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The knee-jerk answer is, “it doesn’t,” but that leaves too much meat on the bone. Credit card inactivity CAN have an impact on your credit, but it would be indirect.
It’s strange, but from time to time, I get a small pop in the volume of the same question. It happened to me last week. I was asked four times on the same day about the impact of credit card account inactivity on your credit reports and credit scores. In this post, we’ll discuss what it means to have an inactive credit card, how credit card inactivity affects your credit score, and delve into some strategies for finding the right balance for your credit card usage.
For quick answers regarding credit card inactivity, use the links below to navigate to specific sections or read end to end for a greater scope on the subject.
What is Credit Card Inactivity?
Credit card inactivity is when your credit card has a zero balance over an extended period of time. The catch with credit card inactivity is that if you stop using your credit card for several months or years, your card issuer could decide to close your account, which could indirectly impact your credit score. We’ll discuss more about what happens when your credit card account is closed due to inactivity a little later on in this post.
It may seem pretty straightforward to determine whether your credit card is active or not, but credit reporting is very flat, meaning your credit reports only show you a snapshot in time of what your credit history looks like. There is no chronology of balances, which means it’s hard to determine from a credit report if an account is active or inactive.
For example, if you have a credit card with a $0 balance on a current copy of your credit report, it appears that the account is inactive. The problem is that the balance is from last month’s statement and the card may have been used since the last month’s statement was cut, thus the account is now “active.”
Because you can’t determine activity from a credit report, credit scoring models cannot be harmed or helped by your past usage activity. However, the credit card issuer’s reaction to your usage patterns can make its way to your credit reports, and that’s where the game changes. In other words, if your credit card issuer decides to close your account due to credit card inactivity, it could impact your credit score.
How Long Can a Credit Card be Inactive Before Closing?
It’s up to your credit card issuer! Some companies allow users to have a zero balance for a longer period of time, while others require you to maintain a certain balance. Before canceling your credit card or leaving your card open without a balance for too long, get in touch with your credit card company to see what their restrictions are.
Why does my credit card issuer care if I use my card?
If you choose to stop using your credit card account, for whatever reason, the revenue generated by that card dries up, unless that card has a balance or an annual fee. Your card issuer depends on your usage in order to make money. If your card has a $0 balance and no annual fee, then your card issuer won’t make any money from interchange fees (aka “swipe fees”). Add that to the absence of interest, and annual fees and the card becomes a drag to the issuer.
In fact, if there is no usage, no balance, no interchange fees, and no annual fee, then the card drops below the $0 mark on the revenue curve. Credit card issuers incur a cost to maintain your account in their systems. They pay the credit bureaus for periodic credit reports and scores on you as part of their account maintenance practices, along with time and energy spent trying to figure out how to get you active again.
There’s a cost to all of this, which is why you’re a “loss” while you’re inactive.
Will I be notified before my credit account is closed?
Sometimes. Credit card companies are not required to give account holders notice that their credit card account will be closed due to inactivity. However, they must give you 45 days notice when making major changes to your account, which could include closing as a result of inactivity.
How Does a Closed Account Impact Your Credit Score?
When a credit card issuer closes your account, your credit limit could be lowered due to inactivity, which translates to a decrease in available credit. This could also mean your revolving percentage could go up, and it could go up a lot.
As you may know, your credit utilization is one of the many , along with your credit history and age of credit, among other metrics.
How much impact does a closed card have on your credit score? The impact to your credit is going to vary based on a couple of factors. If you carry credit card debt on other cards, the impact could be significant. If the credit limit on the newly closed card was very high, the impact could be significant.
If the credit limit was very low (like on a retail store card) and you don’t have credit card debt elsewhere, the impact is likely to be less, because your utilization won’t shift much and your debt-to-income ratio is still relatively low.
Should I Cancel My Credit Card?
It depends. Each and every financial decision you make should be looked at through the lens of your lifestyle, financial situation, and personal preferences. Before canceling your credit card, you should consider what pros and cons you may see as a result.
Here are a few factors to think about before canceling an inactive credit card:
Pro: Cancelling can save you money on annual fees, preventing extra, unnecessary expenses.
Pro: Closing an inactive credit card account can help you simplify your finances and make it easier to focus on managing other debts while keeping your monthly budget on track.
Con: Your credit card utilization may increase while your available credit decreases.
Con: Closing a credit account could negatively impact your “credit mix,” which can alter your credit score.
Prevention is Key
If this is a concern for you and has you running to check your credit score, there’s a way to prevent all of this. All you have to do is use your credit card from time to time. Now, I’m not suggesting that you get into debt, nor am I suggesting that you use it to buy things you wouldn’t normally buy.
I’m suggesting that you buy a tank of gas or use it to pay this month’s cable bill, which are things you’re going to have to pay for anyway. This way, you’re killing two birds with one stone.
By using the card, and then paying it off immediately, you’re resetting the activity clock and it isn’t costing you a penny in interest. The credit card issuer is happy because they’re making revenue from the swipe fee, which is being paid by the merchant, not by you.
Best of all, you protect—and possibly even improve your credit—because the issuer isn’t likely to close your account if you use it from time to time, even on modest purchases.
John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.
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Barclays is offering an increased bonus on the Wyndham Earner Business card: 50,000 points after you $3,000 in spend within 90 days and an additional 20,000 points after spending $10,000 within the first 12 months
Card Details
$95 annual fee
Card earns
8x points at Wyndham properties and on qualifying gas purchases
5x points on marketing, advertising and utilities
1x points on all other purchases
Annual fee of $95, not waived first year
Automatic Wyndham Diamond status
10% discount on go free awards
Anniversary bonus of 15,00 points
Our Verdict
Not as good as the previous bonus that was 75,000 points but only required $2,000 in spend and a purchase on an employee card. There was also a 90,000 point bonus as well. Because of that I’d recommend waiting for a bigger bonus to return. There is a 75,000 point bonus on the personal card.
I barely brushed the surface of combating food waste in a recent article, but the comments added so much to the article that I thought I could stop at just one. And then I found some more statistics.
In the U.S.:
We waste 40 percent of edible food
It costs $750 million just to dispose of the food we waste
And when you consider the extra costs of packaging, transporting, and storing wasted food, the overall cost of wasting food goes up to $165 billion.
But there’s more — 33 percent of purchased meat is wasted, followed by 25 percent of seafood. Even 15 percent of purchased fruit is wasted. That’s not good, especially when you consider that meat is so expensive, not to mention all food.
But what matters most is what happens in your household. And according to the same statistics, each U.S. household wastes between $28-43 per month on food. I’ve seen other statistics that put that number closer to $600 annually per household. That’s not a huge amount of money, but wasting money on food doesn’t make sense any way you slice (or dice or julienne or…) it.
Smart storage
Food storage has changed a lot since my grandparents were growing up in the 30s. They preserved their meat by smoking it. They killed a chicken after lunch and dressed it for dinner. They say that they ate bad apples all winter. They started out eating the not-so-good apples first, but by the time they got to the good apples, they weren’t very good, either. (But I don’t know. This comes from the same grandfather who walked up hill to school both ways. And I think he was barefoot in the winter, too.)
