7 Signs You are Living Beyond Your Means

When you’ve lived paycheck to paycheck, scrounging up enough money for an emergency fund can feel like a revelation. All of a sudden you’re not living with a dark cloud over your head and setbacks start to seem more manageable. You feel more in control of your life and your finances.

But you can take that even further. Saving for emergencies is just the first step in developing a strong, stable plan for the future. Once you have the foundation laid, it’s time to start deciding just what kind of future you’re trying to build.

That future starts with savings goals. Here are a few examples of how to start saving beyond your emergency fund.

Car Repair Fund

About 18 months ago, my husband and I were driving up for a ski weekend in the Colorado mountains. We were meeting his cousin and wife for a long weekend of winter sports, beer and food. At least, that was the plan.

On the way there our car started making a funny noise. Eventually, that funny noise turned into a persistent whine, and before we knew it the engine was smoking and we were stranded on the side of the road. We had the car towed back to a mechanic, who informed us that it would cost several thousand dollars to repair the damage.

I hadn’t really planned for this. The car had less than 200,000 miles and seemed in good shape. We’d followed the maintenance schedule religiously and had no reason to worry. Luckily, the incident happened just a few days before we received a huge tax refund, so we took the money and bought another car. I learned a valuable lesson that day: always save for a car repair fund.

Since then, I set up an auto draft to a separate savings account solely for car repairs. I picked $75 a month as a starting point but might increase it to $100 in the near future.

I’ve also started a car replacement fund, so I’m prepared for the next time my husband and I need to buy a new car. That account gets $100 every month, and any leftover money I find at the end of the year.

Vacation Fund

Erin Lowry of “Broke Millennial” wrote in a recent post about how she has a separate vacation fund set aside so she can travel more spontaneously. She has at least $3,000 in her vacation fund, so she’s prepared when her girlfriends want to take an impromptu trip or she finds an amazing flight deal to Germany.

If travel is an important part of your life – or you’d like it to be – consider starting a vacation fund. Even if it’s just a long weekend at the family cabin or a short road trip to a neighboring state, giving yourself the option to escape at any time can make the daily grind a little more bearable.

Don’t feel pressured to save aggressively if you don’t want to. Even $300 a month will add up to $3,600 a year, enough for a two-week European stay or a handful of smaller domestic trips. If you keep saving for multiple years, you could end up with enough for a months-long sabbatical.

Personal Goals

When people talk about their greatest financial regrets, they usually reminisce about the investment deal they didn’t take or the house they never bought. For me, it’s the Spice Girls concert I didn’t go to.

The group came to Chicago while I was in college, and a few people from my dorm were carpooling to the concert. They had an extra ticket, which cost $100. I had the money in my bank account, but chose to be “responsible” and stay home. I’ve regretted it ever since.

About a year ago, there were rumors that the Spice Girls were planning to reunite and go on a limited international tour. I live about three hours from Chicago, and I figured the Windy City would definitely be a stop on the tour.

A couple weeks later I got a birthday check from my grandma, which I promptly deposited into a separate Spice Girls savings account. Rumors of a tour have since dissipated, but I still have hope that one day the girls will be reunited. Until then, I’ll be keeping $200 in that account.

It might seem insane to have a whole savings account for one concert that may never happen, but it’s worth it for the peace of mind. If I ever get the opportunity to fulfill this dream, I won’t have to sacrifice a thing. I’ll just pluck the money from my account, close it down and go have the time of my life.

If there’s something you desperately want to do someday, like attend the Super Bowl or run the Boston Marathon, it’s not a bad idea to have the money stashed away for that purpose. If the goal never comes to fruition or you’re not able to get tickets, you can always use it for something else.

Medical Expenses

One of the best ways to save money outside of an emergency fund is in a health savings account (HSA). HSA contributions are tax-deductible, can be withdrawn tax-free and earnings are also not taxed.

You can contribute up to $3,3450 for an individual or $6,900 for families. Once you have more than $2,000 in your HSA, you can start to invest the money like you would for a retirement account. HSAs are only available if you have a high-deductible insurance plan, but don’t have any income limitations.

