The Bilt Mastercard from Wells Fargo has a new offer for cardholders. Bilt Rewards is offering free World of Hyatt Explorist status for 90 days – with the chance to upgrade to Globalist, the programs premier tier. Here are all the details of the Bilt status match:
Bilt Mastercard Adds World of Hyatt Status Challenge
Bilt Rewards has a new bonus for eligible members. The popular loyalty program that earns rewards on rent is offering HyattExplorist status for 90 days free of charge, along with the ability to keep that status or upgrade to Globalist tier through February 2025.
How to Earn World of Hyatt Explorist Status
Want to take part in Bilt’s Hyatt Explorist status upgrade? Here’s how to take advantage:
Link your Bilt Rewards and World of Hyatt accounts in the Bilt mobile app. You can find it under the “Travel” tab
Between March 28 and April 1, choose “Unlock World of Hyatt Elite Status” on the “Rent Day” tab in your Bilt app
The Explorist tier is the third of four tiers in the World of Hyatt program, offering impressive benefits like 2 PM checkout and access upgraded rooms on qualifying nights, based on availability at check-in. Once you receive confirmation 17 of your World of Hyatt Explorist status (before April 17, 2023), you’ll enjoy those benefits for 90 days. You’ll also earn free nights faster with 20% Bonus Points on qualifying purchases.
Upgrade to Globalist
Even better, you can upgrade to Globalist simply by meeting qualifying stay requirements before July 16, 2023. Complete ten qualifying nights between April 17 and July 16 to keep Explorist status through February 2025, or complete 20 qualifying nights to earn Globalist status through February 2025.
Globalist is the premier tier in the loyalty program and offers the very best perks. These perks include 4 PM late checkout, room upgrades to standard suites at select properties, Club lounge access, or complimentary breakfast. Plus, where Explorist members earn free nights faster with 20% Bonus Points on qualifying purchases, with Globalist, that percentage jumps to an impressive 30%.
Bilt Mastercard
Want to maximize your Bilt Rewards and World of Hyatt status but don’t have a Hyatt co-branded credit card? The Bilt Mastercard provides double points on travel purchases booked directly with an airline, hotel, car rental, or cruise line. That travel category includes Hyatt, meaning you can maximize points while relaxing your way to elite status. The card also earns 3X on dining, so you can enjoy a tasty meal on your extended break.
What makes the Bilt Card so unique, however, is its ability to earn rewards on rent. The Bilt Mastercard lets users pay their rent and earn 1X points – up to $50,000 in spending each year. Even better, if the Blackstone Group doesn’t manage your property, Bilt will mail a physical check to your landlord so you don’t miss out on the rewards.
The recurring advice when it comes to paying off your credit card is “always pay your statement balance off in full.” And while that should continue to be the norm, there’s more to it. Your statement balance is one of two amounts you should monitor, the other being your current balance.
The Difference: Statement v.s. Current Balance
While your statement balance is a number confined within a time window that locks after that window closes, your current balance is a number – which may or may not be equal to your statement balance – that is not constrained by any period. Both types of balances play an important role in shaping your credit history, and both should be kept as close to $0 as often as possible.
What is a Statement Balance?
As long as you have a credit card account open, your activity will be divided into monthly billing periods (Note that these periods do not start on the first of the month; the exact dates are set by the institution that issues your credit card). Any transactions that take place during each billing period will make up your statement balance. Once a billing period ends, your statement balance is locked and becomes the amount you are responsible for paying for that particular period.
After the billing period’s closing date, you’ll usually have a grace period of at least 21 days to pay off your statement balance. If you pay it off in full, you’ll avoid finance charges like interest and late fees. This is the routine you should religiously adopt in order avoid paying more money and to maintain a pristine credit history. If you are unable to pay off your full statement balance, the remaining amount will be added on to the following billing period’s statement balance. You should prevent this from happening because it will mean potentially higher interest charges and mounting debt that will become harder to erase.