Without question, freezers and refrigerators have extended the life of produce and other foods, but I still waste food. I am getting better as using up the produce, but I am also trying to learn the best ways to store produce so it lasts as long as possible.
This winter, I noticed that my onions were getting moldy more quickly than they ever had before. After throwing out a handful of onions three times, I looked at how and where I was storing the onions. In a plastic bag, in a warm cabinet, next to a heat register. Well, according to the National Onion Association (doesn’t that make you want to cry?), there was nothing right about that. Onions should be not be stored in plastic bags; they need to breathe and prefer a cool, dry, well-ventilated environment.
Potatoes also prefer a cool and dark, ventilated environment. A refrigerator, kept slightly warmer than normal, was recommended as a good place to store pounds of potatoes through the winter.
Refrigerator management
If you have produce drawers in your refrigerator that have different humidity settings, in general, vegetables should be at a high humidity setting. This keeps the water vapor inside the drawer which prevents vegetables from wilting.
On the other hand, fruits usually emit more ethylene gas and need low humidity settings. Some vegetables, like peppers and mushrooms, prefer low humidity. In general, foods that emit more gas usually have a shorter shelf life.
If you don’t store your greens in the high humidity drawer, you can wash the greens and wrap them in damp paper towels. That makes them last much longer.
Tomatoes get mealy when placed in the refridgerator. So when we have a garden, I leave the tomatoes on the plant as long as possible. When we don’t have a garden, I let the supermarket be my storage unit for tomatoes. But if I must store them at my house, I do my best to eat them quickly. If not, I may store them in the refrigerator.
Consider the temperatures of different parts of the refrigerator. The door is warmest, so foods with lots of sugar, salt, or vinegar are fine on the door. Milk can be kept on one of the middle shelves. Since the bottom of the fridge is coldest, keep meat there.
My leftovers get stored in a selection of containers, but my favorite ones are clear glass. Why? I waste much less food when I can see what’s in each container when I open the refrigerator door.
Along with all these other tips, one more method of food storage extension is to not wash your produce until you’re ready to use it (with the possible exception of greens).
Products to extend produce life
Other than storing items properly, using up produce quickly, and selecting quality produce in the first place, there are also other ways to extend the life of produce.
The BluApple absorbs ethylene gas which hastens ripening. When used in fruit bowls, dark areas where you store potatoes and onions, and produce drawers in the fridge, it triples the life of the produce — at least, that’s the claim. I haven’t used this product, so I can’t say for sure. It costs $19.90 for two BluApples and a 12-month refill kit.
Tupperware sells another option. The FridgeSmart containers regulate airflow and have ridges on the bottom to prevent the fruits and veggies from sitting in condensation. I have used these. Not only do they keep my fridge organized, but things like celery seem to last much longer. A four piece set is $84, though you can purchase different sizes individually for less than $20.
Some people choose to fight food waste by allowing the supermarkets to store the produce for them. I think that’s a great idea, but I live 15-20 minutes from a decent-sized grocery store. Also, we’re going to be growing more of our own food this year which means I will probably (hopefully!) have lots of produce life to extend.
Many factors increase food waste which means there are many factors to improve to decrease food waste. Which methods do you use? Do you think you waste as much food as these statistics say you do?
A C-suite exec from one of the world’s largest gaming giants is floating his contemporary home on the market — with a $5,798,250 price tag. Or a $23k/month rent, whichever comes first.
Marcus Sanford, Deputy CFO Planning & Analytics at Activision Blizzard, arguably the biggest gaming company in the world whose annual revenue reportedly amounted to $7.53 billion in 2022 alone, has just listed his Los Angeles home, giving gaming fans everywhere a peek inside the life of a Blizzard executive.
For those less familiar with the gaming scene, Santa Monica, Calif.-based Activision Blizzard, is best known for creating some of the biggest videogame franchises out there, including World of Warcraft, StarCraft, Diablo, Overwatch, and Hearthstone (which yours truly has been playing since it first launched its beta version back in 2013).
And spearheading the efforts to deliver these immensely popular video games to fans all over the world comes with benefits, as we’re about to see.
Inside the spectacular home of an Activision Blizzard executive
CFO Marcus Sanford’s house is a custom-crafted, modern abode set in the heart of Melrose Village, the popular Los Angeles neighborhood that runs along Melrose Avenue between Fairfax Avenue and Highland Avenue.
But location is by no means the only thing that makes this property stand out.
The distinctly contemporary home has 4 bedrooms, 4 full baths and one half-bath spread across 3,813 square feet of meticulously appointed living space.
Its interiors ooze modern luxury without sacrificing on warmth, relying heavily on wood and natural elements to set the tone for each space.
Stand-out features include white oak hardwood floors, a skylight shining down upon a stunning 20-year-old ficus bonsai, and wide glass windows that embrace abundant sunshine.
The luxurious kitchen is every culinary expert’s dream, equipped with the finest appliances (Miele), as well as marble countertops, an espresso machine, two ovens, a chef’s six-burner stovetop, a wine chiller, and even a designer pantry.
It’s also set right next to the sliding glass doors that open to the outdoor spaces — making summer BBQ prep or alfresco dining a breeze.
Rounding up the long list of amenities, the Activision Blizzard CFO’s home comes with four sleek fireplaces placed throughout the public and private rooms, a wine cellar, and an additional den or media room.
SEE ALSO: Inside a rare Disney World estate with themed ‘Star Wars’, ‘Frozen’ rooms
Though it’s worth mentioning that the property also features a Tesla charger and Control 4 system that manages indoor and landscaping lighting, indoor & rooftop music, TVs, blinds and doors, intercom and gates.
Per the listing, the four ensuite bedrooms feature spacious closets and privacy, and the expansive primary suite boasts a spa-like custom bath with a soaking tub, dual waterfall shower, and double vanity.
The primary suite also opens onto a private patio with its own fireplace.
Outdoor spaces reign supreme, with an expansive rooftop deck as the crown jewel
Impressive as the home might be, it was its outdoor spaces that caught our eye.
From its verdant, atrium garden entry to its carefully manicured backyard, the property’s outdoor areas bear the signature of Sirak Studio, the lauded Los Angeles-based design studio helmed by Adam Sirak.
But the property’s standout feature is its expansive 868-square-foot rooftop deck, complete with its own kitchen, bar, and outdoor living room.
Fully finished in solid teak decking with an open-front gas fireplace, the generously sized rooftop deck includes custom teak coffee tables accented with Italian silver travertine, outdoor fabrics by Kelly Wearstler, and lounge chairs by Holly Hunt.
The house is listed with Farah Levi and Mauricio Umansky of The Agency with a $5,798,250 price tag but is also offered as a rental for $23,000/mo.