If you aren’t eligible for a high-deductible plan or it’s just not a good fit, you can still save for medical expenses outside of an HSA. A good rule of thumb is to save as much as your out-of-pocket maximum since that should cover a year of catastrophic medical bills. You can keep this in the same savings account where you have your emergency fund or in a separate one.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or view of Intuit Inc, Mint or any affiliated organization. This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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Move over Sapphire: Why I prefer Membership Rewards instead of Ultimate Rewards – The Points Guy


Move over Sapphire: Why I prefer Membership Rewards instead of Ultimate Rewards


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Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

The secret to getting the discontinued Ritz-Carlton credit card — and 4 reasons you need it – The Points Guy


How to get the discontinued Ritz-Carlton credit card — and why you need it – The Points Guy


Advertiser Disclosure


Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

3 Ways to Listen to Free Music Online – Downloads, Streaming & Radio

Back in the day, there were only two ways to listen to recorded music. You could tune your radio to a local station and hear whatever song happened to be playing, or you could go down to the record store and buy a copy of your favorite songs on a vinyl disc.

Today, that sounds quaint. According to The Guardian, digital music downloads overtook sales of physical recordings on CD or vinyl way back in 2012. More recently, even digital downloads have lost ground to music streaming services. In 2020, streaming accounted for 85% of all the music industry’s revenues, according to the Recording Industry Association of America.

All this technology has made listening to music significantly cheaper. According to a 2017 Nielsen report (via Digital Trends), the average consumer spends only $156 on music each year. Savvy consumers know there are several ways they can get most of their digital music for free — leaving more money in their budgets to enjoy a live concert or two.

How to Listen to Music for Free Online

There are three primary ways to get your favorite music for free online. Which one you choose depends on what you’re looking for.

1. Streaming Music Online

Today, streaming services are indisputably the most popular way to listen to music. With a streaming music service, you don’t own the songs you play, but on the plus side, you’re not limited to the number of tracks you can fit on your phone or MP3 player.

Streaming services can take several forms. Some are subscription services that play music selected for you, some are more like radio stations, and some simply play tunes on demand. However, many online music sources blur the boundaries between these categories.

Internet Radio

Internet radio stations work the same way as old-school radio: They select songs, and you listen to whatever pops up. But instead of being limited to the few stations in range, you can choose from a vast list of specialized stations that suit particular musical tastes. Also, if you hear a song you really can’t stand, you can just skip it — something you can’t do over the airwaves.

Some services take this personalization to its logical extreme by creating custom radio stations to suit a user’s tastes. Instead of a live DJ choosing which tune to play next, algorithms select songs for you based on which artists and music you say you like.

Advertising funds the majority of Internet radio stations. But some let you upgrade to an ad-free experience for a small monthly fee. Choosing a paid version also lets you skip songs more frequently. Most online radio stations limit users of free accounts to six skips per hour.

There are multiple internet radio stations to choose from.

Pandora

Started in 2000, Pandora is one of the top streaming sites on the Internet. Its music-picking algorithm, known as the “Music Genome Project,” analyzes the songs you like best and then presents you with other songs that share similar qualities.

According to Digital Trends, Pandora’s music collection is pretty decent, with about 40 million tracks for its on-demand service. However, the main reason to listen is its “magic algorithms,” which do a fantastic job of picking out songs to match your tastes. You can listen on a range of devices, including computers, smartphones, TVs, and car audio systems.

Pandora’s basic service is free. However, you can pay to upgrade to ad-free listening with Pandora Plus for $4.99 per month. On-demand listening via Pandora Premium costs $9.99 per month for individuals, $14.99 for families with up to six members, $4.99 for students, and $7.99 for military members.

LiveXLive

Formerly known as Slacker Radio, this service relaunched as LiveXLive in 2017. The new name reflects its focus on providing live music streams. The service earns an Editors’ Choice designation from PCMag, which praises its “curated stations” hosted by experienced and informative DJs.

Along with its extensive music collection, LiveXLive offers live news from ABC and pop culture tales called “Slacker Stories.” It also hosts videos featuring music news, interviews with artists, and even live performances. It’s easy to use on multiple platforms, with apps for Android, iOS, Amazon Fire TV, Apple TV, and Roku.

