While you can use a debit card to pay for almost all the things you would use a credit card for, these cards aren’t the same type of thing. A debit card is tied to existing money, either prepaid on the card itself or in your savings or checking account. A credit card lets you make purchases on credit, and you won’t be able to do this with a debit card.
Can You Use Your Debit Card as Credit?
When you pay at the register, you’re often asked whether you’re making a debit or credit payment. This isn’t a question about whether you’re paying with existing checking account funds or if you’ll be borrowing the money from a credit card lender. It’s a question about how you want the payment processed. And most of the time, yes, you can use your debit card as credit at check out.
What Happens When You Use a Debit Card as Credit?
When make a purchase and select to process your payment as credit, it’s an offline transaction. “The funds for offline transactions are deducted after the merchant settles the purchase with the credit card processor and typically take 2-3 days to be reflected in your account balance,” MasterCard says.
According to MasterCard, when you use a debit card and your PIN (personal identification number), the transaction is completed in real time. That’s also known as an online transactionâ you authorize the purchase with your PIN, and the money is immediately transferred from your bank account to the merchant. These are debit card transactions.
But in reality, the difference between debit and credit transactions have little real impact on your bottom line. There may be some differences in fees paid by the retailer or processor, but those fees are rarely passed on to the consumer directly.
Some individuals choose to use their debit cards as credit at the register to avoid having to enter their PIN. Itâs commonly believed that this creates some additional security against someone learning that number and having one more piece of information to support credit card fraud.
While you certainly want to protect your PIN, simply being aware of who is around you and keeping the keypad covered during debit transactions can help keep you secure if you do decide to pay this way. It may seem like an unnecessary precaution, but you can never be too careful when it comes to debit card fraud.
Can I Use My Debit Card if I Have No Money?
One thing that’s important to note is that you can’t usually use your debit card for credit. If you are short on cash, your credit card still works if you have available credit on it. If there’s no money in your bank account, your debit card may get declined when you attempt to pay. So make sure there’s cash in your bank account anytime you use your debit card.
There’s one exception to this rule. Some banks offer overdraft protection. If you qualify for this protection, the bank covers your charges up to a certain amount and you simply rectify the situation later. That way, you avoid potentially embarrassing declines â for a cost in overdraft fees, which can be $15 to $30 per overdraft.
Can I Use My Debit Card as Credit at Walmart?
Whether or not you can choose to pay as credit with a debit card depends on each retailer and payment system setup. Many Walmart payment systems are set up to allow this, but they default to debit. When this happens, tell the cashier you want to pay as credit or select the option for changing payment method and choose to pay as credit and sign for your purchases instead of entering your PIN.
Does Using My Debit Card Build Credit?
Paying with your debit card doesn’t really impact your credit score, regardless of the payment type you select. That’s because your debit card is simply a stand-in for money you actually have on hand (or in the bank). It’s not credit and doesn’t provide any type of illustration of your likelihood of making payments in a timely manner or using credit responsibly. Therefore, it won’t impact your credit history.
If you use your debit card to overdraw your bank account on a regular basis or do so and leave the negative balance long-term, it could negatively impact your credit score. Banks do report checking and savings details like this to the credit bureaus.
The Bottom Line on Debit Cards as Credit Cards
Whether you use your debit card as credit or debit, the funds will still be withdrawn from your checking account. You can use your debit card to make a payment processed as credit, but you can’t use your debit card for credit in most cases. And even when you can, it’s via the limited fail-safe of overdraft protection, which is not meant for regular use and can be quite expensive.
Debit cards are wonderful money-management tools that provide a lot of modern convenience. But for many people, it’s a good idea to have at least one credit card in your wallet too for those times when debit just doesn’t quite cut it. Just make sure to check your credit score, understand how credit cards work and apply for the card that provides you the best perks at the lowest cost.
The post Using Debit Card as Credit appeared first on Credit.com.
Wedged between New York and D.C., Philadelphia has long been one of America’s most overlooked and underrated cities. The Birthplace of America, Philly is the nation’s sixth-largest city and one of its top cultural, culinary, employment, sports, music and education destinations. It’s a fresh, cosmopolitan city, and living in Philadelphia means you have nearly anything you could imagine to do, eat, visit, see and cheer for.
Philadelphia is a unique and diverse city, much more than the Liberty Bell, cheesesteaks and Rocky. It’s an inviting, connected community compromised of nearly 100 distinct neighborhoods from the gleaming skyscrapers of Center City to the rowhouses of South Philly to the rolling estates of Chestnut Hill. Whether you’re packing up for your move to Philly or just considering a relocation to the City of Brotherly Love and Sisterly Affection, there are many wonderful things you need to know about living in Philadelphia.
1. Philly has a great climate if you like having four seasons
No matter which season you enjoy frolicking in, Philly is the perfect climate to experience all four seasons. Philadelphia is a temperate Mid-Atlantic city with the best of all worlds, just 50 miles from the Jersey shore and 70 from the Pocono Mountains.
Summers in Philly can be hot and muggy at the peak of the season, with average highs just under 90 during July. Winters are cold but not bitterly, with daily temps during the holiday season straddling the freezing line. Rain can be expected a quarter-to-third of the days each month, with about 20 inches of snow each winter.
2. Commuting is relatively easy by car or public transit
Philly commuting is convenient compared to most of its Northeast Corridor counterparts. The average one-way work travel time is just more than half an hour, with more than 20 percent using public transportation.
For automotive commuters, Philly’s transportation network couldn’t be simpler. Interstate 95 lines the eastern edge of the city, the I-76 Schuylkill Expressway divides West Philly from the rest of Philly and I-676 (Vine Street Expressway) and US Route 1 (Roosevelt Boulevard/Expressway) run east/west through the city. Broad Street, America’s longest straight boulevard, forms Philly’s north/south backbone.
SEPTA operates a convenient public transit system, which includes a number of commuting modes. This includes the Broad Street Line subway and Market-Frankford elevated train, which travels north/south and east/west, respectively, 131 bus lines and eight light rail and trolley routes.
3. You have to learn how to talk Philly to live here
Every city in America has its own dialect quirks, but Philly has a language all its own every newcomer must eventually absorb. From your first âyo,” you’ll quickly learn every jawn (which can literally mean any person, place or thing).
âJeet?” is what you’ll be asked if someone wants to know if you’ve eaten yet. They may want to share a hoagie (don’t ever say âsub”), grab pasta with gravy (tomato sauce) or a cheesesteak âwhiz wit” (covered in melted cheese and fried onions). Wash it down with some wooder (what comes out of the sink) or a lager (ask for that and you’ll get a Yuengling beer).
Where are you going to go? Maybe “down the shore” to the Jersey beaches, out to Delco (Delaware County) or to Center City (never call it âdowntown”) on the El (the elevated train). That’s where yiz (plural âyou”) are headed.
And everyone loves talking about the âIggles” (or âthe Birds,”) the championship football team.
4. Philly is the City of Museums
More than any city in America, history lies down every street, many of which the Founding Fathers once walked. Independence National Historical Park, the most historic square mile in the nation, includes important sites like Independence Hall, Liberty Bell, City Tavern, Christ Church, Franklin Court and more.
Nearby in Old City are the National Constitution Center, Museum of the American Revolution, Betsy Ross House, the first U.S. Mint, Elfreth’s Alley and National Museum of American Jewish History.
But Philly offers so much more, including world-class museums dedicated to art, culture, science and education. In the Parkway Museum District, must-visit attractions include the Philadelphia Museum of Art (and the Rocky steps), Franklin Institute Science Museum, Barnes Foundation and Rodin Museum.
Elsewhere around the city are amazing spots, including the Mummers Museum, Academy of Natural Sciences, Magic Gardens urban mosaic, Mütter Museum of medical oddities, Eastern State Penitentiary and even the Museum of Pizza Culture.
Photo courtesy of Michael Hochman
5. Philly cuisine is much more than cheesesteaks
Sure, everyone loves cheesesteaks and every Philadelphian has their favorite steak joint. But Philly also claims a slew of other iconic dishes.