More stories like this
$36M Bel Air mansion is the epitome of modern luxury ER star Anthony Edwards lists Spanish-style vacation beach home for $6.5 millionOnce home to Stevie Wonder, this newly listed Beverly Hills compound has views for days Bacardi heiress lists rare Disney World estate with themed ‘Star Wars’, ‘Frozen’ rooms
There’s been a lot of talk about inflation lately. While inflation, at its most basic, is an increase in prices, there are differences in the way that it is measured. You should pay attention to inflation, since it represents an erosion of your buying power.
However, it does help to know how policymakers view inflation. It will give you a better idea of how to plan your finances more effectively. Two measures of inflation that you should pay attention are CPI and core inflation.
CPI
The measure that is most often used to measure inflation in terms of consumers is the consumer price index (CPI). Tens of thousands of items, in several categories, are tracked. The basket of products of services is considered each month, and economists and statisticians look for trends. If the CPI rises, it is an indication that prices could be trending higher, with inflation on the rise.
Core Inflation
There is some controversy surrounding the use of CPI as a reliable measure of the real inflation rate. However, there might be even more controversy surrounding the use of core inflation in setting monetary policy. The Federal Reserve, when it sets its benchmark interest rate and makes monetary and economic policy, considers the effects of inflation. While members of the Fed might consider CPI, core inflation is more frequently mentioned in policy announcements.
Core inflation is basically CPI, but with the most volatile items broken out. Core inflation doesn’t include food and energy prices. As a result, some argue that the use of core inflation actually hurts more than it helps, since rising food and energy prices are more likely to significantly impact the household budgets of most consumers. You probably already know that food and energy prices often rise faster than other items — and they are prices likely to significantly impact your pocketbook.
Tracking Your Own Inflation Trends
Instead of relying on the government to tell you what’s happening with inflation, you can actually track inflation on your own. Take a look at what you normally spend money on. Choose a certain day each month to check the prices of these items and create your own measure. You can watch your personal inflation index for trends in prices. If you use public transportation, gas prices aren’t going to figure heavily into your personal inflation measure. If you have a newborn, and need to buy diapers, that measure will be an important part of your personal inflation measure.
You can compare your personal inflation measure to CPI and to core inflation. This will give you an idea of how accurate — how “real” — the wider statistics are for you. As you plan your finances, remember to consider the effect that inflation will have. The inflation rate will erode your returns. If you’re earning 6% annually, but prices rise at 3% a year, you are only earning 4%. If your portfolio earns less than the rate of inflation, you are actually losing money in real terms.
Whether you follow CPI, core inflation or use your own measure, you should pay attention to inflation. This will allow you to make decisions about what investments will help you beat inflation.
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Apartment hunting can be a real hassle. Newspaper listings don’t give you enough information, apartment guide magazines are almost always out of date, and driving around town looking for “For Rent” signs wastes time and gas.
Apartment search engines aim to make finding a new apartment easier by showing listings from multiple sites in a single, easy-to-read format. Some sites hit the mark, while others miss it by miles.
As a renter, here’s how I rank apartment rental sites from best to worst:
PadMapper
PadMapper is the one site I’ve had the most success with because you can customize your search results in nearly every way imaginable. The basic search goes by price, number of bedrooms, and type. The expanded search lets you enter in your own keyword or look for pet-friendly spots. But the best feature of PadMapper is the super-secret setting (seriously), which is a blue bar called “Show Super-Secret Advanced Features.” With this setting, you get a crime map, walk score, neighborhood layout, and mass transit map for each listing.
MyApartmentMap
If you’re looking for a specific type of rental, MyApartmentMap is the site to search. It sorts results by pets allowed, military housing, college apartments, or affordable housing. You can also refine your search within each option, such as, choosing cats, small dogs, or large dogs under the “pets allowed” subsection. The listings themselves are the easiest to browse of all the sites. Each listing has a photo and the rent price clearly marked.
HotPads
If you’re an organizational nut like me, you’ll love the interactive map on HotPads. Each apartment listing appears on the map as a color-coded “hotspot.” Clicking a hotspot pulls up the listing, and from there you can hide the apartment or add it to your favorites. Hiding a listing removes the hotspot, while adding to your favorites puts a star on the map. After sorting all the listings, you’re left with one easy map showing you which apartments you want to look at.
RentLinx
RentLinx does have some cool search features. You can look for income-based, Section 8-approved, handicapped-accessible, and smoke-free rentals. The site was harder to navigate than the others, and even after sorting by most recent listing, all of the ads I saw were a year or two old.
MyNewPlace
MyNewPlace is pretty bare-bones. The site does have some advanced search features that will let you sort by rent price or show you pet-friendly apartments, but the available listings are sparse. My ZIP code only showed 27 listings, whereas PadMapper, MyApartmentMap, and HotPads showed hundreds. After searching, the site required I give my email before I could view any of the listings. The signup sheet had a disclaimer that basically promises to spam my email with advertisements from the site. It adds, “Generally, you may not opt-out of these communications.”
Rentals.com
In my area, Rentals.com mainly listed sponsored ads from corporate apartment complexes with a few private rentals mixed in. While the site listed tons of complexes, the listings themselves weren’t all that comprehensive. None of the ads had floor plans, the photos included were mostly of the complex, and the pricing usually said “Varies.”
RentCompare
RentCompare was a navigational nightmare. The site’s two search options, sort by ZIP code or sort by city name, both came back with errors no matter how many different combinations I tried. When I finally got a search to work, the site required me to sign up before I could see the listings. Sign-up took four separate tries with four separate errors. In the end, I was able to see a few listings with some decent information, but the site wasn’t worth the hassle.
While I tried to cover most of the popular sites, there’s no shortage of others out there. Do you have a favorite site I didn’t mention, or one to avoid?
“The Best and Worst Apartment Rental Sites” was provided by MoneyTalksNews.
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Two-Thirds of Americans Expect the United States to Enter Recession This Year; Most Are Taking Steps to Navigate Economic Uncertainty Northwestern Mutual’s 2023 Planning & Progress Study finds U.S. adults have on average $65K in personal savings – nearly a 5% increase over last year Consumers are also cutting costs and postponing large expenses Top … [Read more…]
Grab a little green space at your own Portland apartment.
Portland is full of so much natural beauty and is a truly great place to live. While what you can see from the amenity-filled rooftops of each apartment building is important, there are other features to consider when apartment hunting.
Whether a massive fitness center tops your list, or you need a place that’s pet-friendly, make sure to take some time to explore the outdoor space before settling on a Portland apartment. From manicured gardens to landscaped courtyards, these areas can make a big difference.
To get a running start on the prettiest courtyards and gardens in Portland, start with this list. We’ve curated some of your best options right here.
Source: Rent. / Tupelo Alley
Creating an inviting entry into the community, Tupelo Alley does landscaping right. Neatly cropped shrubs sit in elevated beds off the ground and add a layer of texture and depth to the outdoor space here.
Set within the trendy Northeast Portland neighborhood, living here puts you close to coffee shops, popular restaurants and boutiques. There are also plenty of breweries and even botanical gardens to explore. Quirky and hip, with a monthly street fair, this is a piece of Portland where there’s always something fun happening.