A free account comes with 128 kilobits per second audio and the ability to skip up to six songs per hour — and plenty of ads. You can remove these limitations and upgrade your speed by upgrading to Plus ($3.99 per month). Going up to Premium ($9.99 per month) gives you access to on-demand and offline listening.

Last.Fm

At Last.fm, you create a custom profile that’s continuously updated with info about what artists and genres you’re listening to. The site uses this feature, which it calls “scrobbling,” to make personalized recommendations for new music. It also has a social media component, introducing you to other music lovers who share your tastes.

A basic subscription to the site is free. An ad-free version with extra features costs just $3 per month. You can listen to Last.fm on the Web or through its desktop and mobile apps. The apps can also track what music you listen to from other streaming music services and use that information to enhance your profile.

Jango

One of the newest players in the Internet radio field is Jango. Like Pandora, this service creates custom radio stations based on your musical tastes. You select your favorite artists, and Jango plays music from those artists and similar ones. You can fine-tune the playlist by rating songs you especially like or never want to hear again.

Jango also has hundreds of ready-made stations. Some are based on different genres, such as country, classical, or hip-hop. Others focus on more specific themes, such as today’s top 100 hits or Christmas songs.

You can listen to Jango over the Web or via an app for Android or iOS (iPhone, iPad, and iPod Touch). The service is 100% free and supported by ads. However, if you link Jango to your Facebook account, you will hear only one commercial per day. The mobile apps sometimes offer ad-free listening as well.

Subscription Services

A subscription streaming music service is like a library filled with songs users can check out but not keep permanently. Most subscription services make money by charging a fixed monthly rate in exchange for unlimited listening. But many also offer free accounts funded by advertising.

Amazon Music

There are two ways to listen to Amazon Music. If you have an Amazon Prime subscription, it comes with access to a limited catalog of 2 million songs. This basic, ad-supported service has thousands of stations and playlists, and you can listen offline with unlimited skips. You can also use Alexa, Amazon’s smart assistant, to control playback and discover new music.

If you want more music, you can upgrade to Amazon Music Unlimited. It gives you ad-free, on-demand access to 75 million songs in HD. Over 7 million songs are available in Ultra HD, and the service also includes access to exclusive Ultra HD remastered albums. Amazon Music Unlimited also gives you access to other audio, such as podcasts.

Your first 30 days of Amazon Music Online are free. After that, it costs $9.99 per month for Prime nonmembers or $7.99 per month if you have a Prime subscription.

Spotify

Named the best all-around music streaming service by Digital Trends, Spotify is by far the most popular on-demand streaming service in the world today. There are several ways to use it:

  • Discover new music through the site’s curated playlists.
  • Create playlists from Spotify’s collection of more than 50 million tracks.
  • Browse playlists created by others, including friends, performers, and celebrities.

All music on Spotify is free, but upgrading to a Spotify Premium subscription for $9.99 per month gives you several extra perks. You get better audio quality, ad-free playback, and the ability to save songs for offline listening. You can also play songs on demand in the mobile app, a feature that’s unavailable with a free subscription.

You can listen to Spotify over the Web or via its iOS and Android apps. It also runs on certain gaming consoles, smart speakers, and car audio systems.

YouTube Music

The free version of YouTube Music is like a cross between a radio station and an on-demand streaming service. It invites you to name some of your favorite artists and uses that information to recommend albums, curated playlists, and custom playlists for you.

But unlike most online radio stations, YouTube Music lets you move around these lists at will, skipping forward or backward. Ads are relatively infrequent, according to Gizmodo, and it’s possible to skip some of them. You can also search for specific artists, albums, and tracks by name, save your favorites to your library, and create playlists.

YouTube Music also has some extra features most music services don’t provide. For instance, you can switch back and forth between audio tracks and music videos with the tap of a button. The service can also search for a song based on its lyrics.

All this is available free over the Web and on Android and iOS. However, upgrading to YouTube Music Premium for $9.99 per month lets you listen ad-free and stream in the background while your device is off. If you subscribe to YouTube Premium for streaming video, you get access to YouTube Music Premium for free.

