Fires are becoming increasingly frequent and destructive across the nation, particularly along the West Coast. Your homeowners insurance usually includes fire insurance, safeguarding against all accidental blazes. However, the specifics of your coverage can vary depending on where you live, especially if you own a home in wildfire territory.
So what is fire insurance, what does it cover, and how is it changing? Whether you live in a city with high-fire risk like Brentwood, CA, or in low-risk Duluth, MN, this Redfin article has everything you need to know.
What is fire insurance?
Fire insurance is a specific type of insurance coverage that compensates homeowners for accidental damage caused to their property by fire. It’s often included as part of a standard homeowners insurance policy, but depending on where you live and the specifics of your policy, the coverage can vary.
Does homeowners insurance cover fires?
Yes, homeowners insurance usually covers all fires, including wildfires. In fact, fire coverage is one of the foundational elements of most standard homeowners insurance policies. Here’s a breakdown of what’s generally covered in the event of a fire:
Dwelling coverage: This covers the structure of your home, including walls, roofs, and built-in appliances. If a fire damages or destroys any part of the physical structure of your home, this portion of your policy would help pay for repairs or rebuilding.
Personal property coverage: This covers your belongings inside the home, such as furniture, clothing, electronics, and other personal items. If these are damaged or destroyed by fire, your policy would help compensate you for their value, either at actual cash value (which accounts for depreciation) or replacement cost (which doesn’t factor in depreciation), depending on your policy.
Detached structures: If you have other structures on your property, like a garage, shed, or fence, these are typically covered under a standard homeowners policy if they’re damaged or destroyed by fire.
Loss of use or additional living expenses: If a fire makes your home uninhabitable, this portion of your policy can help cover the costs of living elsewhere temporarily, such as hotel bills, meals, and other associated expenses.
Liability protection: If someone is injured on your property as a result of the fire, or if you accidentally cause a fire that damages a neighbor’s property, this part of your policy may cover legal or medical expenses.
What doesn’t fire insurance cover?
While fire insurance is designed to provide broad coverage for damages resulting from fires, there are certain exclusions and scenarios that might not be covered by a standard policy. Here are some common limitations:
Intentional fires (arson): If the fire is determined to have been set intentionally by the homeowner or with their knowledge, the insurance will not cover the damages.
Vacancy: If a property has been vacant for a specified period (typically more than 30 days), damages from a fire might not be covered. Insurance companies see vacant properties as higher risks for vandalism, theft, and neglect.
War and nuclear hazard: Damages resulting from war, including undeclared war, civil war, insurrection, rebellion, or revolution, are typically excluded. Similarly, fires resulting from nuclear reactions or radiation are not covered.
Other perils: If a fire results from an earthquake, landslide, power outage, neglect, faulty design or materials, or ordinance of law, insurance may not cover your property.
How is fire insurance changing?
With the increasing frequency and intensity of wildfires, especially in places like California, insurers are reevaluating their risk models. Recently, State Farm stopped offering homeowners insurance entirely in California in early 2023. This has led to much higher premiums from other companies in some areas and even refusal to insure homes in particularly high-risk zones. These changes follow the most destructive wildfire seasons in the state’s history, with 11 of the state’s 20 largest wildfires occurring in the past five years.
This follows a trend in other states across the country ravaged by climate change-induced disasters. For example, in parts of Kentucky ravaged by flooding in 2022, flood insurance rates are set to quadruple. Similarly, insurance companies in Florida and Georgia are raising rates due to more frequent hurricane damage.
Insurance markets are regulated by local and federal governments, and many states and counties are struggling to keep their residents insured. In areas frequently hit by wildfires, state governments are stepping in to ensure homeowners can access affordable fire insurance. This might include offering subsidies, such as through high-risk pools.
What can you do?
If your home is at risk of wildfires, there are actions you can take to lower your insurance rates and help keep your coverage. Installing fire protection devices, like smoke detectors, fire alarms, sprinkler systems, and smart home security systems can all help lower your premiums.
It’s also essential to understand the specifics of your coverage. The more transparent and comprehensive your policy is, the better off you are in the case of a disaster.
Final thoughts
Fire insurance is a vital safety net for homeowners, ensuring that they can rebuild and recover after a devastating fire. As the world changes, so too does the landscape of fire insurance. Homeowners should regularly review their policies, stay informed about changes in the industry, and consider the evolving risks and benefits associated with their property.
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
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Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
Traveling can bring a host of worries, but travel insurance can help create peace of mind when away from home.
Capital One offers a range of credit cards, many of which provide travel insurance as part of the benefits. This service is free to cardholders, though coverage isn’t automatic. Let’s look at Capital One travel insurance, which cards offer this perk and the benefits you can expect.
Does Capital One have travel insurance?
Capital One’s credit card travel insurance is complimentary and available on many different cards. To be eligible for the insurance, you’ll need to have charged the cost of the trip to your Capital One card. Once you’ve done so, the insurance kicks in automatically.
Capital One credit cards with travel insurance
Many of Capital One’s credit cards include travel insurance, even ones you wouldn’t normally expect. Here are some of the best:
The Capital One Venture Rewards Credit Card travel insurance is different from the Capital One Venture X Rewards Credit Card travel insurance. This is because the Venture Rewards is a Visa Signature card while the Venture X is a Visa Infinite card. Visa Infinite cards typically have slightly better perks and protections, but also come with a higher annual fee.
Capital One travel insurance benefits
The actual benefits you’ll receive will depend on which Capital One credit card you hold. In general, these cards provide a whole suite of trip insurance options including rental car insurance, trip delay insurance and baggage delay insurance. Here are some of the best features of Capital One trip insurance.
Trip cancellation and interruption protection
Trip cancellation insurance can reimburse you for non-refundable expenses incurred when your trip has been canceled. There are two cases for which you’ll be covered: in the event of injury, death, disease or illness of you or your immediate family member, or default of the common carrier (an airline, for example) resulting from financial insolvency.
If eligible, Capital One’s trip cancellation insurance will refund you up to $2,000 per person for your ticket when you or other covered travelers (such as a spouse or child) cannot travel.
Trip interruption insurance has the same requirements and benefits as trip cancellation insurance, though it simply means that your trip has been interrupted, not entirely canceled.