What is a Current Balance?
Current balance is the amount you owe on your credit card in real time. In other words, it is your most recently updated balance every time you see it. Any time a transaction occurs, your current balance changes. For example, if your statement balance for the previous billing period is $500, and you have not made any other payments or purchases with your card, your current balance is also $500.
If you paid off $200 from your $500 statement balance, your current balance is $300. If you completely paid off your statement balance and have not made any other payments or purchases with your card, both your statement and current balances are $0. Your current balance is not subject to interest charges until it becomes part of your statement balance and you have not paid it off completely by its due date.
How To Manage a Current Balance
For this reason, while it’s crucial to keep your statement balance each period at $0, it’s also smart to keep your current balance as close to $0 as you can. Doing so frees up your total line of available credit and it keeps your credit utilization ratio low. Plus, if you allow both your statement and current balance to sit untouched, you will have a bigger mountain to climb by your next due date.
Although your current balance includes your most recent transactions, it may not take into account pending charges or payments. If you dined at a restaurant, left a tip on your bill, and check your balance the following day, you will see the sub-total of the restaurant bill included in the current balance, but your tip may not be added on until perhaps a day later. You can either add up the pending charges or wait a bit more to see the current balance reflect the true amount of money you spent.
How to Avoid Paying Interest
Credit card APRs can add a painful sting to your statement balances if they’re not fully paid off by their due date. In addition, your credit report will show that you leave outstanding balances, which hurts your chances of being approved for further lines of credit or loans in the future. Plus, your credit score can also suffer. These reasons alone are enough to compel you to fully pay off your statement balance each billing period. Try not to charge more than you can afford on your credit card. If you can, make multiple payments to your statement balance throughout each billing period; don’t just wait until the due date.
If you’re not able to pay off your full statement balance, at least make the minimum payment posted on your credit card statement. You will be charged interest on the remaining balance, but at least you won’t have to deal with late fees. Also, many issuers give customers the option to set up automatic payments, which can help you chip down your balance multiple times each month. However, make sure you’ll always have sufficient funds in your bank account. If you find yourself under a pile of growing interest on a credit card consider a balance transfer as a strategy to chip away at your debt.
Beware of Fees
Credit card issuers will charge a returned payment fee if you pay more than what you have. Unfortunately, it’s not always possible to escape interest charges. In the case of cash advances, there is no grace period as with regular purchases, which means you will be charged interest on it as soon as you receive it.
If you resort to a cash advance, try to pay it off as soon as possible. Cash advances also tend to have higher APRs than regular purchases or balance transfers, so you would potentially end up paying more over the long run. Plus, if you have other existing purchases on your statement balance, any payments you make will be applied to the amount with the lowest interest rate first, meaning you’ll be chipping away at the purchases before the cash advance.
How Your Credit Utilization Ratio is Affected
As you’ve read, paying off your statement balance in full to avoid finance charges is one thing, while paying off your current balance to keep your credit utilization ratio low is another. Maintaining both as close to 0 as possible is always a good thing. Anyone who checks your credit history will see that you can pay off what you borrow, and you don’t borrow too much.
Credit card issuers typically report statement balances to the three major credit bureaus, but others may report current balances as of a specific day of the month instead. Therefore, if you pay off your statement balance in full but then proceed to make a large purchase that takes up a big chunk of your credit limit, your utilization ratio will be high and that won’t look good on your credit report nor your credit score (which places high importance on your ratio). If you’re not sure which figure your card issuer reports, you can call the number on the back of your card to confirm.
Chase is signaling a “last call” on limited-time welcome bonuses for its IHG Rewards personal and business credit cards. The new bonuses came into effect on January 26, 2023, provide up to 175,000 bonus points, and run until April 5, 2023.