Deezer

Though it’s not as well known as other streaming services, Deezer is surprisingly full-featured. This service provides a blend of on-demand streaming, live radio, podcasts, videos, and exclusive content — all for free.

On the Web or your desktop, Deezer recommends playlists for you based on your favorite artists and genres. You can also search a library of 73 million for specific tracks to create your own playlists. Deezer also provides synchronized song lyrics. However, the free service is available only on desktops, mobile devices, and a few home devices. It also limits skips.

If you upgrade to Deezer Premium ($9.99 per month) or Deezer Family ($14.99 per month), you get ad-free streaming, an offline mode, and unlimited skips. You can also connect on up to three devices at once, including smart speakers, smart TVs, wearable devices, game consoles, and car audio systems. You can try Deezer Premium free for 90 days.

Free Trials

Some streaming music services don’t have free ad-sponsored versions, but they do offer free trials. These give you a chance to test the service and decide whether it’s worth coughing up the cash for a monthly subscription.

Apple Music

With a library of over 75 million songs, Apple Music is the ideal streaming service for anyone who relies on Apple devices. It’s the only service you can control with the Apple Watch or voice commands to Siri, Apple’s smart assistant. Windows users can also use Apple Music via iTunes on their computers, but it doesn’t work as smoothly, according to Digital Trends.

Apple Music allows you to store up to 100,000 songs in your personal streaming library. If you’re an iTunes user, you can find many of your songs already available in the streaming library when you first sign up. The service also includes Apple Music 1, a 24-hour radio service curated by noted DJs and musicians.

The free trial period is 90 days. But according to Insider, you can double this to six months by signing up through an account with Best Buy. After the trial, choose from three service tiers: student at $4.99 per month, individual at $9.99 per month, and family at $14.99 per month.

Tidal

Both PCMag and Digital Trends agree that Tidal, a streaming service owned by top rap artist Jay-Z, has top-notch audio quality. It also offers exclusive content for hardcore music fans, such as timed releases from top artists like Beyoncé, live streams, concerts, and backstage footage. It even provides early access to certain concert and sports tickets.

Tidal offers a library of over 70 million songs and 250,000 music videos. However, as Digital Trends notes, it’s not easy to discover new music, and the interface can be buggy. Also, Tidal doesn’t provide lyrics, unlike many other services. You can listen on computers, mobile devices, smart TVs and streaming devices, smart speakers, and car audio systems.

The free trial period lasts 30 days. After that, Tidal Premium is $9.99 per month for individuals and $14.99 per month for families. Tidal HiFi, with lossless-quality sound, is $19.99 per month for individuals and $29.99 per month for families. But there are discounted subscriptions available for students, military members, and first responders.

SoundCloud Go

This service is the streaming counterpart to SoundCloud’s music download service. Digital Trends calls SoundCloud Go the best way to discover new indie music thanks to its vast library of 120 million user-created tracks. Its higher-tier SoundCloud Go+ adds another 30 million tracks from major labels and ad-free listening.

The service has nearly 200 million active users each month, and tons of lesser-known artists upload their newest songs regularly. However, unlike many other services, it doesn’t use algorithms to help you find music, so it can take some work to search through all the content to find your new favorites.

The free trial period is seven days for SoundCloud Go and 30 days for SoundCloud Go+. If you like it, you can pay $4.99 per month for SoundCloud Go or $9.99 per month for SoundCloud Go+.

Free Streaming on Demand

Some sites don’t require a subscription to stream music — you just go to the site, pick a track, and listen. For instance, on YouTube, you can type in the name of just about any song and find a video version of it.

The artists or their labels post some of these. But some are amateur videos created by fans, and some have just the music accompanied by a blank screen or lyrics. For example, a search for the popular song “All About That Bass” by Meghan Trainor turned up Trainor’s official video, a live performance of a jazz cover version, and numerous fan-created videos and parodies.