Trip delay insurance
Capital One’s travel protection isn’t limited to cancellations. You’ll also have coverage with an eligible card in the event of delays. For example, the Capital One Venture X Rewards Credit Card has trip delay insurance that begins after six hours of delay or one that requires an overnight stay.
If this is the case, you, your spouse and dependent children under the age of 22 are eligible for up to $500 in expenses incurred due to the delay.
Rental car insurance
Rental car companies love to charge you for their proprietary insurance offerings, but if you have an eligible Capital One card, you’ll want to skip out on their charges.
Both the Capital One Venture Rewards Credit Card ($95 annual fee) and the Capital One Venture X Rewards Credit Card ($395 annual fee) offer rental car insurance. In the case of the less expensive Capital One Venture Rewards Credit Card, coverage is secondary. This means that it’ll kick in after any personal insurance that you have.
The rental car insurance offered by the Capital One Venture X Rewards Credit Card is primary, so it’ll be the first provider with whom you’ll file a claim in the event of an incident.
Note that you’ll need to decline the rental car company’s collision damage waiver for the insurance to apply. You’ll also need to use your eligible card to pay for the rental. Coverage includes expenses for damage incurred by either theft or collision.
Baggage coverage
Capital One travel protection also includes lost luggage insurance. If your carry-on or checked luggage is lost due to theft or misdirection by the common carrier, Capital One will reimburse you up to $3,000 (or $2,000 for New York residents).
Lost luggage reimbursement is secondary, which means it’ll pay you the difference between the value of your claim and what the common carrier reimburses you.
How to make a Capital One travel insurance claim
The exact process you’ll need to follow to make a travel insurance claim on your Capital One card will vary based on the card you hold and the claim you’re making.
Generally speaking, you’ll have a limited number of days to file the claim and you’ll need to call or submit your paperwork online.
However, you’ll want to check the individual benefits guide for your credit card for the steps you’ll need to take. They’ll be outlined in detail so it’s simple to follow.
If you’re interested in Capital One travel insurance
Capital One has a range of credit cards that provide travel insurance as part of their benefits. Among common offerings are lost luggage reimbursement, rental car insurance and trip delay insurance.
However, each card has its own particular set of insurance coverages, so it’s important to double-check before using your card to book. Otherwise, this is an excellent — and free — perk of being a Capital One cardholder.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
If you or someone you know has dealt with a collection agency, you know how trying it can be. Debt collection agencies have a long history of harassment and illegal practices. Can a collection agency report to a credit bureau without notifying you? The answer might not be that simple. Knowing illegal debt collection practices can help identify when you’re being treated unfairly.
The Law Protects You
The Fair Debt Collection Practices Act is a federal law that protects consumers against certain unfair collection practices. It applies to only external or third-party debt collectors and only for personal debts. It does not come into play for creditors collecting their own debts. State laws may provide additional protection.
In its annual report to Congress about debt collection complaints, the Consumer Financial Protection Bureau described collection complaints received by the Federal Trade Commission (FTC).
In 2019, the FTC received 75,200 complaints about debt collectors—down from 84,500 in 2018. A complaint does not mean a law has been broken, and some complaints may result from overseas debt collection scammers who harass consumers.
If the FTC finds the complaint to be valid, the agency can ban parties from participating in debt collection. The FTC keeps an up-to-date list of all prohibited parties.
A collection account can significantly affect credit score. If you’ve been contacted by a collector and are worried your credit is being hurt, it might be a good idea to check your credit scores to see if anything has changed.
FTC 2019 Annual Report: Types of Debt Collection Complaints Reported by Consumers
Every year the FTC releases a report discussing the six main types of debt collection complaints from consumers. Understanding these complaints gives you a better idea of your rights as a consumer. If you’ve experienced any of these types of actions from a debt collection agency, you can report them to the FTC.
Before we delve in, a quick note: keep in mind that state laws can vary. So whenever we mention the law, we’re specifically referring to the Fair Debt Collection Practices Act (FDCPA).
1. Attempts to Collect a Debt Not Owed
Percentage of complaints: 45% in 2019
The law: If you don’t think the debt belongs to you, you can send a request in writing within 30 days of receiving the initial notice that you want verification of the debt. You can also request that the debt collector no longer contact you. You may consider making the request in writing so you have proof of the request
Often, this issue arises after identity theft occurs. That’s why it’s essential to keep an eye on your credit report, so you can spot these issues early.
2. Failure to Provide Written Notification of Debt
Percentage of complaints: 18% in 2019
The law: Within five days of initially contacting you, the collector must send written notice of the debt and include:
The amount of the debt
The name of the original creditor to whom the debt is owed
A statement describing your right to dispute the debt
You can file a complaint with the FTC if you believe the debt collector never sent written notice. Most individuals complaining about written notifications (65%) say they didn’t receive adequate information to identify and confirm their ownership of the debt. Additionally, some individuals (30%) complain that their written notice never included their right to dispute the debt.
3. Communication Tactics
Percentage of complaints: 12% in 2019
The law: Collectors are not allowed to call repeatedly just to harass you. However, there is no specific number of calls specified in the FDCPA limiting calls they can make within a given period. That’s for the courts to decide. If you think a debt collector is calling too often, start keeping a record of the time of the call and any messages left. Collectors also may not call before 8 a.m. or after 9 p.m. unless you’ve given them permission or at times you’ve told them are inconvenient.
The majority of complaints surrounding communication tactics are about repeated phone calls (55%), foul or abusive language (12%) or calls outside of the allotted times (5%).
4. Negative or Legal Action, or Threats of It
Percentage of complaints: 12% in 2019
The law: Collectors can’t threaten a lawsuit, criminal prosecution, wage garnishment, jail time, or a poor credit rating unless they have the legal authority to do so and intend to do so.
The most common complaints in this category in 2019were:
Threats or suggestions that a consumer’s credit history would be damaged (34%)
Threats to sue on old debt (28%)
Threats to arrest or jail consumers for not paying the debt (14%)
Lawsuits without proper notification (9%)
Attempts or successful seizures of property (8%)
Attempts or successful collection of exempt funds, such as unemployment benefits or child support (5%)
Lawsuits filed in a different state from where the consumer signed the contract or currently lives (2%)
Threats of turning the consumer in to immigration officials or of deportation (0.2%)
These threats are often in violation of the FDCPA. Usually, collectors must take you to court and win before they can take these kinds of actions—if they even have the right in the first place.