Breakfasts wouldn’t be Philly without scrapple or pork roll, two pan-fried pork-based dishes. And dinner can include tomato pie (cheeseless rectangle pizza on focaccia served at room temperature), Old Bay-flavored crinkle-cut crab fries or snapper soup, which is exactly what you think it is.
For dessert, grab a âwooder ice” (kind of like Italian ice but not) or a Tastykake (more of a lifestyle than a snack food line).
And Philadelphia isn’t just for casual eats â some of America’s greatest restaurants live here. Israeli spot Zahav was named Best Restaurant in the country, and Pizzeria Beddia the Best Pizza in America. Other award-winning spots abound, including South Philly Barbacoa, vegetarian destination Vedge and 20 restaurants citywide from decorated chef Stephen Starr.
But all cross-sections of Philadelphians can agree on one thing â everyone loves Wawa, more of a culture than a convenience store, with more than 40 locations throughout the city.
6. Philly is the best music city on the East Coast
There would be no American music without Philadelphia. The city is home to one of the nation’s greatest music histories as the birthplace of Philadelphia soul, American Bandstand, Gamble & Huff and âRock Around The Clock.” Artists hailing from Philly span the spectrum from Hall & Oates, Chubby Checker, Patty LaBelle, Boyz II Men and Will Smith to The Roots, Meek Mill, Diplo, Dr. Dog, War On Drugs, Kurt Vile, Dead Milkmen and Joan Jett.
Philly is also one of the best cities in America to see and hear live music, with a slew of iconic music venues of every size. Music pours nightly out of legendary clubs, such as Milkboy, Johnny Brenda’s, Boot & Saddle and Kung Fu Necktie, concert halls like The Fillmore, Union Transfer, Theater of Living Arts and Tower Theater and outdoor amphitheaters with stunning vistas BB&T Pavilion and Mann Center.
7. Philly is one of America’s great college towns
Philadelphia is one giant college town. There are more than 340,000 college students living in Philly spread across nearly two dozen four-year campuses. Thanks to college sports, Philly’s top five major universities (that make up the Big Five) are nationally known and include Temple, St. Joseph’s, La Salle, the University of Pennsylvania and Villanova (which actually sits outside the city).
University City in West Philly is home to Penn, as well as Drexel and the University of the Sciences. And scattered elsewhere around the city are historically-black Lincoln University, Chestnut Hill College, Thomas Jefferson University (on two campuses), Pierce College and Holy Family.
There are also a number of creative and performing arts schools in Philadelphia, including the University of the Arts, Art Institute of Philadelphia, Pennsylvania Academy of the Fine Arts and Curtis Institute of Music.
Photo courtesy of Michael Hochman
8. Sports are life in Philly even if we like to boo
You may have heard. In Philadelphia, we love sports. Unlike cities like New York or L.A., Philly has just one team in each of the major sports, so every fan is on the same page. Except for college basketball where the city is divided among a half-dozen Division I programs.
Philadelphians bleed team colors and everyone from every walk of life pays attention. Often, the city’s collective mood is based on yesterday’s result. So, if you want to walk into nearly any conversation in Philly, be sure to know the Birds’ playoff chances or who your favorite Flyer is. But Philly fans don’t take lack of hustle or effort lightly, and a subpar performance will bring out the notorious boo-birds.
9. The cost of living in Philly is pretty good
As the sixth-largest city in the nation and keystone of the Northeast Corridor, you’d expect Philly to be expensive. Actually, it’s pretty average. The overall cost of living in Philadelphia (as of Q1 2020) is just 110 percent of the national composite. Compare that to its neighbors like New York (246 percent), D.C. (160 percent) and Boston (148 percent). In fact, Philadelphia’s cost of living is cheaper than many major cities like Denver, New Orleans, Miami, San Diego and Baltimore.
The same goes for housing, as well. Philadelphia is only 13 percent over the national index average for housing costs, much more affordable than other East Coast cities and metropolises around the country like Phoenix, Dallas and Portland. For renters, an average Philly one-bedroom leases for just $2,127 a month (compared to the national average of $1,621), just a pleasantly-surprising 17th most-expensive in the nation, cheaper than Sacramento, Boston, Seattle or Oakland.
10. Philadelphia is one of the great American cities
Philadelphia is a beautiful, friendly, progressive city for anyone moving here or just thinking about it. It’s a hub for technology and finance and home to a dozen Fortune 500 corporations.
It’s a retail center with high-end city malls, vintage and boutique shopping corridors and Jewelers’ Row, the oldest diamond district in the nation. It’s a haven for those seeking outdoor adventure, including massive Wissahickon Valley and Fairmount Parks. And a destination for family fun at spots like the Please Touch Museum and America’s oldest zoo. It’s even one of America’s most walkable cities.
Living in Philadelphia
Philly is a great place for lovers of music, beer, history, shopping, sports, theater, coffee, biking, art, dining and more. Whatever your passion, you’ll find it living in Philadelphia.
And with a head start on what’s listed here, you’ll be welcomed with open arms and find out quickly why we’re known as The City that Loves You Back.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.comâs multifamily rental property inventory of one-bedroom apartments. Data was pulled in October 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers are from the U.S. Census Bureau. Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Header image courtesy of Michael Hochman.
The post 10 Things to Know About Living in Philadelphia appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
If youâre one of the millions of workers whose home is now doubling as office space due to COVID-19, you may be wondering whether that means a sweet deduction at tax time. Hold up, though: The IRS has strict rules about taking the home office deduction â and they changed drastically under the Tax Cuts and Jobs Act, which passed in late 2017.
7 Essential Rules for Claiming a Work From Home Tax Deduction
Thinking about claiming a home office deduction on your tax return? Follow these tips to avoid raising any eyebrows at the IRS.
1. You canât claim it if youâre a regular employee, even if your company is requiring you to work from home due to COVID-19.
If youâre employed by a company and you work from home, you canât deduct home office space from your taxes. This applies whether youâre a permanent remote worker or if your office is temporarily closed because of the pandemic. The rule of thumb is that if youâre a W-2 employee, youâre not eligible.
This wasnât always the case, though. The Tax Cuts and Jobs Act suspended the deduction for miscellaneous unreimbursed employee business expenses, which allowed you to claim a home office if you worked from home for the convenience of your employer, provided that you itemized your tax deductions. The law nearly doubled the standard deduction. As a result, many people who once saved money by itemizing now have a lower tax bill when they take the standard deduction.
2. If you have a regular job but you also have self-employment income, you can qualify.
If youâre self-employed â whether you own a business or youâre a freelancer, gig worker or independent contractor â you probably can take the deduction, even if youâre also a full-time employee of a company you donât own. It doesnât matter if you work from home at that full-time job or work from an office, as long as you meet the other criteria that weâll discuss shortly.
Youâre only allowed to deduct the gross income you earn from self-employment, though. That means if you earned $1,000 from your side hustle plus a $50,000 salary from your regular job that you do remotely, $1,000 is the most you can deduct.
3. It needs to be a separate space that you use exclusively for business.
The IRS requires that you have a space that you use âexclusively and regularlyâ for business purposes. If you have an extra bedroom and you use it solely as your office space, youâre allowed to deduct the space â and that space alone. So if your house is 1,000 square feet and the home office is 200 square feet, youâre allowed to deduct 20% of your home expenses.
But if that home office also doubles as a guest bedroom, it wouldnât qualify. Same goes for if youâre using that space to do your day job. The IRS takes the word âexclusivelyâ pretty seriously here when it says you need to use the space exclusively for your business purposes.
To avoid running afoul of the rules, be cautious about what you keep in your home office. Photos, posters and other decorations are fine. But if you move your gaming console, exercise equipment or a TV into your office, thatâs probably not. Even mixing professional books with personal books could technically cross the line.
4. You donât need a separate room.
There needs to be a clear division between your home office space and your personal space. That doesnât mean you have to have an entire room that you use as an office to take the deduction, though. Suppose you have a desk area in that extra bedroom. You can still claim a portion of the room as long as thereâs a marker between your office space and the rest of the room.