YouTube is an excellent place to find that obscure song you heard years ago, even if you’re unsure of the title or the artist. Just type in the most memorable line from the song, and let YouTube’s search engine do its thing. Using this method, I tracked down two old novelty songs: “Put the Lime in the Coconut” by Harry Nilsson and “Right Said Fred” by Bernard Cribbins.


2. Free Music Downloads

In the age of the Internet, it’s very easy to download music illegally. However, if you prefer to stay on the right side of the law — and support your favorite artists and the music labels that support them — you need to dig a little deeper to find free music downloads that are also legal.

Amazon

In addition to its streaming service, Amazon has a massive catalog of digital music for download, including more than 5,000 free songs. Many of these are obscure tracks by relatively unknown artists. But there are also a few gems by better-known performers, such as the rock band Foo Fighters and the folk artist Carole King.

Finding free tracks on Amazon is a bit tricky since the site keeps trying to redirect you to Amazon Music. Your best bet is to search the Internet for “find free music downloads on Amazon” and follow the first non-sponsored link you find.

SoundCloud

The primary SoundCloud service is sort of like YouTube for recording artists. Any user can upload music to the site, making it available for other users to download or stream.

Not all the music on SoundCloud is free, but you can find free tracks by both major and lesser-known artists. You can search the site for specific artists or genres or just browse the selections of trending music. SoundCloud’s services are also available through mobile apps for iOS and Android.

SoundClick

Much like SoundCloud, SoundClick provides a place for independent artists to make their music available directly to listeners. Founded in 1997, this site now offers millions of tracks spanning a variety of genres. You can find hip-hop, electronic, rock, alternative, acoustic, country, jazz, and even classical.

You can stream unlimited tracks via SoundClick or download them in both MP3 and lossless format. As a subscriber, you get your own profile page and custom playlists. You can follow your favorite artists, connect with other users, and support artists through tips.

Free Music Archive

Created by independent freeform radio station WFMU in New Jersey and now owned by the Dutch music collective Tribe of Noise, the Free Music Archive is a collection of free legal music tracks submitted by users and partner curators. All music on the site appears under Creative Commons licenses, which let artists make their work available for various uses without surrendering their rights.

Digital Trends calls the archive “a veritable treasure trove of free content” you can search by title, artist, genre, and length. The site also hosts a wealth of podcasts and some live radio performances from big-name artists.

Jamendo

Another site that distributes free music under Creative Commons licenses is Jamendo. Around 40,000 artists from more than 150 countries have contributed more than 500,000 tracks, available for streaming or download, to the site.

According to Digital Trends, this site offers a streamlined user interface that makes it easy to browse and find new musicians. Even though most artists featured here aren’t well known, it’s easy to find the most popular tracks based on their user ratings, so you don’t have to sift through countless songs to find the good stuff.

If you need music for commercial purposes — for instance, in a video you want to distribute for profit — Jamendo offers a licensing service. For a monthly fee of $49, you get an unlimited number of tracks for commercial online use.

NoiseTrade

NoiseTrade is a project of the award-winning lifestyle magazine Paste. The “trade” in the name means artists give you their music on the site in exchange for your email address and postal code. It’s a win-win for users, who get free tracks or entire albums, and for artists, who get to build their fan bases.

Digital Trends describes this site’s interface as simple and clean. You can easily search tracks, browse recommendations, promote your favorite artists via social media, and send them tips with a credit card.

ReverbNation

Many well-known artists, including Imagine Dragons and Alabama Shakes, built their fan bases from scratch by sharing their music on ReverbNation. The site hosts over 3.5 million artists representing a mix of genres, like rock, R&B, indie, hip-hop, country, and folk. Its Discover feature can help you find up-and-coming artists in genres that interest you.

DatPiff

Hip-hop artists have long used mixtapes to spread their work. In that tradition, DatPiff offers access to a variety of new free music from both new rappers and mainstream artists like Drake and Future. According to Digital Trends, it’s the leading place to download new tapes, view release schedules, and listen to compilations created by fans.

Audiomack

A newer, up-and-coming player in the mixtape realm is Audiomack. It focuses on hip-hop, rap, and trap music from both newcomers and established artists like Kodak Black. Some artists on this site allow only online streaming of their songs, but there are still plenty of downloadable tracks.