5. False Statements or Representations
Percentage of complaints: 11% in 2019
The law: Collectors can’t use false statements or representations to try to force consumers to cooperate, including:
Claiming to be affiliated with the U.S. government or any state
Purporting to be a law enforcement official or an attorney
Stating that failure to pay will result in imprisonment, seizure of property, garnishment of wages, or other false claims
Implying the consumer committed a crime
These claims are in violation of the FDCPA to make if they are untrue. Sometimes, collectors may be allowed to make a claim if they have taken the consumer to court and received a court-approved judgment.
In 2019, the majority of complaints in this category were for:
Attempts to collect the wrong amount (74%)
Impersonations of an attorney, law enforcement official, or government official (17%)
False statements that the consumer committed a crime by not paying the debt (6%)
Suggestions that the consumer should not respond to a lawsuit (3%)
6. Threats to Contact Someone or Share Information Improperly
Percentage of complaints: 3% in 2019
The law: Collectors can call third parties such as family members, neighbors, friends, or co-workers only once to locate the debtor. When they do, they are not allowed to reveal the debt.. They can only make contact again under specific circumstances.
In 2019, the majority of complaints in this category were for debt collectors who contacted:
A third party about the debt (53%)
An employer (28%)
The consumer after being asked not to do so (18%)
The consumer directly when they were informed to speak with only the consumer’s attorney (2%)
Debt Collection Laws
The federal Fair Debt Collection Practices Act (FDCPA) limits what debt collectors can do and say when attempting to collect a debt. This law covers mortgages, credit cards, medical debts, and any other debt for personal, family, or household purposes.
Unfortunately, the FDCPA doesn’t cover business debt or debt that is owed to the original creditor rather than a collection agency.
As stated earlier, time and place, harassment, and representation are all factored into this federal act. Debt collectors cannot contact you in an unusual place or at a time they know is inconvenient.
Additionally, if collectors are aware you have sought legal representation for the matter, they must immediately stop direct communication with you and, instead, contact your attorney, except for a few exceptions.
Can a Debt Transfer Hands?
Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws. In addition, the company cannot add interest you didn’t agree to or change any other terms of your original contract.
So, when does this happen? Can collection agencies buy from other collection agencies? Yes. Once your debt crosses a threshold that indicates it’s less likely to be paid, your original creditor will send it to a collection agency. After some time, the collection agency might sell your debt to a debt buyer.
If you do choose to pay off your debt, always make sure you pay the party currently holding your debt.
The Fair Credit Reporting Act
Another federal law is the Fair Credit Reporting Act. It covers certain financial aspects, including debt being collected and reported on your credit report.
This law protects consumers from unfair, deceptive, or abusive acts or practices by collection agencies or creditors.
How to Get Help
If you think a debt collector or collection agency has broken the law while trying to collect a debt, you can:
Complain to the Consumer Financial Protection Bureau and your state attorney general
Contact a consumer law attorney — you might be entitled to damages and/or attorney’s fees
Whenever you’re dealing with debt, it’s smart to review your credit reports for accuracy, because errors can unnecessarily damage your credit standing. Should the worst case happen, there are ways to dispute credit report errors.
If you’re ready to improve your credit score, you can begin the process of credit repair. Debt sent to a collections agency doesn’t have to ruin your financial life—you can work to fix your credit report with credit repair. ExtraCredit is offering an exclusive discount to one of the leaders in credit repair, so sign up today.
Welcome to the ultimate guide on converting a carport to a garage. Whether you reside in the vibrant city of Nashville, TN, and dream of transforming your carport into a garage with a guest living area, or you just bought a house in the quaint and charming city of San Marcos, CA, where you envision creating a mini bar and recreational living space, this Redfin article provides a comprehensive list of all the major considerations you should to take into account before you begin your project.
Converting a carport into a functional and versatile space is not only a trending home feature that adds value to your home but also opens up a world of exciting possibilities. In this article, we’ll provide you with a comprehensive checklist to consider before starting on your carport conversion project, along with fresh and innovative ideas that will inspire and elevate your project to new heights.
Carport garage conversion checklist
1. Check your local building codes, HOA regulations, and permits
Before starting on a carport garage conversion, it’s crucial to familiarize yourself with the specific building codes and regulations in your area. Local building codes determine the minimum standards for construction, safety, and design, ensuring that the garage conversion meets essential requirements. Additionally, if your property falls under a Homeowners Association (HOA), their rules and guidelines may impose restrictions or design criteria for garage conversion.
Ensure compliance with both the local authorities and the HOA to avoid potential legal issues or costly alterations down the line. Furthermore, obtain all necessary permits before beginning your project as these documents ensure that the project is reviewed and approved by the appropriate authorities and that it adheres to safety and zoning standards.
2. Determine your budget and financing options
Creating a comprehensive budget is a crucial step before starting any carport garage conversion project. Carefully assess the scope of your project, including materials, labor, permits, and any additional features or amenities you plan to incorporate. Factor in unexpected expenses to allow for flexibility during the project. If your budget exceeds your available funds, explore financing options such as home equity loans, personal loans, or lines of credit. Make sure to choose a financing solution with favorable terms and interest rates that align with your financial capabilities.
3. Hire a professional for a structural assessment
Converting a carport into a garage involves altering the existing structure, and it’s vital to ensure its stable and durable. Engage a qualified and experienced professional, such as a structural engineer or contractor, to conduct a thorough assessment of the carport’s foundation, framework, and load-bearing capacity. They will identify any potential weaknesses or areas that require reinforcement to support the additional weight of walls, roofing, and other modifications. The structural assessment provides crucial insights that guide the design and construction phase, ensuring that your new garage is safe and built to last.
Relying on professional expertise during this stage minimizes the risk of structural issues and potential hazards in the future. Before commencing any home improvement project, make sure to ask contractors questions to ensure their qualifications, experience, and adherence to local regulations and building codes. This proactive approach will help you select the right professional for the job and provide peace of mind throughout the conversion process.
4. Plan the design and layout of your garage
Careful planning of the design and layout is essential for creating a functional and aesthetically pleasing garage. Consider the number of vehicles you want to accommodate, as well as any additional storage needs or utility areas, such as a workbench Think about the placement of windows and doors to ensure sufficient natural light and easy access. If you intend to use the garage for multiple purposes, create designated zones to optimize space. Sketch out your ideas and explore various design options to find the one that best suits your needs and complements the overall architecture of your home.