Source: Rent. / Waterhouse Place
More than just a basic garden or courtyard, prepare for some ‘wow’ from the greenery at Waterhouse Place. Landscaping is everywhere, with clipped grass, blooming flowers and leafy trees. A nice mix of natural elements gives the green space depth and creates a tranquil escape. Well-established walking paths make it easy to explore everything the grounds here have to offer.
Located just a few miles away in Beaverton, you’ll find a little suburbia mixed with the eclectic charm of a bustling Main Street. What stands out most, though, are the city’s 100+ parks that encompass over 1,000 acres. There are 30 miles of hiking trails combined and a 25-mile network of bike paths all within the area. This puts a park within a half mile of every home in the neighborhood. That’s not even to mention the beaches, ski slopes and forests that border the area.
Source: Rent. / Mercato Grove
When it’s hard to relax, you need a dedicated spot. Swing into the garden patio at Mercato Grove, and all your cares will melt away. Sit on the rocks beside the gently rippling zen pool, or just enjoy the peace of the greenery that surrounds you. This is the garden where de-stressing is the standard.
Less than 10 miles outside of Portland, this Lake Oswego community is a great suburban retreat. With a 405-acre lake at its center, much of the area’s recreational activities have something to do with water. There are also plenty of shops full of trendy items, uniquely Portland restaurants and off-the-wall boutiques.
Source: Rent. / Asa Flats & Lofts
A sweet little courtyard that’s perfect for taking a seat and enjoying some downtime is what you’ll find at Asa Flats and Lofts. Long flower beds hold a variety of plant life, while tall trees fill in the corners of the space. Ample seating, either on a couch or at a four-top table, makes it easy to gather with friends to hang out.
For the best in urban living in Portland, the Pearl neighborhood is where you want to be. Here you’ll find the StreetCar just outside, so getting around is a breeze. The community is also surrounded by popular restaurants, shops, art galleries, breweries and entertainment venues, so there’s no shortage of fun when it comes to filling a night out on the town.
Source: Rent. / Harrison Square
Not exactly a courtyard, but the central walkway through Harrison Square has some potential. This is thanks to the lush greenery and soaring canopies that fill the nicely landscaped space. Pass by big flowering bundles and nice greenery as you walk along this lawn-like space going to and from your apartment. This courtyard setting even offers enough room to bring out a blanket and picnic.
You’ll find this Portsmouth community in a prime location. Sitting on Portland’s peninsula, you’re within blocks of the Willamette River and Smith Lake. There are also plenty of beautiful parks with picnic and play areas, sports fields and tennis courts. McCoy Park also features an interactive fountain and a variety of public art pieces. Even the benches are sculpted to look like fish and woodland creatures.
Source: Rent. / Center Plaza
Carefully shaped bushes, rows of vivid flowers and tall, vibrant trees make up the courtyard-like area at Center Plaza. With a sidewalk winding through the area, this space creates one border for this Beaverton community. Classic lampposts even make it a usable space as the sun sets.
Considered a more relaxed neighborhood, Central Beaverton is home to the local Farmers Market. This is a great place to enjoy the outdoors while picking up fresh flowers, produce, bread and more. You’re also close to the Town Square where you’ll find great shopping. In addition, local parks provide picnic tables, a splash fountain and even a boardwalk stretching across nearby wetlands.
Source: Rent. / The Alexander Apartments
Giving you natural beauty in an urban setting, The Alexander Apartments offers residents access to this great, organic garden. Raised beds house all kinds of herbs and vegetables, growing tall and strong.
You’ll find gardens like this one throughout the Buckman neighborhood. They help provide ingredients for many of the local restaurants in this modern-historic part of town. Many of these eateries are within walking distance. Eclectic coffee shops and cool entertainment venues also populate this part of Portland.
Source: Rent. / Powell Gardens
Living up to its name, with a massive courtyard area, Powell Gardens leaves no space without a touch of greenery. Bird baths and benches sit throughout the region, with large round bushes and wide-stretching trees. It’s an environment that immediately softens the rough edges of one’s day, providing a soothing space to sit or walk through, all while just steps from your front door.
A bit boho and trendy, the Richmond neighborhood is a mix of high-end restaurants and food carts. You’ll find cocktail and wine bars among vintage boutiques. There’s also a popular independent theater that shows films and hosts a variety of community events. If you’re looking for a lively part of Portland, this is the spot for you.
Source: Rent. / North Hollow
For a more modern take on an apartment courtyard, check out North Hollow. There’s not a lot of greenery here, but the sleek look of the funky furniture creates a very inviting and sophisticated space. Planter boxes fill out the borders, but the main attraction is the large fireplace ensconced in metallic silver and black matte.
You’ll find this community in Goose Hollow, Portland’s oldest neighborhood. It’s within walking distance of Downtown, so you can’t beat the location. Full of hilly streets, this area offers up amazing views. One of the local gems, Washington Park, contains 80 miles of hiking trails, 10,000 rose bushes in the International Rose Test Garden and the Portland Japanese Garden. From here, you can get a panoramic view of Downtown Portland. Now who wouldn’t want that?
Source: Rent. / Hassalo on Eighth
There are actually multiple courtyards within Hassalo on Eighth. Some are for gaming, like this great green space. Pops of bright orange draw the eye to the cornhole lawn as well as the covered seating area behind it. Mature trees maintain the natural barrier from one side of the buildings to help you focus on being outdoors.
Another courtyard within this Northwest Portland community is where everyone goes when it’s time to dine alfresco. Two gas grills and a prep area sit alongside a long dining table. More stonework than green space, the path here leads to a little bit of manicured grass and a row of cropped ground cover, so there’s always greenery nearby.
Find your personal garden oasis in Portland
Good luck in your quest to find the perfect Portland apartment for you. Remember to keep track of the amenities you want, and those you can’t live without.
And, don’t forget to pay attention to what the outdoor space looks like in your favorite places. You wouldn’t want to miss out on having one of the best gardens in Portland in your next home.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Frugal green living is important for everyone because environmental issues affect all of us, not just the people who can afford to be eco-conscious.
Plus the concept of frugal green means you are saving money! And that is always helpful.
This is why I created this blog, to help people save money, find financial freedom, and have choices in life.
Reducing your carbon footprint is one of the greatest gifts you can give to yourself and the planet.
But how do you save money while also making a difference? It’s possible!
This is why choosing to be frugal green is so important!
These are all frugal ways that I have personally done or heard of other people doing as well. They are tried-and-true methods of living a more frugal life, and I hope that you will find them helpful. Plus help the environment at the same time.
This is a win-win situation.
Have you ever wondered how to be environmentally friendly?
Do you want to save money and the environment at the same time?
This article has 91+ frugal green living tips that will help! Let me know which ones are your favorites!
How to save money and be frugal green?
There are many ways to be frugal green and save money while helping the environment.
Plus in the long run living green costs less.
We will cover ideas for your kitchen, car, shopping and so much more. There are many other ways to be frugal green, so find what works best for you and make a difference!