CCTrax

Another genre-specific site is CCTrax. Although it hosts tunes from various genres, it has an unparalleled collection of electronic music, including dub, techno, house, downtempo, and ambient. Many of the singles and albums are licensed by Creative Commons and free for use in other works.

Musopen

Classical music lovers can find lots of free recordings, sheet music, and even textbooks at Musopen. Most classical music pieces are in the public domain, so it’s perfectly legal to distribute them for free. The site has a vast library of royalty-free recordings you can search by composer, performer, form, instrument, or period.

Live Music Archive

For live concert recordings, Live Music Archive is the place to go. The site is a collaboration between the Internet Archive, a nonprofit repository of digital media, and Etree.org, a community for sharing concert tapes. Recordings date back to 1959 and span a wide variety of genres, including rock, reggae, and jazz — and over 15,000 Grateful Dead shows.

According to Digital Trends, this site can be tricky to navigate. There’s no search function, but you can filter results by artist, title, or date. When you find what you want, you can stream it or download it in MP3 or FLAC (free lossless audio codec) form.


3. Broadcast Radio

Even in the brave new world of digital media, there’s still room for the old-fashioned kind. In fact, according to a 2019 Nielsen report, more Americans tune in each week to old-school radio — over the airwaves — than any other platform, including TV and all Internet-connected devices.

Far from killing off broadcast radio, the Internet has revitalized it. A couple of decades ago, you could only listen to your favorite radio station when you were in range of its antenna tower, which made it hard for smaller stations with less power to compete. Today, as long as you have an Internet connection, you can listen to any radio station that has a livestream.

For example, if I want to listen to my local NPR station, WNYC, I can just type “WNYC.org” into my web browser and click the Listen Live button. It’s a lot easier than fiddling with the radio knobs to hit the right frequency and allows you to listen to local radio, even when you’re traveling.

TuneIn

The Internet can help you discover new radio stations as well. At TuneIn, you can find and listen to Web streams from 100,000 radio stations around the world. Sports, news, podcasts, and talk radio are also available.

You can listen to any station on TuneIn with a free subscription. But your stream will include all the ads played on the radio station. With a premium subscription, which costs either $9.99 per month or $99.99 per year, you can listen to many stations ad-free and reduce the number of ads on others.

In addition to its website, TuneIn is available to download as an app for iOS or Android devices. You can also listen via car audio systems, smart speakers, game systems, smart TVs, streaming devices, and wearables.

iHeartRadio

Another site devoted to traditional radio is iHeartRadio. You don’t need a subscription to tune into radio stations or search for one by location. The site also gives you access to podcasts and playlists based on genres, decades, or moods.

With a free subscription to the site, you can build Pandora-style custom stations based on specific songs or artists you like. You also gain full access to IHeartRadio’s podcast collection as well as a custom library in which you can save your favorite stations, music, and podcasts.

For $4.99 per month, you can upgrade to a Plus subscription. It allows you to skip as many songs as you like, play songs and albums on demand, and save and replay songs you hear on the radio. With an All-Access subscription ($9.99 per month), you can also create unlimited playlists and download songs for offline listening.


Final Word

Despite all the Internet has to offer, digital music may never entirely take the place of physical recordings. There are even signs the old-fashioned record store is making a comeback. According to the Recording Industry Association of America, more than 40% of all profits for sales of physical recordings in 2018 came from vinyl LPs and EPs.

The world of modern music isn’t so much about digital versus analog, recorded music versus streaming, or custom radio versus curated stations. Rather, it’s all about choice. Music lovers today have more options than ever for listening to music exactly the way they want. And thanks to the Internet, they also have plenty of options for how much they spend on it.

Source: moneycrashers.com

Can Missing Just One Payment Affect Your Credit Score?

By now you’ve probably begun, or perhaps even finished, your Christmas shopping.

And while December is a month filled with countless distractions one thing remains crystal clear, which is that you cannot forsake your obligations to lenders just because you’re distracted.