Pro Tip
An easy way to separate your home office from your personal space, courtesy of TurboTax Intuit: Mark it with duct tape.
5. The space needs to be your principal place of business.
To deduct your home office, it needs to be your principal place of business. But that doesnât mean you have to conduct all your business activities in the space. If youâre a handyman and you get paid to fix things at other peopleâs houses, but you handle the bulk of your paperwork, billing and phone calls in your home office, thatâs allowed.
There are some exceptions if you operate a day care center or you store inventory. If either of these scenarios apply, check out the IRS rules.
6. Mortgage and rent arenât the only expenses you can deduct.Â
If you use 20% of your home as an office, you can deduct 20% of your mortgage or rent. But thatâs not all you can deduct. Youâre also allowed to deduct expenses like real estate taxes, homeowner insurance and utilities, though in this example, youâd only be allowed to deduct 20% of any of these expenses.
Be careful here, though. You can only deduct expenses for the part of the home you use for business purposes. So using the example above, if you pay someone to mow your lawn or youâre painting your kitchen, you donât get to deduct 20% of the expenses.
Youâll also need to account for depreciation if you own the home. That can get complicated. Consider consulting with a tax professional in this situation. If you sell your home for a profit, youâll owe capital gains taxes on the depreciation. Whenever youâre claiming deductions, itâs essential to keep good records so you can provide them to the IRS if necessary.
If you donât want to deal with extensive record-keeping or deducting depreciation, the IRS offers a simplified option: You can take a deduction of $5 per square foot, up to a maximum of 300 square feet. This method will probably result in a smaller deduction, but itâs less complicated than the regular method.
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7. Relax. You probably wonât get audited if you follow the rules.
The home office deduction has a notorious reputation as an audit trigger, but itâs mostly undeserved. Deducting your home office expenses is perfectly legal, provided that you follow the IRS guidelines. A more likely audit trigger: You deduct a huge amount of expenses relative to the income you report, regardless of whether theyâre related to a home office.
Itâs essential to be ready in case you are audited, though. Make sure you can provide a copy of your mortgage or lease, insurance policies, tax records, utility bills, etc., so you can prove your deductions were warranted. Youâll also want to take pictures and be prepared to provide a diagram of your setup to the IRS if necessary.
As always, consult with a tax adviser if youâre not sure whether the expense youâre deducting is allowable. Itâs best to shell out a little extra money now to avoid the headache of an audit later.
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Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Itâs no secret that you can be healthy on a budget, but the real secret lies in how you can stay healthy and on budget. Just like adapting to a new diet, staying on budget is all about behavior change. In my previous article, I shared tips on eating healthy on a budget, and this time around, Iâm digging a little deeper into how to stay on budget on a shopping trip. Since I get groceries at least once per week, both for work projects and for my personal family shopping, I consider myself an expert in saving money at the grocery store. Here are my top 10 tips for shopping at the grocery store on a budget, and donât be surprised- some of these tips start even BEFORE you hit the store!
1. Check mail for coupons and ads
Cutting coupons may seem like a blast from the past, but if cutting out little pieces of paper can save $5 for my future, then Iâll be clipping away! Each week, your mail includes ads from local grocery stores and coupons from major brands, so tossing that mail out is like throwing away money. Instead, look through that mail to find deals on your frequently used items, and anything special coming up. Shopping ads especially help me to plan food for holidays, like for this budget-friendly spread for Fourth of July.
2. Make a grocery list.
I suggest planning out weekly meals and making a grocery list for it. This not only saves a lot of money, but will also save time in the grocery store and help reduce food waste (which is basically wasted money). Going into the store with a list makes me feel more prepared and in control of what I spend. Itâs pretty easy to say no to those extra treats in the cart if theyâre not on my list.
3. Shop where you bag your own groceries.
If you have a grocery store in town where you bag your own groceries, chances are that store has the best prices since the savings on staff can be reflected on your receipt. Plus, I like to bag my own groceries, as it gives me a final run-through of my purchase to make sure I didnât forget anything, and I get to bag them exactly how I want.
4. Eat before to avoid impulse and unhealthy buys.
The biggest mistake in overspending at the grocery store is going shopping when your stomachâs growling. That extra bag of chips gets half-way eaten before check-out at the register, and guess what?!?! It wasnât on your grocery list, in your budget, OR on your meal plan. Prevent that mistake by eating before a trip to the grocery store and it will be easier to stick to your plan.
5. Buy seasonal fruit and vegetables.
There are so many reasons why eating seasonally is better- less impact on the environment, more nutrients, and better taste- but buying produce in season is actually a great way to save money and eat healthy. â¯You donât have to spend extra on foods that are imported from different regions when itâs growing in season in your area. When produce is in season, itâs in abundance so farmers are able to give a better deal.
6. Buy frozen veggies.
While I stress that fresh is best, there are some times when it just makes sense to buy frozen veggies. One reason would be because of cost. If there is a good sale on organic frozen peas, Iâll go ahead and purchase some ahead of time since I can store it in my freezer. Another reason to buy frozen is because of seasonality. There is plenty of fresh and juicy corn available in the summer, but when it comes to winter months, I like to pull corn straight from my freezer.
7. Buy deli meat and cheese at the deli.
There is so much emphasis on how pre-packaged foods are more convenient, but these foods are not convenient on my wallet or my diet. When you buy foods that are already packaged, youâre paying for that extra packaging and all the costs that go along with that (from advertising, to transportation, to even stocking it on the shelves). On top of that, buying food already packaged up can mean you end up wasting some of that food if you donât use it.
That being said, I am all for soliciting the various departments of the grocery store and getting exactly how much I need, which means I pay for only that. I get my sandwich meat and cheese from the deli and what I love is that I can tell them how much to slice, how many slices, and even how thick to make my slices. Gone are the days of moldy cheese because I ran out of bread- now I know to shop for exactly what I need.
8. Buy bread and baked goods in the bakery.Â
Speaking of bread, I also buy baked goods at the bakery. Not only are these items usually made fresh in stores, they also skip all the fancy packaging and trickle all those savings to you. If youâre seriously on a budget, some bakeries even sell day-old goods for a fraction of the cost.
9. Buy meat in bulk, cut and freeze.
While youâre visiting the different departments of the grocery store, donât forget to make a stop to the butcher. I like to buy meat in bulk and cut it to freeze for later. Itâs so much cheaper to buy meat like this, and I love the convenience of having options to use in my freezer. My biggest tip is if youâre going to make chicken, get the whole chicken because thatâs considerably cheaper than one thatâs cut. Aside from using just the meat, you can also make a delicious chicken broth with the carcass, which is a great way to use the whole animal and also save money even more!
10. Buy Bulk Bin items.
You know those bulk bins at the grocery store? That section is like gold to me since every time I visit it, Iâm saving money! Since Iâm usually developing recipes, itâs just easier to purchase the exact quantity of something, that way I know exactly how much something costs. Whatâs even better is that I only have the amount needed for the recipe, and that leaves me with less food to waste each month. I absolutely dread throwing away food, because itâs like throwing away money, so by buying some ingredients in bulk, I know Iâm using up what I need.
Using ingredients from bulk bins, Iâm going to make aebleskiver, or Danish Pancakes. Ever since I got a special pan, Iâve been obsessed with making these fun-size pancakes. I usually donât purchase separate pans for specialty foods, but I really got my moneyâs worth for this pan since I use it a few times each month. Yes, I could buy these ingredients packaged up ahead of time, but itâs happened where I think I have enough flour for a recipe (usually after I already mixed up the other ingredients), but I donât have enough so I have to waste my time with an emergency trip to the store. But ever since I started using bulk bins, I know I have enough for my recipes every time, and when it comes to eating healthy on a budget, everything adds up!
The post Best Tips for Shopping at the Grocery Store on a Budget appeared first on MintLife Blog.
If youâre serious about your credit score, you need to pay your bills on time. One late payment can have a devastating effect on your credit score. Hereâs what you need to know about late payments and your credit score, and what you can do to protect yourself.