5. Select the appropriate building materials
Choosing the right building materials is vital for the structural integrity, durability, and appearance of your garage. Select materials that align with your design preferences and work best for your local climate. For example, if your area experiences harsh weather conditions, opt for materials that offer superior weather resistance. Consider the type of walls, like wood or concrete blocks, and the types of roofing materials, like asphalt shingles or metal that will suit your needs and budget. High-quality materials may require a higher upfront cost but can save you money in the long run by reducing maintenance and repair expenses.
6. Plan for ventilation and climate control
Proper ventilation and climate control are essential to maintain a comfortable and safe environment within the garage. Adequate ventilation prevents the buildup of moisture and fumes, which can lead to mold growth and unpleasant odors. Install vents or exhaust fans to promote airflow and improve air quality. Additionally, consider insulation to regulate temperature extremes, keeping the garage cooler in summer and warmer in winter. If you plan to use the garage for activities that generate heat, such as a workshop or home gym, consider incorporating heating and cooling systems to ensure a pleasant workspace year-round. Efficient ventilation and climate control contribute to the longevity of the garage and protect any valuable items stored inside.
7. Determine if you need utility connections
Evaluate whether your garage conversion requires utility connections such as electricity, water, or gas. If you plan to use the garage as a workshop, laundry room, or home office, electrical outlets are essential to power tools and appliances. If you need water for a utility sink or bathroom, ensure the plumbing connections are feasible. Consider the potential cost of extending utilities to the garage and consult with professionals to understand the best approach for connecting utilities safely and efficiently.
8. Explore your garage door options
Selecting the right garage door is crucial for convenience, security, and aesthetics. Assess various garage door types, such as overhead roll-up doors, sectional doors, or swing-out doors, each offering different benefits. Also, consider the material of the garage door, such as steel, wood, or aluminum, based on your preferences and budget. Automatic garage door openers with remote controls provide added convenience and security. Choose a garage door that complements the architectural style of your home and meets your functional requirements.
9. Plan for lighting
Proper lighting is essential for a functional and safe garage. Assess the lighting needs based on the garage’s intended use. Overhead lighting provides general illumination, while task lighting is necessary for work areas. Consider LED lighting for its energy efficiency and long lifespan. If you want to maximize natural light, strategically place windows or skylights to enhance brightness during the day. Motion-activated lights around the garage’s exterior can also serve as security measures, deterring potential intruders.
10. Consider security measures
Garages often store valuable items like vehicles, tools, and equipment, making security a top priority. Install sturdy locks on all doors, including entry doors and any connecting doors to the house. Consider an alarm system to protect against theft and unauthorized access. Security cameras provide surveillance, allowing you to monitor activities around the garage. Motion sensor lights outside the garage act as a deterrent and enhance visibility during nighttime. Additionally, if you have windows in the garage, consider adding window locks for added security. By incorporating these security measures, you can safeguard your belongings and ensure peace of mind.
Carport conversion garage ideas
A garage is more than just a space to store cars, it can be a versatile extension of your home. Once you have converted your carport into a functional area, it’s time to consider a garage makeover that will elevate its potential even further. Explore exciting ideas such as transforming your garage into a dedicated home gym, a productive home office, or a fun-filled playroom.
For DIY enthusiasts, a well-organized workshop area can become a dream come true. Alternatively, create a cozy pet area to ensure your furry companions have a safe and comfortable space. With these creative garage makeover ideas, your garage will become a dynamic and multi-functional space that enhances your lifestyle and adds value to your home.
Workshop space
Converting your home garage into a workshop area is a dream come true for DIY enthusiasts and hobbyists. Start by installing a sturdy workbench with ample storage for tools and materials. Organize your tools on peg boards or wall-mounted tool racks for easy access. Adequate lighting is crucial for precision work, so consider adding task lighting above the workbench and general overhead lighting for the entire space. Enhance functionality by incorporating built-in shelves and cabinets for storing supplies. Insulate the garage to regulate temperature and make it a comfortable workspace year-round. With a dedicated workshop in your garage, you’ll have the ideal environment to unleash your creativity and complete various projects with ease.
Playroom
Converting your garage into a versatile playroom creates a dedicated space for recreational activities and entertainment for all members of the household. Start by creating a blank canvas with neutral colors to suit various interests and age groups. Consider adding soft and comfortable flooring for activities like yoga, board games, or simply lounging around. Install ample storage solutions such as shelves, bins, or cabinets to keep toys, games, and recreational equipment organized and easily accessible. Incorporate versatile furniture like bean bags, floor cushions, and modular seating to accommodate different play activities.
Add a chalkboard or whiteboard wall for creative expression and interactive fun. Integrate a variety of entertainment options, such as a TV, gaming consoles, or a projector for movie nights and virtual adventures. By creating a multifunctional playroom in your garage, you’ll have a space where everyone can unwind, have fun, and spend quality time together.
Home office
Converting your garage into a home office allows you to create a productive workspace away from distractions inside the house. Start by insulating the garage to ensure a comfortable and quiet environment. Consider adding windows or skylights to bring in natural light and create a pleasant working atmosphere. Install a sturdy desk and ergonomic chair for comfortable hours of work. Organize the office with shelves, filing cabinets, and storage solutions for a clutter-free space. Set up a reliable internet connection to stay connected and productive. If necessary, add heating and cooling systems to maintain a comfortable temperature. Personalize your home office with artwork, plants, and decor to create a motivating and inspiring workspace that enhances your productivity and creativity.
Home gym
Transforming your garage into a home gym provides the ultimate convenience for fitness enthusiasts. Clear out clutter and install rubber or foam flooring to create a safe and comfortable workout area. Incorporate wall-mounted mirrors to check your form and enhance the sense of space. Install proper ventilation or fans to keep the air fresh during intense workouts. Organize your gym equipment with wall-mounted racks or freestanding storage systems. Consider adding a sound system to keep you motivated during exercise sessions. With a home gym in your converted garage, you can exercise at any time without the hassle of traveling to a commercial gym, ensuring a more consistent and effective fitness routine.