Chase and IHG Announce Huge Welcome Bonuses
Until April 5, 2023, the Chase IHG® Rewards Premier credit cards offer some of the best welcome bonuses. This limited time offers big earning opportunities for meeting minimum spending requirements. Here are the special, limited-time welcome offers for Chase-IHG Rewards credit cards:
IHG® Rewards Premier Credit Card: Earn 175,000 bonus points after spending $3,000 on qualifying purchases on the card in the first three months from account opening.
IHG® Rewards Traveler Credit Card: Earn 120,000 bonus points after spending $2,000 on qualifying purchases on the card in the first three months from account opening.
The bonuses are in addition to the enhanced card benefits added to the IHG credit cards in 2022. The cards now feature increased ways to earn points through purchases, a simplified way to reach the next IHG One Rewards Elite status level, added flexibility on Anniversary Free Night certificates, and more.
Here is a comparison of the IHG Rewards personal credit cards:
Earn up to 17X points at IHG® Hotels & Resorts worldwide
Earn up to 26X points at IHG® Hotels & Resorts worldwide
Rewards rate
Earn 3X points on purchases on utilities, internet, cable, phone, and select streaming services
Earn 5X points on travel, dining, and gas and 3X on all other purchases
Best perk
Automatic Silver Elite Status
Global Entry or TSA PreCheck® Fee Credit
Annual fee
No annual fee
$89 annual fee
Special Offer Also Applies to Business Rewards Card
This limited-time offer also applies to the portfolio’s business credit card. The IHG® Rewards Premier Business Credit Card earns 140,000 bonus points after spending $3,000 on qualifying purchases on the card in the first three months from account opening. The card provides ample opportunities to earn points on both business-related and everyday categories, including:
5X points on travel and at gas stations, restaurants and dining, social media and search engine advertising, and office supply stores
3X points per $1 spent on all other purchases
Up to 26X points when staying with IHG® Hotels & Resorts (with elite tier status in MGM Rewards)
About IHG Rewards
The IHG Rewards program is one of the best hotel loyalty programs in the industry – and one of the largest. The InterContinental Hotel Group operates over 6,000 open hotels in more than 100 countries. It comprises 17 brands, including Holiday Inn, Crowne Plaza, Kimpton, Staybridge Suites, and more.
In November 2022, the average credit card interest rate in the U.S. on accounts with balances that assessed interest was 20.40%, according to The Federal Reserve. In the last 12 months, credit card interest rates have also hiked and will probably continue to do so in the next year with inflation. Save yourself money by following these tips to help avoid paying interest on your credit card balance.
Credit Card Interest (and How to Avoid It)
Credit cards are powerful financial tools, but the interest charges you pay on them can be overwhelming unless you know a few workarounds to avoid paying interest altogether. Credit card interest is the fee that you pay when carrying a balance over from one billing cycle to the next. Different credit cards offer different interest rates, which are also known as annual percentage rates and commonly as an APR.
Your credit scores can also affect what your APR can be. Generally speaking, the higher your credit score, the lower the APR you’ll be charged by the credit card issuer. Even though you should be reading it thoroughly during the sign-up process, be sure to check the card’s terms & conditions in the advertiser disclosure for more details on interest charges. If you’d like to learn how to avoid paying interest on your credit card balance, consider some of the tips outlined below.
For Regular Purchases
There’s no denying that credit cards are convenient tools for making purchases but taking advantage of that can be a costly mistake if left unchecked. Many cards offer new cardholders an extended introductory period where they may not have to pay interest on new purchases. However, all good things come to an end, and if left unpaid, your balance will still be waiting for you when your regular purchase APR rates kick in. If you maintain a credit card balance from one billing cycle to the next after your intro APR period is up, you’ll have to pay interest on that amount.