These are ways to live more sustainably while saving money.
Importance of Sustainability and the Environment
You can save money and help the environment without making any major changes to your lifestyle.
Some easy ways to do this include, but are not limited to, changing your habits at home, buying used instead of new, and being more conscious about how you use energy.
Every day you can make the decision to choose to be a thrifty person.
Top 10 Best Frugal Green Living Tips
In order to save money and be more environmentally friendly, try some of these tips:
1. Reduce your use of plastics. This means bringing your own bags to the grocery store, refusing straws when you order drinks, and not using disposable utensils or plates.
2. Make Recycling a Priority. Recycling is important, and everyone should do their part to make it a part of their everyday routine. It’s not just for plastics and paper- there are many different things that can be recycled. By taking small steps like bringing a reusable coffee mug, we can all make a big difference in the long run.
3. Ride a bike or walk instead of driving. Not only is this better for the environment, but it’s also a great way to get some exercise.
4. Do the “green thing” and buy things secondhand! When you’re considering your lifestyle choices, buying things secondhand is a great way to do the “green thing.” You can save money and help reduce the amount of waste that goes into landfills.
5. Only buy what you need. Many times we buy things out of convenience or wants. Truly evaluate whether the purchase is necessary or if you can save money by buying used.
6. Compost as much as possible. Not only does this help reduce waste, but it also helps create nutrient-rich soil for plants.
7. Consider your carbon footprint. Americans use a tremendous amount of resources and impact the planet in many ways. We consume a lot of energy, materials, and water. Our lifestyles have a big environmental impact. There are many ways to be frugal and environmentally conscious, including recycling and reducing food waste.
8. Cut Out Paper and Plastic Waste. One way to be more frugal and green is to reduce the amount of paper and plastic waste you produce. Technology has greatly improved in many ways to cut down on plastic and paper consumption, so take advantage.
9. Think Before You Throw Away and Buy New. We are way too quick to toss things and replace them without even thinking. Next time before you throw it into the landfill, think about how you can reuse, repurpose, or give away the item.
10. Upcycle. The concept of upcycling has gained popularity in the past years. It is a simple way of taking something ugly and worn down, putting some TLC into it, and making it into something beautiful.
Related Reading: Top 10 Influential Frugal Living Tips with a Big Impact
Being frugal and being environmentally conscious may not always go hand in hand.
In some cases, you may have to make a choice between buying an eco-friendly item that is more expensive or sticking with a cheaper, non-sustainable option.
However, many of the aims of frugal families link to eco-friendly living.
Below are simple sustainable products to consider buying instead of their wasteful counterpart.
Reusable food bags are a great way to reduce your environmental impact while also saving money.
There are a variety of different types of food grade eco-friendly bags on the market today. They are made of safe, eco-friendly materials that will not harm the environment and they are lead-free, chloride-free, and BPA free.
Bamboo straws are a great eco-friendly alternative to plastic straws.
They are compostable, meaning they will never pollute the environment or harm animals. Bamboo straws are odorless and tasteless, so you can use them with any drink. Reusable bamboo straws make a great addition to your everyday kitchen supplies.
These dish cloths are also super absorbent and work better than microfiber cloths and paper towels for cleaning.
They are made from cellulose, which is a soft material that is gentle on your hands. They can be used for a variety of tasks, such as dishwashing, wiping down counters, and polishing furniture. And they are durable enough to be reused multiple times.
A reusable K-cup is a great way to reduce your environmental impact while enjoying your favorite cup of joe.
Works perfectly in our house! Not only do they help you save money in the long run, but they also allow you to customize your coffee experience like never before. Plus, using a reusable k-cup is an easy way to reduce waste and help preserve our planet.
Frugal Green in the Kitchen & Table
There are a number of ways to save money and be frugal green in your kitchen.
Use a Reusable Coffee Mug. So simple and easy to do. Pick your favorite up here.
Skip plastic straws. This is a simple thing to do for the environment. Buy reusable straws. And don’t forget the cleaning brush (hint… the cleaning brush will save you from throwing away your reusable straws.)
Skip the Paper Plates and Plastic Utensils. You will be shocked to see the waste this creates. Invest in quality dishes you like and don’t be afraid to wash them up.
Invest in a Water Filter. If you’re looking for ways to improve your diet and save money, consider investing in a water filter. We upgraded to an under-the-sink mount water filter and it was the BEST choice ever! This is the exact one we bought.
Cook at Home. Making your own meals can save you a lot of money in the long run. You’ll be surprised at how much money you can save by cooking simple meals yourself.
Grow a Kitchen Garden. One way to reduce your food costs is to grow some of your own fruits and vegetables. You can start with a kitchen garden, which is a small plot of land near your house where you can plant fruits, vegetables, and herbs. if you don’t have space, check out these Aerogardens.
Stop Using Plastic Wrap. To reduce your reliance on plastic wrap is to invest in some beeswax food wraps. These work just as well as plastic wrap, but because they’re made of natural materials, you can reuse them over and over again!
Air dry dishes. This is because air-drying dishes use less energy than running a dishwasher and takes up less time.
Stick With Instant Pot. When you’re cooking, try to use a microwave or pressure cooker instead of your oven. Ovens produce a lot of heat and use up a lot of energy, so using these other appliances will help conserve resources. This is the Instant Pot/Air Fryer Combo I love (and use ALL.THE.TIME)!
Frugal Green Cooking & Menu Plan
This may not seem as environmentally conscious as other areas, however, it will help your wallet more.
Buy produce at the local market. Fruits and vegetables tend to be cheaper at the market than they are at the grocery store, so this is a great way to save some cash while also doing your part for the environment. Plus you save on the costs of trucking in the produce and support local.
Join a CSA. These community-supported agricultures have become popular ways for consumers to buy local and seasonal food directly from the farm. You normally have a dollar amount buy-in or a certain number of hours worked for food.
Enjoy Organic Foods. Organic foods may be worth the extra cost – organic food has a higher nutritional value than conventional food, plus it’s better for the environment because it doesn’t require pesticides or chemical fertilizers.
Go Meatless. Americans, on average, eat twice the recommended amount of meat. Meat production is one of the leading causes of greenhouse gas emissions and climate change. Consider your carbon footprint when making dietary decisions.
Shop Grocery Weekly Ads. Start by looking out for food sales at the grocery store. This can help you save money while also being more mindful of the environmental impact your food choices have.
Meal Plan. One great way to save money on groceries is to plan your meals ahead of time. This allows you to be more strategic in your shopping and can help you avoid buying items that you don’t need.
Use Leftovers. When you’re cooking a meal, always cook a little more than you need. This way, you’ll have leftovers that can be used to make another meal or stored in a glass jar for later use.
Pantry Challenge Time! One way to save money on your groceries is to consider doing a pantry cleanse. This means eating all the foods in your pantry that are sitting there. Then, only buy groceries that you know you’ll use. This can help you avoid overspending and wasting food.