Pet play area
Transforming your garage into a pet play area provides a safe and comfortable space for your furry companions. Clear out the garage and create a cozy environment with pet-friendly flooring, such as rubber mats or pet-safe carpeting. Designate specific areas for your pets to rest, play, and eat, and consider adding built-in pet beds or kennels. Install proper ventilation to maintain a fresh and odor-free atmosphere. Set up storage for pet supplies and accessories, including food, toys, and grooming tools. Ensure the garage is secure with pet-friendly doors and windows, allowing your pets to enjoy the outdoors safely. By converting your garage into a pet area, you offer a dedicated space where your pets can feel at home and be well-cared for.
Home bar and entertainment area
Converting your garage into a stylish home bar and entertainment area provides an ideal space for hosting gatherings and unwinding with friends and family. Install a functional bar counter with seating, complete with a sink and storage for drinkware and beverages. Consider adding a mini-fridge, ice maker, and wine cooler for easy access to refreshments. Set up a media area with a large-screen TV, sound system, and comfortable seating for movie nights and sports events. Enhance the ambiance with mood lighting, such as pendant lights or LED strips. Add decorative elements like wall art, mirrors, and shelving to showcase your spirits collection and add character to the space. With a well-designed home bar and entertainment area, your garage will become the go-to spot for fun and relaxation.
Laundry room
Transforming your garage into a laundry room not only significantly enhances your home’s functionality but also provides the added benefit of maintaining a clean and organized garage space. Install a utility sink for handwashing and soaking clothes, and set up space for your washing machine and dryer. Add ample counter space for folding and organizing laundry. Integrate built-in cabinets or shelves for storage of laundry supplies, cleaning products, and household essentials. Consider a drying rack or designated hanging space to air-dry clothes. Ensure the garage is well-ventilated for humidity control and maintain a pleasant atmosphere while doing laundry. By transforming your garage into a laundry room, you can streamline your laundry routine and keep your living spaces tidy and clutter-free.
Art and music studio
Transforming your garage into a versatile music and art studio at home provides an inspiring and creative space for artistic expression and musical pursuits. Start by creating a well-lit environment with ample natural light and adjustable artificial lighting to cater to various art and music needs. Install soundproofing materials like acoustic panels or foam to minimize sound leakage and ensure optimal acoustics for musical instruments. Consider adding storage solutions like shelves, drawers, and cabinets to organize art supplies, paints, brushes, and musical equipment.
Set up designated areas for artwork creation, musical instrument practice, and recording projects. Personalize the studio with artwork, musical memorabilia, and decor that reflect your unique style and inspirations. With a dedicated art and music studio in your garage, you’ll have a sanctuary to explore your creative passions and immerse yourself fully in the world of art and music.
Guest room
Converting your garage into a cozy and welcoming guest room is a fantastic way to provide a welcoming space for visiting friends and family. Begin by decluttering and insulating the garage to create a comfortable environment. Install proper lighting and ventilation to ensure a pleasant stay for your guests. Consider adding a comfortable bed, storage solutions, and decor that make the guest room feel like a home away from home. Personalize the space with thoughtful touches to make your guests feel special and cared for during their stay.
However, before proceeding with the conversion, be sure to check with your local authorities about Accessory Dwelling Units (ADUs) regulations, as these may apply to the guest room conversion depending on your area’s zoning laws and building codes. Taking these factors into consideration will help you create a delightful and compliant guest room for your loved ones.
Some credit cards include a Collision Damage Waiver (CDW), aka rental car insurance covering damage, theft, and towing. CDWs save you the $15 to $30 per day you would otherwise pay for the rental agency’s insurance, and in the event of an accident can help you avoid paying a deductible and hike in premiums for your regular auto insurer.
Two Orange County, California, individuals face charges of conspiracy, bank fraud and identity theft, accused of targeting elderly members of the local Vietnamese community and duping banks into distributing $2.2 million of their accrued home equity.
Thao Thi Kim Nguyen and Nghiep Chinh Nguyen were arraigned in United States District Court in Santa Ana, California, on Monday. Both entered not guilty pleas to the charges against them and were granted bond. They each face a single count of conspiracy to commit bank and wire fraud.
Thao Nguyen was also charged with multiple other counts of both bank fraud and aggravated identity theft. Nghiep Nguyen, meanwhile, faces an additional two counts of bank fraud and another of aggravated identity theft.
The purported violations occurred over a four-month period in 2018 after Thao Nguyen opened accounts in her name at two banks, who were not identified in the court indictment. Later, she would return to the banks accompanied by Ngiep Nguyen and other participants involved in the fraud, who posed as homeowners.
Using stolen identities and phony documents, including California driver’s licenses and Social Security cards, Ngiep Nguyen and the other alleged fraudsters would typically impersonate elderly Vietnamese homeowners to take out mortgages. This gave them access to the victim’s accrued equity, through obtaining reverse liens after forging signatures on banking documents and grant deeds. Thao Nguyen also added the victims’ names to the accounts she had previously opened at the banks, claiming, in at least one case, they belonged to her parents.
She then reportedly received wire transfers of the withdrawals made by the other parties from the fraudulent mortgage accounts. Thao Nguyen subsequently moved those funds to different bank accounts she owned.
The scheme netted almost $2.2 million, according to the indictment, with Thao Nguyen taking in approximately $1 million while distributing the remaining amount to her cohorts.
A trial date for the two defendants is scheduled to begin on Sept. 26. If convicted, both face a maximum sentence of 30 years in federal prison for each conspiracy and fraud charge. They would also be required to serve two years for each count of aggravated identity theft if found guilty.
Neither the identities of others participating in the scheme, who were not part of this indictment, nor of the victims were reported.
The charges against Thao Nguyen and Ngiep Nguyen follow another recent trial involving elderly homeowners in California. In that case, the head of an investment company promised homeowners he could help distressed borrowers avoid foreclosure through transfer of their deed title to his business. After losses totaling more than $7 million and the eventual seizure of all homes belonging to the victims between 2015 and 2019, Robert Sedlar was found guilty on more than 100 felony counts earlier this year, including conspiracy, grand theft and elder abuse.
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Can you pay a loan with a credit card? Yes, paying a loan with a credit card is sometimes possible. Yet, whether or not you can do so depends on factors such as the lender’s policies or the type of loan you want to pay off.
