High mortgage rates and harsh weather are pushing down home sales, but some house hunters are touring and getting a feel for the market.
The bumpy start to 2024’s housing market continues, with daily average mortgage rates posting their biggest one-day increase in over a year on February 2. The jump came after a hotter-than-expected January jobs report and the Fed’s confirmation that they’re unlikely to cut interest rates in the next two months, which means mortgage rates will probably remain elevated near their current level for at least that long.
Rising home prices are exacerbating rising rates, with the typical monthly mortgage payment just about $100 shy of October’s all-time high. The median U.S. sale price rose 5.4% year over year during the four weeks ending February 4, the biggest increase in over a year. High housing costs are pricing out many would-be homebuyers; pending sales are down 8%, the biggest decline in four months. There are also a few other contributors to sales falling: Harsh winter weather in the first half of January delayed a lot of homebuying deals, and pending sales were improving at this time last year as mortgage rates temporarily dropped.
Still, some house hunters are at least getting a feel for the market. Redfin’s Homebuyer Demand Index–a seasonally adjusted measure of requests for tours and other buying services from Redfin agents–has steadily risen since mid-January, and a separate measure of home tours shows they’ve increased 16% since the start of the year, compared with a 10% rise at this time last year. Some sellers are jumping in, too, with new listings up 7% year over year.
“We’re seeing a bit of recovery with house hunters touring homes, but even demand at the earliest stages isn’t up as much as we would expect at this time of year,” said Chen Zhao, Redfin’s economic research lead. “That’s because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home.”
Luis Rojas, a Redfin Premier agent in the Viera West, FL area, said today’s housing market is touch and go. “High mortgage rates brought the local market to a near-standstill from August through November, activity picked up when rates dropped a bit in mid-December, and now it’s slowing down again as rates rise,” Rojas said. “I’m advising buyers–especially first-timers–that the mortgage rates they see in the news aren’t the be-all and end-all. Some local lenders are willing to give rates in the 5% range for new construction projects because any business is better than no business.”
Down 1% from a week earlier; up 3% from a month earlier (as of week ending Feb. 2)
Down 19%
Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)
Up slightly from a week earlier, but down 7% from a month earlier (as of week ending Feb. 4)
Down 14%
Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale”
Down 2% from a month earlier (as of Feb. 3)
Down 16%
Google Trends
Touring activity
Up 16% from the start of the year (as of Feb. 6)
At this time last year, it was up 10% from the start of 2023
ShowingTime, a home touring technology company
Key housing-market data
U.S. highlights: Four weeks ending February 4, 2024
Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
Four weeks ending February 4, 2024
Year-over-year change
Notes
Median sale price
$361,498
5.4%
Biggest increase since Oct. 2022
Median asking price
$395,949
7%
Biggest increase since Sept. 2022
Median monthly mortgage payment
$2,607 at a 6.63% mortgage rate
11.5%
Down roughly $110 from all-time high set in October 2023, but up roughly $250 from the four weeks ending Dec. 31
Pending sales
68,872
-7.8%
Biggest decline since October 2023
New listings
70,415
6.6%
Active listings
740,834
-3.5%
Months of supply
4.2 months
Unchanged
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.
Share of homes off market in two weeks
33.3%
Up from 32%
Median days on market
48
-2 days
Share of homes sold above list price
22.4%
Up from 20%
Share of homes with a price drop
5.5%
+1 pt.
Average sale-to-list price ratio
98.2%
+0.5 pts.
Metro-level highlights: Four weeks ending February 4, 2024
Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
Metros with biggest year-over-year increases
Metros with biggest year-over-year decreases
Notes
Median sale price
Miami (13.4%)
Anaheim, CA (13.4%)
Detroit (13.3%)
Warren, MI (12.1%)
Chicago (11.3%)
San Antonio, TX (-4.7%)
Austin, TX (-3.7%)
Declined in 2 metros
Pending sales
San Jose, CA (13.8%)
San Francisco, CA (6%)
Anaheim, CA (4.5%)
Riverside, CA (0.4%)
Columbus, OH (0.2%)
San Antonio, TX (-33.2%)
Portland, OR (-30.2%)
Nashville, TN (-21.5%)
New Brunswick, TN (-19.4%)
Houston (-18.5%)
Increased in 5 metros
New listings
Dallas, TX (27.1%)
Miami (26.9%)
Jacksonville, FL (26.3%)
Fort Lauderdale, FL (23.6%)
San Diego, CA (22.1%)
Chicago (-17.8%)
Atlanta (-16%)
Milwaukee, WI (-14%)
Portland, OR (-13.6%)
Nashville, TN (-10.4%)
Declined in 14 metros
Refer to our metrics definition page for explanations of all the metrics used in this report.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
A credit card number is the specific number attached to your credit card. It includes a major industry identifier number, your account identifier, and a checksum.
The number on your credit card is more than a passcode to payments when you swipe your card. Many of the digits have a specific meaning. Find out what a credit card number is, what it means, and why it matters.
What Is a Card Number?
A credit card number is a unique number that helps identify your account and card. This number makes it possible for you to pay with the card and for money to be taken out of the right account.
Think about it similarly to your checking account number. Your personal checks are printed with a specific series of numbers. First is the routing number, which indicates which bank the check draws on. Next is the account number, which tells which account the money should come from.
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Credit card numbers work the same way. Each part of that long number has a specific function. These are standardized by the International Organization for Standardization (ISO).
Need more credit?
Your credit card number is often located on the front of your card above your name, but it may also be located on the back, depending on your card’s style.
What Do Credit Card Numbers Mean?
You can break each credit card number into sections, and each section reveals specific information about the account.
Industry Identifier
The first six to eight digits reveal the credit card network and the card’s industry.
The first digit in any credit card number tells you what type of card it is—Visa, Mastercard, Discover, or Amex. Card numbers of each type always start with the same number:
3: American Express or cards under the Amex umbrella
4: Visa
5 or 2: Mastercard
6: Discover
American Express goes even further by starting card numbers with either 34 or 37, depending on the secondary branding on the card.
If your credit card number starts with any other digit, it refers to the industry that issues the card:
1 – 2: Air travel and financial services
7: Petroleum
8: Health care and telecommunications
9: Government and other industries
That first digit plus the next five in the credit card number is called the Issuer Identification Number (IIN) or Bank Identification Number. This identifies the credit card company and its network, similar to the bank routing number on a personal check.
In some cases, the IIN may be eight digits. To allow for more IINs to support growing needs, the ISO is requiring the financial industry to move to eight-digit IINs.
Account Identifier
The rest of the digits identify the account and cardholder information. This portion of your credit card number changes if your card is lost or stolen and you need a new card.
Within the account identifier, the last four digits are particularly important to you. If you save a credit card in an online account or other database, the information has to be encrypted. Employees of that company can’t just look up accounts and see full credit card information. They’re usually only able to see the last four digits.
You might be asked to confirm those numbers to ensure the right card is being charged. You might also be asked to confirm them when buying something online with a saved card number to ensure you’re really you and not someone who’s hacked into an account.
You can’t tell a credit card number by the last four digits. However, you could find a credit card you’ve saved in an account, such as on Amazon, by the last four numbers. Those are the only digits you’ll be able to see when you look at the saved payment methods in your account.
Checksum
The final digit is the checksum. Sometimes called the check digit, it is a way to verify the validity of a credit card using the Luhn algorithm.
Here’s how it works:
Starting from the first number of your credit card number, double every other digit.
If doubling results in a two-digit number, add those two digits together.
Add up all the doubled numbers.
