Thinking of making the Tar Heel State your new home? North Carolina boasts stunning mountain ranges, beautiful beaches, and vibrant cities, making it a top destination for newcomers. Whether you’re browsing homes for sale in Raleigh, considering renting in Charlotte, or exploring houses for rent in Durham, here’s what you need to know before moving to North Carolina.
North Carolina at a glance
North Carolina stands out with its coastal charm and urban energy. From the serene shores of the Outer Banks to the lush greenery of the Great Smoky Mountains, the state has a diverse range of natural beauty and recreational opportunities. Its major cities like Raleigh, Charlotte, and Greensboro enhance its appeal, providing residents with easy access to world-class cultural events, dining, and job markets. North Carolina’s economy is robust, supported by thriving sectors such as biotechnology, finance, and information technology, with major corporations like Bank of America and Red Hat calling the state home.
The cultural landscape of North Carolina is equally rich, featuring historical landmarks like the Biltmore Estate and a diverse arts scene in towns such as Asheville and Chapel Hill. The state is known for its eclectic food culture, including renowned barbecue and distinctive regional specialties like Cheerwine and sweet tea. While the cost of living can be high in some areas, particularly near larger cities, more affordable places to live are available in towns like Jacksonville and Winston-Salem. Whether you’re drawn to its vibrant cities or tranquil countryside, North Carolina provides a multifaceted living experience.
1. North Carolina is divided into three distinct regions
The Coastal Plain, with its flat terrain and fertile soil, features charming beach towns like Wilmington and Morehead City, ideal for a coastal lifestyle. The Piedmont region, home to major cities such as Charlotte and Greensboro, provides urban amenities and suburban comfort. In contrast, the Appalachian Mountains in the west, with cities like Asheville and Boone, provide breathtaking mountain vistas, outdoor activities, and a cooler climate perfect for those who love nature.
2. The weather here is mild
North Carolina’s climate varies, but overall, it enjoys a mild and pleasant atmosphere. Coastal areas, such as Wilmington and Charleston, experience warm, humid summers with temperatures often reaching into the 80s and 90s (°F) and mild winters with temperatures rarely dropping below 40°F. The Piedmont region enjoys a balanced climate with summer temperatures in the 80s and 90s (°F) and cooler winters with temperatures averaging between 30°F and 50°F. In the mountain areas, temperatures drop significantly in winter, with averages often falling below 30°F and snowfall creating opportunities for skiing and snowboarding at resorts like Sugar Mountain and Beech Mountain.
Travel tip: Visit the Outer Banks in late spring or early fall to enjoy milder weather and fewer crowds while exploring the pristine beaches and historic lighthouses.
3. The Research Triangle is a major tech and research hub
The Research Triangle, consisting of Raleigh, Durham, and Chapel Hill, is a national leader in technology and research. This region hosts over 300 companies in tech, biotech, and pharmaceuticals, including global names like Cisco and GlaxoSmithKline. The presence of top universities like Duke and UNC-Chapel Hill fuels innovation and attracts talent from around the world, creating a dynamic and forward-thinking community.
4. North Carolina is known for its BBQ
The state’s barbecue culture is a source of pride and rivalry. Eastern North Carolina barbecue is celebrated for its vinegar-based sauce and whole-hog cooking, exemplified by legendary spots like the Skylight Inn. In contrast, the Western style, popular around Lexington, features a tomato-based sauce with a sweeter profile, with restaurants like Lexington Barbecue serving up hearty, flavorful dishes. Each region offers its own take on this Southern staple, making BBQ a true culinary adventure.
Insider scoop: Follow the North Carolina Barbecue Trail, a culinary road trip that guides you through the best barbecue joints across the state.
5. College basketball is big here
North Carolina’s passion for college basketball is unmatched. The fierce rivalry between the University of North Carolina Tar Heels and Duke Blue Devils generates a buzz that lasts all season. Games between these two teams are high-stakes events, drawing crowds and media attention from across the country. This basketball enthusiasm extends beyond just the college scene, with a deep-rooted culture of support and pride throughout the state.
6. North Carolina has some of the best craft beer in the nation
North Carolina’s craft beer scene is booming, with a multitude of breweries crafting diverse and innovative brews. Asheville, known as “Beer City USA,” has a concentration of breweries like Sierra Nevada and Wicked Weed, each offering unique and locally inspired beers. The state celebrates this thriving culture with events like the North Carolina Brewers and Music Festival, where you can sample a wide range of local brews while enjoying live music.
Insider scoop: Check out the Asheville Ale Trail, a self-guided tour that takes you through the city’s top breweries, featuring exclusive tastings and behind-the-scenes looks at how your favorite beers are made.
7. The cost of living is low here
The cost of living in North Carolina is notably lower than the national average, making it an attractive place to settle. Cities like Greensboro, offer affordable living, with median home sale prices around $295,000, significantly less than the national median of $442,479. In Charlotte, while slightly higher, the average rental rates for a two-bedroom apartment hover around $1,800 per month, which is quite reasonable compared to larger metropolitan areas like NYC or San Francisco. Additionally, towns such as Fayetteville provide even more budget-friendly options, ensuring that North Carolina caters to a variety of financial situations without compromising on quality of life.
If you’re planning to move to North Carolina, it’s important to weigh the pros and cons of living in the Tar Heel State to know what to expect.
8. You’ll need to prepare for hurricanes
North Carolina’s coastal regions are susceptible to hurricanes, with the hurricane season running from June to November. Residents should be prepared with an emergency kit, an evacuation plan, and a thorough understanding of local flood zones. Staying informed through local news and weather services during storm season is crucial to ensure safety and minimize risk during severe weather events.
9. The people are friendly
North Carolinians are renowned for their warmth and hospitality. Living in North Carolina, expect to be greeted with friendly smiles and a helpful attitude as you settle into your new community. Local customs include a strong sense of community and a welcoming spirit, making it easy to make new friendships and feel at home, whether you’re at a neighborhood BBQ or a local festival.
10. North Carolina is home to charming beach towns
North Carolina’s coastline is dotted with idyllic beach towns that offer a perfect mix of relaxation and adventure. The Outer Banks, renowned for its rugged beauty and historic lighthouses, includes attractions like the Roanoke Island Festival Park and the Cape Hatteras National Seashore. Here, you can explore unique maritime history and stunning natural landscapes. Further south, Wrightsville Beach offers wide sandy shores and a vibrant boardwalk perfect for water sports and seaside dining. These towns provide a blend of laid-back coastal living with distinct local charm, making them ideal for both unwinding and exploring.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
Looking to learn how to make money without a car? It might seem hard to make money without a car, but there are actually many ways to do it. You don’t need a vehicle to find opportunities that can earn you extra cash or even a full-time income. Whether you want to work from home…
Looking to learn how to make money without a car?
It might seem hard to make money without a car, but there are actually many ways to do it. You don’t need a vehicle to find opportunities that can earn you extra cash or even a full-time income.
Whether you want to work from home or find gigs in your neighborhood, there are plenty of options available to you.
Best Ways To Make Money Without a Car
Below are the best ways to make money without a car.
Here’s a quick summary of my favorites:
Best way to make money without a car by freelancing – Proofreading
Best way to make money without a car to work by yourself – Blogging
Best way to make money without a car for passive income – Selling printables
Best way to make money without a car for people who like numbers – Bookkeeping
1. Blogging
Blogging is a great way to make money without needing a car. You can write about topics you love and share your knowledge with others. All you need is a computer and an internet connection.
