In today’s digital world, having a checking account is not just a luxury, but a necessity. As a leading financial institution, Chase, a division of JPMorgan Chase Bank, N.A, offers a variety of checking accounts to suit different needs.
This guide will provide an overview of how to open a Chase checking account, detail the available account types, and explain their associated benefits and costs.
The Basics of Opening a Chase Checking Account
Opening a Chase checking account is a simple and streamlined process. It’s designed to be accessible whether you prefer to handle your banking online or in-person. With over 4,700 branches, JPMorgan Chase Co. has made it possible to open an account virtually anywhere in the U.S.
When preparing to open your account, you’ll need to have certain information on hand. This includes your Social Security Number or Tax ID number, which is a basic requirement for any financial transactions in the U.S. You’ll also need a valid form of identification, such as a driver’s license or passport. Chase uses this information to verify your identity, ensuring your financial safety and security.
In addition to the above, you’ll also need to provide personal contact information. This includes your address, email, and phone number. This is so Chase can contact you about account information, and so they can send you important banking documents.
For new customers under the age of 18, a parent or guardian will need to co-own the account. This is standard practice at many financial institutions. It ensures that there’s an adult associated with the account who can manage the account responsibly.
Choosing the Right Chase Checking Account for You
Choosing a bank account is a critical decision, and Chase offers a variety of options, each with its own features, benefits, and costs. These include Chase Total Checking®, Chase Secure Banking℠, Chase Premier Plus Checking℠, and Chase Student Checking. It’s essential to review each option and choose one that fits your lifestyle and financial goals.
Chase Total Checking®
Chase Total Checking® is the most popular checking account offered by Chase. With access to over 15,000 ATMs and 4,700 branches, it offers a range of features including Chase Overdraft Assist℠, Zero Liability Protection for unauthorized debit card transactions.
Additionally, you’ll have the ability to manage your money on the go with the Chase Mobile® app. You can deposit checks, pay bills, and transfer money virtually anywhere, which makes it an excellent option for everyday banking needs.
The monthly service fee for this account is $12, which can be waived if you meet specific requirements such as maintaining a minimum balance, direct deposit, or holding a combination of qualifying Chase accounts.
Chase Secure Banking℠
Chase Secure Banking℠ is designed to help you manage your money without worrying about maintaining a minimum balance or unexpected overdraft fees. With a monthly service fee of $4.95, you can enjoy features like early direct deposit, paying bills, and cashing checks. It also allows you to send money and access Chase’s extensive network of ATMs and branches, all from the Chase Mobile app.
One significant advantage of this account is the absence of overdraft fees. This account enables you to spend only what you have, thus promoting responsible spending habits. Other benefits include no fees on money orders, cashier’s checks, and when using the Chase Online Bill Pay.
Chase Premier Plus Checking℠
The Chase Premier Plus Checking℠ is a premium checking account that not only gives you the standard benefits of online bill pay and mobile banking through the Chase Mobile app but also earns you interest on your balance. You’ll have access to 15,000 ATMs and 4,700 branches, Chase ATMs, and a Chase debit card with chip technology.
This account comes with a $25 monthly service fee that can be waived under specific conditions. These include maintaining a qualifying average balance, having a linked qualifying Chase mortgage, or for current U.S. service members and veterans with a qualifying military ID.
Additional perks include no fee for the first four non-Chase ATM transactions, Chase design checks, and no monthly service fees on up to two additional linked Chase checking and personal savings accounts.
How to Open a Chase Checking Account Step-by-Step
Whether you choose to open a Chase account online or in-person, the process is simple and hassle-free.
Opening an Account Online
To open a Chase checking account online, follow these steps:
Visit the Chase website and select the ‘Open an account’ option.
Select the type of account you wish to open.
Click ‘Open account’ and fill in your personal information.
Review the Deposit Account Agreement and other disclosures.
Fund your new Chase bank account.
Submit your application.
You should receive an email confirmation, and your debit card and account details should arrive by mail within 7-10 business days.
Opening an Account In-Person
If you prefer to open a Chase checking account in person, follow these steps:
Visit a Chase branch. You can use the ‘Branch/ATM locator’ on the Chase website or Chase Mobile app to find a branch near you.
A Chase representative will guide you through the process, help you understand the various account options, and complete the application form.
Review the Deposit Account Agreement and other disclosures.
Fund your new account.
You will receive a temporary debit card immediately and your permanent debit card will be mailed to you.
The in-person option offers the advantage of personalized assistance from a Chase representative who can answer any questions you might have and ensure a smooth application process.
Understanding Chase’s Monthly Account Fees
Understanding the monthly service fees associated with your checking account is crucial to managing your money effectively. Most accounts come with different fees, depending on the account type.
For instance, the Chase Total Checking account has a $12 monthly service fee. However, this can be waived under certain conditions. These include a direct deposit totaling $500 or more. It can also be waived by maintaining a beginning day balance of $1,500 or more. Alternatively, an average beginning day balance of $5,000 or more across qualifying accounts can also waive the fee.
The Chase Secure Banking account is a bit different. It has a $4.95 monthly service fee with no waiver option. On the other hand, the Chase Premier Plus Checking account has a $25 monthly service fee. But, this fee can be waived. You can do this by meeting certain balance requirements or having linked accounts.
Understanding Minimum Balance Requirements for Chase Checking Accounts
Chase checking accounts have different minimum balance requirements, which can influence the account’s cost. The Chase Total Checking account, for example, requires a daily beginning balance of $1,500 or more to avoid the monthly service fee.
For the Chase Premier Plus Checking account, an average beginning day balance of $15,000 or more in any combination of linked qualifying accounts or a linked Chase mortgage can help avoid the monthly service fee.
The Chase Secure Banking account, however, does not require a minimum balance, making it an attractive option for those looking for a low-cost, simple checking account.
Perks and Drawbacks of Chase Checking Accounts
The checking accounts offered by Chase come with several perks, such as access to a broad ATM and branch network, excellent customer service, and a highly-rated mobile app for easy access to your money. Furthermore, accounts like the Chase Total Checking and Chase Premier Plus Checking offer additional benefits like earning interest and waiving the monthly service fee under specific conditions.
However, these accounts also have some drawbacks. Monthly service fees, unless waived, and ATM fees for non-Chase ATMs can add to your banking costs. Furthermore, the interest rates offered on these accounts are typically lower than those offered by online banks.
Is a Chase checking account right for you?
Choosing the right checking account depends on your personal financial needs and lifestyle. If you value in-person banking, broad ATM and branch access, and a comprehensive mobile banking experience, a Chase checking account could be a good fit. However, if you’re looking for high-interest rates or zero fees, you might want to explore other financial institutions.
It’s essential to consider the different features, benefits, and costs associated with each account type. Make sure to read the fine print and understand the terms of the Deposit Account Agreement before opening a new account. Whether you’re a student, a professional, or someone looking for secure banking, Chase has a variety of options to help you manage your money effectively.
China Cuts Key Interest Rates, Hoping to Kick-Start Flagging Economy
The reduction in the rates, which are used to set corporate loans and home mortgages, signaled concern that the country’s postpandemic rebound was stalling.
June 19, 2023
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China’s central bank cut key interest rates on Tuesday for loans issued by the state-controlled banking system, in the clearest sign yet of mounting concern in the Chinese government and corporate sector that the country’s economy is stalling.
The interest rate cut was small — a tenth of a percentage point for the country’s benchmark one-year and five-year interest rates for loans. But because almost all of the country’s corporate lending and mortgages are linked to the two rates, the reductions could have some effect on the overall pace of economic growth.
The move by the central bank, the People’s Bank of China, puts China at odds with policies in the West. The Federal Reserve spent over a year battling inflation by raising rates before pausing this month. The European Central Bank has also been pushing up interest rates in response to inflation.
1.08 percentage points in a single day. And during the Asian financial crisis of the late 1990s, China cut loan rates 1.44 percentage points in one day.
Tuesday’s cut brought the benchmark one-year rate to 3.55 percent from 3.65 percent. Companies typically pay the benchmark rate plus one or more percentage points, with smaller companies and private-sector businesses paying more than big companies and state-owned enterprises.
The five-year rate, used as a benchmark for setting mortgage rates, was cut to 4.2 percent from 4.3 percent. Home buyers and homeowners often pay another percentage point above that level.