The credit card number is valid if the number you reached in step three is divisible by 10.
Vendors use this algorithm to determine whether or not your credit card number is valid when you type it in online.
How to Protect Your Credit Card Number
Credit card fraud impacted nearly half a million consumers in 2022 and is the most common type of identity theft. Sadly, scammers can get your credit card number in many ways:
ATM skimming: People install credit card skimmer devices on public card terminals such as gas stations or outdoor ATMs. These devices store the data on your credit card’s magnetic strip for scammers to download and use.
Data breaches: There were more than 2,800 data breaches in 2023. A data breach occurs when secure data is accessed through unauthorized means, often because of a hacker. The largest data breach occurred in 2013 and involved the unauthorized access of more than three billion records.
Discarded documents: While bills and statements often don’t include your full credit card number, people may be able to gather enough information to determine your credit card number.
Phishing: These scams are fraudulent emails, texts, or phone calls that try to convince you to share your personal information to verify your identity.
Public Wi-Fi: Free public Wi-Fi is convenient but often unsecured. Hackers may be able to access your data through spyware or ransomware.
To protect your credit card information, take the following steps:
Avoid using public Wi-Fi when making online purchases or accessing account information.
Shred documents related to your credit card and always cut up old cards.
Don’t give out your account information.
Use strong passwords.
Enable two-factor authentication for your accounts.
Don’t give out personal information over the phone or online without verifying the validity of the request.
Use a virtual card number, which is a unique number connected to your actual credit card number.
Monitor your credit card statements carefully.
Monitor your credit score regularly with Credit.com’s Credit Report Card.
Credit Card Number FAQ
Below you’ll find additional information about credit card numbers.
How Many Numbers Are in a Credit Card?
Typically, credit card numbers are 16 or 15 digits. Only American Express uses the 15-digit format. Around 2020, Visa started issuing some cards with 19-digit card numbers, which aren’t typical in the United States.
What Other Numbers Are on a Credit Card?
You’ll also find a few other numbers on your credit card:
The expiration date: Every few years, credit card issuers will send you a new card for security reasons. This expiration date may be on the front or back of your card and is formatted with two digits for the year, a slash, and the last two digits of the year. For example, if your card’s expiration date is May of 2030, the expiration date would read 05/30. In this case, the card would stop working on May 31, 2030.
Card verification value (CVV): The security code, called a card verification number, is typically a three- or four-digit code on the back of your card. Vendors ask for it whenever they do not physically see your card, such as when you make a purchase online or over the phone.
Finding the Right Credit Card
Before applying for a new credit card, determine what kind of credit card you should get. For example, if you want to maximize rewards, you may want a cash-back card with perks that match your budget. If you’re looking to build credit, you may need to apply for a secure credit card that’s easy to get with lackluster credit.
To understand what options might be right for you, check your credit. This helps you know what type of credit card you might be approved for. Next, educate yourself about applying for a credit card online. Review options that seem appropriate for you and pick the best one—you can get started in our credit card marketplace. Then, gather all the information you need and apply.
11 Northwestern Mutual Advisors Achieve Forbes Top Women Wealth Advisors Recognition MILWAUKEE, Feb. 8, 2024 /PRNewswire/ — Northwestern Mutual announced today that 11 of its exceptional advisors have been recognized on the prestigious Forbes Top Women Wealth Advisors Best-in-State list for 2024. This accomplishment highlights their outstanding expertise, dedication, and commitment to providing exceptional guidance and financial … [Read more…]
Every major city in the U.S. has a unique skyline. Whether they have the tallest buildings or the prettiest mountain backdrop, a skyline makes a city instantly recognizable from afar. Since the world’s first skyscraper in Chicago in 1885, architects have continued to race each other to touch the sky.
Here are 30 of the best skylines across the country, from the Big Apple to Motor City.
Which city has the best skyline in the U.S.?
From coast to coast, near the water or in the desert, each skyline has an element that makes them striking. And one of the best in the country.
30. Houston, TX
The oldest building in the Houston skyline is the El Paso Energy building, completed in 1963 at 33 stories. The tallest, the JPMorgan Chase Tower, is double that at 75 floors. The tower was supposed to be 80 stories, but a Federal Aviation Administration (FAA) analysis said anything over 75 stories was considered hazardous to air navigation.
Find an apartment for rent in Houston.
29. Denver, CO
Denver’s skyline can be enjoyed from several spots around the city, including Washington Park. Denver is exactly one mile high, with more than 200 visible peaks sneaking around the skyline for their moment in the limelight. The tallest building in this skyline is the 56-story Republic Plaza.
Find an apartment for rent in Denver.
28. St. Louis, MO
You can’t think about the St. Louis skyline without the Gateway Arch, the tallest manmade monument in the country. The 630-feet-tall stainless steel monument is genuinely iconic and marks the moment the Louisiana Purchase was signed. Next to it, the Mississippi River flows by and joins the Missouri River north of the city.
Find an apartment for rent in St. Louis.
27. Orlando, FL
Fun fact about the Orlando skyline: Lake Eola, in downtown Orlando, is a giant sinkhole. It’s around 80 feet at its deepest point. You can see the most iconic city landmark, the Linton E. Allen Memorial Fountain, right in the middle of it. In the background, at 441 feet, the Suntrust Center is the tallest building in Central Florida.
Find an apartment for rent in Orlando.
26. Atlanta, GA
One of the most popular tourist attractions in Atlanta is the view of the skyline at the Jackson Street Bridge. It’s both used in “The Walking Dead,” and it’s a prime spot to capture a beautiful Instagram shot for your feed. While the skyscrapers themselves aren’t quite famous, the view is still worth the snapshot.
Find an apartment for rent in Atlanta.
25. San Diego, CA
America’s Finest City’s skyline has changed drastically in just a decade but buildings are usually capped at 500 feet due to concerns over planes crossing over the downtown on the flight path to San Diego International Airport. Petco Park offers the best sunset view of the San Diego skyline, a treat while watching the Padres hit a few home runs.
Find an apartment for rent in San Diego.
24. Tampa, FL
The most identifiable buildings in the Tampa skyline are the University of Tampa’s stainless steel minarets, a stark contrast to the modern skyscrapers that surround it. Previously the luxurious Tampa Bay Hotel, the building was railroad tycoon Henry Plant’s legacy inspired by Moorish architecture.
Find an apartment for rent in Tampa.
23. San Francisco, CA
As the fog rolls in, past the Golden Gate Bridge, San Francisco’s skyline looks ethereal. The Bay Area skyline is a good mix of skyscrapers like the Salesforce Tower and the Transamerica Pyramid and smaller buildings, due to the earthquake risk in California.
Find an apartment for rent in San Francisco.
22. Nashville, TN
Well, Bob Dylan in 1969 named a whole album after the stunning Nashville skyline, and we can’t disagree. The southern city’s first skyscraper was only 12 stories tall back in 1905 — that number has now grown to 162 high-rises. The most identifiable of them all? The AT&T Building, nicknamed the Batman building, for its resemblance to the superhero’s mask.
Find an apartment for rent in Nashville.
21. Minneapolis, MN
Minnesota winters are infamous for being brutal, but Minneapolis has it figured it out. They stay mega cozy without going outdoors, thanks to the skyway system’s enclosed bridges that connect buildings throughout the city. It’s the most extensive pedestrian skywalk system in the world, connecting more than 20 of the tallest buildings in Minneapolis.
Find an apartment for rent in Minneapolis.