To steer clear of those interest charges on your purchases, it helps to know your credit card’s grace period. The grace period is the span between the last date of your billing cycle and the cycle’s due date. If you’ve made a large purchase and could use a few extra weeks to pay it off before additional charges occur, taking advantage of your grace period would leave you interest-free. Speaking of payments, paying your balance in full before the last date of your billing cycle is a surefire way to avoid interest charges altogether, as there will be no balance to pay interest on. It shouldn’t be thought of as a novel idea to pay your bill as soon as you’ve gotten your credit card bill but doing so will eliminate costly headaches in the future.
For Balance Transfers
Many credit cards attract new customers by offering long introductory periods where they don’t have to pay interest on balance transfers in addition to attractive rewards programs. If you’re currently paying interest on a credit card balance that got out of hand, transferring that debt to a card with a lengthy 0% intro APR period for balance transfers will give you some breathing room to pay off the balance at a pace you can afford. Pay that balance before the honeymoon period is over, and you’ll save considerable cash.
For Cash Advances
A cash advance is a temporary fix for a long-term problem, but it is a useful option to have if you find yourself in a financially tight spot nonetheless. Using your credit card to withdraw cash from an ATM will trigger a host of fees found in the terms & conditions of your credit card, and you’ll likely be charged interest on the advance amount at a far more aggressive rate than what you may be paying for new purchases or balance transfers. Unfortunately, there’s no grace period when it comes to cash advances, so you’ll want to avoid them if you can to not have to pay interest on them.
If you absolutely must get a cash advance, pay the full amount you borrowed as soon as possible to mitigate the interest you’ll be hit with. While you can set up custom smartphone alerts for most credit cards through your smartphone nowadays to warn you of impending fees, it is ultimately your learned responsible behavior that can best help you avoid paying interest on your credit card balance. Pay your bills on time, as early as you can, and keep cash advances to a minimum, and you’ll be in a better position to save the funds you didn’t have to spend in the first place.
Owing money to the U.S. government or your state is never a fun experience. With federal and state income tax season upon us, many tax questions arise. One of the most common is, “Can you pay your income tax bill with a credit card?” The good news is “yes,” but as always, there’s a catch. Here’s everything you need to know about credit cards and taxes.
Table of Contents
At a Glance
The IRS allows credit card payments through select payment processors for a fee.
Many states also allow credit card payments, though not every state.
Paying taxes with a credit card may provide more breathing room for big payments but comes with added fees and interest charges.
Can You Pay Your Taxes with a Credit Card?
Death and taxes are the two unavoidable aspects of life. Now that tax season has arrived again, questions about paying off tax bills are beginning to fill message boards and search engines across the United States.
One of the most asked questions about settling an unexpected tax bill is using a credit card. A credit card allows paying off a tax bill with a grace period’s bonus before any interest accumulates. This, in turn, gives taxpayers additional leeway to wait for their next paycheck, stimulus payment, etc., before repaying the credit card balance.
Is this process legal, however? Can you pay taxes with a credit card?
Paying Federal Taxes
So, can you pay your IRS tax bill with a credit card?
Yes, it is legal to pay your taxes with a credit card. The IRS has authorized several third-party payment processors to accept credit card payments on their behalf. However, the payment processor will charge a fee for processing the credit card payment and the taxes owed.
The IRS allows taxpayers to settle their outstanding tax bill through a credit or debit card through three payment processors. Keep in mind that paying taxes with a credit card comes with a service fee of between 1.96% and 1.99% of the transaction cost:
Other important credit card payment details for taxes include:
Your card statement will list your payment as “The United States Treasury Tax Payment” and your fee as “Tax Payment Convenience Fee” or something similar.
Federal tax lien releases can take up to 30 days after we receive full payment; liens may remain for other individuals who have not fully paid their portion.