I started Making Sense of Cents in 2011, and I’ve made over $5,000,000 with my blog. I began my blog just to share my own money journey. At first, I didn’t even know people could make money from blogging or how to create a successful blog! I didn’t plan to make money with Making Sense of Cents, but after six months, I started earning from it.
And, it all started from home, where I didn’t need a car (and I still don’t need a car to do this job).
Starting a blog takes time and effort, but it can be very rewarding. Plus, you can do it all from the comfort of your home.
Learn more in my How To Start A Blog FREE Course. In this free course, I show you how to create a blog, from the technical side to earning your first income and getting pageviews.
2. Proofreader
Being a proofreader is a great way to make money without a car. You can do this from the comfort of your home. Many companies and individuals need proofreaders for their articles, books, and websites.
To start, you need a strong grasp of the English language (or whatever language you are proofreading in). Good attention to detail is also important. You don’t need a degree to become a proofreader, but it helps to know common style guides.
Proofreaders can make good money, and according to Salary.com, the average proofreader salary is $58,284 a year.
Proofreading is flexible. You can choose your own hours and work as much or as little as you want. This makes it a great side hustle or even a full-time job.
Learn more at 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
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This free training teaches you how to start a proofreading side hustle (and how to earn $1,000+ per month!), even if you are brand new and don’t have any previous proofreading experience.
3. Sell printables on Etsy
Selling printables on Etsy is a great way to make money without needing a car. Printables are digital files like planners, calendars, art prints, and more.
Making printables on Etsy is a great idea because you only need to create one digital file per product. You can then sell that file as many times as you want.
Learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
4. Dog walking
Dog walking is a fun way to make money without a car. You get to spend time with dogs and get some exercise too. Many people need help walking their dogs, especially if they have busy schedules.
There is a good chance that some of your neighbors within walking distance may need some help with their pets, and this is where you come in!
You can start by letting your neighbors know you are available. Put up flyers or post about your services in local online groups. Another great way to find clients is through dog walking apps like Rover and Wag that connect dog walkers with pet owners.
If you use an app like Rover, you can also offer pet sitting services. This can increase your earnings by taking care of pets overnight.
Dog walking usually pays between $15 and $25 per walk. If you walk several dogs in a day, it can add up quickly. For overnight stays, you might earn $25 to $70+ per day.
5. Freelance writing
Freelance writing is a great way to make money without a car. You can work from home or anywhere with an internet connection. All you need is a computer and some writing skills.
You can write blog posts, articles, or even social media content. Many companies need writers to create content for their websites and marketing materials.
Freelance writing lets you choose your own hours. You can work as much or as little as you want. This makes it a great option if you have other commitments like school or another job.
There are many websites where you can find freelance writing jobs. Examples include Upwork, Freelancer, and Fiverr. Some companies also hire writers directly through job postings on their websites.
I have been a freelance writer for years, and I think it’s a great way to earn income from home, without needing a car.
6. Virtual assistant
You can make good money by becoming a virtual assistant (VA). As a VA, you help clients with various tasks from your home.
Companies and busy professionals need help with things like managing emails and scheduling appointments. You can do this using just a computer and the internet.
Some VAs specialize in things like social media management. Others focus on tasks like data entry or customer service. You can choose what you want to do based on your strengths.
Working as a VA lets you set your own hours. You don’t need to commute anywhere since everything is done online, so this makes it perfect if you don’t have a car.
7. Online tutoring
Online tutoring is a great way to make money without needing a car. You can teach from the comfort of your own home and set your own schedule. There are many websites where you can sign up and start tutoring students in different subjects.
All you need is a computer and an internet connection. Tutor Me Education, for example, connects you with students looking for help in over 200 subjects. You create a profile, and students reach out to you.
If you enjoy teaching, this can be a fun and rewarding way to earn money. It’s also flexible, so you can work as much or as little as you want. This makes it easy to fit tutoring into your busy life.
Some tutoring platforms might require you to have some qualifications, but many are open to anyone with knowledge in a particular area. This means almost anyone can become a tutor and start making money.
8. Selling print-on-demand products
Selling print-on-demand products is a great way to make money without needing a car. You can create your own designs for T-shirts, mugs, and more. Once a customer orders, the product is made and shipped directly to them.
You don’t need to handle any physical inventory. This means you can work from home and all you need is an internet connection and some creative ideas.
Platforms like Etsy, Amazon, and Shopify make it easier to sell your print-on-demand products. They connect you to millions of potential buyers. You can also use services like Printify and Printful to help produce and ship your items.
Starting your own print-on-demand business involves little upfront cost. You only pay for the production of the item when a sale is made, so this reduces your financial risk significantly.
9. Graphic design
If you love art and design, graphic design can be a great way to make money. You don’t need a car for this job because you can do all your work from a computer at home.
Many businesses need logos, social media graphics, and other visual content.
You can find clients on platforms like Fiverr and Upwork, and you can start with small projects to build your portfolio. Once you have a few happy clients, you can charge more for your work.
10. Data entry
Data entry is a simple way to make money from home. You don’t need a car, and you can work in your pajamas (amazing, right?!).
Data entry workers type information into computer systems. Companies need people to enter data accurately and quickly, and this could be anything from names and addresses to inventory numbers.
These jobs can pay anywhere from $12 to $25+ per hour. The pay depends on the company and the complexity of the task.
Data entry is a flexible job. You can often set your own hours and work when it’s convenient for you.
While it may not be the most exciting job, it’s straightforward and doesn’t require a lot of training. This makes it a good option if you need to earn some extra cash.
11. Transcription services
Transcription work is a great way to earn money from home. You listen to audio files and type what you hear. Many companies hire beginners, so experience isn’t always necessary.
The pay varies, usually from $5 to $25 per audio hour.
Working as a transcriptionist can be flexible. You pick the hours you want to work, so this makes it easier to fit into your schedule.
Make sure you meet the typing speed requirements. Most companies look for accuracy and speed. Start practicing if you need to improve in these areas.
Learn more at 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly.
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
12. Dropshipping
Dropshipping is a great way to make money without a car. You don’t need to buy any stock up front. When a customer buys from your online store, you order the product from a supplier who ships it directly to them.
To start, find a popular product that people want. Use free tools like Google Trends to see what’s in demand. You could sell anything from phone accessories to pet supplies.
Dropshipping allows you to run a business from anywhere. All you need is a computer and internet. It’s perfect if you don’t have a car.
13. Affiliate marketing
Affiliate marketing is a great way to make money without a car. You can do it right from home or anywhere with an internet connection.
In affiliate marketing, you promote products or services for companies. When someone buys through your referral link, you earn a commission.
It does take time and effort to be successful. You’ll need to create content, like blog posts or social media posts, to share your affiliate links.
You could promote anything from clothes to electronics to digital products like ebooks or courses. Pick something you like and know about to make it easier.
For me, I have been doing affiliate marketing for years, and I think it’s a great way to make money at home without a car.
Learn more at Affiliate Marketing Tips For Bloggers – Free eBook.
14. Get roommates
Rent can be really expensive. If you want to save money or even make some extra, getting roommates can help.
When you share your place with others, you split the rent and utility bills. This makes living costs lower for everyone.
Finding roommates isn’t hard. You can ask friends or use sites like Facebook or Craigslist. Of course, you’ll want to make sure to choose people you get along with well.