@KeithBradsher
A version of this article appears in print on , Section B, Page 1 of the New York edition with the headline: As the West Zigs, China Zags With Rate Cuts. Order Reprints | Today’s Paper | Subscribe
If you haven’t started your children or teens off with a kids checking account optimized for their needs, you’ll want to help your college student open a checking account before they begin school.
Opening a checking account for your child can teach them about money management and financial responsibility, along with providing them an easy way to make debit card purchases. It’s never too late to get started.
One advantage to helping your young adult open their first student checking account is they have more options than they might have when they were 16 or younger. Students over 18 can open a bank account with few restrictions.
But choosing a student checking account may give them access to higher interest rates and added features and benefits, along with fee-free checking, no monthly maintenance fees, and no minimum deposit to open an account.
12 Best Student Checking Accounts
Not surprisingly, many of the best student checking accounts come from banks that also offer some of the best checking accounts for any age. However, the products below – in most cases – are tailored for young adults from the ages of 18 to 24, with the features this age group desires most, including an intuitive mobile app and low or non-existent minimum deposit requirements.
1. Best for Students under 18: Capital One MONEY Teen
Most of the student bank accounts on our list exclude children under the age of 17 or 18. Capital One MONEY Teen checking is available to children ages 8 and up. It comes with all the benefits and security of a big bank, providing peace-of-mind. This includes access to Capital One branches and Capital One Cafes for in-person service. This account also serves as a great tool to teach your young adult the basics of banking.
Capital One MONEY Teen checking is a joint account with no monthly fee, no overdraft fees, and access to 70,000 ATMs with no fees. Plus, earn 0.10% on all balances, including those in checking.
You can link Capital One MONEY Teen checking to any other bank account through any bank or neobank, making it easy to transfer money to your teen while they are away at college. Plus, you can keep tabs on their spending with their linked account in the Capital One mobile app.
When they graduate, your teen can hold onto their MONEY account or transfer the funds into a top-rated Capital One 360 Checking account of their own.
2. Best for Working Students: Chime
Chime is not a bank. It’s a financial technology company and mobile app backed by Stride Bank, NA, and The Bancorp Bank. Many features make it perfect for working students. First, you can receive your paycheck up to two days earlier than you might at other banks with ACH deposit.
Plus, you can set up automatic transfers to your linked Chime Savings account, helping you to establish good financial habits early on. Simply set up Chime to transfer a percentage of your paycheck into your Savings Account every time you receive a direct deposit.
When you use your debit card for purchases, the “Save When You Spend” program rounds up your purchase and transfers the difference directly into savings. That small change can really add up, whether you’re saving for your first apartment after college, a new car, or your next tuition bill.
For working students looking to build their credit, Chime gives account holders access to a Credit Builder Secured Visa, with no annual fee, no credit check, and no security deposit required. Instead, the credit account is secured by your Chime checking account with monthly direct deposits.
Like many of the best student bank accounts on this list, Chime has no overdraft fee, no monthly service fee, no ATM fee for in-network ATMs, and no minimum balance requirements.
3. Best Account Opening Bonus: Chase College Checking
Chase Bank has been handing out student account opening bonuses like they hand out lollipops at their branches lately. College students ages 17 to 24 can snag a $100 bonus when they open an account online or at a local branch (students age 17 will need to visit a branch). You’ll just need to make 10 qualifying transactions within the first 60 days of opening the student bank account.
What’s a qualifying transaction? Virtually anything, according to the Chase website, including debit card purchases, online bill payments, Chase QuickDeposits, Zelle transfers, and ACH credits. Bank as you normally would, and you should easily earn that $100.
In addition to the generous sign-up bonus, Chase College Checking has no monthly fees for college students for up to five years, access to 16,000 ATMs and 4,700 branches across the U.S., and zero liability protection for unauthorized debit card purchases.
Chase Overdraft Assist covers purchases that exceed your account balance. You’ll pay no overdraft fee if you’re overdrawn by $50 or less at the end of the next business day.
4. Best for Yield: Ally Interest Checking
Ally Bank is the first bank on our list not designed specifically for students, but the vast array of features in this interest bearing checking account makes it ideal for young adults.
Ally Bank offers an APY of 0.25% on checking account balances and 4.00% APY on balances in a linked Ally Bank savings account. Neither account has any monthly fees.
Ally offers several features to help those on a tight budget manage their money. You can organize your money into spending and saving buckets, which can help you see exactly where your money goes each month. Ally will also review your bank accounts and help you find opportunities to save, and shuttle that extra money into your high yield Ally savings account.
Customers who have deposited $100 or more into their Ally checking account, or $250 via direct deposit, gain access to Ally’s CoverDraft service after 30 days. This protection covers up to $100 or $250 in charges that would overwise overdraft your account. Some purchases, including Zelle transfers, or ATM withdrawals, may be declined if they would put your account into overdraft.
Ally has no monthly maintenance fee, no overdraft fees, no ATM fee for in-network ATM transactions and no minimum balance requirement.
5. Best for Referrals to Earn Extra Cash: GO2bank
GO2bank, the digital bank associated with the top financial technology company Green Dot, offers an easy, straightforward money account with overdraft protection up to $200 with eligible direct deposits. The linked savings account pays a high 4.5% APY, with no fees for qualifying customers and no minimum balance requirement.
You can get regular ACH deposits from your job or side gigs up to two days earlier than most traditional banks. If you receive government benefits, such as Social Security, you can receive those deposits up to four days early.
Your GO2bank account will have a monthly service fee that costs $5 per month, unless you have a qualifying direct deposit that month. You will also pay fees for transfers from a linked debit card from another bank or fintech, mobile check deposits, and cash deposits.
If you are the type of person with friends who come to you for advice, you can earn $50 for each friend you refer to GO2bank who signs up with direct deposit. Your friend will also earn $50. You can use this offer for up to 30 friends, yielding $1,500 annually. This makes a GO2bank account great for social media influencers or college students with a large friend group.
6. Best for Full-Service Banking: Bank of America Advantage SafeBalance Banking
Bank of America Advantage checking accounts offer options for people in various stages of their financial life. College students might be best to start out with Bank of America Advantage SafeBalance banking, a straightforward money account with no overdraft fee and no checks.
The account has no monthly fee for students under the age of 25 or customers under the age of 18. Preferred Rewards customers also receive free checking. There is a $25 minimum deposit to open an account.
New Bank of America customers can earn a $100 account opening bonus when they open an account and set up direct deposits of $1,000 or more within 90 days.
7. Best for Comprehensive Money Management: PNC Virtual Wallet Student
Money Magazine named the PNC Virtual Wallet on its best banks for students list three years running. PNC Bank divides this mobile account into three separate accounts for everyday spending, “reserve,” or short-term savings, and “growth” for long-term savings.
The account has no monthly service fee for students for up to six years, along with all the benefits of a regular PNC Virtual Wallet. Additionally, students receive a courtesy refund of your first overdraft fee on your Spend account, one free incoming domestic or international wire transfer per statement period, and free paper statements if you opt in to receive them.
Once six years have passed or you are no longer a student, your account converts into a regular PNC Virtual Wallet, which may have associated monthly fees. Check the PNC website at that time to determine the fees and how you can waive them.
Your PNC Virtual Student Wallet pays a 0.01% APY on money in your Reserve account, and .02% on account balances up to $2,499 in your Growth account, with .03% APY on balances over $2,500. These may not be the best rates available, but the reputation of PNC Bank, along with the money management features in a Virtual Wallet Student account, make this an account worth considering for students just learning to budget.
8. Best for Establishing Savings Habits.: Wells Fargo Clear Access Banking
As one of the Big Four banks in the U.S., Wells Fargo offers a reliable and safe place to store your money, plus access to thousands of branches nationwide.
The Wells Fargo Clear Access banking account is great for teens and college students, since it’s available for account holders ages 13 to 24. Anyone under the age of 18 will need to open their account in a branch and anyone younger than 17 must have an adult aged 18+ as a joint account holder. The account has no monthly maintenance fee for anyone 24 or younger. A $25 minimum opening deposit is required.
Wells Fargo Clear Access banking is a simple, straightforward money account with no checks and personalized service at Wells Fargo branches. There are no overdraft fees with the account, but also no overdraft protection. Transactions that exceed the account or minimum balance amount will be declined, which helps put teens and young adults in charge of their money.