How Late Payments Affect Credit Scores
Your payment history is the biggest factor in determining your credit score, so itâs imperative that you pay your bills on time whenever possible. If you do make a late payment, there are three factors that determine how much it will affect your credit score.
Your credit score and credit history
How long ago the late payment was
How severe the late payment was
According to FICOâs credit damage data, one recent late payment can cause as much as a 180-point drop on a FICO score, depending on your credit history and the severity of the late payment.
Your Credit History and Late Payments
The impact of a missed payment on your credit score varies significantly depending on your circumstances. The better your credit, the more you may feel the sting of a late payment. In fact, that 180-point drop mentioned earlier is most likely to happen to an individual with excellent credit who is 90 days late on a payment. Because individuals with good and excellent credit donât have a history of risky behavior, one mistake sends up a red flag that can drop their score more dramatically.
Individuals with a shorter credit history will likely see a dramatic decrease in their score after a late payment as well. Because there is less information available on your financial behavior, a late payment is a bad sign. On the other hand, individuals with lower credit scores already have a history of risky behavior, so one more late payment wonât drop their score as much.
How Time Affects Credit
The more recent a late payment is, the more severely it will affect your credit score. A missed payment remains on your credit report for up to seven years from the date it occurred. The overall impact of the late payment diminishes over time and goes away completely when the missed payment ages off your report.
Your score won’t necessarily jump 100 points simply because a late payment ages off or is removed. Even though a late payment might have originally dropped your score by a good number, the impact of that late payment changes over time. How much your score goes up when a late payment is removed depends on a variety of factors, so youâll want to continue practicing smart financial habits like making payments on time and keeping your credit utilization low.
How Severity Affects Credit
If you missed your credit card payment by one day, you probably don’t need to sweat it. In most cases, lenders and creditors have grace periods that can range from a few days to up to 10 days. Grace periods are meant to account for minor mistakes and lag in mailing or posting payments. If your payment arrives within that time period, the lender may not count it as late.
Most lenders donât report missed payments until your account is 30 days past due. After 90 days, the effect on your credit score will be even more drastic.
Make sure to read the fine print on your account agreement, though, to know if you have a grace period. And avoid falling into the habit of relying on the grace period. If you’re used to paying your bill five days after the actual due date, you could miss the grace period if you experience a personal emergency. Also keep in mind that interest and fees may still apply during the grace period, even if your payment isnât reported as late to the credit bureaus.
How to Protect Your Credit History Against Late Payment Impact
Payment history is a huge part of your credit score. It accounts for around 35% of your scoreâover a third. Take action to ensure late payments aren’t impacting your score when they don’t need to. Here are three tips for doing so.
1. Check Your Credit Score and Report Regularly
Check your credit reports frequently to ensure late payments aren’t being reported inaccurately. A simple clerical error is enough to cause your score to go down. If you see inaccurate information on your credit reports, you can and should challenge it and ask for verification.
You can get a free credit report annually from each of the three credit bureaus. Due to the COVID-19 crisis, you can get your free credit report once a week through April 2021. When you request your credit report from AnnualCreditReport.com or the individual credit bureaus, you wonât also see your credit score. If you want to see both at the same time, consider signing up for ExtraCredit. Youâll see 28 of your FICO scores from all three credit bureaus, plus your credit reports from each.
Check Out ExtraCredit
2. Use Tools to Help You Make Timely Payments
Avoid late payments by using resources that ensure you make payments on time each month.
Sign up for auto payments. Your lender may offer this option, letting you enter a credit or debit card or checking account and taking payments out of that account each month. The benefit is that you can set and forget your payments, never worrying that they’re late. The disadvantage is that you have less flexibility in when you pay each month, and you have to ensure you keep a balance in your account to cover the charges.
Use apps or phone alarms. Remind yourself to make payments with app notifications that let you know the payment date is arriving soon. Many credit card companies and other lenders offer options for receiving such notifications directly from them.
Make smaller, more frequent payments. If you’re struggling to save enough to cover a large bill each month, pay a portion of what’s owed every week. This can help simplify your budget, though you do need to ensure you’re not being charged convenience fees or other amounts every time you make a payment.
3. Ask for One-Time Late Payments to Be Forgiven
Life happens, and creditors are aware of this. So if you do find yourself making a one-off late payment, contact your creditor.
Apologize for the late payment, let them know it’s not a normal occurrence for you and point to your previously pristine payment history. Ask the creditor to waive late fees and interest charges as a courtesy and not report the late payment to the credit bureaus. It’s a tool you must use sparingly, but creditors may to oblige if you really do normally pay on time.
Your Credit Score Will Thank You
Making all your bill payments on time is one of the best ways to keep your credit score happy and healthy. Keep track of how youâre doing by signing up for ExtraCredit.
Sign Up for ExtraCredit
The post How Much Does One Late Payment Affect Credit Scores? appeared first on Credit.com.
What could be easier than getting a little money back on the things you buy every day? That’s how cash back credit cards work and what makes them appealing to some consumers.
Cash back cards come in a variety of flavors â bonus category, tiered rewards and flat percentage cash back cards â but they all pay you back. Flat percentage cash back cards are ideal for the âset it and forget it” crowd, but bonus category and tiered rewards cards can offer more rewards â if you’re willing to put in a little legwork to maximize your cash back in select spending categories.
Here we take a look at the different types of cash back cards and how they work, the key benefits of cash back cards, how to redeem cash back and how to choose the best cash back card for you.
See related:Â How to choose a credit card
How cash back cards work
So how do all of these cash back cards work? It’s simple: Cash back is essentially a rebate of a percentage of the purchases you make on the card. With flat-rate cash back credit cards, every purchase earns the same percentage cash back, while with category bonus cards and tiered bonus cards, different types of spending earn more cash back.
Card issuers can afford to pay cash back because merchants pay an interchange fee on each transaction. âWhen you pay a merchant $100 with a credit card, the merchant only receives about $97,â says Daniel Mahoney, a certified financial planner in Atlanta.
For example, a TV that costs $700 would net you $14 with a 2% cash back card. The merchant, meanwhile, paid a transaction fee of around $21 when you paid with your credit card.
âRewards or rebates may also be funded by deals between the credit card issuer and specific merchants,â Mahoney adds. An example of this is cash back earned through card-linked offers.
How do card issuers know what types of spending qualifies for which percentage of cash back? Merchant category codes are four-digit numbers denoting a business type, such as a gas station or grocery store. Merchant category codes are used by credit card networks to categorize and track purchases.
How to redeem cash back
There are a number of ways to redeem your cash back rewards, including as a statement credit, check or deposit to a bank account, toward travel, to purchase gift cards or merchandise or as a donation. How many options you have and what requirements must be met before you can redeem will vary from card to card and issuer to issuer.
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Statement credits are the most common cash back redemption method and, as the term implies, act as credits against your existing card balance. For example, if you earned $20 in cash back and redeemed your rewards as a statement credit, your card balance would be reduced by $20.
Statement credits give you a simple, convenient way to save money over time, but since they’re tied to your card account, they offer a bit less flexibility than “true” cash back in the form of a check or direct deposit, which you can save or spend however you like.
Generally speaking, redeeming your rewards is as simple as choosing your redemption method, specifying the amount you want to redeem and hitting submit. Some cards also offer automatic cash back redemption in the amount and via the method you specify once you’ve reached a specific earnings threshold.
While statement credits, checks and direct deposits tend to get you full value for your rewards (with $1 earned yielding a $1 credit or direct payment), other redemption methods like gift cards and donations may only net you a fraction of your rewards value.
On the other hand, pairing a cash back card with a higher-tier travel or rewards card can sometimes boost the value of your cash back rewards, as in the case of the so-called “Chase trifecta“.
Check with your card issuerâs rules on cash back redemption amounts and options, as some cards offer more restrictive redemption schemes than others. For example, while a card like the Chase Freedom Unlimited allows you to redeem your cash back as a statement credit, check or direct deposit in any amount, anytime, the Costco Anywhere Visa® Card by Citi only issues rewards annually as a certificate with the February statement.