15. Answer surveys
Answering surveys is an easy way to make some extra money without needing a car. Many market research companies want to know what you think about their products or services. They will pay you for your opinions in PayPal cash or free gift cards.
Each survey can take anywhere from a few minutes to half an hour. While you won’t become rich, it’s a simple and flexible way to make a small but steady income on the side. Even earning a few dollars here and there can add up.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
I have been answering surveys for years, and I have always liked how I can answer them at home without having to go anywhere. That makes it very easy!
16. Make money on YouTube
Starting a YouTube channel is a popular way to make money online, especially if you don’t have a car. You can record videos with your phone or camera, and you don’t need much else to get started.
You can make a YouTube channel about many different topics like money, home, travel, toys, pets, and more. There’s a YouTube channel for almost everything, and there’s still room for more!
In your YouTube videos, you can add links to products you recommend, earn money from ads that play during your videos, get paid by brands to show their products, and even sell your own items.
Recommended reading: How Much Do YouTubers Make?
17. Mow lawns in your neighborhood
Mowing lawns in your neighborhood can be a great way to make extra money without needing a car. Many people need help keeping their lawns neat, such as older adults or busy families.
To get started, you really only need basic lawn care equipment, like a mower and trimmer.
Next, spread the word about your lawn care services. Talk to your neighbors, put up flyers, or post on community boards online.
18. Deliver food on a bike
Not all food deliveries are by car – plenty can be done by bike, depending on where you live! Thanks to today’s gig economy, you have plenty of options depending on where you live.
If you live in a city, delivering food on a bike is a great way to make money part-time as a side gig or even full-time. You can work for companies like Uber Eats, Instacart (this is for grocery shopping delivery), or Postmates. These apps allow you to deliver by bike in many cities.
Biking means you don’t spend money on gas or car maintenance. Plus, it’s good exercise. You can even do food delivery by e-bike or scooter if you prefer.
Note: You do still have to do a background check, even though you won’t be driving and won’t have to use a driver’s license.
19. Babysit
Babysitting is a great way to make money if you don’t have a car. You can choose when you’re available, making it easy to fit around your schedule.
Lots of families need someone to watch their kids while they’re at work or out for the evening, such as your neighbors.
You can offer your help to neighbors, friends, and family members.
You might need to get CPR certified, but it’s worth it. Parents will feel better knowing their kids are in safe hands (plus, you’ll feel better too about watching someone else and feel more prepared).
20. Play game apps
You can make money by playing game apps on your phone. There are lots of apps out there that pay you to play games. Some popular choices include apps like Solitaire Cash and other game apps where you get paid for playing and watching ads.
These game apps can be fun and a good way to earn a little extra cash. You usually earn small amounts of money or rewards that you can cash out later. Still, it’s important to know that it’s not a way to get rich quickly.
Here’s a quick list of the top game apps that pay real cash:
KashKick
Swagbucks
InboxDollars
Freecash
21. Virtual bookkeeper
You can make money from home as a virtual bookkeeper. This job involves keeping track of finances for businesses.
All you need is a computer and internet access. You can work for one company or offer your services to multiple clients.
Before you skip this because you think you’re not qualified, you should know that you don’t need to be an accountant, have any previous experience, or even have a bachelor’s degree.
Virtual bookkeepers can earn a good hourly rate and often have the freedom to set their schedules. This can be a great option if you need flexibility in your work life.
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This free training will show you how to start a profitable bookkeeping side-hustle in the next 30 days—even if you have no prior experience!
22. Voice over acting
Voice-over acting is a fun way to make money from home. You use your voice to bring characters to life or narrate commercials and videos. It’s a great job if you’re good at reading aloud and can deliver lines clearly.
You don’t need a fancy setup to start. A decent microphone and free software can get you going. Many websites connect you with clients looking for voice talent.
You might work on video games, cartoons, audiobooks, or even ads. Each job can pay differently, so you can find ones that fit your schedule and skills.
Voice-over acting can be both fun and profitable. It’s a flexible way to make money without needing a car. Plus, you can do it all from the comfort of your home.
Learn more at How To Become A Voice Over Actor And Work From Anywhere.
23. Write book reviews
You can make extra money by writing book reviews from home. This is perfect if you love reading.
Authors and publishers appreciate your honest reviews because they help other readers decide what to read. These reviews are fun for readers and helpful for everyone.
Here are some websites where you can earn money by writing book reviews:
OnlineBookClub.org – They give you free books at first. After your first review, you can earn $5 to $60 per review.
Kirkus Media – They need reviewers for English and Spanish books. Reviews are about 350 words and due two weeks after you get the book.
The US Review of Books – They hire freelance writers for 250- to 300-word reviews that provide insights into the book. You need to submit a resume, writing samples, and references.
Reedsy Discovery – You can review books before they are published and earn tips from readers, usually $1 to $5 per review. This helps new books become more popular.
Learn more at 16 Best Ways To Get Paid To Read Books.
Frequently Asked Questions
You don’t need a car to make money. There are many ways to earn, whether from home, on foot, or on a bike. Here are some common questions and answers about how to make money without a car.
How can I make money if I don’t have a car?
You can make money by blogging, proofreading documents, or selling printables on Etsy. You can also offer services like dog walking. If you enjoy writing, freelance writing could be a good fit too. Many of these can be done from the comfort of your home or in your neighborhood within walking distance.
What kind of jobs can you do from home with no car or computer?
Without a computer, you can still find jobs like phone-based customer service or tutoring over the phone or by having your clients come to your home. Selling craft items or handmade goods can also be done from home. Some people even make money as virtual assistants using only their smartphones.
How can a college student make extra cash without having a vehicle?
Many college students don’t bring a car to college, and if that’s you, you may be wondering how you can make money. College students can babysit, tutor younger students, or work as a resident advisor at their college. Selling old textbooks and clothes can also bring in extra cash.
What are some delivery jobs with no car required?
For delivery jobs, you can use a bike or scooter. Platforms like DoorDash allow deliveries by bike in certain areas. Restaurants and local stores sometimes hire walkers or bikers to deliver goods too, but this is more common in big cities (like New York City or Chicago).
What to do with no money and no car?
If you have no money and no car, I recommend starting by looking for gigs that don’t require any investment, like babysitting or dog walking. Answering paid online surveys or signing up for cash back apps can also help you earn some spare cash. You can also offer to run errands or clean houses for neighbors for some quick cash, or even host a garage sale.
What to do if you need a job but have no transportation?
If you need a job but you have no transportation, then I recommend finding a work-from-home job like transcribing, virtual assisting, or data entry. If you want an in-person job but don’t have transportation, then you may need to look into your public transportation options, car sharing in your area, finding a shuttle service, using a rideshare app (like Uber or Lyft), or carpooling.
How To Make Money Without a Car – Summary
I hope you enjoyed this article on how to make money without a car.
There are many ways to make money without a car such as with online jobs like proofreading, blogging, selling printables, and bookkeeping. And, there are also ways to make money in person without a car, such as dog walking, tutoring, delivering food by bike, and mowing lawns.
What do you think is the best way to make money without a car?
I got active on Twitter over the past year and change and to my surprise (not sure why it’s surprising really), encountered lots of housing bears on the platform.
Many were/still are convinced that the next housing crash is right around the corner.
The reasons vary, whether it’s an Airbnbust, a high share of investor purchases, high mortgage rates, a lack of affordability, low home sales volume, rising inventory, etc. etc.