The IRS gets no portion of any processing fees
Paying State Income Taxes
Federal taxes are one thing, but what about state taxes – can you pay your state taxes with a credit card, too? Yes, depending on the state where you live or conduct business. Here is the current status of paying taxes with credit cards in your state:
State
Allows CCs
Fee
Alabama
No
–
Alaska
No
–
Arizona
No
–
Arkansas
No
–
California
Yes
2.3%, minimum $1
Colorado
Yes
Unspecified
Connecticut
Yes
2.35%
Delaware
No
–
Florida
Yes
1.85%, minimum $1
Georgia
Yes
2.50%
Hawaii
Yes
Unspecified
Idaho
Yes
Unspecified
Illinois
No
–
Indiana
Yes
Unspecified
Iowa
Yes
2.45%, minimum $3.95
Kansas
Yes
2.50%
Kentucky
Yes
2.45%
Louisiana
Yes
2.45%
Maine
No
–
Maryland
Yes
2.49%
Massachusetts
Yes
2.30%
Michigan
Yes
2.75%
Minnesota
Yes
2.25%, minimum $3.75
Mississippi
Yes
2.50%
Missouri
Yes
Unspecified
Montana
No
–
Nebraska
Yes
2.35%
Nevada
No
–
New Hampshire
No
–
New Jersey
Yes
Unspecified
New Mexico
Yes
Unspecified
New York
Yes
2.25%
North Carolina
Yes
$2.00 for every $100.00 increment of tax payment
North Dakota
Yes
2.49%
Ohio
Yes
2.50%
Oklahoma
Yes
2.50%
Oregon
No
–
Pennsylvania
Yes
2.49%, minimum $1
Rhode Island
Yes
2.50%
South Carolina
Yes
Unspecified
South Dakota
Yes
2.45%
Tennessee
Yes
2.49%
Texas
Yes
$1 up to $100 payment; 2.25% plus $0.25 processing fee for payments over $100
Utah
Yes
Unspecified
Vermont
Yes
3%
Virginia
No
–
Washington
Yes
2.5%, $1
West Virginia
Yes
2.5%, $1
Wisconsin
Yes
$1 for payments less than $40; 2.5% for payments greater than $40
Wyoming
Yes
2.50%
Can You Use a Credit Card to Pay Your Taxes Using Tax Preparation Services?
What about tax software services? Filing taxes through online tax preparation services and apps, like HR Block, TurboTax, and more, offer ease, speed, and the confidence that tax experts stand behind all returns.
Filing taxes through these services also allows taxpayers to pay fees and back taxes with credit cards – at an additional cost. The IRS also lays out these fees, which are as follows:
Payment Processor
Service Fees
ACI Payments, Inc.
1.98% of the transaction costs ($2.50 minimum)
Pay1040
1.87% of the transaction costs ($2.50 minimum)
1040tax
1.85% of the transaction costs ($2.69 minimum)
Other significant tax payment details when filing with tax services include:
The integrated e-file and e-pay debit or credit card option is available through tax preparation software and tax professionals. Refer to tax preparation software or your tax professional to determine if the debit or credit card option is available and for more information about it.
Some tax preparation software may allow partial payments. Multiple payments cannot be made through tax preparation software.
What Are the Benefits of Paying Taxes with a Credit Card?
Since the IRS accepts credit card payments, should you consider using your card this tax season? Using a credit card comes with a variety of benefits, including:
Special Financing
Credit cards allow users to offset purchases, either with or without interest. As previously mentioned, the introductory grace period with a credit card provides a 21-day window in which tax payments will not accrue interest. This basic feature can provide breathing space for raising additional funds to pay off the balance.
Some credit cards may also feature a 0% introductory APR on purchases. These special financing periods can help the cardholder pay off any tax bill balances over an extended period with no extra interest payments.
If you have a big tax bill and can pay it off within the promotional period, you can essentially borrow money interest-free. However, it is critical to carefully read these offers’ terms and conditions to understand the implications and potential fees.
Rewards Points
Credit cards also offer rewards points, cash back, or frequent flyer miles. No rewards credit card offers “taxes” as a bonus spending category, so cardholders must settle for a basic rewards rate. Still, with an unlimited cash back rewards card, like the Chase Freedom Unlimited, that equates to 1.5% cash back – meaning a $500 tax payment comes with a $7.50 rebate.