You can link your Clear Access bank account to a Way2Save Savings account and earn a 0.15% APY. You can establish good money habits by setting up automatic savings. Wells Fargo will transfer $1 from your Clear Access account into your checking account each time you use online bill pay or use your debit card for a one-time purchase. You can also transfer as little as $25 per month or $1 per day into your account to see your savings grow even faster.
9. Best for Cash Back: Discover Cashback Debit
The Discover Cashback Debit account may not be marketed to teens and students, by name. But, it’s enticing to anyone looking for a standard checking account with no monthly service fees and 1% cashback on debit card purchases, up to $3,000 per month. It’s highly unlikely for most college students to max out that free money (unless they are putting housing, tuition, and car expenses on their card).
Discover Cashback! debit card offers many of the benefits you’d expect from these top-rated money accounts, including early direct deposit, 60,000+ no-fee ATMs, and overdraft protection from your linked Discover Savings with no fees. Discover charges no fees for insufficient funds, bank checks, regular checks, or expedited delivery of a replacement debit card.
These features make it one of the most convenient accounts you can hold. Plus, you don’t have to worry about “aging out” of the account and facing fees for a non-student bank account. Your Discover Cashback Debit account will be free no matter your age. Link it to a Discover Savings Account to earn 4.0% APY with no minimum deposit required.
10. Best for Unlimited Out-of-Network ATM Fee Reimbursement – Axos Bank Rewards Checking
Another bank account not marketed to students but meeting all their needs is the Axos Bank Rewards Checking account. This account has no monthly fees. It also reimburses ATM fees for out-of-network ATMs nationwide, which is great for students who travel domestically or who don’t have ATMs in their network on campus.
Pay no overdraft fee or non-sufficient funds fees with this account. Best of all, earn an APY of 0.40% on your checking balance if you receive monthly direct deposits of $1,500-plus. Young investors can ramp up their interest rate by 1% with an average daily balance of $2,500 in an Axos Invest Managed Portfolio Account, plus another 1% by holding $2,500 in a self-directed trading account. If you take out a loan through Axos, you can add another 0.60% to your APY.
College students likely won’t regret opening an Axos Bank account to take them through adulthood, especially with options for investing, low mortgage rates, car loans, and more.
Plus, earn a welcome bonus when you open an account and have direct deposits of at least $1,500 within a single calendar month during the first three months of account opening.
11. Best Credit Union: Alliant Credit Union Teen Checking
Alliant Credit Union offers a teen checking account for minors ages 13 to 17. The account is insured up to $250,000 per account holder by the National Credit Union Administration (NCUA). The adult account holder must be an Alliant Credit Union member. But it’s easy to join by depositing $5 into an Alliant Credit Union saving account. Alliant Savings earns an APY of 0.25%.
The teen checking account has no overdraft fees or non-sufficient funds fee. It also has no monthly fees or minimum balance requirements. Account holders gain access to 80,000+ fee free ATMs nationwide plus $20 per month in ATM fee reimbursement for out-of-network ATM use. This is an interest earning checking account which also pays 0.25% APY on all balances as long as you have at least one deposit, via ACH direct deposit, mobile check deposit, or transfer from another bank or credit union, each month.
12. Best for Young Shoppers: Varo Bank
Varo Bank is another account not necessarily marketed to college students but definitely optimized for their needs. The Varo Bank debit card delivers up to 6% cash back, with money deposited into your Varo account as soon as you accrue $5 in rewards.
Like many of the best student accounts on this list, Varo has no monthly fee, no minimum balance requirements, and no overdraft fee. If you need money before payday, you can use Varo Advance, an interest-fee program that allows you to borrow up to $250 and pay it back within 30 days. You will not pay fees to borrow less than $20. Borrowing up to $250 comes with fees that can be as high as $15, depending on the amount of cash advance you need.
Varo Bank uses the Allpoint network of ATMs, with fee free access to 55,000+ ATMs nationwide. Using other bank ATMs could result in charges up to $3 from Varo and fees charged by the other banks, as well.
It pays to open a linked Varo Bank savings to take advantage of a high 3% APY. Account holders with direct deposits equal to $1,000 per month and a positive balance in their Varo checking and savings can earn up to 4% APY.
One of the best things about a Varo account is it can grow with you. You won’t pay additional fees as an adult out of college, so you can keep the same bank account you started with for your entire life if you want.
Methodology: How We Select the Best Student Checking Accounts
To find the best student checking accounts, we evaluated the monthly maintenance fees, ATM fees, minimum deposit requirements, features, benefits, banking services provided, along with customer service and mobile app access at several of the biggest and most well-known banks and credit unions.
ATM Network
Most banks have ATM networks or partner ATM networks of 20,000 or more ATMs nationwide where you can use your debit card with no ATM fees. You might be surprised to learn that even online banks and financial technology companies that are not a bank provide access to thousands of ATMs nationwide through partner programs.
Nationwide availability (physical locations or mobile access)
College students often split time between their college campus and the home where they grew up. Finding a bank with physical locations in the areas they live or an online bank that provides a mobile banking app with fee free mobile banking from anywhere is important.
Fees and minimum requirements
Bank fees no longer have to be a way of life for today’s young adults. We chose financial institutions with no monthly maintenance fees or easy ways to waive maintenance fees.
Benefits such as high APY, cash-back rewards, or other additional perks
Student checking accounts today are more than just “bare bones” places to store your cash. Many student bank accounts offer perks, benefits, and high-yield savings or an interest bearing checking account to provide added value.
Overdraft fees
Cash management mistakes happen, especially when young adults first start learning to budget and manage their finances. Many banks have no overdraft fees and some offer overdraft protection to help out in a pinch.
How to Choose the Best Bank for College Students
We’ve offered 12 solid options to help you choose the best student checking account. Before you open a student bank account, it’s a good idea to think about what you need in your primary checking account and a linked savings.
The list below makes it easy to review your must-haves and nice-to-haves when you choose your first bank account as a college student.
Best student checking account interest rates
If you’re looking to earn interest on your standard checking account, many banks offer this feature. Review annual percentage yield (APY) figures for your top choices.
Remember, a higher savings interest rate might benefit you more, since money in your checking account tends to fluctuate based on paychecks, bills, and expenses. The best checking account may not pay interest, but can save you money in other ways.
Annual Percentage Yield (APY)
Likewise, you can put money in your pocket with an account with linked savings offering a high annual percentage yield (APY).
Mobile Check Deposit
If you get paid via paper checks, you’ll want to find an account with a mobile app that offers mobile check deposit. Find out how fast deposits clear, and if mobile banking services are fee free.
No Monthly Maintenance Fees
Many banks today make it easy to find a free checking account with no maintenance fees. If you have to pay a monthly maintenance fee, find out exactly what you’re getting for your money. Find out if the perks and benefits, such as a cash back debit card or reimbursement of ATM fees make the maintenance fees worthwhile.
Minimum Deposit and Minimum Balance Requirements
When you’re just getting started, cash may be tight. It’s important to find an account with no minimum deposit to open.
Banking Services Provided
Accounts should have customer service online, by phone or in branches, plus an easy-to-use mobile app and a debit card with no ATM fees.
FAQs About Student Checking Accounts
Read what people are asking about the best student checking accounts, including minimum deposit requirements and benefits of a student checking account.
What are the benefits of a student bank account?
A bank account tailored for students gives young adults a head start on their financial future and learning how to manage money. For students who work, they can receive direct deposits in their student account, pay bills online, and send money to friends and family using Zelle.
How to get a student checking account bonus?
Several student checking accounts, including Chase, provide sign-up bonuses. Make sure to read the fine print and complete the requirements, which may include setting up direct deposit or making a minimum opening deposit, to collect the bonus.
Can I open a student checking account without a deposit?
To open a student checking account without a minimum deposit amount, simply look for a bank account, like Varo, that has no minimum opening deposit.
Are there any downsides to opening a student checking account?
When you open a student checking account, you’ll want to make sure you won’t pay monthly maintenance fees. Some student checking accounts convert to a regular account once the student graduates, and there may be fees associated with the regular account.
Is there an age limit on a student checking account?
Most student checking accounts are open to students from the age of 18 to 24 without a joint account holder. Customers under the age of 18 may be able to open an account with a joint owner.
Can minors open student checking accounts?
Accounts like Capital One Money Teen are available to children ages 8 and up with a joint account holder. Some other accounts require students to be 18 or older.