And the reasons seem to change as each year goes on, all without a housing crash…
So, now that we’re halfway through 2024, the obvious next question is will the housing market crash in 2025? Next year’s got to be the year, right?
But First, What Is a Housing Crash?
The phrase “housing crash” is a subjective one, with no real clear definition agreed to by all.
For some, it’s 2008 all over again. Cascading home price declines nationwide, millions of mortgage defaults, short sales, foreclosures, and so on.
For others, it might just be a sizable decline in home prices. But how much? And where?
Are we talking about national home prices or regional prices? A certain metro, state, or the nation at large?
Personally, I don’t think it’s a crash simply because home prices go down. Though it is a pretty uncommon occurrence to see nominal (non-inflation adjusted) prices fall.
Over the past few years, we’ve already experienced so-called home price corrections, where prices fell by 10%.
In 2022, we were apparently in a housing correction, defined as a drop in price of 10% or more, but not more than 20%.
Ostensibly, this means a drop of 20%+ is something much worse, perhaps a true housing crash.
But you have to look at the associated damage. If home prices fall 20% and there aren’t many distressed sales, is it still a crash?
Some might argue that there’s simply no other outcome if prices fall that much. And maybe they’d be right. The point is a crash needs to have major consequences.
If Homeowner Joe sells his home for $500,000 instead of $600,000, it’s not necessarily a disaster if he bought it for $300,000 a few years earlier.
He’s not happy about it, obviously, but it’s not a problem if he can still sell via traditional channels and even bank a tidy profit.
Of course, this means others who had to sell wouldn’t be so lucky, since their purchase price would likely be higher.
Still, this hinges on a major decline in prices, which historically is uncommon outside of the Global Financial Crisis (GFC).
Stop Comparing Now to 2008
One thing I see a lot is housing bears comparing today to 2008. It seems to be the go-to move in the doomer playbook.
I get it, it’s the most recent example and thus feels the most relevant. But if you weren’t there, and didn’t live it, you simply can’t understand it.
And if you weren’t, it’s hard to distinguish that time from now. But if you were, it’s clear as day.
There are myriad differences, even though they’re quick to mock those who say “this time is different.”
I could go on all day about it, but it’s best to focus on some main points.
At the moment, housing affordability is poor thanks to a combination of high home prices and equally high mortgage rates, as seen in the chart above from ICE.
Despite a big rise in prices over the past decade, the high mortgage rates have done little to slow down the party.
Yes, the rate of home price appreciation has slowed, but given the fact that mortgage rates rose from sub-3% to 8% in less than two years, you’d expect a lot worse.
It’s just that there’s really no correlation between home prices and mortgage rates. They can go up together, down together, or move in opposite directions.
Now, proponents of a housing crash often point to buying conditions right now. It’s a horrible time to buy a house from a payment-to-income perspective. I don’t necessarily disagree (it’s very expensive).
But that completely ignores the existing homeowner pool. And by doing so, it’s a totally different thesis.
You can say it’s a bad time to buy but that the average homeowner is in great shape. These statements can coexist, even though everyone wants you to take one side or the other.
Look at the Entire Homeowner Universe
To put this perspective, consider the many millions of existing homeowners coupled with prospective home buyers.
Your average homeowner today has a 30-year fixed-rate mortgage set somewhere between 2-4%.
In addition, most purchased their properties prior to 2022, when home prices were a lot lower.
So your typical homeowner has a rock-bottom interest rate and a relatively small loan amount, collectively a very attractive monthly payment.
To make matters even better for the foundation of the housing market, which is existing homeowners, most have very low loan-to-value ratios (LTVs).
They’ve also got boring old 30-year fixed-rate loans, not option ARMs or some other crazy loan program that wasn’t sustainable, as we found out quickly in 2008.
These homeowners also haven’t tapped their equity nearly as much as homeowners did in the early 2000s, despite home equity being at record high levels (see above).
This is partially because banks and mortgage lenders are a lot stricter today. And partially because of mortgage rate lock-in. They don’t want to give up their low mortgage rate.
In other words, the low mortgage rate not only makes their payment cheap, it also deters taking on more debt! And more of each payment pays down principal. So these loans (and their borrowers) become less and less risky.
Some have turned to home equity loans and HELOCs, but again, these loans are much more restrictive, typically maxing out at 80% combined loan-to-value (CLTV).
In 2006, your typical homeowner did a cash-out refinance to 100% CLTV (no equity left!) while new home buyers were coming in with zero down payment as home prices hit record highs.
Take a moment to think about that. If that’s not bad enough, consider the mortgage underwriting at that time. Stated income, no doc, you name it.
So you had virtually all homeowners fully levered along with a complete lack of sound underwriting.
Slumping Home Sales in the Face of Poor Affordability Is Actually Healthy
That brings us to home sales, which have slumped since the high mortgage rates took hold. This is normal because reduced affordability leads to fewer transactions.
The worry is when this happens supply could outpace demand, resulting in home price declines.
Instead, we’ve seen low demand meet low supply in most metros, resulting in rising home prices, albeit at a slower clip.
While housing bears might argue that falling volume signals a crash, it’s really just evidence that it’s hard to afford a home today.
And the same shenanigans seen in the early 2000s to stretch into a home you can’t afford don’t fly anymore. You actually need to be properly qualified for a mortgage in 2024!
If lenders had the same risk tolerance they had back in 2006, the home sales would keep flowing in spite of 7-8% mortgage rates. And prices would move ever higher.
That spike in home sales in the early 2000s, seen in the chart above from Trading Economics, shouldn’t have happened. Fortunately, it’s not happening now.
At the same time, existing homeowners would be pulling cash out in droves, adding even more risk to an already risky housing market.
Instead, sales have slowed and prices have moderated in many markets. Meanwhile, existing owners are sitting tight and paying down their boring 30-year fixed mortgages.
And with any luck, we’ll see more balance between buyers and sellers in the housing market in 2025 and beyond.
More for-sale inventory at prices people can afford, without a crash due to toxic financing like what we saw in the prior cycle.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Despite the overall slowdown, the data revealed a growing trend of first-time homebuyers entering the market for newly built homes. “The average loan size edged lower for the second consecutive month, and the share of FHA applications increased to 28.7%, as first-time buyers continue to account for a growing share of demand for newly built … [Read more…]
Good dental health can be essential to your overall well-being, but the cost of dental work — even after dental insurance — can make it challenging to pay upfront. According to the American Dental Association (ADA), the average cost of a porcelain or ceramic crown is $1,213, while the cost of a root canal can range as high as $1,539 for a single session.
A dental credit card is a white-label version of a credit card intended to be used on dental care expenses. It is one way to cover these costs in smaller, more manageable installment payments. Although a credit card for dental work can serve as a useful financing tool, it’s also important to be mindful of the caveats of using credit for dental care.
What Is a Dental Credit Card?
A dental credit card is a credit card that’s designed specifically to pay for your out-of-pocket dental health care costs. These cards are typically offered in dental offices that accept the particular medical card it advertises as a form of payment.
Like a basic credit card, a dental credit card requires patients to undergo a credit check for qualification. The card’s use is limited to dental offices within the card issuer’s network for the purpose of financing your dental bills.
Dental care credit cards typically have high interest rates, even if they offer a temporary deferred interest period.
Recommended: Tips for Using a Credit Card Responsibly
How Do Dental Credit Cards Work?