20. Knoxville, TN
The Sunsphere, the tower with the disco ball-like at the top, makes the Knoxville skyline easy to spot. The unique structure was built for the 1982 World’s Fair. After sitting abandoned for years, the 4th-floor observation deck reopened in 2022. It offers a 360-degree view of downtown Knoxville and the Great Smoky Mountains.
Find an apartment for rent in Knoxville.
19. Indianapolis, IN
Today, Indianapolis’ skyline is marked by Monument Circle, a monument to the valor of the common soldier. Any building surrounding it cannot be taller than eight stories so the sunlight can reach the fountain.
Another fun fact: Circle City was home to one of the most remarkable feats in engineering in 1930 — the move of the 11,000-ton Indiana Bell building. For a little over a month, the building was rotated 90 degrees. Some 30 years later, it was demolished.
Find an apartment for rent in Indianapolis.
18. Cincinnati, OH
Cincinnati is home to the world’s first reinforced concrete skyscraper, the 16-story Ingalls Building. Before 1903, no one had built a building taller than six floors. Today, it’s the Courtyard by Marriott Cincinnati Downtown. This is just one of many historic landmarks in the city’s skyline.
Find an apartment for rent in Cincinnati.
17. Milwaukee, WI
With Lake Michigan as a backdrop, Milwaukee’s skyline held the title for tallest skyscraper for a brief moment in time. In 1895, the Milwaukee City Hall was the tallest building in the city, taller than anything in New York or Chicago at the time. The beautiful walkways surrounding the atrium (and the building) still stand today.
Find an apartment for rent in Milwaukee.
16. Norfolk, VA
Lesser known than some of the skylines on the list, Norfolk’s has mostly mid-rise buildings, with the 26-story Dominion Tower taking the top spot for tallest in the skyline. What brings you is the reflection of the skyline on the Elizabeth River. The recently revitalized waterfront offers beautiful views of the city and a chance to see the restored shoreline.
Find an apartment for rent in Norfolk.
15. San Antonio, TX
The star of the San Antonio skyline is the Tower of the Americas, the 11th tallest skyscraper in the entire state. Right in downtown San Antonio, the 750-foot-tall observation tower offers some of the city’s best views. Initially built for the 1968 World’s Fair, the tower has a spot to grab a bite to eat at the top.
Find an apartment for rent in San Antonio.
14. Charlotte, NC
Here’s a fun fact: The majority of Charlotte’s current skyline was built in the 21st century starting in 2002 with the Hearst Tower. The city is a financial center in the Southeast with Bank of America, Wells Fargo and other institutions having a presence at each of the skyline’s buildings.
Find an apartment for rent in Charlotte.
13. Portland, OR
Downtown Portland’s skyline is composed of 31 high-rises, with the Wells Fargo Center taking the top spot for tallest building. Most of the city center is nestled in between the Columbia and Willamette rivers. Nearby, the historic Pittock Mansion offers incredible panoramic views of Portland and Mount Hood in the background.
Find an apartment for rent in Portland.
12. Phoenix, AZ
From the top of Camelback Mountain, about 30 minutes from downtown Phoenix, you can see the entire Phoenix metropolitan skyline. A striking view during sunset with the desert mountains in the background is not your usual skyline view.
Find an apartment for rent in Phoenix.
11. Pittsburgh, PA
Pittsburgh has over 400 bridges, and it’s hard to miss them in the city skyline. Like the Smithfield Street Bridge, the oldest steel bridge in the U.S., which crosses the Monongahela River. Pittsburgh’s skyline also features One Oxford Centre, a complex of six buildings with many sides to offer as many corner offices as possible.
Find an apartment for rent in Pittsburgh.
10. Memphis, TN
The downtown Memphis skyline overlooks the Mississippi river as it was purposely built on the banks by the city’s founders. These days, the Memphis Riverfront offers a beautiful river walk that connects two state parks, Meeman-Shelby Forest and T.O. Fuller.
Find an apartment for rent in Memphis.
9. Detroit, MI
Detroit has one of the most distinguishable skylines in the country. Motor City’s Sunset Point gives the most beautiful views of the skyline along the Detroit River. Or, if you want a bench to admire the skyline and the sunset, head over to Riverside Park with a small picnic. The Ambassador Bridge is the star of the show from this angle.
Find an apartment for rent in Detroit.
8. Dallas, TX
The Dallas skyline is recognizable, thanks to the 1980s hit series “Dallas” and has won best skyline multiple times, including USA TODAY. The Reunion Tower, a 561-foot observation deck, is one of the skyline landmarks in Dallas. The locals often call it “The Ball.”
Find an apartment for rent in Dallas.
7. Chicago, IL
Right by Lake Michigan, Chicago has built one of the most classic skylines, with height variation, no crowding or funky-looking buildings. It makes sense since the first skyscraper in the world was built in the Windy City. Get to know it during one of the city’s popular architecture-themed boat tours. But you’ll get the best full view of the skyline at the Adler Planetarium.
Find an apartment for rent in Chicago.
6. Miami, FL
Welcome to Miami! The Florida city has the country’s third tallest skyline with more than 300 skyscrapers. The Panorama Tower, located in downtown Miami, stands tall at 85 stories, making it the tallest in the state. Nine out of the top 10 of the tallest buildings in Florida can be found in Miami.
Find an apartment for rent in Miami.
5. Los Angeles, CA
Did you know that until 2014 Los Angeles buildings were required to have a flat top to allow for a helicopter landing? That’s why the skyline looks almost homogenous aside from a few new additions. On a clear day without smog, the Los Angeles skyline can be seen from several vantage points, but Griffith Observatory and Echo Park Lake are the best ones.
Find an apartment for rent in Los Angeles.
4. Honolulu, HI
Honolulu’s small, packed skyline isn’t just about buildings. A skyline shot from above shows the vibrant blue Pacific Ocean paired with lush Diamond Head. It just exudes paradise from every perspective. The First Hawaiian Center has remained the tallest building on the island since the mid-90s at 429 feet.
Find an apartment for rent in Honolulu.
3. Seattle, WA
The Space Needle and Mount Rainier, part of Seattle’s iconic skyline, take our No. 3 spot for best skyline in the U.S. The best place to see it all from above? Sunset Hill Park provides the best view of the skyline during a sunny day. The Columbia Center takes the prize for the tallest building in the city at 76 stories.
Find an apartment for rent in Seattle.
2. Las Vegas, NV
And the No. 2 spot goes to Sin City — the one and only Las Vegas. With all of its neon lights, the Las Vegas skyline is the brightest place on Earth and can be seen from outer space. The Luxor’s Sphinx, a replica of the Great Sphinx of Giza, stands out among the many iconic buildings on the skyline. Fun fact: It’s bigger than the original.
Find an apartment for rent in Las Vegas.
1. New York, NY
The New York City skyline takes the prize as the best skyline in the country. From above, the Big Apple shines with its landmark buildings like the Empire State Building, the Chrysler Tower and the One World Trade Center. It has inspired architectural dreams, and it has become the background for many stories and movies.
And while it had a tragic change at the beginning of the 21st century, it remains one of the best city skylines in the United States.
Find an apartment for rent in New York.
The best city skylines around the country
Whether buildings have a mountain as their background or a view of water, there are so many beautiful skylines to choose from across all 50 states.
These are just a small slice of the most beautiful city skylines around the U.S. With ongoing construction, each of these skylines will look a little different over time and one of them could be your next view from your apartment.