What happens to your student checking account when you graduate?
Many of the student bank accounts on this list won’t change when you graduate college. Others offer the option to convert your account to one of the bank’s regular checking products. A Chase College Checking Account has no monthly fees for your first five years in college, but if you graduate or exceed that time frame, you might pay a $6 monthly maintenance fee unless you meet other requirements.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
The information related to the Chase United Business Card has been collected by Money Crashers and has not been reviewed or provided by the issuer of this card.
As a small-business owner, you’re leaving money on the table if you don’t use the credit card that offers the most valuable rewards and benefits available. And when you’re also a regular traveler, the right travel rewards card can give you tremendous value.
If you regularly fly with United but don’t have a massive business travel budget, the United Business Card might just be that card. Just be sure to understand its shortcomings before you apply.
What Is the United Business Card?
The United Business Card from Chase is the least expensive small-business credit card in United’s co-branded lineup, but it still packs plenty of compelling features.
As a new applicant, you start off with a very attractive sign-up bonus whose spend requirement should be manageable for most business owners. You also earn double miles not just on United Airlines purchases but also at restaurants, gas stations, office supply stores, and on local transit and commuting purchases.
This card also offers a wide range of benefits, even more than most airline cards in this price range. You start off with a free checked bag for yourself and a companion, as well as priority boarding. This card also features a $100 United travel credit after qualifying flight purchases, and 5,000 bonus miles each year when you have both a United personal and a business card.
If you’re trying to earn elite status, this card speeds up the process by giving you 500 Premier Qualifying Miles (PQP) for every $12,000 you spend on purchases with your card, up to 1,000 PQP in a calendar year. And when you’re waiting for your flight to depart, you can relax by using one of your two United Club one-time passes each year. You even get 25% off of in-flight purchases each year, plus expanded access to economy class award seats at the lowest mileage levels.
Other cardmember benefits include auto rental collision damage waiver coverage, baggage delay insurance and lost luggage reimbursement of up to $3,000 per passenger. If you have to cut short or cancel a trip, then you can be reimbursed up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares. If your travel is delayed by more than 12 hours, or overnight, then you can be reimbursed for meals and lodging, up to $500 per ticket.
Finally, you also receive purchase protection and extended warranty policies on certain nontravel purchases.
There’s a $95 annual fee for this card that’s waived in the first year. This card charges no foreign transaction fees either.
What Sets the United Business Card Apart?
This card has several features that help it distinguish itself from other airline credit cards.
5,000 mile anniversary bonus. If you already have a personal United credit card, such as the United Explorer Card or United Club Card, this card gives you 5,000 bonus miles each year on your account anniversary.
$100 United travel credit. After you make seven qualifying flight purchases of $100 or more, United will give you a $100 credit.
Outstanding travel insurance benefits. At a time when many card issuers have eliminated all of the travel insurance policies that used to be standard, the United Business Card still has you covered for most kinds of problems.
United Club access. You get two free United Club (airport lounge) passes a year. That’s not much if you fly United every month. But if you don’t travel with United very often, this could be enough to use during an occasional long layover or delay.
Waived first year’s annual fee. By waiving the $95 fee in the first year, United and Chase are effectively saying, “Give this card a try at no cost to you.”
Key Features of the United Business Card
The United Business Card has a strong sign-up bonus, a relatively generous rewards program, and plenty of perks for regular United flyers.
Sign-Up Bonus
Earn 50,000 bonus miles after you spend $5,000 on purchases in the first 3 months your account is open. This offer might not be available if you’ve received a new cardmember bonus for the United Business Card in the past 24 months.
Earning Rewards
With this card, there are plenty of purchases that qualify for double miles:
United Airlines purchases
Dining purchases, including eligible delivery services
Gas station, office supply store, and local transit and commuting purchases
All other purchases earn 1 mile per $1 spent.
Redeeming Rewards
You can redeem your accumulated miles for award flights operated by United and its partners.
Exactly how much value you get from them is less clear. United no longer publishes an award chart, and in the past, it has changed redemption values without notifying anyone.
In general, you’ll need 80,000 to 100,000 miles for a one-way, business class ticket to Europe. You’ll need about half that if you travel in economy, and even fewer for economy flights within North America.
Valuable Travel Perks
Beyond rewards, travel perks and benefits are the real reason to have an airline card. These include:
A free checked bag for you and a companion
Priority boarding
25% back on United in-flight purchases
Earn 500 Premier Qualifying Points (PQPs) after spending $12,000 in a calendar year (up to 1,000 PQPs or $24,000 spent)
These perks come on top of numerous travel insurance and purchase protection policies:
$1,500 per person in trip cancellation/interruption insurance
$500 per person in trip delay reimbursement
An additional $3,000 in lost luggage coverage
Anniversary Award Flight Credits
You can also earn two 5,000 mile anniversary awards so long as you have both this card and a United personal card, such as the United Explorer Card.
Important Fees
This card has a $95 annual fee for this card that’s waived the first year, and no foreign transaction fees.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, or your personal credit history is limited, then you’ll likely have trouble being approved. However, this is pretty standard for a premium business travel credit card.
Pros & Cons
The United Business Card has some clutch upsides and a few downsides worth noting.
Strong sign-up bonus
Surprisingly generous travel perks
United has lots of customer-friendly policies
United miles’ redemption value can be low
$100 annual flight credit comes with restrictions
2x miles category doesn’t cover everything
Pros
This card has lots of advantages, especially for regular United business travelers.
Strong sign-up bonus. Earning 75,000 miles after spending $5,000 on new purchases is a competitive bonus.
Generous travel perks. The $100 annual travel credit will outweigh the costs of this card’s annual fee, if you earn it. The 5,000 mile annual flight credit is also very valuable for anyone who also has a personal card. And it’s always nice to enjoy priority boarding, and a free checked bag for you and a companion.
Broad bonus categories. Many airline credit cards only offer 2x miles for ticket purchases, but this card also offers 2x at restaurants, gas stations, office supply stores and on local transit and commuting.
MileagePlus partners and policies. You can redeem your United miles for flights on its numerous Star Alliance and non-alliance partners. United also eliminated change and cancellation fees on awards, so you’re free to book a ticket when you find a good deal and cancel it later if it doesn’t work out.
Cons
This card has a lot going for it, especially at its price point. But it still has a few flaws:
United devalues its miles. United eliminated its award charts several years ago, which means that it can always charge more miles for awards whenever it feels like it. For example, United recently started charging up to 50% more miles for many of its award flights to Europe — without any prior notice. Transatlantic travelers were understandably upset by this. So don’t count on the price you see now being available when it comes time to redeem your miles.
Restrictions on its $100 annual flight credit. You have to read the fine print to find out that you only get it if you make seven transactions of $100 or more. You could split your round-trip tickets into one-ways for each traveler, but that’s a bit of a hassle.
No across-the-board 2x miles category. There are some travel rewards cards that now offer 2x everywhere. Offering 2x miles for only certain purchases is so 1995.
How the United Business Card Stacks Up
This card’s closest competitor is probably the CitiBusiness® / AAdvantage® Platinum Select® World Elite Mastercard®. Here’s how the two cards compare.
United Business Card
CitiBusiness® / AAdvantage®Platinum Select® World Elite Mastercard®
Annual Fee
$95, waived the first year
$99, waived the first year
Rewards Rate
Up to 2x
Up to 2x
Travel Insurance
Yes
No
Purchase Protections
Yes
No
Foreign Transaction Fee
None
None
Credit Needed
Good or better
Good or better
While these cards are pretty similar, the United Business Card has a slightly lower annual fee after the first year and offers some travel and purchase protections that the CitiBusiness / AAdvantage Platinum Select card doesn’t. Its 2x bonus categories are broader as well, and its frequent flyer benefits more generous. So all in all, it’s the better option unless you rarely fly United.
Final Word
The United Business Card is a strong offer for small business owners who fly United. It appeals to new applicants with an impressive sign-up bonus and a waiver on the first year’s annual fee. It then continues to offer value with double miles on many purchases, and numerous travel benefits.
The only place that you might stumble isn’t this card’s fault, exactly. When it comes time to redeem your miles, you might discover that United has devalued its miles — and that the award you were hoping to redeem now costs much more than it used to. But when you’re earning double miles on so many purchases, and enjoying so many benefits, this might not matter too much.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Jason Steele is one of the nation’s leading experts in credit cards and travel rewards since 2008. Jason is also the founder and producer of CardCon, which is The Conference for Credit Card Media. Jason lives in Denver, Colorado where he enjoys bicycling, snowboarding and piloting small airplanes.