What Are the Drawbacks of Paying Taxes with a Credit Card?
While paying taxes with a credit card might sound like a great idea, there are equally compelling reasons not to do this. Some of the negatives regarding credit cards and your taxes include:
Fees
The most glaring downside of paying taxes with a third-party processor is the additional fees it may incur. While the fees listed above don’t look imposing on paper, they can add up to a decent chunk of money – which isn’t ideal if you expect to owe money after you file your taxes. Imagine you owe the IRS $10,000 in taxes; you might end up paying an additional $200 to use your credit card to pay.
Interest Charges
Credit cards are great for earning points, but they also serve another purpose – to let you pay over time. Like any other credit card purchase, using your card to pay taxes allows you to repay what you owe over time – but with added interest. That same $10,000 tax bill would become almost unmanageable instantly unless you have a robust plan for repayment.
Credit Score Damage
While paying your taxes with your credit card won’t necessarily hurt your credit score, it might. Relying on your credit card to pay a tax bill might negatively impact your credit utilization ratio.
Your credit utilization ratio is the amount of credit you use compared to your total credit limit. Using a big chunk of your credit limit to pay your taxes can negatively affect this ratio, lowering your credit score. If you plan to apply for a loan, mortgage, or any other form of credit in the near future, it is vital to consider the potential impact on your creditworthiness.
Should You Use Your Credit Card to Pay Your State and Federal Income Tax?
While paying income tax with your credit card offers some benefits, always weigh the positives with the negatives before using your go-to credit card this tax season.
Can you afford to repay the balance? Not paying off the balance within any grace or promotional period will incur interest.
What impact will the tax bill have on your credit score? Because credit utilization is a big percentage of your FICO credit score, paying your income tax with a credit card can raise your credit utilization ratio significantly – and drop your credit score quickly.
Also, remember that not all taxes are eligible for credit card payments. The IRS website lists all eligible taxes that accept credit card payments – including tax bills over $100,000. Ensure your tax form qualifies before paying with a credit card.
Paying income tax with a credit card is possible but requires careful consideration. Do your homework and determine if this process is right for you – and then make sure you repay the balance without falling behind.
Can an IRS Installment Agreement Hurt Your Credit Score?
Personal loans and credit cards may harm your credit score when used to pay taxes, but what about an IRS installment program?
The IRS offers several installment repayment programs for taxpayers who owe money on their income tax or other tax returns. These IRS-backed programs provide 120-day (or longer) repayment plans that are negotiable based on how much a person owes.
IRS installment plans offer two significant benefits to those who owe a sizeable tax bill: low-interest rates and no credit score impact.
Interest rates with IRS installment plans are typically around 3% APR, much lower than many personal loans or credit card interest rates. However, keep in mind that longer, negotiated plans come with setup fees, and late penalties apply to short-term repayment plans. These late penalties are 0.25% of the entire balance every month until the tax bill is fully settled.
Additionally, IRS installment plans are not considered personal loan. This status means that the loan will not have any impact on the credit score of an individual. For this reason, a government-backed installment plan may be your best bet for paying back taxes. Keep in mind that failure to repay the balance on an IRS installment may result in tax liens on your property and other negative impacts.
Citi has unveiled its new travel portal. The new Citi Travel with Booking.com offers eligible Citi cardmembers the ability to plan and book travel while earning ThankYou Rewards at the same time.
Citi Launches New Travel Portal
The wait for Citi Travel with Booking.com is over. Rocket Travel by Agoda technology powers the New travel portal from banking giant Citi and travel experts Booking.com and allows eligible Citi cardmembers to book hotels, air travel, car rentals, and attractions through the dedicated portal.
How Does Citi Travel Work?