I just returned from a trial in Pennsylvania where one of the parties made countless excuses for why he couldn’t pay one of his loans on time and was constantly 30 to 60 days late.

The excuses ranged from falling down and hurting his knees to his dog being exposed to chemicals in his home.

And while everyone is sympathetic to the external pressures of life, due dates are never to be forsaken and lenders don’t care about your excuses.

Great Myths of Credit Scoring

One of the great myths of credit scoring is that minor late payments can’t hurt your scores if you quickly catch the account back up.

This is true BUT only if your late payment is isolated AND historical, meaning the account isn’t CURRENTLY delinquent.

In the world of credit scoring there are two categories of derogatory information; minor and major. The dividing line between the two categories is very clean.

Historical delinquencies that have not gone 90 days past due or worse are considered minor derogatory items. Everything else is considered a major derogatory item.

So, to be clear, minor would include only historical 30 and 60-day delinquencies.

Major would include defaults, any record of being 90 days late or worse, repossessions, tax liens, judgments, collections, foreclosures, bankruptcy, settlements, and accounts that are currently delinquent.

The influence on your credit scores is drastically different between a minor and major derogatory item.

Delinquency Vs. Major Derogatory Item

Using the only FICO credit score estimation tool in existence, I simulated the difference in scores between people who have never been delinquent on anything versus those who are currently delinquent, but not in default.

For those who are currently 30 days delinquent their scores were considerably lower, normally around 35-50 points in my simulations.

For those who were currently 60 days delinquent (but not in default) their scores were always over 100 points lower that those who have never missed a payment.

This is where the confusion begins because neither a 30 day or 60 day delinquency is considered a “major” derogatory item yet their influence on a consumer’s score is significant, which seems counterintuitive until you get a better explanation.

Scoring systems, like FICO and VantageScore, are designed to predict the likelihood that you’ll go 90 days delinquent soon after you apply for credit.

By being currently delinquent, even just 30 or 60 days, you’re making the credit score’s job easy because you’re currently proving that you’re willing to be past due on credit obligations, thus the drastic score drop.

There’s something else to keep in mind, and this isn’t a secret in my world although it’s not well known by consumers.

When you’ve got a “30 day late” on your credit report that means you’re actually at least 30 days late on the obligation.

Lenders are not permitted to report late payments to the credit bureaus until the borrower has gone a full 30 days past the due date.

So, if you’re a week or two behind on your loan payments those won’t ever be reflected on your credit reports, although you’ll likely have to pay late fees.

In fact, a 30 day late on a credit report actually means you’re 30-59 days late on the obligation. A 60 day late on a credit report actually means you’re 60-89 days late on the obligation, and so forth and so on.

Point being, even if an account is showing on the credit report as just being 30 days late it’s possible that it’s actually 40, 50 or almost 60 days late.

This is another reason credit scoring systems are so harsh on consumer’s who have currently delinquent accounts on their credit reports.

What’s the possible harm?

You may be thinking, “well, if I just catch up on the payment and I avoided going 90 days past due (major derogatory) then my score will recover.”

You’re exactly right, although you’re not going to fully recover your score but it will bounce back quite nicely.

However, this still doesn’t prevent significant downside to being currently past due.

Lenders only update your credit reports once a month. That means if you have an account that is showing up as being currently past due it will be that way for a full month.

And, that means your credit scores will likely be lower, and maybe considerably lower, for 30 days straight.

Many credit card and line of credit creditors pull your credit scores every month to determine if they still want to do business with you.

That practice is called “Account Management” or “Account Maintenance.”

Just look at your own credit reports and you’ll likely see a long list of inquiries that fall into those two categories.

If one of your creditors pulls your credit score during their account management process and sees that it has dropped due to the currently late account, they’ll likely react by closing your account, lowering your limits, or raising your interest rates.

John Ulzheimer is the Credit Expert at CreditSesame.com, and a credit blogger at SmartCredit.com, Mint.com, and the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. You can follow John on Twitter here.