This hugely popular interior design style has taken over homes and apartments in recent years.
If you’ve watched HGTV at any point in the last decade, you’ve likely noticed one interior design style climbing the charts in popularity. Thanks to influential home designers like Chip and Joanna Gaines and their show “Fixer Upper,” the modern farmhouse style has become one of the biggest design trends of the 2010s. Since 2015, its popularity has especially skyrocketed, taking over home design shows and social media.
But what is modern farmhouse style, exactly? We break this chic, trendy interior design style down for you and also show you how you can incorporate it into your own apartment.
What is modern farmhouse decor?
As the name suggests, modern farmhouse is essentially a contemporary spin on the rustic farmhouse look. It blends country style with more modern design trends like minimalism, creating a space that feels both cozy and warm yet sophisticated and chic at the same time.
Classic farmhouse design features like wood accents, natural materials and gabled roofs are reexamined through a modern lens, utilizing smooth lines, neutral colors and minimalist decor. Decorations and furnishings are typically more vintage and antique, in keeping with the traditional, country-style aesthetic.
A big part of modern farmhouse design is also the use of salvaged materials like reclaimed wood or metals. You’ll notice some design similarities between other cozy, country-style interior design trends like shabby chic or coastal grandmother. But with modern farmhouse, the emphasis is more on sleek, contemporary cuteness rather than classic glamour.
Even if you don’t have an entire house to redo in the modern farmhouse style, its interior design is easy to replicate in any space, especially apartments. If you have a high-ceilinged, contemporary apartment with white walls and plenty of light, you can easily redecorate it as a modern farmhouse by utilizing common design features like those below.
Common design features of modern farmhouse
Curious about what design characteristics define the modern farmhouse look? Here are some style and decor elements that show up often in modern farmhouse interior design:
White walls
Neutral or warm color palette (gray, beige, cream, silver, sage)
Cursive print on artwork, pillows and other decor items
Country/barn style (sliding doors, high ceilings)
Minimalist spaces (not a ton of clutter)
Big, comfortable contemporary furniture
Organic, natural materials and tones
Sleek, smooth lines
Where to find examples of modern farmhouse decor
If you want to see more examples of modern farmhouse decor, check out the following TV shows and social media accounts to learn more:
5 items to have in your apartment for the modern farmhouse look
Thanks to its massive popularity, it’s easy to find modern farmhouse decor online at sites like Amazon. If you’re looking for how to start outfitting your apartment in the modern farmhouse aesthetic, these five items will set you on the right path.
Black metal candle lanterns
Image Source: Amazon.com
Use these chic black metal candle lanterns either inside or outside, with the black metal contrasting nicely against your white walls.
Jug vase set
Image Source: Amazon.com
Jugs and vases show up often in the modern farmhouse school of design, blending rustic farmhouse style with sleek, contemporary shapes. With its glossy sheen and tan, neutral colors, this jug set will look right at home in any modern farmhouse apartment. Fill them with eucalyptus bunches or pampas grass to complete the look.
Rectangular black metal chandelier light fixture
Image Source: Amazon.com
Contemporary chandeliers and statement light fixtures in non-traditional shapes like circles or rectangles show up often in modern farmhouse homes. With its penchant for high, vaulted ceilings, these types of light fixtures both fill the space and add design elements for the higher reaches of your home.
The use of black metal and geometric shapes are usually the go-to, drawing the eye and creating a more interesting visual in what would otherwise be dead space. This rectangular black metal fixture will look great over a kitchen island or long table.
Textured throw
Image Source: Amazon.com
Complement your couch or chairs with this cozy, rustic beige throw. The simple pattern and texture scream farmhouse, while the soft beige color matches modern farmhouse’s trademark color palette of white, black and tan.
Ceramic utensil holder
Image Source: Amazon.com
Looking like an old-fashioned tin can, this ceramic utensil holder brings a rustic, country-style element to your kitchen space. You can also use it as a decorative vase instead.
Turn your apartment into a modern farmhouse haven
Now that you know all about modern farmhouse style, you have all the tools to transform your apartment into a chic, trendy space. Still looking for a place to recreate your own farmhouse? Start here.
When you buy through links in this article, we may earn an affiliate commission.
The builders confidence index came out yesterday and it’s all smiles lately, as the builders believe they can sell more homes. Historically speaking, the key level for builders confidence is 50: Anything below 50 is a recession and anything above 50 is an expansion. As you can see below, we broke over 50 yesterday as the index came in at 55.
Tuesday’s massive housing starts print will get revised lower, but the trend for the homebuilders, new home sales, and builders’ confidence has been intact since November of 2022.
Let’s look at the housing starts data and make sense of it all.
From Census: Housing starts: Privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000. This is 21.7 percent (±14.8 percent) above the revised April estimate of 1,340,000 and is 5.7 percent (±10.8 percent)* above the May 2022 rate of 1,543,000. Single‐family housing starts in May were at a rate of 997,000; this is 18.5 percent (±14.1 percent) above the revised April figure of 841,000. The May rate for units in buildings with five units or more was 624,000.
This was an extreme month-to-month print on housing starts. It is likely to be revised lower as this has always been the case with really big housing starts prints — both positive and negative. It was a such a shocking print that a few economic bears kicked their recession call out to 2024 because housing is traditionally a leading economic indicator.
Housing Completions: Privately‐owned housing completions in May were at a seasonally adjusted annual rate of 1,518,000. This is 9.5 percent (±12.3 percent)* above the revised April estimate of 1,386,000 and is 5.0 percent (±13.0 percent)* above the May 2022 rate of 1,446,000. Single‐family housing completions in May were at a rate of 1,009,000; this is 3.9 percent (±13.9 percent)* above the revised April rate of 971,000. The May rate for units in buildings with five units or more was 493,000.
Housing completion data is still the saddest housing data line we have, but it also shows how different the housing market is now versus when housing crashed in 2008. Housing completions have been prolonged and still need to be faster: As you can see in the chart below, we haven’t gone anywhere for some time.
Unlike the housing bubble years when starts, permits, and completions were moving up and down, this time the lagging caused by COVID-19 delays is evident. However, we are past COVID-19 time, and this data line is still slower than my tortoise Grundy.
Building Permits: Privately‐owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,491,000. This is 5.2 percent above the revised April rate of 1,417,000, but is 12.7 percent below the May 2022 rate of 1,708,000. Single‐family authorizations in May were at a rate of 897,000; this is 4.8 percent above the revised April figure of 856,000. Authorizations of units in buildings with five units or more were at a rate of 542,000 in May.
The missing link to ending the housing recession is housing permits. Traditionally in all expansions, housing permits are rising wildly when builders’ confidence is bouncing hard off the bottom. Permits just haven’t gotten there yet, and for a good reason. First, as you can see below, housing permits have stabilized for sure but haven’t taken off yet.
I have a straightforward model for when the homebuilders will start issuing new permits with some kick. My rule of thumb for anticipating builder behavior is based on the three-month supply average. This has nothing to do with the existing home sales market — this monthly supply data only applies to the new home sales market, and the current 7.6 months are too high for the builders to issue new permits with any kick and duration.
When supply is 4.3 months and below, this is an excellent market for builders.
When supply is 4.4-6.4months, this is just an OK market for builders. They will build as long as new home sales are growing.
When the supply is 6.5 months and above, the builders will pull back on construction.
As you can see below, builders have made good progress getting the monthly supply down, but they are just not able to get a strong push on permits yet, as they are still working off their backlog. Some of those homes haven’t even started construction yet.
Many people use housing as a leading indicator of the U.S. going in and out of a recession. As you can imagine, with the builders’ confidence rising so much and now housing starts with a giant print, some are beginning to question their recession call for 2023.
For me, it’s all about permits and demand growth, and we are working our way back to normal for this sector, we’re just not there yet. Can you imagine a housing market with mortgage rates at 5% instead of 7%? A lot of housing data would firm up more with lower mortgage rates.
The builders have some significant advantages in selling their homes because they sell them as a commodity and don’t have to deal with some of the issues that the traditional home seller has to deal with. In a high mortgage rate environment, they can offer lower rates and peel off some buyers who would generally go into the existing home sales market.