Benefits of cash back credit cards
Along with the obvious benefit of allowing you to earn a bit of money back on most â if not all â of your spending, cash back cards offer a number of advantages for experienced and newbie cardholders alike.
To start, cash back cards can offer more simplicity than other rewards credit cards. Since you get back a percentage of your card spend, you’ll always have a pretty good sense of how much money you’re earning. Cards that earn points or miles, by contrast, often require you to calculate point values and weigh redemption options to be sure you’re getting the most out of your rewards.
âThe primary benefit of a cash back card is the simplicity,â says Roman Shteyn, owner and CEO of RewardExpert.com.
âYou donât have to think too much about how much youâre earning while using the card, and when it comes to redemption, the best cash back credit cards are pretty straightforward. Most people just deduct their cash back from their statement balance or redeem for gift cards.â
Cash back cards also stand out as a low-effort savings tool. Indeed, the typical savings account earns a measly 0.05% annual yield, while nearly all cash back cards offer at least 1% back on every purchase. Your return is even greater with cash back cards offering a flat 1.5%, 2% or more on every purchase.
And unlike the interest on your bank account, cash back comes tax-free.
âThe IRS has historically viewed credit card cash back as a nontaxable rebate on the purchase price, rather than as a taxable form of income,â says Mahoney.
Something else to think about: Cash back, if loaded back on your card, also earns its own cash back when you spend it, adds financial planner Andrew Feldman of Chicago. âItâs a fraction, but itâs still a little more cash,â he says.
Factor in that some cash back cards offer sign-up bonuses of $150 or $250, and that is even more cash for you for using the card.
See related:Â Cash back vs. points
Types of cash back cards
There are three main types of cash back credit cards: Category bonus cash back cards, which offer a high cash back rate in spending categories that change throughout the year; tiered rewards cash back cards, which offer consistent cash back in specific categories of spending; and flat-rate cash back cards, which get you cash back at the same rate on all purchases.
Category bonus cash back cards
Overview: Category bonus cash back cards offer the lure of 5% cash back from revolving spending categories. These categories are typically set by the issuer every quarter and are usually released a few months before the new quarter starts. Five percent back can be a nice haul if youâre able to max out the spending categories each quarter, but it takes a bit of work.
First, you have to register for the bonus categories every three months, and spending in the categories is capped at a set amount each quarter (typically $1,500 in purchases). Since any purchase not in the bonus category earns 1%, you may not be getting the average return you think you are.
Pros:Â These cards allow you to earn cash back at an impressive rate in a variety of different spending categories, which could be ideal for cardholders whose spending varies from month to month. If your spending habits are flexible and you’re strategic about when and where you buy, category bonus cards can offer lucrative returns.
Cons: They can be a headache to keep up with, often requiring you to manually enroll in a category each quarter and track your spending to ensure you’re maximizing your cash back in a given category. You’re also at the mercy of the issuer when it comes to which categories are eligible for bonus rewards, and categories may not line up with your spending habits or may be tough to maximize.
Top cards: Discover and Chase each offer popular category bonus cards, including the Discover it® Cash Back, Discover it® Student Cash Back and Chase Freedom Flex cards.
The Discover 2021 bonus categories have already been released and include grocery stores, gas stations, wholesale clubs, restaurants and online shopping at stores like Amazon, Target and Walmart. Chase Freedom Flex bonus categories, on the other hand, are only announced on a quarterly basis.
The U.S. Bank Cash+ Visa Signature Card is a variation on the rotating bonus category theme, but the cardholder picks the bonus categories that will earn the most cash back for the types of purchases they make most.
See related:Â Chase Freedom Flex vs. Discover it Cash Back
Tiered rewards cash back cards
Overview: Like category bonus cards, tiered rewards cards offer more cash back in select spending categories, but to maximize your earnings you have to think about which card to use with each purchase.
For example, Feldman puts all his business expenses on his tiered rewards American Express SimplyCash Plus business card and his own personal expenses on a Citi® Double Cash Card that delivers a flat 2% (1% when you buy and 1% as you pay for your purchases).
His Amex business card rewards 5% on office supply stores and wireless telephone service, 3% on gas (cardholders choose from eight categories for this tier) and 1% on everything else.
At the end of each year, Feldman calculates the rewards delivered on the total amount he spent. He says both of his cards end up delivering the same cash back on average.
âThe Amex works out to about 2%, maybe slightly under,â Feldman says. âI just donât spend enough on office supplies to max out that 5% category.â
âCould I get back another couple dollars at the end of the year by using a credit card targeted to each category of my spending?â Feldman asks. âItâs possible, but Iâd have to think about which card to use every time I made a purchase and that would make my life crazy.â
Pros: Tiered rewards cash back cards may offer a bit more consistency than category bonus cards, as bonus categories are the same year-round. You’ll know before you apply if an elevated rewards rate in a given category like travel or dining makes sense based on your spending, and you can pair a tiered rewards card with a flat-rate card to ensure you’re maximizing your earnings.
Cons: These cards tend to earn a low rate on general purchases, and people often overestimate how much they spend in a given category, like gas or airfare. You’ll have to take a close look at your spending habits to determine whether a tiered bonus category card really makes sense for you or if you’d be better off with a card that earns the same flat rate in cash back on every purchase.
Top cards: While the best choice for you will depend on how you spend, one of our top picks is the Blue Cash Preferred® Card from American Express, which offers 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%), 6% back on select U.S. streaming service subscriptions, 3% cash back at U.S. gas stations and 1% cash back on all other spending.
Supermarket purchases make up a big chunk of the average person’s spending habits, so a card that offers bonus rewards in this category should be useful to the majority of cardholders.
Flat-rate cash back cards
Overview: With simple cash back cards, also called flat-rate cash back cards, you earn a flat percentage with every purchase. Thereâs no need to track and activate bonus categories. You earn the same cash back on every purchase.
Mahoney carries the Bank of America® Travel Rewards credit card which earns 1.5 points per dollar (effectively 1.5% cash back) plus a 75% bonus for being part of the bankâs Preferred Rewards Platinum Honors program.
âThatâs effectively 2.625% cash back*,â Mahoney says (2.625% cash back referencing 1.5 points per dollar plus 75% boost for Preferred Rewards program). âThe caveat is the cash back must be used as a reimbursement for travel purchases**, but lots of things count for that, even Uber and Lyft.â
Feldman recently switched from the Capital One Quicksilver Cash Rewards Credit Card, which offers 1.5% cash back, to the Citi® Double Cash Card, which earns up to 2% cash back (1% when you buy and 1% as you pay for your purchases).
Why did he switch? â2% is better than 1.5%,â he says.
Also, âI miss the convenience of being able to log in and get my rewards in one sweep or set it up for an automatic $25 or $50,â he adds. âI like to cash in my points immediately so I donât forget about them.â
Frequent-flyer expert Gary Leff likes the Fidelity Rewards Visa and Citi Double Cash cash back cards.
With the Fidelity Rewards Visa, cardholders earn 2% on all purchases, but you need to be a Fidelity account holder with excellent credit to qualify for the card.
âMost people arenât going to beat 2% cash back, even with travel rewards,â says Leff, who blogs at View from the Wing.
Pros:Â You won’t have to track spending or enroll in bonus categories. You can simply use your card for every purchase and rest assured you’re earning cash back at a consistent rate. This makes flat-rate cards ideal for those who want to avoid the hassle of juggling multiple cards or someone who’s looking to supplement their current tiered rewards or category bonus cash back card.
Cons: While these cards offer consistent rewards on every purchase, you may be missing out on bonus rewards in a category of high spend, like groceries or dining.
Top cards:Â A top pick in this category is the Citi Double Cash card, as it offers one of the highest flat cash back rates available, charges no annual fee and can pair with a premium Citi card to make earning travel rewards a breeze. It also encourages responsible card use by only giving you the second 1% back once you’ve paid off your purchases.