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FORTUNE honors company with strong rankings in social responsibility, quality of management, financial soundness and quality of products and services based on annual survey MILWAUKEE, Jan. 31, 2024 /PRNewswire/ — Northwestern Mutual has been named one of the World’s Most Admired Companies by FORTUNE magazine – a prestigious recognition the company has earned for several years. … [Read more…]
It’s not uncommon to hear the words “apartment building” and “apartment community” used interchangeably for this type of dwelling unit. In this article, we’ll look at the difference and explore the features that make up an apartment complex.
What is an apartment building?
An apartment building is a complex full of apartment residences. It’s simply the physical structure built by property developers.
Apartment buildings are more than simply homes, though. They contain many important rooms and features that are essential to running the complex.
What are the features of an apartment building?
When you move to a new apartment, you’ll have to get to know your neighbors and the apartment community you’re joining. Here’s what you can expect to see at a typical apartment complex or building.
Leasing office
The leasing office is where the administrative tasks happen. It’s the office that your property manager works in and where you can find leases, maintenance requests and other important documents. The leasing office is also where a resident can go if they have any issues with rent or are in need of other services surrounding living units.
Stairwell
If your apartment building has more than one floor, the building will have a stairwell to get to the ground level. These stairwells are typically located along the edge of the building, at the end of the hall. Buildings will also have elevators as an accommodation for those who cannot use the stairwells in apartments.
Curbs
The curbs surrounding apartment buildings should be well maintained and not coming apart. These will create space between the sidewalk and the road, so you can walk safely.
When you’re parking, be sure to look at the color of the curb. Concrete curbs painted red or yellow are often no-parking zones.
Street lights
Apartment complexes contain many street lamps that come on at night. This way, you can safely walk from your car to your apartment building.
Parking spaces
Apartment buildings usually have designated parking for residents and guests. If you are assigned a parking spot, it will likely have a number painted on the space so it’s easy for you to find. Apartments in major cities or urban areas usually charge an additional fee for parking.
Every apartment building will also have a few handicapped parking spaces near the complex. Parking in these spots requires a handicapped parking plaque or license plate. These spots are reserved for people who have mobility difficulties.
Patios and balconies
Patios are attached to ground-floor apartment buildings. Usually, they’re a concrete slab on which you can put outdoor furniture and plants.
If you live on an upper level, you might have a balcony which gives you some outdoor space. Even if your patio or balcony is very small, there are ways to decorate it so that you can relax and enjoy some fresh air on a nice evening.
Dumpster
The dumpster is where people who live in the apartment buildings can drop off their bagged garbage.
Dog waste bags
If your apartment allows for pets, they may provide dog waste bags. These bags are for your pet’s waste when you take them outside and put the trash in the dumpster when you’re finished.
Key card
Your key card is an electronic card that will unlock many of the common rooms and entrances of the apartment building. Examples include the security gate and fitness center. These are only issued to residents and staff and are a part of the building design to keep residents safe.
Electronic gate
The electronic gate is located at the entrance of the parking lot. These are in place for your security so only people allowed to come to the apartment can enter.
What is an apartment community?
While an apartment building provides you with a place to live, an apartment community makes it feel like home. A community is alive. It’s the residents, pets, guests and staff that live and work in the complex. They’re the friends you’ll make from down the hall and the property manager who maintains your apartment building and unit. They’re the reason you’re glad you rented there instead of somewhere else.
What are the features of an apartment community?
Apartment amenities, in a residential property that encourage people to interact, will make it easier for you to get to know your neighbors and feel like part of the community. If you’re looking to live in a socially active neighborhood, look for an apartment that has some of the following features and amenities that add value to resident life.
Swimming pool
An apartment building’s swimming pool often becomes a community gathering space. In warmer climates, it can be an especially great place to hang out on a warm day.
Fitness center
Many apartment buildings include a fitness center as an amenity, although some charge a monthly fee to use the equipment. The fitness room is for residents only and requires a key card to get in. They include things like free weights, treadmills, ellipticals and stationary bicycles.
Instead of paying for a monthly gym membership and spending time driving to the gym, you can exercise in your apartment building and perhaps get to know some of your neighbors.
Clubhouse
This is a common room in upscale apartment complexes. It will likely have a TV, a small kitchen, tables, chairs and possibly some game tables like pool or darts. Often, the property manager will allow a tenant to rent this room out for parties or special events.
Community lounge
This may be the same thing as the clubhouse. It’s a common area that’s large enough for a group to meet and relax. Some lounges have Wi-Fi and workspaces.
Pet-friendly spaces
Some apartments have designated lawn spaces for dogs and their owners to play. Apartments that offer pet-friendly housing tend to attract pet owners.
It’s easy to find some common ground with other dog lovers, so if you have a playful dog, look for a pet-friendly apartment. Some apartments will even host pet-friendly events in these designated areas, making it a great social activity for tenants (and their furry friends)!
Find an apartment building and community to suit your personality
All apartment buildings have different amenities and newer apartment listings are adding some cool modern spaces to woo new tenants and enhance resident life.
While modern features are great, to make new friends and become a part of the community, it’s important to spend some time talking to the residents before signing a lease.
Find your next apartment community here!
No matter where you’re looking to live, the perfect place awaits, where you can find a community to live, work and play as one of the perks that come with apartment living. Start with our extensive listing of apartment buildings and communities here.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
Schlifske’s 14-year tenure as CEO defined by historic business performance, bold client experience transformation, unsurpassed financial strength, exceptional product value, and meaningful investments in talent and diversity Tim Gerend to succeed Schlifske as the company’s next CEO, effective January 1, 2025 MILWAUKEE, Jan. 25, 2024 /PRNewswire/ — After 14 years as Northwestern Mutual’s Chief Executive … [Read more…]
While the economy continues to expand and added 2.7 million jobs in 2023, signs point to a normalization in the labor market as job growth is expected to moderate in 2024. MORE
While mortgage rates have moved sideways since mid-December, housing continues to be impacted by higher mortgage rates with total home sales on track to be the lowest since 2012. MORE
Facing higher borrowing costs, borrowers are paying more discount points to buy down their mortgage rate, but they may not be getting the benefit. MORE
Recent developments
U.S. economy: According to the latest estimate of U.S. economic growth for Q3 2023, the economy grew at a seasonally adjusted annualized rate (SAAR) of 4.9%, slightly slower than the second estimate but still the fastest since Q4 2021— and among the fastest growth in the last 20 years. Consumption spending growth was revised down from a SAAR of 3.6% in the second estimate to 3.1% in the final estimate. This was mainly led by a decline in spending on services but remained the largest contributor to growth at 2.1 percentage points. After nine consecutive quarters of negative growth, residential investment growth came in much stronger than the initial estimates at a SAAR of 6.7%.
The labor market remained much stronger than expected in 2023 and defied expectations of a slowdown. The economy added 216,000 jobs in December, bringing the total jobs added in 2023 to 2.7 million.1 While total jobs added in 2023 was lower than the historical highs of 2021 and 2022, job growth was still remarkable given the high interest rate environment the economy faced. The unemployment rate remained unchanged in December at 3.7% compared to November 2023, but moved up 0.3 percentage points over the year.
While job growth remained significant over the year, some indications of a softer labor market are starting to creep in. The labor force participation rate as well as employment to population ratio decreased 0.3 percentage points over the month to 62.5% and 60.1% respectively. Downward revisions to October and November job growth meant the 3-month average job gain in the fourth quarter of 2023 was the lowest since the third quarter of 2019, if we exclude the 2020 recession. However, the torrid pace of job growth was unlikely to be sustained and employment growth is approaching levels consistent with a balanced labor market. Heading into 2024, we might see a moderation in job growth, which would be more consistent with long-run growth in the U.S. labor force. Job openings edged down slightly to 8.8 million in November 2023, according to the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey. The ratio of job openings to unemployed, a metric that the Federal Reserve has been tracking to gauge the strength of the labor market, declined from a high of around 1.8 in January 2023 to 1.4 in November.