Good credit can open doors, but bad credit can keep them shut. In fact, research shows one in 10 Americans were denied work because of poor credit history! Good credit is important because it tells lenders you’re not a risk and that you pay loans on time. A good score can help you get approved for mortgages, financing, loans, and credit cards. Bad credit leads to more fees, higher interest rates, and rejected applications.
Aside from securing loans, your credit can impact your ability to secure housing and even employment. Understanding your credit score can help you make more informed decisions. We’ll explore how credit works, why it’s important, and how to maintain a good credit score.
What Is Credit?
We often hear people saythat it’s important to build credit. But what is credit? When you pay for something “on credit,”you’re actually borrowing money to make the purchase, which you pay back later. But when people say “your credit,” they’re usually talking about a credit score.
Your credit score is a three-digit number calculated by FICO®, VantageScore, or other scoring models. Your score indicates how well you manage credit. Institutions and agencies use this score to determine risk, such as how likely you are to repay loans on time. A credit score of 670 or higher is considered good by most standards.
Why Is Credit Important?
Good credit is important because it helps you secure loans, mortgages, rentals, and other important financial goals. Financial institutions perform a credit check before approving applications, and use your credit history to determine available options, associated fees, and interest rates.
Credit can impact our daily lives in many ways. Potential lenders, landlords, and employers might reject your application if you have bad credit. But good credit can help you get approved for loans and save money.
There are many benefits to a good credit score. You’ll need a strong credit score for things like:
Loan applications: Lenders assess your credit to determine how likely you are to repay a loan. People with poor credit may face higher interest rates, smaller loans, or rejection.
Credit card applications: Banks and credit card companies need to look at your credit report before you can get a credit card. With good credit, you can get lower interest rates and higher limits.
Mortgage applications: Your credit score will determine monthly payments and interest rates. Good credit is essential if you can’t afford a large down payment.
Rental applications: Landlords can run a credit check or ask you to provide one. Credit score won’t impact the rental costs, but a landlord can reject an application due to poor credit.
Job applications: Prospective employers can ask for credit checks, especially if you are dealing with sensitive information. You may need a credit check for jobs in accounting, sales, the military, and other industries.
Insurance applications: Depending on where you live, you might need a credit check for insurance. Not all states allow insurance companies to access your credit information.
Vehicle rentals: You might need a credit check for vehicle rentals if you don’t pay with a credit card. And depending on your state and the company, your credit may impact your rental options.
Credit card benefits: Good credit can help you secure credit cards with benefits, including airline miles, travel credits, cashback rewards, and other perks.
Lower interest rates: Poor credit leads to higher interest rates, making borrowing money expensive. The better your credit, the more money you will save.
Better loan terms: Good credit gives you more options and freedom for repayment. Bad credit can limit your options to short-term loans with higher monthly payments.
Credit is always important, no matter how high or low your score. At the end of the day, everybody needs good credit to achieve their financial goals. That’s why it’s important to understand what can impact your credit score.
What Can Impact a Credit Score?
It might be surprising, but personal savings and stocks don’t impact your credit score. Credit score calculations look at your detailed credit history, and anything that impacts these calculations will impact your score.
The five main factors that impact your credit score are:
Payment history: when you make payments
Credit utilization: the amount of credit you use compared to your limit
Credit age: how long you’ve had credit and how old your accounts are
Credit mix: the types of credit you hold
Credit inquiries: how often your credit is reviewed
While this might look simple, many surprising scenarios can affect your credit. Unpaid parking tickets in collections can impact your payment history, for example. And closing a credit card can lower your credit utilization. You can review your free annual credit reports to watch for drops in your credit and work toward preventing a bad score.
What Happens with a Bad Credit Score?
Keep in mind that you can improve a bad credit score over time. But until you do, there can be negative consequences. Most credit scores range from 300-850, depending on the scoring model. A bad credit score generally ranges from 300-600.
Bad credit scores can lead to:
Rejected applications
Higher fees and interest rates
Lost work opportunities
Difficulty renting a vehicle
Required deposits for utilities
Difficulty securing a student loan
Expensive insurance rates
Difficulty opening bank accounts
Bad credit doesn’t shut every door, but it can make life more difficult and expensive. It’s important to check your credit score before buying a home, applying for student loans, and other important life events. This will give you time to understand your situation and make a plan to build and improve your credit.
How Do You Build and Improve Credit?
Now that you understand what credit is and why it’s important, you can plan for success. There are many ways to build and improve your credit without overextending yourself. No matter your score today, you can work toward a bright future with good credit.
Understand how credit works: Learn how your credit score works and what can impact it.
Set goals for yourself: Use this knowledge to set goals for minimizing debts, increasing utilization, and more.
Address your debts: Assess your debts and plan to pay them off.
Monitor your credit score: Look for suspicious activity on your credit report and be aware of the potential impact on your score.
Clean your credit report: Dispute errors on your credit report.
Get a secured credit card: Use it regularly and pay your bills on time.
Become an authorized credit card user: Build credit in association with somebody you trust.
Apply for a credit builder loan: Improve your score if you have poor or no credit.
Create a budget: Manage your finances to ensure consistent repayments.
Achieving a good credit score isn’t the end of your credit journey—once you have a good credit score, you will need to maintain it. Stay diligent and follow best practices to keep a good credit score.
How Do You Keep a Good Credit Score?
Don’t take good credit for granted. To keep a good credit score, you need to stay organized and sensible about your credit usage. This means understanding your responsibilities and following best practices for credit management.
Follow these tips for keeping a good credit score:
Stick to your budget: Committing to a budget can help you make payments on time, which is key to achieving a good credit score.
Avoid carrying debt: Credit utilization is the second most important factor that makes up your credit score. Unpaid debts accumulate interest, which means less money for you.
Pay bills and parking tickets on time: It’s important to pay all utility bills, phone bills, and parking tickets on time. Not paying bills can lead to collections and this impacts your credit score.
Don’t let debts go to collections: You should avoid collections at all costs. When unpaid debts go to collections, it can cause significant damage to your credit score.
Monitor your credit score and reports: When it comes to your credit, ignorance is not bliss. It’s important to watch your credit report for changes, errors, and suspicious activity.
Protect yourself from identity theft: A large drop in your credit score can be a sign of identity theft. Stay aware, protect your information, and consider a credit card with security features.
Use your credit card consistently: Using your credit card will help you build credit—just don’t spend more than you’re able to pay back each month.