So, how does the new Citi Travel with Booking.com portal work? The process is essentially the exact same process as with other Booking.com bookings. Citi cardmembers log in through their Citi credit card and can earn (and redeem) Citi ThankYou Points when booking flights, hotels, cruises, and other experiences. From there, they simply select their destination, dates, and how many people are traveling.
With this new travel portal, Citi ThankYou cardmembers can enjoy the following:
Hotels around the globe: Select from 1.4 million hotels worldwide – from boutique hotels with charm to beloved resort brands – by easily comparing options to find the right travel fit.
Attractions galore: Hundreds of thousands of attractions can be booked globally, ranging from tours to theme parks. Sample attractions include the Chicago Architecture River Cruise, Manhattan Sky Tour, New York Helicopter Flight, Grand Canyon Guided Hiking Tour, Kennedy Space Center, and much more
An unrivaled points promo: Now through June 2024, Citi Prestige and Citi Premier cardmembers can earn a total of 10x ThankYou Points by booking their hotels, rental cars, or eligible attractions on Citi Travel, and ThankYou Preferred and Rewards+ cardmembers can earn a total of 5x ThankYou Points on the same bookings.
Citi travelers also have access to 24/7 customer support and the flexibility to book their way: using their eligible Citi credit card, ThankYou Points, or a combination of the two. And, even better, by the end of March, eligible Citi cardmembers will be able to update their mobile app when prompted to access Citi Travel with Booking.com directly from their phone.
“Flexibility, Breadth of Options, and Value”
“The launch of Citi Travel with Booking.com is another stellar example of how Citi continues to offer customers options, from how they want to pay to how they want to travel,” said Anthony Merola, Head of Proprietary Products Management for U.S. Branded Cards at Citi. “We are thrilled to provide those customers the flexibility, breadth of options, and value they desire through our new, intuitive portal where they can book a trip tailored to their preferences or an attraction on their bucket list – all while maximizing the rewards they can earn.”
“This new travel platform will transform the travel planning experience for Citi cardholders,” said Sarah Moore, Senior Vice President of Rocket Travel. “Our technology connects Citi customers with the full spectrum of trip planning options available across our brands, where cardmembers will find value from the time they start dreaming of their next trip, through booking, even during and after their travels.”
The Federal Reserve’s FOMC has raised interest rates for the second time this year. The latest rate hike means higher borrowing costs, so consumers and businesses can expect to pay more for auto loans, mortgages, and credit card balances.
FOMC Raises Interest Rates Again
The Federal Reserve’s Federal Open Market Committee (FOMC) met for the second time in 2023. The FOMC reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. For the past year plus, those assessments have included significant rate hikes, with the current Prime Rate now set at 8%
The FOMC again agreed to raise the target borrowing rate by 25 base points – or a quarter-percentage point – to try and control inflation and threats to the economy from bank failures. This is the seventh Prime Rate increase since January of last year.
The FOMC’s decision was not an easy one. Whereas most experts foresaw a 25-base point increase in the borrowing rate, the collapse of Silicon Valley Bank (SVB) cast doubts on the health of the global economy, with some insiders believing the FOMC might keep rates flat to entice growth.
Inflation Is a Continuing Issue
The Federal Reserve has been in a challenging situation for much of the last two calendar years. The global economy has shown signs of shakiness in recent weeks, with the failures of Signature Bank and Silicon Valley Bank (SVB) reigniting fears of a looming recession. The latest meeting of the FOMC was the first chance for the Federal Reserve to comment directly on the state of the economy since the SVB and Signature failures.
While the two recent bank failures draw comparisons to the causes of the 2008 recession, most experts feel that the recent collapses do not appear to mirror similar events from 2008. Still, consumers feel the pinch and worry about a financial disaster. The latest news from the Federal Reserve aims to calm these fears as the specters of recession and world war loom.
“The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation,” the FOMC said in a statement. “The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks… the Committee will closely monitor incoming information and assess the implications for monetary policy.”