Inflation continues to trend towards the Federal Reserve’s target rate of 2%. The preferred measure of inflation of the Federal Reserve, the Core Personal Consumption Expenditure (PCE) measure increased at a rate of 3.2% year over year, the smallest annual increase since May 2021.2 While inflation has been moderating as the labor market normalizes, a reacceleration of home prices along with still high average hourly earnings growth at 4.1% year over year, could mean that getting to the 2% target might take longer than expected.
U.S. housing market: The housing market felt the impact of higher rates in 2023 with total annual home sales on track to be the lowest since 2012. Total (existing and new) home sales reached 4.4 million units in November 2023, down 1.2% as compared to October 2023 and 6.2% below November 2022. Total home sales averaged around 4.8 million from January through November 2023. Existing home sales were at 3.8 million as of November 2023 and averaged 4.1 million through November 2023.3 The existing housing inventory grew 15.3% year to date in November but the level of inventory (1.1 million homes available for sale in November) remains extremely low by historical standards.4 The rate-lock effect, which was the main driver of the lack of existing inventory, continued to push buyers towards the new home market. The number of new homes available for sale increased 2.7% year-to-date and was up 2.5% from the previous month. Overall, the sales of new homes averaged 666,000 in 2023 as compared to 637,000 in 2022.5
Falling interest rates have spurred the confidence of both potential homebuyers as well as the homebuilders. The Housing Market Index, which had decreased since August increased in December 2023. While existing home sales increased in November, pending home sales for November were still weak and saw a 5.2% decrease from the previous year. The FHFA Purchase-Only Home Price Index indicated that as of October of 2023, home prices rose 6.1% year to date, and as more home buyers enter the market amidst the lack of inventory, the pressure on prices could increase further.
U.S. mortgage market: Mortgage rates were on an upward trajectory for most of 2023, reaching 23-year highs in October. However, since the last week of October, rates have been declining mainly on the expectation of rate cuts by the Federal Reserve along with easing inflationary pressures. The average 30-year fixed-rate mortgage, as measured by Freddie Mac’s Primary Mortgage Market Survey® (PMMS®), fell almost one percentage point from the last week in October through mid-December. Despite the decline in recent weeks, mortgage rates are 13 basis points higher than they were at the beginning of the year. Mortgage activity also declined with purchase applications down almost 12% in 2023 and total applications down 7% even as refinance applications increased 15% over the year.6
Tighter financial conditions and higher overall interest rates are starting to impact mortgage delinquency rates. Total mortgage delinquency rates were up 0.25 percentage points from 3.37% in Q2 2023 to 3.62% in Q3 2023 according to the MBA’s National Delinquency Survey. The delinquency rate on conventional mortgages increased from 2.29% to 2.5% in Q3 2023 while the delinquency rate of VA loans was up from 3.7% to 3.76% over the same period. The largest increase was in the delinquency rate of FHA loans which increased 0.55 percentage points from 8.95% in Q2 to 9.5% in Q3. Interestingly, serious delinquency rates (90+ DQs) went down across the board between Q2 and Q3. Foreclosure starts increased from 0.13% in Q2 to 0.19% in Q3 2023 but remain low compared to its historical average.
Outlook
The U.S. economy exhibited tremendous resilience last year on strong consumer spending. We expect economic growth to slow this year as consumer spending starts to fade. Under our baseline scenario, with a slowing economy, the unemployment rate will see a modest uptick, and inflation will continue to moderate.
With inflation remaining above the Federal Reserve’s target rate of 2%, we do not expect the Federal Reserve to start cutting the federal fund rates immediately. However, it will continue to pause on interest rate hikes. We expect rate cuts in the second half of the year if the job market cools off enough to keep inflation muted. Under this scenario, we expect mortgage rates to ease throughout the year while remaining in the 6% range.
Falling rates will breathe some life into the housing market with some recovery in home sales. However, home sales are expected to grow only modestly due to a lack of inventory in the market. The demand for housing, however, will remain high based on a large share of Millennial first-time homebuyers looking to buy homes, which will push home prices up. We forecast home prices to increase 2.8% in 2024 and 2.0% in 2025 nationally.
Under our baseline scenario, we expect increases in both purchase and refinance volumes this year and into 2025. On purchase originations, higher home sales and growth in home prices will drive the dollar volumes of purchase originations up. However, we do not expect purchase origination volumes to reach the levels seen in 2021 and 2022 as lack of inventory will limit home sales. The drop in mortgage rates will push refinance originations up, as buyers who obtained higher interest rates in 2023 will likely refinance into lower rates. However, rates remaining around the 6% range will not provide enough refinance incentives to millions of homeowners who currently have rates below 6%. And therefore, we expect refinance volume to grow only modestly this year. Overall, we forecast total origination volumes to improve this year and into the next.
January 2024 SPOTLIGHT:
Declining affordability led borrowers to pay more discount points to buy down rates, but our research suggests it may not be worth it
Mortgage rates, as measured by Freddie Mac’s PMMS®, increased significantly in 2023 compared to the record lows of the past few years. On October 26, 2023, the average 30-year fixed-rate mortgage stood at 7.79%, a 23-year high. Since then, mortgage rates have moderated, but remain high by recent historical standards. These higher mortgage rates led many borrowers to make the decision to pay points in order to lower the rate when purchasing a house or refinancing an existing mortgage. During the low interest rate environment, few borrowers opted to pay discount points when obtaining a mortgage, but as rates started creeping up in the early 2022, we saw more borrowers paying discount points to lower their rate.
Using Freddie Mac closing data, we examined how often borrowers pay discount points and how many points they pay. For this analysis, the points we are focusing on are for permanent interest rate reductions throughout the life of the loan.7 To that end, we looked at a borrower profile that roughly matches our PMMS® population: mortgage for a home purchase or refinance of a one-unit, single-family owner-occupied property with a fully amortizing 30-year fixed-rate mortgage. We further restricted our sample to borrowers with conforming loans, and with credit scores 740 or above and a loan-to-value (LTV) ratio between 75 and 80 (inclusive).
We found that the share of borrowers who paid discount points increased in 2023 (Exhibit 1). For example, about 58.8% of purchase mortgage borrowers paid discount points in 2023, compared to 31.3% and 53.6% of purchase borrowers in 2021 and 2022 respectively. The share paying discount points was higher for noncash- out and cash-out refinance borrowers, 59.9% and 82.4%, respectively. Also, conditional on paying points, refinance borrowers tended to pay much higher points: 0.99 points for purchase borrowers compared to 1.16 and 1.76 points for non-cash-out and cash-out refinance borrowers, respectively.
It is interesting to note, however, that the interest rate differential between borrowers who pay discount points and those who do not pay discount points is very small. Through November 2023, the average effective rate on purchase loans for borrowers who did not pay discount points was 6.69% versus 6.86% for those who did pay points. This result seems to suggest that paying discount points may not be worth it from the consumers’ point of view. Indeed, some academic research8 has shown that in many circumstances paying discount points can be a poor financial decision. However, while our tabulation shows that borrowers who do not pay points generally receive lower mortgage rates compared to similar borrowers who do pay points, we do not control completely for borrower observed and unobserved attributes. Therefore, we cannot say with certainty that for any particular borrower, the relationship between discount points paid and interest rate is negative.9
Exhibit 2 compares the quarterly average discount points paid by Freddie Mac borrowers (home purchase, owner occupied, one-unit properties). From 2018 through 2021, borrowers that matched the PMMS® profile, (borrowers with origination LTV between 75 and 80 and FICO score 740 or higher) paid about the same average amount of points compared to all purchase borrowers. Starting in 2022 and continuing through 2023, higher credit quality borrowers tended to pay fewer points compared to all borrowers. In 2023, borrowers that matched the PMMS® profile paid on average about 0.06 less points or about 10% less compared to all purchase borrowers.