Don’t close old credit cards: Closing a credit card lowers your credit mix, so it’s a good idea to leave old credit cards open, even if you don’t use them. Keep an eye on them for suspicious activity.
Only authorize people you trust: Authorized users on your accounts can impact your credit score. Only authorize accountable and trustworthy people.
Avoid retail credit cards: While retail credit cards can be easy to get, they can come with expensive rates and fees. And not all retail credit cards report payments, making them less ideal for building credit.
Don’t treat credit like extra cash: Building credit takes organization and discipline. You should always stick to a budget and avoid spending beyond your means.
Your credit score is like a financial reflection of you, so take pride in your credit and make an effort to keep a good score. Knowledge is power—the more you understand credit, the more confident you’ll feel when preparing for large purchases and other financial ventures.
Whether you have good or bad credit, it’s all about setting goals and staying organized. Remember, your current score is not set in stone. You can always improve credit management and make a difference in your future.
If you’re worried about bad credit or just want to see where you stand, get your free credit score today.
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You can contact Equifax®, Experian®, or TransUnion® online, over the phone, or by mail to unfreeze your credit. The process is free, but it may take up to an hour to fully take effect.
Someone might freeze their credit for several reasons, including identity theft concerns. However, they’ll eventually need to unfreeze their credit by contacting the three credit bureaus—Equifax, Experian, and TransUnion.
In this guide, we’ll show you how to unfreeze credit with each bureau—and we’ll answer a few common questions about unfreezing credit. You’ll also learn how to monitor your credit more effectively long-term.
When Should You Unfreeze Your Credit Report?
Someone who’s experienced identity theft can unfreeze their credit after the authorities have helped them resolve their case. Conversely, someone who plans to apply for a new credit card or secure a loan will want to unfreeze their credit beforehand. In general, one must unfreeze their credit to let trustworthy sources verify their identity and credit history.
Ways to Unfreeze Your Credit
There are two ways to unfreeze your credit—temporarily or permanently. You might temporarily lift a freeze if you need to apply for a loan or a credit card. Conversely, you might opt to permanently unfreeze your credit after you’ve resolved an outstanding identity theft case. Knowing how each unfreezing method works can help you decide which suits your needs.
Temporary Unfreeze Credit: Temporarily unfreezing or “thawing” credit allows creditors to check your profile for a set time. The precise length of a thaw will vary from one state to the next. Kentucky, Nebraska, Pennsylvania, and South Dakota impose a seven-year time limit on credit thaws, while the limits of other states are essentially indefinite.
Permanently Unfreeze Credit: Permanently removing a credit freeze returns your credit profile back to normal. If you want to freeze your credit in the future, you’ll have to individually contact the three bureaus once again.
How to Quickly Unfreeze Credit with Equifax
Equifax lets clients freeze and unfreeze their credit online, by mail, or over the phone.
Online: Create a “my Equifax,” visit the “Equifax Consumer Services Center,” then select “Security Freeze.”
Mail: Download and fill out Equifax’s security freeze request form, then mail the document (along with proof of identity and proof of address items) to the following address:
Equifax Security Freeze, P.O. Box 105788, Atlanta, GA 30348.
Phone: Call 888-298-0045, then verify your identity through security questions or a one-time PIN number.
How to Quickly Unfreeze Credit with Experian
Experian offers three ways to freeze and unfreeze your credit—mail, online, and over the phone.
Online: Create an account on Experian.com, hover over “Protection,” then select “Security freeze” under “Identity Theft Support”.
Mail: Send your written request (and a copy of an ID and a utility bill) to the following address:
Phone: Call 888-397-3742, then wait to speak with a representative.
How to Quickly Unfreeze Credit with TransUnion
Like Equifax and Experian, TransUnion also provides three ways to freeze and unfreeze your credit.
Online: Make a TransUnion Service Center Account, then choose “Freeze Credit Report” under the “Services” tab.
Mail: Ship your written request, proof of identity, and a six-digit PIN number to the following address:
TransUnion, P.O. Box 160, Woodlyn, PA 19094.
Phone: Call 800-916-8800, then prepare to provide your six-digit PIN number.
Credit Freeze FAQ
Freezing and unfreezing credit isn’t exactly a common practice, so it’s no surprise when people have a lot of questions about the process. Thankfully, some of the most common credit freeze questions have fairly straightforward answers.
How Long Does It Take to Unfreeze Credit?
The credit bureaus can unfreeze your account as soon as they receive your request. It’s worth noting that it may take an hour or more for your credit report to be fully updated.
Will a Credit Freeze Hurt My Score?
No, a freeze won’t negatively or positively affect your credit score in and of itself. Creditors won’t be able to access your credit report, but you also won’t be able to apply for new loans or cards while your credit is frozen.
How Many Times Can You Freeze and Unfreeze Credit?
You can freeze and unfreeze your credit as often as needed. However, you will have to repeat the unfreezing process with the corresponding bureaus.
How Much Does It Cost to Unfreeze Credit?
Placing and removing a credit freeze is completely free every time. Neither Equifax, Experian, nor TransUnion will charge you for submitting a request or creating an account on their websites.
If you or someone you know has dealt with a collection agency, you know how trying it can be. Debt collection agencies have a long history of harassment and illegal practices. Can a collection agency report to a credit bureau without notifying you? The answer might not be that simple. Knowing illegal debt collection practices can help identify when you’re being treated unfairly.
The Law Protects You
The Fair Debt Collection Practices Act is a federal law that protects consumers against certain unfair collection practices. It applies to only external or third-party debt collectors and only for personal debts. It does not come into play for creditors collecting their own debts. State laws may provide additional protection.
In its annual report to Congress about debt collection complaints, the Consumer Financial Protection Bureau described collection complaints received by the Federal Trade Commission (FTC).
In 2019, the FTC received 75,200 complaints about debt collectors—down from 84,500 in 2018. A complaint does not mean a law has been broken, and some complaints may result from overseas debt collection scammers who harass consumers.
If the FTC finds the complaint to be valid, the agency can ban parties from participating in debt collection. The FTC keeps an up-to-date list of all prohibited parties.
A collection account can significantly affect credit score. If you’ve been contacted by a collector and are worried your credit is being hurt, it might be a good idea to check your credit scores to see if anything has changed.