Types of cash back cards compared
We ran the numbers to see how flat rate, category bonus and tiered bonus cash back earnings would break down based on an average Americanâs spending (drawn from a Bureau of Labor Statistics consumer expenditures survey):
2% flat percentage
5% category bonus*
6% tiered bonus**
$21,897*** at 2%
$14,645 at 1% ($14.65)
$16,596 at 1% ($16.59)
$6,000 at 5% ($300)
$4,464 at 6% ($267.84)
$437.90 in cash back per year
$314.65 in cash back per year
$284.43 in cash back per year
* This assumes the category bonus cardholder maxes out the $1,500 in qualified quarterly spending, which is difficult to do every quarter.
** The Blue Cash Preferred from American Express offers 6% cash back at U.S. supermarkets and other tiered rewards, so total cash back will be higher.
*** This includes expenses on food, gas and oil changes, vehicle expenses, apparel and services, entertainment and other expenditures
â CreditCards.com research, March 2020
How to choose a cash back credit card
Which cash back card is right for you depends on how much thought you want to put into which card to use where.
While some cash back cards offer outsized bonuses on specific types of purchases or in rotating bonus categories, you’ll have to remember to use the right card at the right time and place. Not only will you need to pay attention to your account to see how your issuer categorized your purchase, but you may also need to manually enroll in a bonus category each quarter to reap the benefit of certain cards.
This makes such cards less than ideal if you’re looking for more of a “no-fuss” way to earn rewards. Additionally, most tiered and category bonus cards only get you 1% cash back on general purchases. This means that unless you spend heavily in a card’s bonus categories, you could be missing out on maximizing rewards on the majority of your spending.
Flat-rate cards, on the other hand, may offer a lower rewards rate in a specific category like dining or groceries, but will help you score extra rewards on general purchases that don’t fall into a specific category, boosting your average cash back rate overall. This is why it’s also worth considering pairing a flat-rate cash back card with a tiered bonus card that fits your spending habits.
Bottom line
Whether you opt for a flat-rate, tiered rewards or category bonus cash back card, you can enjoy earning cash back on all (or nearly all) of your purchases, often with minimal effort.
You may be surprised at just how much 1% or more cash back adds up to at the end of each month. Just be sure to take a close look at your spending habits and each issuer’s terms to be sure the cash back card you’re considering is a good fit for you.
*2.625% cash back referencing 1.5 points per dollar plus 75% boost for Preferred Rewards program.
When we think of Las Vegas, it often has a connotation of big parties, gambling and expensive fun. Most people who go to the Entertainment Capital of the World are there for a good time and want to experience the food, shows and casinos. But what’s it like for the locals who are working and living in Las Vegas?
It’s a fairly big city, and residents have access to all of the fun and excitement as other out-of-town visitors. But every day isn’t a party when you’re living there â people have homes, families and careers to think about.
There are lots of surprising aspects of living in Sin City, and it just might be the kind of scene you’re looking for.
1. Get ready for discounts
In the Entertainment Capital of the World, many hotels, casinos and even restaurants give discounts to those who live locally. That means you’ll get discounts on Las Vegas attractions, spas and even shows, such as Cirque du Soleil, so you can enjoy the perks of the city without draining your bank account.
2. There are lots of pools â and you’ll be grateful for them
Since it can get pretty hot and be fairly warm for eight or nine months out of the year, many residents in Las Vegas have pools. Most apartment complexes have pools, but if yours doesn’t have one, you’ll inevitably have friends with access to a pool. Or, you can head to one of the hotels with a luxury pool for a little weekend staycation.
Whatever pools you can access, you’ll be glad you have them. There are plenty of days when it’s too hot to do much else outdoors and slipping into the cool water might be the only thing that keeps you sane.
3. The heat is extreme
Most people haven’t experienced Vegas-style heat â we’re talking 120 degrees Fahrenheit or more on some days during the summer. That might sound bearable when you can hang out in the pool all day, but at temperatures climb that high, even a pool will feel like a hot tub.
When it gets unbearably hot, you can plan on hanging out inside with the air conditioner cranked up and eating popsicles all day long to stay cool.
4. Grocery stores are extra convenient
Being known as one of the cities that never sleeps, most Las Vegas grocery and convenience stores are open 24/7, so you can head out and get what you need without checking the time and worrying that stores will be closed. Plus, wine, beer and spirits are sold in the majority of grocery stores.
5. It’s surprisingly affordable
Most larger, well-known cities are quite expensive when you take housing, transportation and food into account. But living in Las Vegas is surprisingly affordable â it’s actually one of the most inexpensive places to live in Nevada. The cost of living in most categories is quite close to the national average, which is surprising for a larger city.
It has a thriving housing market, where there are plenty of homes available for fairly reasonable prices, and rent isn’t sky-high. The average rent in 2020 for a one-bedroom apartment is a little more than $1,200 a month â well below the national average of $1,600. And because there are plenty of quiet suburbs outside of the Strip and downtown areas, there are lots of supermarkets, restaurants and shopping malls readily available.
Most of the expensive places, whether they’re high-end stores or five-star restaurants, are located on the Strip or in downtown Vegas. Outside of that, most stores and restaurants in the valley are affordable and easily accessible to the locals.
You’ll rarely have to pay for parking, which is uncommon in a big city. Since hotels often have stores and attractions within them and casinos want people to come inside and play, they often will have free parking garages to attract potential customers.
6. There’s unique outdoor recreation
Las Vegas isn’t usually known for its camping and hiking scene, but there are some fun and different places to explore in the area. Some of the best spots are Valley of Fire and Red Rock Canyon. You can even go skiing during the winter months at Mt. Charleston, which is a reasonably short drive from the city.
And if that’s not enough for you, you’ll only be a few hours away from the state and national parks of Utah and California.
7. It’s best to have a car
In many bigger cities, there’s great public transportation, and it’s often preferred by the locals because of high parking costs and traffic congestion. But most Las Vegas residents don’t rely on public transportation to get around, and many people own cars.
Although there’s some public transportation, it’s mostly buses â the city is quite sprawling, making public transportation an extremely time-consuming option, especially if you’re going from one end to the other.
As far as driving goes, the most traffic-heavy places in the city are downtown and the Strip, and most other places aren’t too bad. Just beware of the Spaghetti Bowl, which is where multiple freeways merge together near downtown â traffic can get pretty congested there during rush hour.
8. No more state income tax
Unless you’re moving to Las Vegas from one of the other few states that doesn’t have an income tax, this will be a happy surprise. Nevada doesn’t have a personal income tax or corporate income tax.
9. Major league sports are coming in hot
In just the last few years, Sin City has become home to two major-league sports teams. The Raiders football team relocated there from Oakland earlier this year, giving residents something to be happy about, despite the other events of 2020.
But perhaps the most exciting thing was the creation of the Golden Knights, an NHL team that now plays in Vegas. When the team was first created, many people had low expectations â but the team ended up getting within only a few games of winning the Stanley Cup in its very first season. So, even if you’re not a hockey fan now, you’ll definitely become one when you move to Vegas.
10. Watch out for desert critters
Most of us have had spiders or ants get in the house â that’s going to happen no matter where you live in the U.S. But have you dealt with cockroaches, lizards and scorpions?
While scorpions aren’t an everyday thing, you should still be aware of them and know that they could show up in your yard. And although most of the lizards are harmless, it can still be unsettling to see them basking in the sun all over the rocks around your home. But the cockroaches are something else. You’ll want to invest in good pest control because they’ll find a way to sneak into your bathroom and kitchen, even if you live on the fifth floor of a building.
If you have a pet, keep in mind that their food will attract more roaches, so keep their bowl in a high-traffic area of your house to ward off the pesky little critters. And make sure you seal the excess food in a container or bag so you don’t reach in and scoop up a handful of cockroaches when your pet is hungry.
Living in Las Vegas is full of surprises
In spite of its nickname being “Sin City,” living in Las Vegas can be a great experience. It’s a diverse place and contains all of the perks of a big city without the cost and without feeling like such a busy, overcrowded place all the time. The longer you live in Vegas, the more the city will surprise you.