Skip Pre-Made or Boxed Mixes. Making your own is a more affordable option, as pre-made or boxed mixes can be expensive. There are many recipes online that are healthy and affordable, and by planning ahead you can save time and money.
Shop the Perimeter of the Grocery Store. A lot of people want to save money and be more environmentally friendly, but don’t know where to start. One way to do both is to try to stick to the perimeter of the grocery store. This means avoiding the center aisles, where most processed foods and extra packaging are found.
Buy Generic Brands. Generic brands are less expensive than their name-brand counterparts. This is because generic brands do not have the same marketing and advertising costs as name-brand products. Many times the quality is the same or better!
Key Frugal Green Ideas While Shopping
These are environmentally friendly ways to improve your shopping habits. Many people may call this frugal minimalism.
Donate First. It’s easy to just dispose of something when it’s no longer needed, but sometimes that thing could be reused or recycled. For example, if you have an old TV that isn’t being used, try selling it or donating it before throwing it away. There are a lot of people who might need your old TV, and you can get some money for it if you sell it.
Buy Refurbished. On the other hand, if you’re in the market for a new TV, think about buying one that is refurbished instead of buying a brand-new one. Refurbished electronics often come with the same warranty as new ones and cost way less than buying a brand-new model.
Try Fixing First. Just because something is broken doesn’t mean you have to throw it away! Many times, things can be fixed very easily and cheaply. If your electronic device is leaking toxic chemicals, however, you should definitely not try to fix it yourself–take it to a professional recycler instead.
Reuse your own grocery bags. This will save both money and the environment, as disposable grocery bags often end up in landfills. Also, many stores are now charging for grocery bags, so save a few bucks at the store.
Do not buy new books. You can borrow books from the library or from friends, or you can buy them used. Buying new books wastes resources, and it’s often cheaper to buy them used.
Use the Library. The library has a wealth of books, movies, and music that you can borrow for free. Plus you can find access to tons of digital resources as well.
Shop Second-Hand Stores for your needs. These are great places to find clothes, furniture, and other household items at a fraction of the price.
Stop buying the paper version of the newspaper. Instead, get the daily news online for free. Not only will you save a few bucks each month, but you’ll also help reduce deforestation.
Shop at Sustainable Businesses. Thankfully, many companies focus on being sustainable businesses by making changes from production, to packing to shipping. As a whole, the industry could do better to create less waste. One sustainable company is the Everyone Store.
Think Twice on Gifts. Really consider what someone would want for a gift. Too many times we opt for quick and cheap gifts that are materialistic in nature and never be used. So, consider some of these money gift ideas instead.
Frugal Green Cleaning Products that Are Eco Friendly
You may not be environmentally aware of the hazards of using most cleaning products. In fact, you should check your normal cleaning products with EWG’s database and their standards.
DIY Baking Soda & Vinegar. Using green cleaning products is usually more expensive than traditional ones. Baking soda and vinegar are easy-to-find, cost-effective alternatives to environmentally unfriendly cleaners.
Use Microfiber Cloths. Personally, this is my favorite way to cut the expansive (and not-good-for-you) cleaning products. These microfiber cloths are just as effective at cleaning and will save you money in the long run.
Skip the Disposable Rags. Use up-cycled rags from old clothes to pick up spills.
Stop Using Air Fresheners. Reduce or eliminate the use of air fresheners, which release harmful chemicals into the air. Plus they are super costly!
Frugal Green & Energy Use in the Laundry Room
Use Detergent Powder. Washing your clothes in a washing powder uses less water than liquid tabs, which come in more plastic packaging. Also, the powder is a much better environmental solution and better for your body. This is the detergent powder we use and love (and those I recommended it to love it as well)!
Sniff Test. Implement the sniff test and only wash clothes when they fail the sniff test. Beware of this recommendation with teenagers!
Line Dry Clothes. Additionally, line drying clothes throughout the year can save a ton on your energy bill! Plus your clothes do not wear as quickly.
Watch Your Hot, Wash in Cold. One easy way to save money on your household bills is to reduce the amount of hot water you use. Heating water takes up a large percentage of the energy used in households, so by washing your clothes in cold water, you can cut down on your energy usage significantly.
Frugal Green in the Bathroom & Morning Routine
Use Less Shampoo or Soap. In order to save money on your grocery bill, you can use less shampoo than is recommended. If everyone did this, it would result in significant monetary and plastic savings.
Turn the water off while brushing your teeth. It is important to turn the tap off while brushing teeth in order to conserve water. Many people forget to do this, and as a result, millions of gallons of water are wasted every year.
If it’s yellow, let it mellow. If the toilet water is yellow, it’s ok to let it mellow. You don’t have to flush to turn it off every time. Thanks to auto-flush toilets in most places this is very common for people to forget to flush at home.
Take Cooler Showers. This may not be everyone’s favorite. But take a cool shower rather than a piping hot shower. Most of the energy used is the hot water heater warming up the water.
Use Every Last Drop! There are a few ways to get the most out of your products and conserve them- one way is to leave bottles upside down for a couple of hours after you’ve used them so that you can get the last bit of product out. You can also roll up toothpaste tubes to get the remaining paste out. Here is a great product to help you squeeze every expensive ounce out.
Related Reading: Billionaire Morning Routine: How To Achieve Success In Life
Green Lot with Frugal Green Landscaping
Xeroscape Your Lawn. Lawns are often seen as a status symbol, but they’re actually quite expensive and environmentally damaging. They require large amounts of water, fertilizer, and pesticides to maintain, which can leach into the groundwater and pollute the environment.
Change Mowing Schedule. Additionally, lawn mowing emits greenhouse gases that contribute to climate change.
Water Less Often. While this sounds great in theory, you may not be able to fully switch to xeriscaping your yard. If you can’t switch, then check out this Rachio to lessen your dependence on water.
Frugal Green Home Ownership
There are many ways to save money and be more environmentally conscious at the same time when owning a home.
Your home is probably one of your biggest expenses, so it’s important to take measures to conserve energy and save money. Plus there are many ways to reduce the amount of energy your home consumes!
Home Improvement Math. When considering whether or not to make an improvement to your home in order to reduce your carbon footprint, always do the math to see if the improvement will actually pay for itself. Sometimes it will and sometimes it won’t so be sure to weigh all of the options before making a decision.
Downsize Your Home. If you live in a large house, consider moving into a smaller one. This will help you save on your energy bill and make your home more efficient.
Install low-flow fixtures. One way is to install low-flow fixtures, such as showerheads and faucets. This will reduce your energy use and, in turn, your monthly bills. You can also save water by taking shorter showers.
Hang UV Blocking Curtains. By stopping the sun from heating up your house with curtains during the day, you can save on cooling costs in the summer. Using UV blocking curtains is something we did and notice a significant difference in the summer and winter.
Run Appliances with Full Loads Only. Wait until you have a full load of dishes or laundry before running the dishwasher or washing machine. You would be surprised at the amount of energy and water it takes to run those appliances.