Your dental provider’s office might mention a dental credit card as a payment option if you’re unable to cover the expense in one lump sum. Typically, the office facilitates the process of completing your application for credit approval, but it is not financing the cost directly. In other words, your dental office isn’t the lender.
Instead, credit for dental care is provided by a third-party credit card issuer. Similar to how a conventional credit card works, your application is reviewed by the issuer’s underwriting team, and your credit history and score are evaluated.
If you’re approved, the card issuer will send you a physical credit card that you can use for services at an in-network health care office up to your approved credit card limit. Your dental provider is paid in full by the card issuer, and you’ll repay the issuer through monthly payments, plus interest if you carry a balance.
Deferred Interest Periods on Dental Credit Cards
Some credit cards for dental work offer zero interest charges for a limited period, also called deferred interest. This option can be advantageous if you’re confident that you can successfully repay the full balance before the deferment period ends.
However, if there’s a remaining balance after the deferment period ends, interest charges that accrued throughout the deferment period are added to the principal balance that’s due. Additionally, the new higher balance continues to accrue interest charges at the dental credit card’s APR, or annual percentage rate.
Because of this, use medical credit cards for dental work cautiously, as it’s a high-interest financing option that can lead to higher medical debt if you’re unable to repay your dental expenses quickly.
Recommended: What Is a Charge Card
Choosing a Dental Credit Card
When applying for a credit card specifically for dental care expenses, make sure you ask about the card’s features, terms, annual percentage rate (APR), and how it calculates interest during and after any deferment period.
If you’re approved, ensure that your dental office provides you with a copy of your dental credit card’s disclosure agreement. Also pay attention to the agreed-upon amount for any dental services you receive so you can verify that the card was charged for the correct amount.
You’ll want to note the deferment dates for your card, if any, and the interest rate you’re offered. That way, you can make enough monthly payments to repay your balance in full before interest kicks in.
Paying for Dental Care If You Have Bad Credit
Getting approved for a dental care credit card might be challenging if you have bad credit. If you’re in a difficult position and need help paying for expensive dental work now, here are some options to explore:
• Inquire about a low-fee payment plan. Even if your dental provider doesn’t typically offer payment plans, it’s worth asking. They might accommodate you.
• Shop around with other dental providers. Prices vary across dental offices, so compare costs across a handful of affordable sources. You might consider a non-profit dental clinic or a dentistry school.
• Seek help from a family member. Ask a relative if they’re willing to offer a low-interest loan for your dental care.
• Explore local government programs. Some state and local governments offer low-cost dental care programs to residents.
Alternatives to Dental Credit Cards
If a dental credit card isn’t an option for you, there are a handful of other financing options to cover dental work, such as the cost of a root canal.
Credit Cards With 0% Interest Rates
Other types of credit cards, like a 0% APR card, are a good alternative to dental care credit cards. They offer a promotional period — sometimes from six months to 18 months — during which you don’t incur interest charges.
This kind of card may differ from deferred interest programs. With some promotional APR cards, interest only starts accruing on your outstanding balance after the promotional period ends. Still, the credit card rule applies to try to pay off your balance in full before the promotional period ends to avoid paying interest.
Payment Plans Through Your Provider
Some medical providers offer a payment plan at no additional cost or at a small installment fee. In this situation, you’re arranging low installment payments directly through your dental office until you’ve repaid your balance in full.
Not all dental offices offer this type of payment plan. But if yours does, it can work with you to create a custom monthly payment amount and due date that’s manageable for your finances.
Personal Loans
Compared to a dental credit card, personal loans might offer lower interest rates for qualified borrowers. A low-interest personal loan achieves the same result as a credit card for dental work in that you can chip away at your outstanding balance in small increments, plus interest.
Among the main differences: You’ll receive a lump-sum loan disbursement from your lender that can be used to pay your dental office upfront. Also, you may find that a personal loan has a lower interest rate than what a credit card would charge you.
Recommended: How to Avoid Interest On a Credit Card
Help From Relatives
Seeking financial assistance from a close relative can help you avoid dental care debt. When asking for help, clarify whether any available funds are a gift or need to be repaid.
If it’s the latter, discuss the repayment window and additional interest (if any). Also talk about expectations if you’re suddenly unable to make payments due to, say, an injury or job loss.
The Takeaway
Getting a credit card designed to pay for dental work can be useful if you’re faced with an urgent oral treatment or procedure and need fast financing. However, the high interest rates of credit cards for dental work compared to other financing options can make it a financially risky option.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
What credit score do I need to get a dental credit card?
Credit score requirements vary by credit card issuer, but generally, you’ll need at least fair credit. However, a higher score can help you qualify for more competitive interest rates.
Is a dental care credit card hard to get?
Dental care credit cards are commonly offered online or at your provider’s dental office, so applying for a card is typically straightforward. However, being approved for a dental credit card involves many factors, like your credit history, income, debt-to-income ratio, and other factors.
Should I pay for dental care with a credit card?
If you don’t have the cash flow to pay for your dental costs upfront, using a dental credit card helps you cover costs in small, monthly payments. That being said, doing so might cause you to incur high interest charges, so evaluate your financial situation and your options.
Can I get a dental loan with bad credit?
Dental loans for patients with bad credit are available, though they might come with high interest rates, low limits, or other restrictive factors.
Photo credit: iStock/zadveri
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Considering a move to Maryland? From the serene beaches of the Eastern Shore to the charming cities like Baltimore and Annapolis, living in Maryland will surround you with beautiful landscapes and urban life. Whether you’re exploring homes for sale in Baltimore, contemplating renting in Annapolis, or searching for houses for rent in Rockville, here’s what you need to know before moving to Maryland.
Maryland at a glance
Maryland’s landscapes range from the scenic shores of the Chesapeake Bay to the rolling hills of the Piedmont Plateau, providing residents with diverse terrain and abundant outdoor activities. The state’s largest cities, Baltimore and Annapolis, are known for their historic charm and numerous entertainment options. Major sectors driving Maryland’s economy include biotechnology, cybersecurity, and healthcare, with significant institutions like Johns Hopkins University and the National Security Agency (NSA) headquartered here.
Culturally, Maryland is rich with world-class museums such as the Walters Art Museum in Baltimore and the United States Naval Academy Museum in Annapolis. Notable events include the Maryland Renaissance Festival, Preakness Stakes, and the Annapolis Boat Shows. The state’s culinary scene is equally diverse, featuring regional specialties like Maryland blue crabs, crab cakes, and Smith Island cake. For those seeking affordable places to live, cities like Bel Air South and Waldorf offer lower living costs while maintaining a high quality of life. These cities provide a life full of cultural richness, economic opportunities, and access to outdoor activities, making Maryland a good place to live.
1. Famous for its Chesapeake Bay
The Chesapeake Bay is the heart of Maryland’s maritime identity, stretching over 200 miles and providing various activities from boating and fishing to crabbing. The bay is crucial for the state’s economy and culture, known for its delicious blue crabs, oysters, and other seafood. Cities like Annapolis, the state capital, are renowned for their waterfront charm and sailing heritage. Visitors can explore the Bay through scenic cruises or visit the Chesapeake Bay Maritime Museum in St. Michaels to learn about its history and ecology.
2. The geography is very diverse here
Maryland’s geography encompasses a range of landscapes, from the Atlantic coastline to the rugged Appalachian Mountains. The state features the flat, sandy shores of the Eastern Shore, the rolling hills of the Piedmont region, and the mountainous terrain of Western Maryland. Highlights include the scenic drives through the Catoctin Mountains, the beaches of Ocean City, and the picturesque Harpers Ferry, where the Potomac and Shenandoah rivers meet. This diverse terrain allows for a variety of outdoor activities, from hiking and skiing to beachcombing and bird-watching.