The post 10 Things to Know About Living in Las Vegas appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
As the Bob Dylan song goes, the times, they are a-changin’, and that couldn’t be truer than for apartment living.
Renting used to be a lower rung on the ladder as you climb toward the American dream â owning a single-family home in the suburbs. But as homes increase in cost and competition, renting is on the rise.
According to Harvard’s Joint Center on Housing Studies 2017 rental-market report, the number of high-income households (earning at least $100,000) renting their homes rose by 6 percent from 2005 to 2016. As a result of this increase, apartment complexes have added more amenities to appeal to the influx of renters. The same study found that in 2016, 89 percent of new apartments offered in-unit laundry and 86 percent provided swimming pool access.
This is only the tip of the iceberg. Today’s apartment complexes are not what they used to be, and apartment living is significantly nicer and more desirable than it was just 10 years ago. Here’s what you can expect for modern apartment living in 2020.
1. High-end amenities
Forget the bare-bones coin-operated laundry room and trash dumpster in the back parking lot or basement. According to NMCH’s 2018 Consumer Housing Insights Survey, 83 percent of adult and millennial renters said it was important to have an apartment that offered convenience and flexibility. Additionally, fast internet access, technology, and green initiatives are now considered must-haves for modern apartments.
To keep up with the competitive rental market, apartment complexes are upping the ante when it comes to amenities. In-unit laundry and pool access are quickly becoming par for the course, while many luxury complexes offer trash collection and recycling programs, high-speed internet, fitness centers, eco-friendly rooftop gardens and communal spaces, such as BBQs and theater rooms. These amenities make it easier to enjoy life at home and to entertain friends and family, just as one would if they owned a single-family home.
2. Online communication with apartment management
Speaking of convenience, flexibility and technology, many modern apartment complexes simplify the tasks that were previously pain points of renting â namely, rent payments, maintenance requests and apartment management communication. A number of complexes are capitalizing on technology to streamline these tasks.
For example, rather than having to mail a check each month, platforms like RentPay allow renters to automate their rent payments and pay via credit card or electronic check. Even if a landlord doesn’t accept electronic payments, RentPay prints a physical check and mails it directly to the landlord each month.
Additionally, it’s becoming more common for larger apartment complexes to offer an online portal or website for easier communication with apartment management, from submitting maintenance requests and asking questions to renew leases and sign contracts. This saves renters significant time and money.
3. More emphasis on safety and security
In the past, one of the downsides of renting was security. With people constantly going in and out of the building or complex, it seemed as if anyone could walk in. With so many technology advances this past decade, in terms of access and price, it’s easier for complexes and renters to invest in security.
Many of today’s complexes offer gated access to the parking lot, codes for elevator access and security key fobs to all points of entrance. Some even offer enhanced security within the individual units, like video doorbells and camera security systems.
If your building doesn’t offer in-unit security features, there are multiple home security options available that are non-intrusive, as far as security deposits and installation are concerned. Simply plug in the device and monitor your apartment from your smartphone. Many systems are easy to pair with indoor security cameras and other alarms for additional safety.
4. Smaller space
While apartments are getting smaller in square footage due to space constraints and population growth, architects are getting smarter with layout designs to maximize every inch of a room. For instance, micro homes, the tiny house equivalent in apartment form, are as small as 350 square feet but make use of movable and folding furniture so it can serve as an entertaining space by day and bedroom by night.
Open floor plans are still popular and, while they can at first seem daunting to decorate, they offer the most options for room layouts. And thanks to more furniture companies starting to specialize in small home living, it’s much easier to find compact couches and dual-purpose furnishings that go beyond the futon.
Popular home stores like Pottery Barn, CB2 and IKEA offer couches, tables and other items designed specifically for small spaces. While it’s becoming harder to find spacious apartments, complexes are making up for it with communal spaces for entertaining.
Apartment living has changed for the better
If you’re looking for a place to call home, apartment living may be the perfect solution. The evolution of apartments in the past decade means they’re a favorable housing option for a variety of lifestyles â in both urban and suburban settings.
Lush amenities, online communication, security measures and optimized floorplans have helped renting become a more comparable alternative to buying. You can enjoy the in-unit laundry, entertainment amenities and peace of mind without worrying about the costs or inconvenience of maintenance tasks.
The post What to Expect in Apartment Living in 2020 appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Weâre living in an age of convenience. Groceries can be delivered, clothes can be picked out for you and just about every TV show and movie ever made can be beamed straight into your living room. If I had the money, I could get pretty much everything I need without ever leaving my house.
But unfortunately, I donât have the money. Do you?
As our society has collectively fallen in love with subscription services, many of us have let them take over our budget. Because these are recurring expenses, itâs all too easy to sign up and forget about your card being charged every month.
Itâs time to finally ask yourself -are all of these subscription services worth the money?
Are You Spending Too Much on Subscription Services?
Before you can decide if meal subscription and delivery services are eating up too much of your budget, you have to figure out how much youâre spending on them. This is a very subjective and personal question that depends on your income, total spending and other goals.
Look at your monthly subscription and food delivery spending in Mint, checking to see if the numbers align with your budget. Take the time to sort and categorize the transactions if you havenât done so in a while. It may help to look through several monthâs worth of expenses, because some subscription services like FabFitFun only ship once a quarter.
Spending may also vary based on the seasons or other external factors. You may spend more on food delivery services during final exams because youâre too busy to meal plan. If the seasons change and you donât have any clothes, you may spend more on personal styling services.
Once you have an accurate account of how much you spend, compare it to your income and other expenses. Spending $50 a week on a meal kit service doesnât mean anything without context. You need to know how that compares to your other expenses.
How to Cut Down on Subscription Services
If you found that youâre overspending on subscription services, it doesnât mean that you need to cut them out entirely. Think about how much value each service provides to your life, and prioritize where your money is going.
Make a list of all the subscription services you currently have and how much you spend on them each month. Then rank the subscription and delivery services from most important to least.
Write down how often you actually use the products or services. Be honest with yourself. The goal is to keep the boxes and services that you actually use, love and enjoy on a regular basis. This can help you identify which services donât fit into your lifestyle – or budget.
Try to be as objective and ruthless as possible here. Yes, you may love getting the monthly Stitch Fix box in the mail, but do you actually keep the clothes they send? Learning to cook with Blue Apron may be a worthy goal, but do you actually like the meals they send?
Once you have a list of essential subscriptions, look at your budget again and determine how much money is left for those services. If the available amount is greater than the total cost, youâre in the clear.
However, if the amount is more than you can afford, itâs time to go back to the drawing board. If you absolutely canât bear the thought of parting with your subscriptions, youâll have to look at cuts you can make in other spending categories.
How to Save on Subscription Services
Chances are, youâre paying more for some of your subscription services than is absolutely necessary. Most video streaming services let you watch multiple screens at once so you can split it with friends or family. Some even have student deals if you have a university email address. Your school may even have its own special agreements with certain providers.
If there are a lot of subscription services you want to keep, consider alternating which ones you use throughout the year. Most subscription and delivery services make it easy to cancel and resubscribe later.
For example, if you have a beauty box subscription and a bathroom full of toiletries, quit the service until youâve used most of the products. Many of these products expire, so youâll be saving money and cutting down on waste.
If you subscribe services but only use them during a particular season, like a streaming service tied to a seasonal sport, get rid of them and reactivate when youâre ready. You can also do this with streaming services that only have a few shows youâre interested in. Once youâre done watching Stranger Things, for example, you can deactivate your Netflix membership for no penalty.
Seek Alternative Ways to Save
Looking for cheaper versions of your favorite services can also help you avoid overspending. Some grocery stores now have meal kits similar to Blue Apron or HelloFresh. Itâs not as convenient, but itâs a much more affordable alternative.
Many companies give customers referral codes they can send out to friends and family. When people use your referral codes, youâll earn free credit or cash. For example, Barkbox provides a free month if someone signs up for a six or 12-month membership through your referral link.
Sometimes companies will have a special coupon for new customers that use referral codes, like Stitch Fix who provide a $25 bonus for both the new customer and the one who referred them.