Be Reasonable with Air Conditioning Temperature. In the summer, don’t crank up the air conditioning to save on your energy bill. You can also set your thermostat a couple of degrees higher in the summer to save money. Also, you may want to start cooling your house earlier in the day to prevent your AC unit from working overtime and consuming more energy.
Program Your Winter Heating Temperature. In the UK, A/C is not as common as it is in other countries. Central heating is used more often and is set to a lower room temperature for the summer and a higher room temperature for the winter. This is because people want to save on their energy bills.
Open Windows to Cool House. When the weather is nice, open your windows to allow for natural cooling. This is a simple and cheap way to cool your house. Especially after a nice cool thunderstorm.
Buy Energy Efficient Appliances. Energy-efficient models might be more expensive in the short term, but they will save you money in the long run and help reduce your environmental impact. However, these products should only be bought when the older model is worn out–don’t replace something just because it’s energy-efficient!
Replace Windows. On the one hand, it’s a great idea to replace your windows with more energy-efficient models if you’re staying in your home for many years. However, if you plan on moving within a few years, it might not be worth the investment. You’ll need to weigh the cost of the windows against how much money you’ll save on your monthly energy bill.
Get a programmable thermostat. Programmable thermostats are a great way to save money on your energy bill. You can set them to turn off or down when you’re not at home, or during times of the day when you don’t need as much heating or cooling.
Look for Energy Leakage. The typical older home has enough energy leakage that it’s the equivalent of leaving your front door open all year long. You can combat this by installing weather stripping and caulking around doors and windows and adding insulation to your attic. Most utility companies offer an energy audit.
Weatherize your Home. Weatherizing your home is a great way to improve energy efficiency and save money on your energy bills. There are many things you can do this and varies on the area of the world you live in.
Sustainable Frugal Green Transportation
Ditch the Car Completely. One of the biggest expenses for many people is their car. Whether you’re paying for car payments, insurance, gas, or maintenance, it can be a lot of money. You can eliminate this expense by ditching the keys and taking public transportation. Not only will you save money on your monthly expenses, but you’ll also help the environment!
Buy Hybrid Cars. Hybrids cars are expensive but they could help you save money on fuel in the long run – hybrids tend to have lower emissions than conventional cars. So, it might be time to say bye to that beater car.
Drive Less and Play Your Route. Driving less is the biggest way to reduce fuel-guzzling trips. Take it a step further with UPS research on their strategic delivery methods and focus on making only right-hand turns.
Carpool Whenever Possible. carpooling is a much more green choice than driving alone.
Look Into Car Sharing. When you only need a car occasionally, or for short trips, it might be more convenient and affordable to use a car-sharing service. Car-sharing services offer the opportunity to have access to wheels when you need them, and they’re flexible and convenient for short trips.
Invest in Electric Scooter. This mode of transportation is the uber-popular. You don’t need cash for gas, money for registration fees, and completely reliable to get around quickly. Check out the best electric scooters on the market.
Ride a Bike. A commuter bike is much cheaper than a car. Plus you get the added benefits of exercise and no carbon waste. Or upgrade to an E-bike.
Telecommute. If you can do your work remotely, then telecommute more often than not. This will save on transportation costs as well as pollution.
Walk More Often. Plan your day around being able to walk places that take under 30 minutes to get there. Then, it is better to walk than drive. Plus you can hit your 10000 steps quicker. It is a triple for the win – health benefits, free exercise, and fresh air!
Don’t Run Your Engine Unnecessarily. Leaving your engine running unnecessarily while stationary can waste fuel and cause environmental damage. Make sure to turn your engine off when you’re not moving to save money and help the planet!
Drive More Efficient. When it comes to saving fuel, one of the best ways is to drive more slowly and efficiently. This will help you save petrol or diesel and reduce your carbon footprint. For example, slowly put your foot on the accelerate to maintain a speed.
Frugal Green Budgeting Per Month
Choose To Save Rather Than Spend. Every tie you actively choose to save your money rather than spend it. You help the environmental impact. We have plenty of popular money saving challenges to help you save more money today.
Pay Bills Online. When you pay bills online, you can save a lot of time, space, and money. You can also save paper by paying your bills online–instead of receiving paper statements in the mail, you can access them online.
Find Free Things to Do. This one is a win-win for frugality environmentalism. Focus on finding activities from this list of things to do with no money. Many of them are already frugal green wins.
Opt for Paperless. And finally, if you pay your bills online, you may automatically receive discounts on some of your monthly bills! Many companies now charge a $2-5 paper statement to be mailed.
Focus on Financial Independence. This may seem like a crazy idea, but it is true. The more you save, the faster you reach financial independence. In fact, this is with the Frugalwoods decided to be frugal in the first place.
Follow Simple Frugal Living Green Ideas – Way to Go Green
Reduce, reuse, recycle. This old mantra is more important than ever in today’s world. By recycling everything you can, you can help conserve resources and keep waste out of landfills.
Your Mindset is Everything. Just like with anything, if you decide to commit yourselves to become environmentally aware, then you are likely to succeed. You don’t have to become extremely frugal overnight. You just have to remember that mindset is everything in this process.
Turn off electronics when not in use. This includes televisions, computers, and other appliances. By turning them off, you’re conserving energy (and saving money). Plus some older appliances might be fire hazards if left plugged in.
Stop Junk Mail. One way to reduce the amount of junk mail you receive is to go through your postal mail and ask to be removed from lists you’re not interested in. This can be done by contacting the Direct Marketing Association (DMA) or specific companies that send you unsolicited mail.
Grab a Sweatershirt or Blanket when Cold. Instead of automatically adjusting the programmable thermostat higher, you can also save by wearing a sweater or using a blanket. Maybe turn on the fireplace before putting the heating on.
Invest in Renewable Energy. In today’s world, it is more important than ever to invest in renewable energy. There are many reasons for this:
First and foremost, using renewable energy helps to reduce our dependence on fossil fuels, which are finite and contribute to climate change.
Renewable energy also creates jobs and supports local businesses.
And finally, investing in renewables reduces our greenhouse gas emissions, helping to fight climate change.
In the long run, renewable energy can save you money and reduce emissions by providing power more reliably, often more cheaply than a traditional power source.
Are You Ready Live Life Frugal Green?
Living a more frugal lifestyle is good for the environment because it costs less.
It doesn’t take much to make small changes in your life that will have a big impact on the planet. For example, consume less and you’ll be doing the most earth-friendly thing you can do.
There are dozens of ways to save money and be more environmentally conscious which we covered in this post.
Being frugal and being green often go hand in hand.
However, most people lose steam after just a couple of weeks. So, do not attempt to do each frugal green living habit.
Pick your top 3 with the biggest impact.
Add one another 1-3 frugal living tips every month or so.
Over time, you will be surprised to see how easy it is to live frugal green, while also helping you to save money while also protecting the environment.
You can be the frugal green girl or gal with a few of these simple habits. Or choose to follow a frugal blog or frugal forum.
Know someone else that needs this, too? Then, please share!!
Save more, spend smarter, and make your money go further
Whether you like flashy sports cars or practical minivans, shopping around for cars can feel like a fresh start. The problem is, most people can’t afford to pay out of pocket.