If you’re planning to move to Maryland, you’ll want to consider the pros and cons of living in the Old Line state to give you some insight on what to expect,
3. Maryland has a strong crab culture
Crab culture is a defining feature of Maryland’s culinary scene, with blue crabs being the star of the show. The state’s crab feasts, where crabs are steamed with Old Bay seasoning, are a beloved tradition. Events like the Maryland Seafood Festival and the annual crab picking competitions celebrate this local staple.
Insider scoop: try the crab cakes at the Phillips Seafood Restaurant in Baltimore, a local favorite that perfectly showcases the bay’s renowned blue crabs.
4. Maryland has great access to major cities
Maryland’s location provides convenient access to several major cities, including Washington, D.C., Philadelphia, and New York City, with average commute times of around 30 minutes to an hour to Washington, D.C., and about 1.5 to 2 hours to Philadelphia. This proximity allows residents to easily commute or enjoy day trips to these urban centers, benefiting from cultural attractions, employment opportunities, and diverse dining options. Baltimore, with its rich history and vibrant Inner Harbor, is also a significant city within the state, offering its own unique amenities and experiences. The state’s well-connected highways and public transportation options, like the MARC train, make commuting relatively straightforward, though traffic congestion can be a challenge during peak hours. More on that below.
5. Traffic and commuting around Baltimore is time consuming
Traffic congestion is a notable issue when living in Maryland, especially in the Baltimore metropolitan area, where rush hour can significantly impact travel times. The city’s roadways, including major routes like I-95 and I-695, are often congested, making commuting a time-consuming process. For those working in Baltimore, it’s common to encounter delays during peak hours, so planning for extra travel time is essential.
Travel tip: Utilizing public transportation options like the Light RailLink or MARC train can help mitigate some of the stress associated with driving.
6. Marylanders are passionate about their sport teams
Sports play a central role in Maryland’s culture, with local residents exhibiting strong loyalty to their teams. The Baltimore Ravens (NFL) and Baltimore Orioles (MLB) are major sources of community pride, with fans packing the stadiums for games. College sports are also significant, with the University of Maryland Terrapins enjoying a dedicated following, particularly for basketball. Events like the Preakness Stakes, part of the Triple Crown horse racing series, further highlight the state’s sports enthusiasm.
7. The maritime heritage runs deep
Maryland’s maritime heritage is integral to its identity, with a long history of shipbuilding, sailing, and naval activities. The state’s coastline and rivers have played a crucial role in its development, reflected in historical sites like the U.S. Naval Academy in Annapolis and the many preserved lighthouses along the shore. Festivals such as the Annapolis Sailboat Show celebrate the state’s seafaring traditions, while the Chesapeake Bay Maritime Museum offers insights into the region’s nautical history and culture.
8. The wine and craft beer scene is growing
Maryland’s wine and craft beer industries are expanding rapidly. Wineries like Linganore Winecellars and Boordy Vineyards produce a variety of wines, from robust reds to crisp whites, and often host events such as wine tastings and festivals. The craft beer scene is equally exciting, with breweries like Union Craft Brewing offering innovative brews and taproom experiences. The growing popularity of these local beverages reflects a broader trend towards locally-sourced products, making Maryland a good place to live.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
Ana is a Marketing Specialist who loves to write about home improvement and local insights. Living in the Greater Seattle area, she enjoys traveling and spending time outdoors.
Solar net energy metering in California (NEM 3.0) is a billing mechanism through which utility companies compensate customers (via credits on their electric bill) for electricity their residential solar systems send to the grid. NEM can make solar more affordable, but some state NEM policies make it less beneficial.
California is one of those states; however, solar panels in California can still be worth it for homeowners. Understanding how net metering works in California can help you get the most out of your solar system.
How net metering has evolved in California
NEM in California has gone through three major versions:
NEM 1.0
California’s first NEM program was implemented in 1996. Under NEM 1.0, solar customers could sell their extra electricity back to the utility at the retail rate (the price at which the utility charged consumers for electricity), they could choose any electric rate plan the utility offered and they didn’t have to pay extra fees for connecting to the grid.
NEM 2.0
NEM 2.0 was introduced in 2016–2017. This version of NEM still compensated customers for excess power at the retail rate, though customers couldn’t offset 100% of the charges (some were “nonbypassable”). It also required solar customers to be on a time-of-use (TOU) rate plan in which the price of power depends on when it’s used, and it introduced an interconnection fee
.
NEM 3.0
Officially called the Net Billing Tariff (NBT), NEM 3.0 is the current version of NEM, adopted by the California Public Utilities Commission (CPUC) in December 2022 and implemented in April 2023. The NBT cut the rate utilities pay to buy excess solar power by about 75%
.
5 things to understand about net metering in California
These provisions affect many solar installations and related electric bills in California.
Low payment for your excess electricity. This is the biggest factor affecting NBT solar customers. Under the NBT, you are paid for the electricity you send back to the grid according to a complicated “avoided cost” formula that takes into account the value of that electricity to the grid at the time you send it to the grid. Your system will likely send excess electricity to the grid during the middle of the day, which is when lots of other people are also sending excess solar power to the grid. That means the utility will buy your electricity for a much lower rate than it would have under NEM 2.0.
Time-of-use (TOU) rate plan. Under TOU rates, what you pay for electricity depends on when you use it. The NBT requires solar customers to pay specific TOU rates that, compared with other TOU rates, are lower at off-peak use times and higher at peak times. That will further affect your electricity costs and solar savings.
Nonbypassable charges. As the name suggests, solar customers pay these charges even if they generate enough extra power to offset them. Under the NBT, nonbypassable charges are based on all electricity you pull from the grid.
Monthly billing, annual true-up. The utility keeps a running tally of whether the value of the power you’ve used from the grid is more than the value of the power you’ve sent to the grid. If you took more than you gave, you’ll get a bill from the utility; if you gave more than you took, the utility gives you a credit on your bill. This reconciliation exercise used to happen once a year; now it’s once a month. “Under NEM 2.0, residential customers of investor-owned utilities do not pay more than the roughly $10 minimum bill if they owe more than that at the end of a month. They pay the cumulative amount owed at their annual true-up date,” said Brad Heavner, policy director at the California Solar and Storage Association (CALSSA), in an email. “Under NBT, if customers owe an amount at the end of a month, they pay that full amount. This avoids surprise annual true-up bills.”
Solar system size limit. Under the NBT, customers can install enough solar to offset up to 150% of their electricity use. To do this, they must sign a statement acknowledging that they are getting more solar than they need to serve their rate of consumption, Heavner said. However, utilities have been inconsistent in implementing this, said Barry Cinnamon, CEO of California solar company Cinnamon Energy Systems, in an email. Be aware of size limits if you already have solar and want to add more, which might bump you from NEM 1.0 or NEM 2.0 to the NBT. “There are ways for customers to increase the size of their existing NEM 1.0 or NEM 2.0 system without triggering a change to the NBT,” Cinnamon said. “Contact your local installer for more information on these solar expansion possibilities.”
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How to make California net metering (NEM 3.0) work for you
Even with the drawbacks of the NBT, solar may still make sense for your California home. Here’s how you can make NEM 3.0 work for you.