All in all, this was a shocking report on the headline. However, when you dig a bit deeper, it shows the positive housing trend that started in November of 2022 continues, but more work needs to be done.
When I was a freshman in college, I did two very bad things (ahem — two bad things related to personal finance).
Bad Thing #1
First, I opened a VISA credit card. There was a guy at a booth on campus, and being too naive and timid to tell him to buzz off, I stopped and listened to his pitch. Next thing I knew I was filling out an application. At 18 years old, with no job, steady income, or credit history, I now had a $1,000 credit line. I maxed it out in less than three months and was shocked when the bill arrived.
Luckily, I was about to start a part-time job, so I was comforted in knowing I could handle this predicament myself. I paid down the balance — but then charged it up again. This cycle went on for years. I always paid more than the minimum, but never fully paid off the debt.
Bad Thing #2
The second very bad thing I did was open a store credit card with a major retailer. I was about to pay for my purchase (with the aforementioned VISA, of course), and the salesperson told me I could save money and receive special offers and free items just for signing up for a card. I demurred, but she was persistent. “You can pay it off as soon as you get home and still get the coupons and discounts,” she said. “That’s what I do.”
Unfortunately, it didn’t work out that way for me. I forgot I’d opened the card, somehow missed the first bill, and then was late with my payment. I was almost three months delinquent before I paid off the card, and I got a mark on my credit report, all for a small balance I could have easily covered with money in my bank account.
The Cost of Store Credit Cards
Cashiers are often required to ask customers to sign up for store credit, and some stores require them to meet a quota for new card sign-ups. But these days, I politely tell the cashier, “I don’t carry store credit cards.” If they persist, I repeat myself. “Don’t you want to save 10%?” No thank you, I’d rather not.
A recent study from New York Representative Anthony Weiner’s office provides even more reason to avoid store branded cards. The study found that 35 major New York City stores had an average interest rate of 23.83% on store cards (the national average APR for a regular credit card is 14.78%). Which stores offered the worst rates?
Radio Shack was the highest with a 28.99% APR.
Best Buy and Staples both charge 27.99% interest rates.
Home Depot charged 25.99%.
Sears came in at a hefty 25.24%.
In addition, the report found that store cards use a series of “teaser” deals to entice shoppers to take the bait, such as offering 0% interest, but neglecting to mention you have pay off the balance within a certain time period or else the interest rate is applied retroactively on the initial purchase price.
How I Got Suckered into Opening a Store Credit Card
Well, despite knowing all this, here’s the story of how I got suckered into opening a store credit card and what I learned from it.
It was the best of experiences, it was the worst of experiences… Last week, I ventured into Neiman Marcus for the first time. It was the only in-person store that carried the Stuff I wanted, so I drove out of my way to go there. The salesperson who helped me was probably one of the best I’ve ever encountered. She knew I wasn’t spending much — about $60 — but she spent a considerable about of time helping me. She was friendly, extremely knowledgeable, and showed me other products she thought I’d like without pushing me to buy more. Instead, she offered to send me home with samples of her additional recommendations. As she put everything into a bag, the second salesperson helped to start the check-out process, which went something like this:
Salesperson #2: Do you want to put this on your Neiman’s charge card?
Me: No, I don’t carry store credit cards. (I hand her my MasterCard.)
Salesperson #2: We don’t take MasterCard, but it takes just a few minutes to open a store account.
Me: No thanks, I don’t open store cards. Can I put it on a Visa debit card?
Salesperson #2: We don’t take Visa, either.
Me: If you don’t take Visa or MasterCard, what do you take?
Salesperson #2: We take the Neiman’s card, American Express, cash, and checks.
I didn’t have enough cash on me, I don’t carry checks, and I don’t have an American Express card. The first salesperson seemed too uncomfortable to push me into opening an account, so salesperson #2 continued with the pitch, telling me most of what I knew already — that I won’t have to pay interest if I pay my balance each month and that the card comes with all kinds of “fabulous” rewards. She also told me that Neiman’s will never sell my personal information (this, of course, turns out to be false).
The Lowdown on Neiman’s
I found out later that Neiman’s does take Visa and MasterCard, but only for online purchases. It’s even willing to temporarily relax its rules during Super Bowl XLV “to make it easier for customers visiting from out of town…or from cities that don’t have a Neiman Marcus store.” Gee, how thoughtful!
According to Slate, the private-label credit card corner was one one of the most desired parts of the business when it sold during a 2005 auction (HSBC purchased the credit card portfolio in mid-2005 for $640 million.) At the time, there were 562,000 active users paying 15% APR — generating about $550 million in receivables for the company.
I knew store credit was big business, but I’d never encountered a store that doesn’t accept major credit cards to push customers into opening a store credit line.
Under Pressure
Back to my in-store experience: I was feeling cornered and conned. My first thought was to walk away. Now that I knew exactly what I needed, I could purchase the item from another retailer online.
But here’s the thing: I wouldn’t know what to buy if it hadn’t been for salesperson #1, the person who spent a lot of time helping me even though she knew I wasn’t spending much money. She more than earned her commission, and I felt bad about walking out. There weren’t any ATMs nearby, and I had an appointment in about 15 minutes. I was feeling pressured. On the other hand, I was mad and felt as though I’d walked into a trap.
I caved, and I opened the account to make the purchase. But I’m calling Neiman Marcus to pay the balance and cancel the card.
I know Neiman’s won’t miss my business — I’m hardly their target customer. For example, one of the benefits of “Circle Two” membership (for the busiest of Neiman’s charge card users) is fur storage, which made me giggle. I’m the kind of gal who worries that someone might mistake her faux fur coat for the real thing. The cover of the InCircle member brochure asks, “Are you a member of the in crowd?” Uh, no. Not usually.
Lessons Learned
In retrospect (and sarcasm aside), there were better ways to handle the situation that would have given the salesperson credit for the sale and would have avoided me opening a store card I absolutely do not want.
When I told my husband what had happened, he had the perfect solution: “You could’ve asked the salesperson for her name and told her you’d come back to pay in cash.”
Yes, that is exactly what I should have done. But when I was in the situation, I wasn’t thinking clearly. I felt pressured, irritated, and that I had to make a choice right then and there, when I really didn’t.
(Also, I was reminded that I should carry at least one paper check with me. I used to do this, but fell out of the habit because it was so rare that I ever needed one. Now I’ve tucked one into my wallet again to have one more payment option.)
I never, ever thought I’d open a store card. I’m disappointed that I let it happen, but at least I can amend the situation. I certainly now understand, from firsthand experience, how tricky retailers can be when it comes to pressuring consumers into opening store credit cards.
Are All Store Credit Cards Bad?
The mark on my credit report is long gone, but it was a sobering lesson about the dangers of credit, especially for someone with little personal finance education (or income). When I graduated from high school, I could easily find the limit of a function as x approaches a constant, yet I didn’t know about compound interest. My personal finance education began years later when I started lurking here at GRS.
I haven’t carried a credit card balance in years, and I consider myself a reformed and responsible consumer. I’m also not completely opposed to store credit. If I were remodeling a house, for example, maybe I’d consider a Home Depot card for the initial discount. Then I’d cut up the card and pay the balance immediately (as in the minute I got home) with cash I’d saved in a “home remodel” savings account.
I realize most GRS readers are savvy with their credit, but as stores ramp up their high-pressure holiday pitches, it’s important to be on guard. By and large, these cards aren’t worth the hassle or the risk. Credit is serious business, not something to sign up for on the spur of the moment without reading the fine print.
The goal of higher rates, in my view, is to cool down price growth and get more days on the market. A few key data lines can tell us if we are heading in that direction.
We are still seeing numbers in the teens for days on market, which isn’t good. We would like to get this back to 30 days, but anything in the 20s is a victory. Inventory falling again in 2022 created more forced bidding wars, which frustrates buyers, keeps potential sellers from wanting to list, and creates stress for real estate agents doing a lot of work with nothing to show for it. In addition, the Federal Reserve isn’t comfortable with home prices going up every year.
This is a first-world problem compared to a housing bubble, a credit boom, and a crash, but a problem nonetheless. Some data to consider:
1. In NAR‘s most recent existing-home sales report, as you can see below, the days on market is still at a teenager level. We need our housing market to go to college and find a room to rent in their 20s.