So how do you get a car loan to help turn your motorized dreams into reality? Like most big purchases, creating a thorough plan is a must. Understanding all your financing options, how a car loan will affect your credit, and how you can get the most bang for your buck will save you headaches—and debt—down the road.
Have a specific question in mind? Use the links below to get straight to the information you need:
What Are the Steps for Getting a Car Loan?
Throughout the financing process, remember that you’re shopping for two different products: the car and the car loan. Before setting foot on a dealership, take the time to weigh all your options so you feel 100% certain that investing in a new car is the best decision for your financial health as a whole.
Start with a Budget
If you don’t have a monthly budget, it’s time to create one. Assess all the monthly debt payments you currently have—such as rent, student loans, and credit card bills—and then figure out how much you’ll be able to afford on a monthly car payment.
Your car payment calculations should include not only the amount paid back to the lender, but also gas, insurance, and maintenance fees. If you come up with a number that won’t work with your income, consider saving for a larger down payment so you won’t have to take out a large car loan.
Check Your Credit Score
Request a copy of your free credit report to determine how your score will affect the loan shopping process. When doling out the best rates, lenders look for a score of 760 or higher and will give you a better deal the higher your score. Payment history, debt-to-income ratio, and the history of your credit lines all affect that magic three-digit number.
Start by fixing any inaccuracies you find on your report that could be dragging down your score. Within a month or two, you should see the mistakes removed which may make your number rise. If you aren’t in a rush to purchase the car, work on bringing your score up to help you get more favorable loans when it does come time to apply.
If you don’t have the time or ability to raise your credit score before purchasing the car, you could find a co-signer for the loan. Consider asking a parent, friend, or family member with a good score to co-sign. It’s important to remember that the co-signer is responsible for paying back the loan if you’re unable to make the monthly payments, and the credit score of both you and the co-signer will be affected by late or missed payments.
Explore All Your Loan Options
There are two main ways to get a car loan: direct lending and dealership financing. After picking out the car you want to buy, consider which option makes the most sense for you.
Direct Lending
Direct lending entails receiving a loan from a bank, credit union, or online lender. You’ll agree on the amount of the loan and the finance charge, or interest rate, that you’ll pay on the loan. Some things to note about receiving direct lending:
Banks often offer competitive interest rates but are more exclusive about who they offer a loan to. It is more likely you will need to have a good or excellent credit score to obtain a desirable loan from a bank. You don’t usually have to be a member at the bank to apply for an auto loan or get pre-approval.
Credit unions may have an easier loan application process and lower interest rates. However, you must be a member to apply for a loan.
Online lending websites often contact several lenders at the same time so you can easily obtain competing loan offers. Just like a bank or credit union, you will determine the terms of the loan with the lender. Make sure to always do background research on each lender you contact to ensure they aren’t predatory lenders.
Dealership Financing
Some dealerships offer on-site financing, which means you agree on the loan amount and interest rate with the dealer. Here are some things to keep in mind:
The dealer will gather all your information and send it to one or more prospective auto lenders, who will then give the dealer a “buy rate.” This could be higher than the interest rate you negotiate because it could include a compensation fee for the dealer handling your loan.
Because you are treating the dealership as a one-stop-shop for all your car needs, you might be offered special deals or rebates that include low interest rates.
Get Pre-Approval
Whichever financing option you decide to pursue, don’t just take the first loan offer that comes your way. Take the time to shop around and get competing rates through the pre-approval process. This entails asking multiple lenders to look at your credit report and draft up the loan amount and interest rate they’d be willing to offer you.
Pre-approval may give you more bargaining power with a dealership than if you went in without a financing plan. You also might be able to hunt down the best deals because lenders are competing for your business. Remember, just because you receive pre-approval from a lender doesn’t mean you have to take their offer.
An important element of loan shopping is keeping your pre-approval applications and final loan applications within a short window of time. Every time a lender looks at your credit report, it triggers a hard inquiry. If you build up too many hard inquiries, it could lower your credit score.
Fortunately, Turbo uses VantageScore, one of the common scoring models, which offers a 14-day grace period. If multiple hard inquiries are made during this time period for an auto loan, it will only be counted as a single inquiry—thus protecting your score.
Negotiate the Total Cost
Once you’ve found a lender that you want to finance your car loan, consider negotiating the final deal. This includes:
Length of the loan. Typically, a shorter loan will have higher monthly payments but lower interest rates. A longer loan will have smaller monthly payments and higher interest rates.
APR and interest rate. Depending on your pre-approval offers, you might be able to negotiate for a lower interest rate. This means you’ll pay the lender less to borrow the money over the length of the loan.
Additional add-ons. Extended warranties or additional insurance can raise the total cost of the loan.
Special offers or discounts. If you’re getting your loan through a dealership, use the negotiation process to ask about any manufacturer rebates that could get you a lower price on the car, therefore reducing the amount of money you need to borrow.
Close the Deal
Before driving off into the sunset, make sure to tie up any loose ends that could impact your car loan. Per the federal Truth in Lending Act, lenders are required to provide you with important information about your agreement so you can verify all the terms match what you discussed.
Sign all paperwork before taking your new car home, and make sure you have multiple ways to contact your lender if you ever have any questions. Whether you make online or by-mail monthly payments will be discussed during the negotiation process. It’s crucial that you pay these back on time every month to avoid severe late fees or repossession of your brand new set of wheels.
Will Trading In my Car Affect an Auto Loan?
If you plan to trade in your current car before purchasing a new one, it could lower the total cost of your car loan. The credit or cash you receive from the trade-in can be put to use as a down payment, thus reducing the amount you need to borrow from a lender.
Before trading in, make sure you know whether the total amount you still owe on your car is less than what it’s worth. Carrying an old auto loan onto a new auto loan may raise your interest rates and limit your options for the best deals. While trading-in can significantly help some buyers, it may not always be the best option if you want to get a favorable loan for your new vehicle.
Can I Get a Car Loan with Bad Credit?
Despite many lenders being wary of borrowers with poor credit scores, there are still options available to obtain a car loan. As mentioned earlier, paying off any existing debt, finding a co-signer, or saving for a larger down payment are all ways to help offset bad credit.
However, if the purchase can’t wait, lenders may still offer you a loan—but likely at a high price. Interest rates and additional fees skyrocket for borrowers with less-than-ideal credit scores, and it may dig you into a deeper hole of debt than you started with.
If you think you might be late on a payment, contact your lender immediately to discuss the possibility of adjusting your payment plan. While most of the original terms you negotiate will likely stay the same, you may be able to make a delayed payment. But if you consistently default on your payments, the lender is allowed to repossess your car, sell it, and use the money to pay off your remaining debt.
Despite its complexities, getting a car loan can be a straightforward process if you make a strategic plan. Assess your current financial health, loan shop, and negotiate a deal that suits your needs; in no time you’ll be able to hit the streets with a shiny new toy and feel confident in your abilities to manage debt.
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