Prime borrowers who pay discount points on average have higher incomes and are obtaining higher loan balances when purchasing a home compared to borrowers who do not pay points. For example, in 2023 the average loan amount for purchase loans with points paid at origination was $360,000, compared with an average loan amount of $370,000 for mortgages where the borrowers did not pay points. In 2023, the average annual income of a “no discount points” borrower was $148,000, higher than the $140,000 average annual income for borrowers who paid points.
Our analysis on the closing files data shows that there is a difference in borrower behavior across the U.S. when it comes to paying discount points and origination fees. For example, in 2023 over 70% of prime purchase borrowers in HI, NM, WV, OR, WA, and DE paid discount points when closing on their mortgage while less than 50% of borrowers paid discount points in VT, IA, MA, IL, NE, ND, and WI. Exhibit 3 below shows the breakdown by state in 2023.
Our analysis shows that mortgage borrowers in 2023 were more willing to pay discount points than in previous years, and that the likelihood of paying points was greater for lower credit quality borrowers compared to the high-quality mortgage borrowers captured in our PMMS® profile population. We also saw that borrowers in the Midwest were less likely to pay points compared to borrowers in the Pacific and Mountain West. If interest rates stabilize in 2024, it will be interesting to observe whether borrowers opt to pay fewer points, or if the recent uptick in paying discount points is a more permanent shift in the mortgage market.
Footnotes
1 Non-Farm Employment, Bureau of Labor Statistics
2 BEA
3 National Association of Realtors (NAR)
4 From January 1999 through December 2019 the average number of existing homes available for sale averaged 2.2 million, about double the number of homes available for sale in November 2023.
5 U.S. Census Bureau and U.S. Department of Housing and Urban Development
6 Mortgage Bankers Association (MBA)
7 For an analysis of temporary buydowns see our previous Research Brief: https://www.freddiemac.com/research/insight/20230731-temporary-mortgage-rate-buydown-activity-spiked-in.
8 See for example: Agarwal, S., Ben-David, I. and Yao, V., 2017. Systematic mistakes in the mortgage market and lack of financial sophistication. Journal of Financial Economics, 123(1), pp. 42-58.
9 For a more detailed analysis see: Mota, N., Palim, M. and Woodward, S., 2022. Mortgages are still confusing… and it matters—How borrower attributes and mortgage shopping behavior impact costs. Fannie Mae Working Paper. https://www.fanniemae.com/media/45841/display
Inside: Are you looking to maximize your rewards and credit card hacks? This guide will teach you the most effective methods for using your hacking, signing up for bonus rewards, and making efficient card purchases.
Credit card use extends beyond just making purchases. Savvy credit card users understand that with the right set of hacks and optimal usage, there’s a world of rewards that are ripe for the picking.
Money saved can be money earned, and this simple philosophy forms the cornerstone of these 25 credit card hacks you’ll be learning about today.
Why do credit card hacks matter? Well, I just received a $700 check for credit card rewards. That is enough to pay for a weekend trip away.
What are Credit Card Hacks?
Credit card hacks are creative strategies employed by credit card users to maximize the benefits and rewards offered by their credit cards while also potentially saving more money.
This trend has become more popular in recent years due to the rise in premium travel and cashback cards that offer lucrative ongoing rewards programs. Users who learn about these hacks can save you money on travel or just put cold hard cash back in your wallet.
With strategic approaches, these hacks provide an avenue to optimize rewards and navigate the financial landscape more effectively.
Proven Credit Card Hacks to Maximize Rewards
Tip #1 – Utilize sign-up bonuses
One of the most attractive features of credit cards is the sign-up bonuses they offer, which are essentially rewards that cardholders can earn after meeting a certain spending threshold within a specified timeframe. The bonuses can range from hundreds to even thousands of points, miles, or cash – favorably impacting your rewards balance.
To illustrate, if you take the Chase Sapphire Preferred® credit card, both partners in a household can get up to 50,000 extra points each as part of the sign-up bonus.
Bonus tip: Stagger your applications, so once one person gets the bonus after meeting the spending requirement, the other person can then apply and achieve the next round of bonuses.
Tip #2 – Increase credit limit
The principle behind this is simply buffering your “credit utilization ratio”, which is how much of your total available credit you are utilizing.
To illustrate how a credit limit increase will work, let’s consider an example: with a credit limit of $10,000 and a credit usage of $3,000, your utilization ratio stands at 30%. But once your credit limit increases to $15,000 with the same credit usage, your utilization ratio drops to 20% – which is a noticeable improvement.
Remember, when requesting a credit limit increase, some card issuers might execute a hard inquiry on your credit report, which could temporarily decrease your score. Hence, you should try to find out beforehand whether your issuer is likely to perform a hard or soft credit pull. Soft inquiries won’t affect your credit score, making them the preferable approach.
Tip #3 – Master balance transfers
A balance transfer, executed proficiently, can be an effective way to handle significant credit card debt. By focusing on reducing the cost of debt through lower interest rates, balance transfer can accelerate your debt repayment process while saving you considerable money over time.
This is what one of my clients did and the date when the 0% interest ended was very motivating to pay off their debt.
This process entails the shuffling of debt from one card (usually one with a high interest rate) to another card—preferably with a 0% promotional APR offer. With this interest-free period, you can focus on repaying the principal balance, hence clearing your debt faster.
As a finance expert, make sure balance transfers are only beneficial if you’re mindful of the terms, like how long your 0% rate will last and what fees are involved in the transfer to the new card.
Tip #4 – Purchase prepaid cards with credit
Need a way to spend a certain dollar amount by a certain deadline? Then, look at purchasing prepaid cards with a credit card as a strategy to earn extra rewards points. This method entails buying prepaid cards or gift cards using your credit card, and later using these prepaid cards to cover those expenses you typically will use.
In other cases, customers have reported that their credit card companies have clawed back rewards points that were initially given for gift card purchases. Double check their terms and conditions, many issuers, including American Express, explicitly exclude such transactions from earning rewards. 1
Tip #5 – Harnessing the 15/3 Methodology
The 15/3 Methodology is a credit card hack that intends to optimize your credit utilization ratio—one of the significant factors that impact your credit score.
Here’s how it works: You pay off a majority of your card’s balance 15 days before your statement date, and then pay off the remaining balance three days before the statement date. By doing this, you create the illusion of a lower balance, which can positively impact your credit score.
There is still a debate about whether or not this strategy improves your credit card score. Paying your bill on time will definitely improve your score.
Tip #6 – Strategies to earn additional rewards through third-party programs
An often overlooked but highly effective credit card hack is utilizing third-party apps and websites that offer additional rewards when you shop at participating retailers and restaurants. These rewards are additional to the cash back, miles, or points awarded by your credit card.
One such app is Dosh, a cashback app. By linking your credit card to your Dosh account, you can earn up to 10% cash back from participating retailers on top of the rewards earned from your credit card. Similarly, apps like Drop and Bumped give users points for every dollar spent, and these points can be redeemed for gift cards.