Add a battery
A solar battery can make a big difference in the cost-effectiveness of your solar under the NBT. Instead of sending excess electricity back to the grid at a low rate, you can store it in your battery and use it later. You can also avoid high TOU rates by charging the battery when you’re generating the most electricity, then using that electricity during expensive peak TOU hours.
For these reasons, many new solar customers in California are turning to batteries. According to the Energy Information Administration, the number of California solar customers installing batteries with their solar panels jumped from just over 20% in October 2023 to well over 50% in April 2024
. A May 2024 study by the Lawrence Berkeley National Laboratory found that the percentage of California solar installations that were paired with energy storage rose from 10% to 60% .
Batteries are expensive, however. In California, the average cost is $7,706 after the 30% federal tax credit, according to EnergySage
.
Shift your energy use
If you can, use energy when you’re generating the most solar or when rates are low. For example, do laundry in the middle of the day or charge an electric car after peak evening hours. If you work from home, you may already use more electricity during the day, when your system is generating the most.
🤓Nerdy Tip
Solar leasing allows homeowners to rent solar panels. Instead of a big upfront investment, homeowners typically make monthly lease payments. However, the homeowners don’t own the panels, so they typically don’t qualify for tax incentives or rebates, and the lease contract may make it more challenging to sell their houses.
Go solar before export rates go down
Every two years, the CPUC updates the avoided cost calculator, which determines what the utility will pay consumers for their excess electricity.
“Customers lock in the currently calculated export rates for the next nine years,” Heavner said. “These numbers change each year, but you know what they are according to the current calculation of export rates. This lock-in will no longer be available to customers installing after 2028.”
Export rates have been coming down, Heavner said. They could also go up in the future, becoming more favorable to NBT customers, as the value of energy sent to the grid increases because of rising electricity demand.
“It is not clear how the utilities will change the NBT export rate,” Cinnamon said. “The original export rates were already effectively reduced by utilities, so I expect that these export rates will continue to change in the utilities’ favor.”
Look at the big savings picture
Solar panels usually last 20–30 years. Although the NBT lengthened the solar payback period (now nine years, by some estimates), you may still save money over time. In addition, rapidly rising electricity costs could shorten that payback period
.
Frequently asked questions
What’s the difference between net metering and net billing?
Under net metering, you sell solar-generated electricity to the grid at the retail rate. Under net billing programs, you sell your excess energy to the grid at a below-market rate.
In California, this lower rate is based on a calculated value of the electricity at the moment it’s sent to the grid. This is also known as the “avoided cost” rate because it reflects the costs the utility avoids by buying power from you instead of producing that power or purchasing it elsewhere.
Can I install solar now and add a battery later?
Yes. If energy storage isn’t right for you at the moment, you can still go solar now and add a battery later if costs come down.
Will there be a new version of the NBT in California?
NEM policies have been shifting across the nation, and it’s possible that the NBT in California will change.
Almost half of all Americans carry a balance on their credit card, month after month. If you’re among their ranks, you know that the combination of high prices and high credit card interest rates can make it challenging to pay that debt off in full.
Many cardholders have seen their interest rates creep up in recent years, in line with the Federal Reserve’s recent rate increases. That means interest payments are gobbling up a bigger share of credit card balances. And those credit card balances can be major. This kind of debt hit a staggering $1.12 trillion for the first quarter of 2024, according to data from the Federal Reserve Bank of New York.
But the situation isn’t hopeless, however. If you’re one of the cardholders who can’t pay credit card debt in full, here are five steps you can take to address it.
Step 1: Check your Credit Card Interest Rate
If you haven’t carried a credit card balance before, you may not be aware of what interest rate your credit card is charging. But it’s important to know exactly how much you’re getting charged so if you need to, you can budget for interest expense as well as your purchases.
The average credit card interest rate for all new card offers was 24.84% in mid-2024. (Depending on what type of credit card you have, your credit score, and your credit history, you may have a higher or lower interest rate than the average.)
With interest rates this high, it can be a real financial setback to carry a balance for an extended length of time, making only the minimum credit card payment. You may find that you are only paying interest and making little headway in paying off what you actually spent.
Recommended: What Is a Charge Card
Step 2: Understand How Your Grace Period Works
If you pay your credit card statement balance in full by the due date, a credit card grace period will usually take effect for the next billing cycle. That means you won’t owe interest on new purchases until the due date for the next billing cycle. If you pay that statement balance in full by the next due date, the grace period will continue into the next cycle, and on and on.
But, if you make only the minimum payment or a partial payment on the full statement balance by the credit card due date, you’ll get charged interest on the remaining balance and lose your grace period for the next billing cycle. This means you’ll owe interest on any purchase immediately. Even if you go back to paying the full balance, your grace period may not renew for several more cycles, depending on the specific terms of your credit card.
If you’re in a position where you can’t pay credit card bills and must move to partial payments, make sure you’re aware of the additional interest expense you’ll incur on the remaining credit card balance. Try your best to stop making new purchases with that card since interest will be charged on those purchases immediately.
Step 3: Look at Changing Your Due Date
If you’re feeling overwhelmed because many of your bills are due at the same time, talk to your credit card company about changing your due date. You might be able to move your credit card due date to a day of the month that works better for your budget, so the payments you owe are a bit more staggered.
While this switch might not help immediately to pay down credit card debt, it could offer some relief in the long run.
Recommended: How to Avoid Interest On a Credit Card
Step 4: Explore Ways to Pay Off Your Balance Faster
You may find that with higher interest rates and inflationary spending, you need a more efficient way to pay off your credit card debt, such as by refinancing credit card debt. Luckily, there are some options for how to pay off credit card debt, though keep in mind the best way to pay off credit card debt will depend on your financial specifics.
Balance transfer credit cards that offer a limited time low or sometimes even 0% interest rate can help — especially if you think you can pay the balance in full during the promotional low-rate period.
Another option you might consider is applying for a low-interest personal loan to pay off credit card debt in full. This could help you secure a lower interest rate, and by consolidating your credit card debt, you’d have fewer due dates to keep track of. Keep in mind, however, that there are pros and cons of personal loans to pay off credit card debt.
Recommended: Tips for Using a Credit Card Responsibly
Step 5: Consider Using a Budgeting Tool
If you’re finding it hard to make your credit card payments, that can be a signal it’s time to take a close look at your spending, perhaps with the help of one of the many online budgeting tools available.
Personal finance tools can help you understand just how much your cost of living has risen in recent months and make it easier to flag places you can cut back. Some can help to pinpoint fees you may be paying unwittingly or the automatic payments you’re making on your credit card that could get trimmed. Cutting these costs can then make it easier to pay off credit card debt.
The Takeaway
If you’re struggling with a credit card balance you can’t pay off, taking steps to pay off credit card debt faster and budget smarter can help. These can involve understanding your rate, changing your payment due date, and other moves.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
What is a fast way to pay off credit card debt?
You might be able to use a balance-transfer credit card and pay down your debt during the 0% APR promotional period. Or you might consider securing a personal loan to pay off the debt. You would then pay off the personal loan, which could have a lower interest rate.
Can you change your credit card payment due date?
You may be able to change your payment due date. See if your card’s website or app allows this kind of shift, or contact customer service.
Do most Americans carry credit card debt?
According to recent data, approximately 49% of Americans carry credit card debt.