FTC 2019 Annual Report: Types of Debt Collection Complaints Reported by Consumers
Every year the FTC releases a report discussing the six main types of debt collection complaints from consumers. Understanding these complaints gives you a better idea of your rights as a consumer. If you’ve experienced any of these types of actions from a debt collection agency, you can report them to the FTC.
Before we delve in, a quick note: keep in mind that state laws can vary. So whenever we mention the law, we’re specifically referring to the Fair Debt Collection Practices Act (FDCPA).
1. Attempts to Collect a Debt Not Owed
Percentage of complaints: 45% in 2019
The law: If you don’t think the debt belongs to you, you can send a request in writing within 30 days of receiving the initial notice that you want verification of the debt. You can also request that the debt collector no longer contact you. You may consider making the request in writing so you have proof of the request
Often, this issue arises after identity theft occurs. That’s why it’s essential to keep an eye on your credit report, so you can spot these issues early.
2. Failure to Provide Written Notification of Debt
Percentage of complaints: 18% in 2019
The law: Within five days of initially contacting you, the collector must send written notice of the debt and include:
The amount of the debt
The name of the original creditor to whom the debt is owed
A statement describing your right to dispute the debt
You can file a complaint with the FTC if you believe the debt collector never sent written notice. Most individuals complaining about written notifications (65%) say they didn’t receive adequate information to identify and confirm their ownership of the debt. Additionally, some individuals (30%) complain that their written notice never included their right to dispute the debt.
3. Communication Tactics
Percentage of complaints: 12% in 2019
The law: Collectors are not allowed to call repeatedly just to harass you. However, there is no specific number of calls specified in the FDCPA limiting calls they can make within a given period. That’s for the courts to decide. If you think a debt collector is calling too often, start keeping a record of the time of the call and any messages left. Collectors also may not call before 8 a.m. or after 9 p.m. unless you’ve given them permission or at times you’ve told them are inconvenient.
The majority of complaints surrounding communication tactics are about repeated phone calls (55%), foul or abusive language (12%) or calls outside of the allotted times (5%).
4. Negative or Legal Action, or Threats of It
Percentage of complaints: 12% in 2019
The law: Collectors can’t threaten a lawsuit, criminal prosecution, wage garnishment, jail time, or a poor credit rating unless they have the legal authority to do so and intend to do so.
The most common complaints in this category in 2019were:
Threats or suggestions that a consumer’s credit history would be damaged (34%)
Threats to sue on old debt (28%)
Threats to arrest or jail consumers for not paying the debt (14%)
Lawsuits without proper notification (9%)
Attempts or successful seizures of property (8%)
Attempts or successful collection of exempt funds, such as unemployment benefits or child support (5%)
Lawsuits filed in a different state from where the consumer signed the contract or currently lives (2%)
Threats of turning the consumer in to immigration officials or of deportation (0.2%)
These threats are often in violation of the FDCPA. Usually, collectors must take you to court and win before they can take these kinds of actions—if they even have the right in the first place.
5. False Statements or Representations
Percentage of complaints: 11% in 2019
The law: Collectors can’t use false statements or representations to try to force consumers to cooperate, including:
Claiming to be affiliated with the U.S. government or any state
Purporting to be a law enforcement official or an attorney
Stating that failure to pay will result in imprisonment, seizure of property, garnishment of wages, or other false claims
Implying the consumer committed a crime
These claims are in violation of the FDCPA to make if they are untrue. Sometimes, collectors may be allowed to make a claim if they have taken the consumer to court and received a court-approved judgment.
In 2019, the majority of complaints in this category were for:
Attempts to collect the wrong amount (74%)
Impersonations of an attorney, law enforcement official, or government official (17%)
False statements that the consumer committed a crime by not paying the debt (6%)
Suggestions that the consumer should not respond to a lawsuit (3%)
6. Threats to Contact Someone or Share Information Improperly
Percentage of complaints: 3% in 2019
The law: Collectors can call third parties such as family members, neighbors, friends, or co-workers only once to locate the debtor. When they do, they are not allowed to reveal the debt.. They can only make contact again under specific circumstances.
In 2019, the majority of complaints in this category were for debt collectors who contacted:
A third party about the debt (53%)
An employer (28%)
The consumer after being asked not to do so (18%)
The consumer directly when they were informed to speak with only the consumer’s attorney (2%)
Debt Collection Laws
The federal Fair Debt Collection Practices Act (FDCPA) limits what debt collectors can do and say when attempting to collect a debt. This law covers mortgages, credit cards, medical debts, and any other debt for personal, family, or household purposes.
Unfortunately, the FDCPA doesn’t cover business debt or debt that is owed to the original creditor rather than a collection agency.
As stated earlier, time and place, harassment, and representation are all factored into this federal act. Debt collectors cannot contact you in an unusual place or at a time they know is inconvenient.
Additionally, if collectors are aware you have sought legal representation for the matter, they must immediately stop direct communication with you and, instead, contact your attorney, except for a few exceptions.
Can a Debt Transfer Hands?
Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws. In addition, the company cannot add interest you didn’t agree to or change any other terms of your original contract.
So, when does this happen? Can collection agencies buy from other collection agencies? Yes. Once your debt crosses a threshold that indicates it’s less likely to be paid, your original creditor will send it to a collection agency. After some time, the collection agency might sell your debt to a debt buyer.
If you do choose to pay off your debt, always make sure you pay the party currently holding your debt.
The Fair Credit Reporting Act
Another federal law is the Fair Credit Reporting Act. It covers certain financial aspects, including debt being collected and reported on your credit report.
This law protects consumers from unfair, deceptive, or abusive acts or practices by collection agencies or creditors.
How to Get Help
If you think a debt collector or collection agency has broken the law while trying to collect a debt, you can:
Complain to the Consumer Financial Protection Bureau and your state attorney general
Contact a consumer law attorney — you might be entitled to damages and/or attorney’s fees
Whenever you’re dealing with debt, it’s smart to review your credit reports for accuracy, because errors can unnecessarily damage your credit standing. Should the worst case happen, there are ways to dispute credit report errors.
If you’re ready to improve your credit score, you can begin the process of credit repair. Debt sent to a collections agency doesn’t have to ruin your financial life—you can work to fix your credit report with credit repair. ExtraCredit is offering an exclusive discount to one of the leaders in credit repair, so sign up today.