Furthermore, many airlines and hotels participate in dining rewards programs where you’ll earn extra rewards at select restaurants. Airlines like United, Southwest, Delta, and hospitality giant companies like Marriott and Hilton actively participate in such programs.
Tip #7 – Earn a credit card sign-up bonus then canceling the card right away
Also known as credit card flipping or churning, the tactic of earning a credit card sign-up bonus and then canceling the card right away has been employed by some savvy credit card users to maximize rewards.
However, this practice isn’t as easy or beneficial as it appears. While it sounds like an accessible system to generate easy money, it comes with several potential pitfalls that could make it a risky move.
Firstly, numerous card issuers have, over the years, implemented stricter rules to deter this practice. Chase, for instance, has the 5/24 rule indicating you can have only five new credit cards within the last 24 months. 2
Repeatedly opening and closing the same card can result in a declined application or rescinded bonus and hurt your credit score-perceived as credit misbehavior by the issuer.
It can also be viewed as unethical and potentially lead to you being barred from opening accounts with that issuer in the future.
Churning can negatively affect your ability to get approved for future credit cards and loans because lenders may think you’re a risky borrower.”
Tip #8 – Develop a multi-card system
This method aims to cover all your spending by using different cards that offer elevated rewards for certain purchase categories.
For instance, we have one card that pays an unlimited flat rate of 2% on all purchases. Then, another rewards card offering increased category rewards, with travel and gas. Then a there card that rotates through various categories each quarter.
Diversifying your spending amongst several credit cards can help you to earn the maximum possible rewards. However, endowing yourself with several credit cards is not for everyone as it requires careful financial management. In some cases, the potential of overspending can outweigh the benefits.
Tip #9 – Transfer points between multiple cards
Transferring points between cards (provided they are from the same issuer) is another useful strategy whereby you can redeem them at their maximum possible value.
The goal is to make your spending work for you and maximize the rewards you can earn from daily expenses. However, people should employ this strategy responsibly and ensure they’re not overspending just to earn rewards.
In such a strategy, points on traditional cashback cards can be transferred to airline and hotel partners when you also have a transferable points card like the Sapphire Reserve or Sapphire Preferred. So, not only are you earning cashback on your purchases, but you’re also accumulating lucrative points that can be redeemed for travel.
Tip #10 – Don’t use cash
In the world of credit card rewards, cash is no longer king. Whenever feasible, you should consider using your credit cards instead of cash or debit to pay for everyday purchases. This allows you to earn rewards on purchases you’re making anyway.
The best way to implement this is for you to bills with their credit cards instead of cash or debit and set this up on autopay. This serves a dual purpose of potentially earning rewards on these payments whilst also conveying a positive message to the banks about your money management skills, leading to possible credit score improvements.
However, this method works best when your spending doesn’t increase as a result. Only use your credit card for expenses that you’d normally pay in cash and for which you already have the money set aside to pay.
Tip #11: Time your purchasing
Being strategic about when you make your credit card purchases can help you wring out some extra benefits.
One way to optimize your earning potential and maintain a healthy credit score is to plan your large purchases around your credit card’s billing cycle. Making your most significant purchases immediately after your statement date ensures that you have the longest possible repayment period, effectively offering you a short-term, interest-free loan.
Furthermore, if your issuer has a rewards cut-off at the end of a calendar year, you can make larger purchases ahead of time to push yourself into a higher rewards bracket.
Tip #12 – Make Micropayments
Rather than making one full payment, consider making multiple payments over the billing cycle, commonly referred to as ‘micropayments.’ This helps keep your running balance low and, in turn, your credit utilization ratio – the percentage of your available credit limit you’re using – also low, positively impacting your credit score.
Plus it helps to keep your checking account at a more accurate level.
Tip #13: Have your spouse apply for the same credit card
Known informally as the “two-player mode” amongst credit card hacking enthusiasts, having your spouse or partner apply for the same credit card can be an effective strategy to earn double the sign-up bonus. This approach is based on the idea that instead of just adding your spouse or partner as an authorized user to your card, they should apply separately.
For instance, if a card like the Chase Sapphire Preferred® offers a 50,000 points bonus on sign-up, both partners can potentially earn up to 100,000 points collectively, essentially doubling the bonus.
But remember, this hack should be used strategically – you should stagger your card applications and ensure each of you fulfills the spending criteria to qualify for the bonus.
Tip #14 – Importance of prompt payment
Quite possibly the hack with the most significant impact on both your credit score and your pocket, prompt payment of your credit card bill cannot be overstated.
Making on-time payments can drastically improve your credit score since your payment history is the most heavily-weighted factor that credit scoring models consider.
Plus paying your balance in full each month can help you avoid interest charges and penalties, effectively saving you money in the long run.
Tip #15 – Know What Rewards you Want
Rewards such as travel miles, discounts at partnered retailers, cashback, or access to premium experiences like airport lounges or concert tickets are available, depending on your card.
By understanding and leveraging these varied rewards, you can get the most excellent value out of your credit card expenses.
Cautionary Advice on Credit Card Hacks
While credit card hacks can undoubtedly offer substantial benefits when done right, pitfalls can ensue if one isn’t careful.
Pitfall #1 – Overspending
For starters, these hacks can inadvertently lead to overspending or unnecessary purchases. Be wary of making purchases you don’t need or can’t afford in an attempt to earn more rewards or meet the spend necessary for a sign-up bonus.
Consequently, the pursuit of credit card rewards could also lead to accumulated debt if you’re not diligent about paying off your balance in full each month. The interest that you need to pay on balances carried over can easily eat up the value of any rewards earned.
Pitfall #2 – Impact on your Credit Score
Applying for multiple cards can lead to hard inquiries on your credit report, which can temporarily lower your credit score. Similarly, canceling cards after acquiring the sign-up bonus could harm your credit utilization ratio and your length of credit history, both key factors in your credit score calculation.
Additionally, irresponsible habits like ‘credit card churning’ and ‘paying for everything with credit’ may risk your relationship with card issuers. Some companies might close accounts or even ban individuals from opening new ones if they’re perceived as abusing the system.
While some of the top-tier reward and travel credit cards often come with hefty annual fees, not all of them are worth paying. This is especially true when a card’s annual fees outstrip the value of the rewards earned.
Before you sign up for a credit card with an annual fee, it’s advised to read the fine print and estimate what you can earn from it. You should evaluate whether the perks, bonuses, rewards, and credits offered offset the annual fee cost.
Personally, I don’t use any cards that have an annual fee.
Pitfall #4 – Paying interest
Credit card interest can significantly impact your overall financial health if you’re not careful. The money invested toward paying it off could be better used elsewhere – for saving, investing, or spending on your needs and desires. Hence, one of the best “credit card hacks” out there is to simply stop paying interest.
You want to focus on debt free living.
Pitfall #5 – Avoiding counterproductive habits like “balance surfing”
Balance surfing is a strategy where you continually move credit card debt from one card with an ending 0% APR promotion to another card with a new 0% APR offer. While this approach can potentially delay interest payments, it can become a dangerous cycle if you find yourself simply transferring debt instead of reducing it.
Meanwhile, the total debt remains the same. Without a consistent debt repayment strategy, this method can lead to an endless cycle of balance surfing.
What are some of the best credit card rewards and hacks for 2024?
As we venture into the new year, some credit card reward strategies remain timeless while others evolve in response to new credit card offers and updated reward programs. In 2024, here are some of the best credit card hacks worth considering:
Take Advantage of Updated Card Offers: Credit card issuers frequently update their card offers and rewards programs. Ensure you stay updated on these changes to maximize your card benefits.