You can share these links on social media, by text or through email. Some programs have a limit on how much you can earn with referral codes, but it never hurts to try. If you end up exceeding that amount, you can apply for their official affiliate program to earn cash instead of credit.
If you do cancel a program, check your bank account to make sure youâre no longer paying for it. Some services are guilty of occasionally charging former subscribers even after theyâve quit.
Which subscription service are you going to cut back on this year? Let us know in the comments!
The post Are All the Food Delivery and Subscription Services Worth It? appeared first on MintLife Blog.
It’s a nonstop day. The usual. You’re at the grocery store, grabbing a few things for dinner (note to self: hit the ATM on the way out!), then a much-needed coffee at the drive-through (swipe that debit card), before you drop your tween at her first day of basketball practice (remember to bring your checkbook). Phew. And you’re only halfway done.
In the middle of it all, you certainly don’t want the nagging feeling that you can’t access your money at a moment’s notice, that you’re missing spending perks or that you’ll be hit with unnecessary fees. So a good question for you might be, “What’s the best checking account for busy families?”
How about a checking account that matches your lifestyle? Robert Farrington, founder of millennial personal finance site The College Investor and father of two, suggests that banking for busy parents should include an account that is âconducive to an on-the-move life.”
With everything on your plate, you may not realize that as your family’s needs change, the way you manage your money will likely need to change too. The good news is that many financial institutions offer bank accounts for busy families like yours, designed with features aimed at supporting your active lifestyle.
To select the checking account that best serves your needs, Farrington recommends first examining your current patterns. âNotice how you deposit money and how you spend it,” Farrington says. âLook at your banking trends and see where you’re being charged.”
Next, identify the unique features offered by each new checking account you are considering. To help you do that, here are four key things to look for as you narrow down your search:
1. Cash back rewards: More bang for your buck
According to the U.S. Department of Agriculture, it costs about $12,980 a year to raise a child. Even if your kids get their share of hand-me-downs and you don’t buy them everything they want, you’re still spending a lot. The biggest costsâafter housing (29 percent of child-rearing costs)âare food (18 percent) and child care/education (16 percent). None of that even includes birthdays, holidays and so on…
If you’re trying to find the best checking account for busy families, consider that all those purchases could be a little less painful with a checking account that rewards spending, typically in the form of cash back or rewards points.
Ashley Patrick, founder of the blog Budgets Made Easy, loves the idea of a checking account that offers rewards. Patrick, whose blog tells the story of how she paid off $45,000 of debt in 17 months, recommends that budget-conscious families use debit cards for purchases. âIf those purchases were rewarded,” Patrick says, âthat money would multiply.”
Say hello to cash back on debit card purchases.
No monthly fees. No balance requirements. No, really.
See Details
Discover Bank, Member FDIC
If you’re using a checking account that rewards you for debit card purchases, some of those seemingly endless expenses can actually help you save a bit of extra cash. Discover Cashback Debit, for example, lets you earn 1% cash back on up to $3,000 in debit card purchases each month.1 That means your monthly cash back earnings could yield $360 in total rewards each year. This feature of a bank account for busy families could pay for one night at your favorite family resort!
2. Easy account access: At home or on the run
You’re dropping off one kid, picking up the other, then have to get ready for a fundraiser. You are always on the go, so it’s time to find the best checking account for busy families that’s always right there with you. Patrick suggests opening a checking account with a bank that has a vast network of no-fee ATM locations. For example, Discover offers more than 60,000 no-fee ATMs around the U.S.
âI live out in the country, about 12 to 13 miles from town, so I need an ATM nearby,” Patrick says. âI usually go to town on Fridays or Mondays, get lunch for the kids, go to the store for groceries and get cash. Everything needs to be in one location.”
Besides getting money for day-to-day purchases, a conveniently located ATM is a must for depositing cash. Why make a special trip to visit your local branch when you can make deposits at an ATM that’s at or near a place you already frequent? Banking for busy parents is hard to imagine without this benefit.
âNotice how you deposit money and how you spend it. Look at your banking trends and see where you’re being charged.”
3. Online and mobile features: Save time in spades
In fact, you may not need a brick-and-mortar bank branch at all. Another option to consider is opening a checking account with an online bank.
The best bank account for busy families is one that offers maximum convenience. With an online checking account, all you need is a computer, tablet or smartphone to deposit a check (most online banks have a mobile app that allows you to take a photo of your check to deposit the funds). An online checking account also makes banking for busy parents effortless by allowing them to manage bills and bank statements from a deviceâeither while at home or out and about. Save the paper for your kids’ cute drawings that you tack up on the fridge.
Nermeen Ghneim, blogger at Savvy Dollar and mom of two, says the best checking account for busy families would offer a mobile app.
âI want to be able to access everything a bank can offer through my mobile device,” Ghneim says. âIt saves time, and it’s huge for a parent with a full-time job.”
Here are some of the other online and mobile features that are key if you’re looking for the best checking account for busy families:
Online transfers. Farrington says the ability to transfer money between accounts is especially important. Things come up unexpectedly and you may need to quickly transfer from savings to checking, or move those cash back rewards into a college fund for the kids. If you’re moving your cash back rewards into savings, you may even be able to make that happen automatically. For example, when you enroll in Discover’s Auto Redemption to Savings, we’ll automatically deposit your cash back into a Discover Online Savings Account every month.
Online bill payments. With everything else on your mind, you shouldn’t have to go through a stack of bills every month. The best checking account for busy families would allow you to set up automatic bill payments, so each month’s charges are automatically debited from your checking account.
Balance notifications. You should never be in the middle of a transaction and see those dreaded words: Insufficient Funds. Instead, you want to get a heads-up when your balance is close to zero, so there aren’t any surprises.
Debit card protection. While it’s important to be able to quickly and easily use your debit card, Ghneim says it’s just as important to be able to freeze it. Some banks offer a digital feature that enables you to switch your debit card on and off, so you can instantly freeze your debit card if it’s been misplaced or you want to curb spending.
Connecting to other digital applications. Nowadays, busy families rely on budgeting and spending apps to help manage their finances. A good bank account for busy families would be able to easily sync with those other tools online or via your mobile device so that you can efficiently manage your money and take advantage of the features of each app.
Farrington says that when selecting the best bank account for busy families, a no-fee checking account is a must-have, so it’s worth shopping around until you find one. For example, Discover Cashback Debit has no account-related fees.2 âYou shouldn’t have to pay a fee if you don’t keep a minimum balance,” Farrington says. âParents often don’t have the bandwidth to keep track of whether they’ve made a certain number of transactions.”
If you are getting hit with a checking account fee for any of the items below, you may want to consider a new checking account to make banking for busy parents easier:
Monthly maintenance
In-network ATM withdrawals
Replacement debit card
Standard checks
Online bill pay
Insufficient funds
Stop payment order
Official bank check
If you’re exploring a new bank account for busy families, Ghneim advises to watch out for hidden costs. Even no-fee checking accounts will sometimes hit you with unexpected charges. âThere should be no hidden fees because if a family is living off a budget, it’s very stressful to incur unexpected fees,” Ghneim says. Farrington agrees: âThere are some things that might cost you money, like wire transfers, but you shouldn’t have to pay for most features these days.”
âThere should be no hidden fees because if a family is living off a budget, it’s very stressful to incur unexpected fees.â
Banking for busy parents just got easier
Above all, Farrington says you want to prioritize the features that are most relevant to your family’s needs and lifestyle. If you’re always on the go, you may care most about convenient, no-fee ATMs and mobile check deposits. If your schedule necessitates a lot of out-of-pocket spending, you may want to prioritize debit card cash back rewards.
Keep in mind that when it comes to establishing the best banking for busy parents, you have options. âThere are so many checking accounts being offered now,” Farrington says. As long as you’re aware of the features that are available, you can make an informed decision and choose the account that’s best for you and your family.
1 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.
2 Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.
The post Banking for Busy Parents: 4 Essential Checking Account Features appeared first on Discover Bank – Banking Topics Blog.
, which also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.