Photo credit: iStock/Sneksy
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
PayPal is an online payment system that’s been a major part of online transactions since 1998, and you may have seen that they offer a credit card. Before applying for a PayPal credit card, it’s helpful to ask, “How much does a PayPal credit card affect my credit score?” Every credit card has pros and cons, and they can also have an impact on your credit score.
A good credit score helps you get lower interest rates on credit cards and can improve your financial well-being.
Read on to learn more about what a PayPal credit card is, how it affects your credit score and what score you need to improve your chances of getting approved.
How a PayPal credit card affects your credit score
Having a PayPal credit card can positively and negatively affect your credit score, depending on how you use it. Your credit score indicates how financially responsible you are to lenders and other businesses that check your score. Before learning how a PayPal credit card can affect your score, knowing how your credit score is weighted is beneficial.
One of the most popular scoring models is the FICO® scoring model, and it’s based on five factors:
Payment history (35 percent)
Credit utilization (30 percent)
Length of credit history (15 percent)
Credit mix (10 percent)
New credit applications (10 percent)
As you can see, your payment history is the most important aspect, so paying your credit card on time is crucial to having a good score. PayPal reports to the credit bureaus, so your activity will show up on your credit reports, which determines your score.
Should you miss payments on your PayPal credit card, it can negatively affect your score. Next is credit utilization, which is the percentage you owe based on your max credit limit. Making your payments on time and keeping your utilization percentage low are the best ways to have this credit card work in your favor.
How does PayPal Credit work?
A PayPal credit card works similarly to a regular credit card, but you don’t need the physical card when making online payments that have a PayPal option.
If the website accepts PayPal, the checkout option will show you the various accounts you have attached, like your bank accounts and your PayPal balance. If you have a PayPal credit card, it will show you the credit option as well.
You’ll also receive a physical version of the credit card, which you can use in person.
Similar to a regular credit card, you will receive a statement each month with all of your transactions and the minimum payment due. You can also pay the statement balance or current balance if you’d like to pay more than the minimum. To pay, you’ll use your PayPal balance or a linked bank account.
Does PayPal do a hard pull for a credit application?
Applying for a PayPal credit card triggers a hard inquiry on your credit report. New credit is worth 10 percent of your credit score and reflects how often you apply for new lines of credit. Multiple credit card applications in a short period indicate to lenders that you may have money problems and could struggle to make payments.
Although a PayPal credit card application will trigger a hard inquiry and reduce your score, it’s only temporary. Regular, on-time payments and low utilization will eventually balance out the negative impact of the hard inquiry. The inquiry will show as SYNCB/PPC on your report as well as on your credit card statements when you make purchases.
What credit score is needed for a PayPal credit card?
PayPal doesn’t list a specific credit score you need to get approved for their credit card, but in an article, they do say a score of 670 can help your approval odds for good credit cards. Now that you know that hard inquiries can lower your credit score, it’s helpful to get a free credit assessment. This includes your credit score and other helpful information about your credit health.
PayPal may approve you for a credit card with a score lower than 670, but a lower score often means that you pay higher interest fees when you make your purchases. Whether you’re applying for a PayPal credit card or other credit cards, it’s often helpful to use tools like a secured credit card to boost your score so you can get better interest rates.
Improving your credit score can help your PayPal credit card approval odds
PayPal has multiple credit cards to choose from, and one of them may be right for you. Before applying for a PayPal credit card, check your credit score. A hard inquiry into your credit report lowers your score, which you should avoid if you may be denied.
Fortunately, Lexington Law Firm offers a free credit assessment so you can check your credit score and other aspects of your credit health. We also offer credit repair services for those who may have errors on their credit report. Sign up to get your free credit assessment today.
By now you’ve heard the news. President Biden dropped out of the 2024 presidential race and paved the way for current VP Kamala Harris to run in his place.
That was big news that shook up the election overnight, and now there is a renewed focus on Harris, including her financial disclosures.
The WSJ ran a story today about how she manages her money, pointing out her penchant for index funds and her ultra-low rate 2.625% mortgage.
I dug a little deeper to see what kind of mortgage she had, along with when and where she got it.
And it turns out it’s an adjustable-rate mortgage, which we all know aren’t for the faint of heart.
Kamala Seems to Really Love the 7-Year ARM
With regard to that 2.625% mortgage Kamala Harris holds, it turns out it’s a 7-year adjustable-rate mortgage (ARM).
This is a popular type of ARM these days because it provides 84 months of interest rate stability before the first adjustment.
In that respect, homeowners can take one out and not worry about their rate increasing for many years.
And in the meantime, either sell their property or refinance the mortgage if need be.
Harris obtained her latest mortgage in 2020 and was able to get a very low interest rate set at 2.625% until the year 2027.
It’s unclear what the exact loan amount is, but it was revealed to be somewhere between $1,000,000 and $5,000,000.
We also know that the lender in question is Wells Fargo, which has had its share of controversies over the past decade, including improper mortgage lock fees.
What’s even more interesting is this isn’t Harris’ first 7-year ARM. A prior financial disclosure revealed that she took out the same type of loan in 2016 as well.
It featured the same exact mortgage rate, 2.625%. And you guessed it, also came from San Francisco-based bank Wells Fargo.
But wait, there’s more! If we go back to 2012, she took out another 7/1 ARM set at an even lower 2.5%.
In total, that’s three 7-year ARMs in a row dating back about 12 years. Based on that timing, you’d expect a fourth around now, but mortgage rates are no longer cheap.
Unfortunately, a typical 7-year ARM might now go for closer to 5% or higher, making it a pretty terrible deal. So until rates improve, she’ll likely be holding onto the 2020 loan.
She’s Got Another Three Years to Figure Out Her Next Move
It’s not uncommon for homeowners to take out ARMs and refinance them over and over into new ARMs.
The logic is that an ARM is typically cheaper than a fixed-rate mortgage, and if you refinance it before it becomes adjustable, you get the upside (lower rate) without any of the downside (higher rate adjustment).
The one caveat is the closing costs each time you refinance, though a no cost refinance can work if rates remain cheap.
There’s also the time aspect, as it can take about a month to get a mortgage, and it can be a pain to go through the process.
But if you don’t mind all that, you can get a cheaper mortgage and allocate the savings elsewhere, such as an index fund.
You also get a smaller payment over time if you refinance into a new 30-year loan term since the loan amount will be smaller thanks to several years of paying it down.
Anyway, it seems Harris employed this strategy for the past decade while mortgage rates hit record lows and it worked out favorably.
However, it appears her next move won’t be as easy now that mortgage rates have more than doubled in the past few years.
Her Mortgage Rate Could Jump to 4.625% in 2027
Come 2027, her 7-year ARM will see its first adjustment, and that means it’ll likely rise from 2.625% to 4.625%.
There are typically caps in place that limit initial movement by 2%, and subsequent adjustments by 2%, with a lifetime cap that can’t be exceeded.
So beyond that first adjustment, it could go even higher than 4.625%, perhaps to 6.625% if the associated mortgage index is still inflated at that time.
Assuming that happens, she’d want out of the loan and into something cheaper.
But if mortgage rates are still high then, it might remain her best option, despite being more expensive than her original loan.
This is the big risk of taking out an ARM vs. a fixed-rate loan. With the latter, you never have to worry about a rate adjustment, though you do pay a premium for that assurance.
If all else fails, there’s always the option to sell the property, which solves the adjustable-rate problem.
And if she’s living in the White House, that might work out just fine.
Read on: Are adjustable-rate mortgages finally a good deal again?
(photo: Gage Skidmore)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process.