Focus on Cards with Flexible Reward Categories: Some cards, like the Bank of America® Customized Cash Rewards credit card, allow you to choose your highest cash-back category (like online shopping, dining, or grocery stores). These flexible category cards can be more advantageous as you can adapt them to your spending habits.
Leverage Rotating Categories: Cards like the Chase Freedom Flex℠ and Discover it® Cash Back offer 5% cash back on up to $1,500 in purchases in various categories that rotate each quarter, once you activate. Plan your spending in advance to leverage these rotating categories optimally.
Remain Alert on Loyalty Program Partnerships: Many credit cards and airlines have partnerships with other brands. This can mean increased rewards when shopping with those brands, so always watch for new partnerships or promotions.
Revisiting Annual Fees: If your credit card perks no longer justify its annual fee due to changes in lifestyle or spending habits, consider downgrading to a no-fee card from the same issuer. This way, you can save on annual fees without closing your account which could potentially harm your credit score.
Diversify Your Rewards: While it may be tempting to concentrate all your spending on a single card, diversifying your rewards can make you earn more. Consider employing a multi-card system to maximize rewards across different spending categories.
Your credit card should be a tool to enhance your financial flexibility, not a burden that leads to financial stress.
Frequently Asked Questions (FAQs)
Deciding whether to focus on paying off a single card or distributing payments over several cards can seem complicated, but there are a couple of methodologies to strategize your payoff.
The Debt Avalanche method suggests focusing on the card with the highest interest rate first. Once you’ve paid this card off in its entirety, you then move on to the card with the next highest interest rate. This can potentially save you more money in the long term as it targets high-interest debt first.
Alternatively, the Debt Snowball method, proposed by financial guru Dave Ramsey, recommends paying off the card with the smallest balance first, then moving on to the card with the second-smallest balance. While you may not save as much money in interest compared to the debt avalanche method, the psychological motivation of paying off a credit card balance entirely may be more important for maintaining consistent repayment.
Either method requires you to make minimum payments promptly on all cards to avoid late fees and possible credit score damage.
Getting credit card points without spending any additional money may seem like wishful thinking, but there are certain strategies that you can employ to achieve this. Strategically managing your credit cards can turn your everyday spending into reward points, miles, or cash back.
Referral Bonuses: Many credit card companies offer referral bonuses to their existing cardholders who refer friends or family members. If the person you referred gets approved for the card, you can earn bonus points.
Cardholder Perks: Credit card companies often run promotions offering bonus points for certain activities. These can range from enrolling in paperless billing, adding authorized users to your account, or completing an online financial education course. Check with your card issuer to view any current promotions.
Shopping Portals: Many credit card issuers, and even airline and hotel rewards programs, have their own online shopping portals where you can earn additional bonus points for every dollar spent. If you were already planning on making an online purchase, consider making it through these portals to earn extra rewards.
Sign-up Bonuses: Some cards offer sizeable sign-up bonuses for new cardholders who meet a required minimum spend within the first few months. Although this technically requires spending money, it doesn’t require spending more money if you use your card for purchases you were already planning to make.
While implementing certain credit card strategies can potentially earn you higher rewards or save money, they can also unintentionally harm your credit score if not executed responsibly.
Several factors can contribute to this potential downfall:
Opening and Closing Accounts: A high frequency of card applications can lead to multiple hard inquiries on your credit report, which might lower your score in the short term. Closing credit cards, especially older ones, can affect both your credit utilization ratio and the age of your credit history, two significant factors in your credit score calculation.
Carrying a Balance: Maintaining a high credit utilization ratio—i.e., carrying a large balance relative to your credit limit—can negatively impact your credit score.
Late Payments: If these deadlines are not strictly adhered to, they could result in late payments, which can seriously harm your credit score.
Excessive Spending: Some tactics lead to unnecessary spending to earn more reward points or meet an initial spend required for a sign-up bonus. Not only can this increase your credit utilization ratio and potentially lower your credit score, it can lead to debt if these balances are not paid off in time.
While both rewards cards and travel rewards cards offer perks to their users in return for spending, the primary difference lies in the kind of rewards they offer and their target user base.
A Rewards Card generally offers cash back, points, or miles for every dollar spent, redeemable in a variety of ways. This is the type of card I prefer. For example, you may redeem your accumulated rewards as cash back into your account, use them to purchase products or services, or exchange them for gift cards. The flexibility of rewards makes these cards are suitable for people with varied spending habits and prefer a variety of redemption options.
A Travel Rewards Card, on the other hand, is designed specifically for frequent travelers. These cards earn you points or miles on specific travel-related expenses, like booking flights or hotel stays. The redeemed rewards are typically used towards further travel-related expenses like airfare, hotel stays, or car rentals. Travel Rewards Cards often offer additional travel-centric perks like free checked bags, priority boarding, airport lounge access, and more.
Consider your spending habits, lifestyle, travel frequency, and preference in terms of reward redemption.
Protecting yourself from credit card fraud is an important aspect of managing your credit card usage effectively.
Monitor Your Accounts Regularly: Keep a thorough watch on your credit card statements for any unauthorized or suspicious charges. Report them to your credit card issuer as soon as possible.
Use Secure Networks: When making online purchases, only shop on secure websites (look for “https” in the web address), and avoid using public Wi-Fi networks for transactions.
Keep Your Personal Information Safe: It’s important to dispose of old credit card statements properly, and avoid giving out credit card information over the phone unless you initiated the call and you trust the recipient.
Protect Your PIN and Password: Don’t share these with anyone, and avoid using easily guessable combinations like birth dates or the last four digits of your social security number.
Enable Account Alerts: Most banks now offer optional security alerts that can be sent via text message or email whenever a charge above a certain amount gets made to your account.
Protect Your Computer and Phone: Make sure your devices are equipped with up-to-date antivirus software and that your phone is locked with a secure password or fingerprint identification.
In case you become a victim of credit card fraud, know the steps to protect yourself – report it to your bank or credit card company immediately, file a report with the Federal Trade Commission, and report it to the three major credit bureaus, requesting them to put a fraud alert or a credit freeze on your account.
Also remember, credit cards don’t have routing numbers.
Making the Most of Credit Card Hacking
When used wisely, credit card hacks and reward strategies can play a significant role in stretching your budget and rewarding your spending. These secrets of savvy credit card use — from aligning your card to your spending habits, making the most of sign-up bonuses and reward categories, to understanding the ins and outs of your credit card’s rewards structure — can help maximize your potential rewards and save money.
Personally, we use all of our credit card rewards to pay for our travel expenses.
However, it’s paramount to remember that these tips and tactics should not encourage unnecessary spending or carrying a balance. Only spend within your means, ensure you pay off your balances each month to avoid interest charges and remember to safeguard your credit score by handling credit card applications and closures cautiously.
Ultimately, credit card hacks and rewards should fit within your overall financial plan and goals, adding value to your everyday spending habits and rewarding you for well-managed financial practices.
Remember your goal is to reach your FI number.
Source
Reddit. “American Express Clawing Back Points Earned From Gift Card Purchases.” https://www.reddit.com/r/AmexPlatinum/comments/14hywaq/american_express_clawing_back_points_earned_from/. Accessed January 19, 2024.
CNN. “What is the Chase 5/24 rule?” https://www.cnn.com/cnn-underscored/money/chase-5-24-rule#:~:text=The%205%2F24%20rule%20is,your%20approval%20odds%20with%20Chase. Accessed January 19, 2024.
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