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Source: mint.intuit.com

Why I lie to my friends and family about miles and points – The Points Guy


Why I lie about miles and points – The Points Guy


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Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

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Credit card showdown: Chase Freedom Flex vs. Discover it Cash Back – The Points Guy


Chase Freedom Flex vs. Discover it Cash Back – The Points Guy


Advertiser Disclosure


Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

How Can I Correct Negative Credit Reporting From Fraud?

“John, I’ve been watching with interest the stories about Target’s data breach and how the information compromised has evolved from payment information to now include personal information. If someone uses my personal information, opens a new account in my name, and never makes payments how can I get that off my credit reports?”

This is a great question and very timely considering some fraudster is running around with payment and/or personal information belonging to at least 70,000,000 Target customers.

Thankfully the Fair Credit Reporting Act (hereafter “FCRA”) provides VERY aggressive consumer protections regarding identity theft protection and fraud.  And, every state has additional protections that

Federal Law

The FCRA has an entire section that addresses fraud and identity theft.  You have the right to the following at no cost:

One-call Fraud Alerts: You can place a fraud alert on your credit reports that will remain for 90 days.

You only have to contact one of the credit bureaus to place the alert and they have to “refer” the information to the other credit reporting agencies.

A fraud alert asks new creditors to verify that you are, in fact, the person applying for credit in your name and makes it illegal for them to extend credit in your name without your authorization.

Extended Fraud Alerts: You can extend the 90-day fraud alert to remain for 7 years. You’ll have to submit something called an “identity theft report” to the credit bureaus.

An identity theft report is any fraud affidavit or police report filed with a law enforcement agency.

This helps to separate the real victims of fraud from those who are crying fraud to get legitimate information removed from a credit report, as filing a false police report is a crime.

Placing the extended alert is another “one-call” action, as the credit bureau receiving your request has to share it with the others.

Correcting Credit Reports Containing Fraudulent Data: Despite the protections afforded under the FCRA, we all know that true name fraud happens.

And, it can result in derogatory account and collection information appearing on your credit reports.

That’s bad news because now it’s likely harming your credit scores and you’re receiving calls and letters from collection agencies.

If you have information on your credit reports that has been caused by fraud it’s not the end of the world because you have some fantastic protections under the FCRA.

Once you notify the credit bureaus that you have information on your reports caused by identify theft they have to block it from your credit reports, within 4 business days.

That’s 26 days sooner than they have to complete garden-variety credit disputes.

You’ve got to provide them with some paperwork, including the same type of identity theft report I explained above, but once it’s blocked, it’s gone.  Done and done!

State Law

Every state in the country has a law that allows victims of fraud to place a security freeze on their credit reports for free.

A security freeze (also called a “credit freeze”) prevents any new credit from being issued in your name.

The freeze essentially takes your credit reports out of circulation and no new lender can get access to it, or your credit scores.

And, no access to credit reports/scores means no underwriting of any type of loan.

Be aware, however, that while a security freeze locks any new lenders out of your credit reports and prevents true name credit fraud, it can also delay legitimate credit applications that you’ve submitted.

You’ll have to proactively “thaw” your credit reports and put them back into circulation prior to submitting credit applications or you too will not be able to open an account in your name.

In my mind this is little reason to not freeze your credit reports especially if you have already been a victim of credit fraud.

Experian has a very good explanation of security freezes, the pros and cons, and the process of placing a freeze all on their website here.

A final note, which is actually more of a warning…if you’ve read this and think you can use these procedures to have negative but accurate information removed from your credit reports under the guise of it being fraudulent, I’d suggest you think twice as you’d be committing fraud and might find yourself on the wrong side of a Federal indictment.

I’ve served as an expert witness in more than one of these cases.

John Ulzheimer is the Credit Expert at CreditSesame.com, and a credit blogger at SmartCredit.com, Mint.com, and the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. You can follow John on Twitter here.

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Why the Amex Platinum’s new benefits might not be right for you – The Points Guy


Why the Amex Platinum’s new benefits might not be right for you – The Points Guy


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Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

Amex Platinum cardholders: You might have $200 in travel credit to use by Dec. 31 – The Points Guy


Amex Platinum cardholders: You might have $200 in travel credit to use by Dec. 31 – The Points Guy


Advertiser Disclosure


Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.

Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com