Cherokee, Wilma Mankiller is the first woman ever elected chief of a major Native American tribe. She oversaw the growth of the Cherokee nation from 68,000 members to 170,000.

Ms. Magazine named Wilma Woman of the year in 1987, President Bill Clinton awarded her the Presidential Medal of Freedom in 1998.

Nina Otero-Warren

One of the few Hispanic suffragists in history, Nina Otero-Warren helped publish suffragist literature in Spanish, encouraging Hispanic women to vote. She also served as chairman for the Board of Health in New Mexico, was a board member for the American Red Cross and was the Inspector of Indian Schools for Santa Fe County, overseeing the schools for Native American children.

Anna May Wong

As the first Chinese-American movie star in Hollywood, Anna May Wong paved the way for countless other Asian actors. She acted in Broadway plays and both American and European films. Anna was also a fashion icon and was once named the world’s best-dressed woman.

She appeared in movies and plays with acting legends like Laurence Olivier, Douglas Fairbanks and Marlene Dietrich. Though Hollywood remained a hostile environment for people of color during her time, Wong stood up against Chinese stereotypes and advocated for fairer portrayals.

Save more, spend smarter, and make your money go further

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok

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Source: mint.intuit.com

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