2. Inventory is still showing negative year-over-year data. Even this week, on tax day, it is still showing a decline. However, the year-over-year declines are getting less. We went from a 30% year-over-year decline at the end of 2021 to just a negative year-over-year decrease of 14.8%. I find this to be a very positive trend because the No. 1 goal for me is to see inventory have some positive prints, and we are at least heading in the right direction From Altos Research:
Are higher rates working now?
So how can we tell if higher rates are doing their job and we can achieve the goals above? Purchase application data has always been an excellent way to understand how the markets work. It’s also a bit of a funky data line if you don’t have experience reading it.
Historically, this data line is instrumental in tracking the year-over-year data from the second week of January to the first week of May. Typically after May, volumes fall! COVID-19 has wrecked the comps for many economic data lines, so COVID-19 adjustments need to be made. Considering that, what do we know so far?
I would say that we are seeing legit softness so far in 2022, but nothing too dramatic. The last time this data line was fragile was back in 2013-2014. Mortgage rates shot over 4% quickly, and it created a negative year-over-year trend in 2013-2014. The 2014 data showed a 20% year-over-year decline trend and sales fell that year.
2014 was the very last year total housing inventory grew in America. It wasn’t a lot of inventory, but still, weakness in demand created more homes on the market. My ultimate goal for housing inventory is to get back into a range between 1.52 – 1.93 million. Historically, that is considered low inventory, but that is a much more sane marketplace than what we have currently.
2018 was the last time mortgage rates got to 5%, and sales trended from 5.72 million at the end of 2017 to 4.98 million in January of 2019. Inventory didn’t grow that year and purchase application data only had three negative prints year over year, and they were mild too.
That is a good reference to look at, so let’s move toward 2022 because it’s much different now. Sales are working from a higher level and price growth has been hotter, but inventory is much lower this year than any period in history, and demographics are solid in America.
Three points to focus on
1. Week-to-week data the last three weeks have had two positive prints and one negative — so that’s not much either way. Three weeks ago, we had a positive 1% print, two weeks ago a negative 3% print, and this week 1% growth. I am not a big fan of reading week-to-week data unless we are considering them within some short-term event like COVID-19 or spiking mortgage rates.
2. COVID-19 created very high comps in this data, so it’s been negative year over year since June of 2021. Unless you make COVID-19 adjustments, you’ll get confused with this data line. I believe many people did this last year because the data showed negative data for the second half of 2021, but if you made those adjustments, you could have seen that the data was getting better toward the end of the year.
Purchase application data showed meaningful increases from October to December, which was why existing home sales got to a high-level sales print of 6.5 million in January this year. I still believe that number had some December sales closed in January that made it look high.
3. Focus on the year-over-year data and remember that percent increases or decreases aren’t an exact science compared to sales. Look at this data line as a trend survey, and you need big moves to see a material change. If housing was doing great or crashing, we would need to see activities 20%-30% up or down. This can amount to just a couple of hundred thousand home sales for the existing home sales market up or down.
If you’re looking for a significant macro trend change, positive or negative, single-digit gains or losses aren’t that meaningful in the enormous macro sense for the existing home sales market.
Here are some examples. When COVID-19 created a pause in home buying, the worst four-week year-over-year declines looked like this: -24%, -33%, -35%, -31%
When we saw make-up demand after the COVID-19 paused, the data looked like this: +33%, 27%, 22%, and 22%.
We want to forget the year-over-year comps in 2021 using the crazy 2020 data, so I won’t even bother showing you those data lines.
2022 Data
Now let’s take a look at 2022! What have we learned from this year’s purchase application data? As you can see below, the housing market from 2018 to 2022 doesn’t look like anything we saw from 2002 to 2005.
If I didn’t know mortgage rates had passed 5%, I would be saying the same thing with the purchase application data all year long: not too much is happening, but some softness for sure. However, since mortgage rates got above 5%, I have been keen to see if the data has broken toward a more aggressive negative direction. So far, that hasn’t happened.
I believe I can stop using the make-up demand comps to compare the year-over-year data after mid-February. So with that adjustment, this is what I am seeing over the last four weeks, starting from 4 weeks ago: -12%, -10%, -9% and -6% year over year.
The year-over-year declines have been falling; some are due to more reasonable comps. This week -6% is the smallest year-over-year decline for the year. The four-week average is running at 9.25%.
2022 is shaping up to be the first legit year of negative year-over-year declines in purchase application data since 2014. The 2018 market, which had to deal with higher rates, was primarily positive every week except for three weeks. So, for sure, we have some softness in 2022 after making some proper adjustments, but the softness in the data is mild so far.
I had anticipated more substantial year-over-year decline numbers than this, and so far, nothing. I often mention on social media that higher rates need duration to work themselves in the housing data for the existing home sales marketplace. It can be quicker to see the results in the new home sales market because there isn’t a homeowner factor in that equation.
When we see a weakness in the housing data, it should create more days on the market. The real goal is to stop the downtrend in inventory over the past few years.
Again, I am a man who believes in balance and what we have in housing right now is savagely unhealthy. My 23% home-price growth model for 2020-2024 has already been smashed and we are heading for 35%-40% cumulative home-price growth in thee years, which is not a good thing in my book.
Purchase application data is seasonal, and total volumes typically fall after May. We will see if we get some more buyers with the seasonal rise in inventory every year. We saw this happen last year.
However, mortgage rates being at 3% is much different than mortgage rates at 5%. Hopefully, we can balance the housing market with these higher rates. In the summer of 2020, I wrote that a 10-year yield over 1.94% could cool down housing, but that was before the significant price-growth run we’ve seen in America.
However, we are here now, and hopefully, we don’t start 2023 at fresh new all-time lows because a balanced housing market is the best housing market.
Let’s be honest, reading the fine print of your renters insurance policy isn’t exactly fun.
After all, your insurance company doesn’t exactly hire John Green to write it, and trying to wrap your head around a bunch of legalese can be, well, exhausting.
But if you are one of the lucky ones that do read the policy, you may find that your renters insurance policy covers (and doesn’t cover) more than you originally thought.
What’s Ahead:
Surprising things that are covered by renters insurance
Items stolen from your car
Many renters insurance policies include off-premises renters insurancecoverage. This typically covers belongings that are outside of your home and provides the same coverage as your inside possessions. For instance, if your car is broken into and your laptop is stolen, you’ll be covered.
However, it’s important to note that your renters insurance will not protect your car against damage or theft (that’s a car insurance thing), it only covers the stuff inside the vehicle.
To be sure that you have all of the auto insurance that you need, check out our guide: What Type Of Car Insurance Do You Need?
Items stolen while traveling
Your off-premise coverage may also cover you in the event that you are traveling and your personal possessions are stolen.
This means that if your laptop, or iPad, is stolen from your hotel room while you’re on vacation, it’s likely covered by your renters insurance. This is because the stolen item is considered “insured property” and it will be covered whether it’s in your rental or not.
To ensure that your personal belongings are covered, it’s a good idea to contact your insurance provider before you leave on your vacation. Your insurer can help you determine if the personal property that you plan is protected under your policy or better left at home.
Living expenses
If your home is destroyed by an insured disaster and you can no longer live there, temporary living expenses like a hotel room, rent, meals, and the costs associated with storing your stuff may be covered by your additional living expenses (ALE) coverage.
Basically, ALE (not the beer) covers all of the expenses that you wouldn’t have had to pay for if you were still able to live in your home. However, if your home is destroyed by an uninsured disaster, let’s say water damage due to a flood, then you will not receive ALE coverage.
Other people’s injuries
If someone has an accident in your home, your renters insurance can help to cover that person’s medical expenses.
For you, this means that your clumsy best friend can finally come over for a visit without the worry of becoming a liability. After all, if she trips over a rug (or let’s face it, thin air) and takes a nasty fall, your renters insurance will have your back when it comes to medical bills.
This perk alone, which is typically covered under bodily injuryinsurance, is a great reason to get renters insurance.
Other people’s property
Your renters insurance may also cover damage to other people’s property and prevent you from having to pay for broken items out of pocket.
Let’s say your child throws a baseball through your neighbor’s window. Your renters insurance, thanks to personal liabilitycoverage, may help to cover some of the costs associated with repairing or replacing the damaged property.
Your family
You may be surprised to learn that many of the top renters’ insurance companies can cover anyone living under your roof that is related to you by blood, marriage, or adoption.
This means that if your mom comes to live with you for a few months, she will be automatically covered by your policy, as long as you have enough coverage!
However, if your house gets broken into and your roommate’s things are stolen, your insurance won’t cover their personal property. That is unless your roommate is also your sister.
Your pets
If you go to your friend’s house and your dog destroys her beautiful new couch, your renters’ insurance will cover it.
However, if your cute little pup destroys your new couch, your rental insurance will not cover the expense of replacing it (more on this below).
Surprising things that aren’t covered by renters insurance
Certain disasters
Most renters insurance will not cover disasters like floods and earthquakes. You may be able to purchase additional flood insurance coverage from a private provider.
If you are thinking about buying flood insurance, make sure that you know what it covers by reading our guide: What Is Flood Insurance? (And What Does It Cover?)
Similarly, you may be able to add earthquake coverage to your policy.
If your personal property is destroyed due to a volcanic eruption, wildfire, or tornado, you are likely already covered under your renters insurance policy.
Replacement costs
If your rental was robbed and the expensive sound system you bought five years before was stolen, you may be surprised to learn that you won’t get back enough money to fully cover the replacement cost, even though personal propertycoverage comes standard in most renters insurance policies.
This is because unless you have purchased replacement costcoverage, regular renters insurance will cover your personal belongings at their actual cash value (ACV).
For example, if your sound system cost you $2,500 five years ago, the insurance company might only offer you $1,000 to cover what it is worth today.
Expensive jewelry, art, or antiques
If you have expensive valuables like jewelry, art, or antiques, be aware that your renters policy might not cover these items. You may be required to purchase a “floater” policy to provide additional coverage for expensive possessions.
Most insurance policies will come with maximum limits for each type of coverage. So, let’s say you have a ring that costs $5,000, but your policy has a maximum coverage limit of $2,500 for jewelry, then it would be up to you to cover the difference.
You could also consider engagement ring insurance. You can learn what it does and does not cover in our article: Engagement Ring Insurance – Everything You Need To Know.
Property damage from pests
In the unfortunate event that your personal belongings are damaged by rats, bed bugs, or other rodents, bugs, or vermin, most renters insurance policies won’t cover the damage. This is true even if your infestation is so bad that you are required to leave your rental and find temporary housing.
Some renters insurance policies may offer bed bug insurance, but it is not usually considered part of a standard renters insurance plan and would come at an additional cost.
Summary
If you rent and assume that your landlord’s insurance policy will cover you in every situation, you may want to think again.
Renters insurance is the best way to ensure that your finances aren’t set back by a clumsy friend or major damage to your rental. While it’s an additional living expense, it’s often well worth the (low) cost.
Apparently, our loft has nine lives. Just when you thought we couldn’t redecorate yet again – I got pregnant! My first thought upon hearing that le bebe was on the way after the initial shock wore off!?? How the heck would we cram a baby in our loft! With our new/old house months away from completion, I knew we had to find a way to make our 1-bedroom space work for our suddenly growing family. Thankfully, I think we’ve managed to do it, and quite well if I do say so myself!
In order to make way for baby, we did have to say so long to the Apartment 34 Studio wah!!. It was in the only room in our space that has a door that closes other than bathrooms of course. I also decided climbing up and down from our loft bedroom to the nursery two flights below would be less than ideal – so we decided to combine the two. I’m rather thrilled with how our bedroom + baby room turned out – but quickly, here’s a reminder of where we started:
And here’s how the room is looking NOW!
If we’d had room for a separate nursery I would have been all for it, but since we had to go with co-sleeping, I set out to create a combined master bedroom/nursery that was functional for baby, but also aesthetically pleasing for us grown-ups! The key was to keep the space from feeling too childlike. This was accomplished in three ways: 1) sticking with neutral color palette, 2) using black as our accent color and 3) relying on modern pieces throughout the space – even the stuff for the baby.
The room really started around the alphabet print above. We stumbled upon it in a shop in St. Helena. I immediately loved the muted tones and unique animals narwal anyone?!. Confession: we actually originally bought it as a baby present for some friends, but then one thing led to another and it never got sent! Whoops! So it became the main inspiration for our color palette and overall vibe.
I was also thrilled I could repurpose many of the existing design elements in the room, including our floating Ikea shelves that once served as our office bar as you may have noticed in the before pics above. They are now our changing table. Carter loves looking up at his Ladies & Gentlemen Chime from his changing pad. Diapers and all other changing accoutrements are at arms reach but incognito in the woven basket. Everything else – wipes, onsies and burp clothes are all tucked neatly away. Fun side note: I’ve had that felt Mariners mini-pennant since I was about six!
My favorite creative idea in the room? Using a chic modern towel ladder designed by Norm Architects to hang swaddle blankets you go through a ton! and display modern books and toys. My killer woven leather basket that used to house my magazine collection organized, now holds all of Carter’s little stuffed friends. I used sheepskins throughout the room to add warmth and a cozier feel – since we have a concrete floor!
I also tossed some DIYs into the room. Yes I said DIY! For example, rather than hang faux stuffed animal heads or a baby-themed gallery wall above the crib, I found a set of geometric metal sculptures on Amazon. I simply spray-painted them white with one left black to pop and tacked them to wall. It’s a completely malleable art installation that cost less than $25! I love that it gives some visual interest without being overbearing.
I did have to say good-bye to one of my favorite DIYs – our gorgeous gold bookcase see the before image for reference. It was just entirely too girly for my hubby – and even for me these days. So back to bright white the bookcase went. Instead of office supplies, I styled out the shelves with a mix of grown-up elements like design books and my collection of Kinfolk Magazines. I combined those with some childhood treasures like my collection of Mariners bobbleheads and my husband’s Boy Scouts rally car. I can’t wait to see Carter play with it one day!
Sure, there are a few whimsical touches in room. My clouds and stars mobile by Baby Jives came from my similarly themed baby shower. Yes, there are some overly sacchrin stuffed animals in the room. But other than that, we intentionally kept the baby decor as paired down as possible. It is only temporary after all. And it’s amazing how quickly things you “must” have for baby can accumulate. But now that we’re almost three months into this whole parenthood thing, I’ve narrowed down my newborn nursery must-haves to the absolute essentials. When you’re dealing with a small space, I highly recommend sticking with the basics. Baby stuff will take over if you’re not careful! Thankfully, I found quite a few of my favorite well-designed baby accessories from Munchkin. Carter particularly loves their Latch bottles – which was great because I surprisingly had a lot of anxiety about bottle selection. They even make a travel bottle warmer, making naps on the go so much easier! So many new things to worry about as a lady with a baby… But I digress.
Here are the rest of my nursery faves. I think they’re as aesthetically pleasing as they are functional!
GET YOUR SHOP ON:
> Latch Bottle by Munchkin > Nuna Leaf baby Lounger > Wipes Warmer by Munchkin > White noise, Baby Log & Wonder Weeks iPhone apps > Diaper Pail > Video Baby Monitor > Crib > Latch Pacifier
So do you like?? I bet you didn’t think we could switch things up any more after this office makeover, and then this one, and this living room makeover and then this one but I was determined to make the loft as functional and fantastic as I could for the short time that we’ll continue to be here. A space I love is SO critical to my sanity. And let’s be real – I’ll jump at any excuse to redecorate! I’m dying to hear what you think of the space! And if you like what you see be sure to come back. We updated what was our bedroom and made a few changes to our living room too. I’m going to be revealing those spaces next week!
Nursery/Master Bedroom Resources:
west elm platform bed // cedar & moss sconces // h&m linen bedding // jm generals wool bed throw // original art by bianca sotelo // stokke mini crib // aden & anais baby bedding // jessie black felted sheepskin // baby jives mobile // menu towel ladder // serena & lily stool // sheepskin rugs // vintage turkish rug & felt rug pad // ladies & gentlemen studio chime // onefortythirty wall lamp // pottery barn kids nesting floor baskets
Original photography for Apartment 34 by Aubrie Pick
This post is in partnership with Munchkin. Munchkin rids the world of the mundane by developing clever, innovative solutions that make family life safer, easier, and more fun. You can find Munchkin products at Munchkin.com, Target, Babies’R’Us, Walmart, and Amazon. It’s the little things! All opinions expressed in this post are 100% my own. Thanks for supporting collaborations that we’re excited about and keep the Apartment 34 doors open!