The range of your credit score plays a major factor in many facets of your life such as whether you’ll be approved for a mortgage, what your interest rate on loans will be, and even employment opportunities. Maybe your credit score isn’t terrible, but you have plans for the future that hinge on you taking steps to improve your credit score. Building credit from the ground up and trying to raise your credit score from fair to good or excellent are similar in that they both require active commitment and discipline to see positive results.
Check Your Credit Reports
The first step you should take when trying to improve your credit score is getting copies of your credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. If you want to get a free copy of your credit report from all three bureaus, visit AnnaulCreditReport.com and they’ll give you one copy of each for free every 12 months.
If building credit is going to be a major ongoing priority, consider pulling one credit file from each of the three major credit bureaus once every four months compared to requesting three free credit reports just once a year. These credit reports are important because they include your credit history, which lists any negative information that could be holding you back from having better credit such as missed payments or unresolved collection accounts.
Some of this negative information could also include loans or credit cards signed up for fraudulently, so being aware will help you when you begin the process of credit repair to dispute these errors.
Consistently Pay Your Bills
One of the most important factors that determine your credit score is whether you are paying your bills on time. You may have mountains of bills preventing you from saving very much, but the important thing is that you make your bills the priority and that you consistently pay on time. beyond on-time payments, keep making payments on installment loans such as student loans and auto loans.
Be sure to also make payments towards your revolving credit accounts as missed payments certainly won’t raise your credit score, and each card’s accruing interest rate will only add more debt to what you already owe.
Payment history accounts for approximately 35% of your FICO Score – making it the single largest impactor of bad credit – or good credit score. If you’re in danger of not being able to make payments, consider contacting the credit card issuers or loan companies to work out a flexible and realistic payment plan.
Be Mindful of Your Credit Utilization Ratio
If you want to see your credit score go up, one important thing to keep in mind is your credit utilization ratio. Having credit card balances in varying amounts isn’t uncommon, but when trying to improve your credit score that you do your best to keep as many of these balances as low as you can. It’s highly recommended that you never let your cards’ balances exceed more than 30% of their credit limits as it raises red flags to the major credit bureaus.
Once you have paid off a balance completely it may be tempting to cancel the card completely, but the best course of action is to store it somewhere safe and don’t use it. More credit available to you on empty credit cards combined with shrinking debts on other cards will lower your credit utilization ratio and will ultimately help raise your credit score.
An easy way to increase your credit score is by asking for a credit limit increase. Customers with a long, established history with a bank or credit card company can usually expect a credit line increase if they make their payments on time, keep their credit use low, and also have affiliates bank accounts with the issuer.
Limit Credit Card Applications
Trying to lower your credit utilization ratio might tempt you to go out and sign up for multiple cards thinking that if you don’t spend with them and leave them balance-free your credit score will go up. This isn’t the case as every time you apply for a credit card a hard inquiry is created on your credit report. Too many hard inquiries can negatively affect your credit score, and each one will stay on your credit report for two years.
Bad experiences or no experiences with credit cards may have the effect of turning you away from them. However, you can conquer your fear of credit cards by becoming knowledgeable about how they work. Understanding how credit cards can be used as tools to better your finances is all the power you need to become confident in your credit card use. Here’s how to beat your fear of credit cards.
Don’t Fear the Unknown
“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.” —Marie Curie This sentiment is as true for public speaking and riding roller coasters as it is for using credit cards. Just because you don’t understand how credit card debt works doesn’t mean that you should avoid long-term financial planning or be afraid to even apply for a credit card in the first place. By coming to a few simple realizations, you too will be able to learn how to conquer your fear of credit cards.
Do I Even Need a Credit Card?
To be perfectly frank, there are millions of people that can get by without using credit cards or even having a bank account in their name. That’s fine if all you want to do is get by, but you’ll need a personal finance plan to earn a good credit score and establish the kind of credit history that will qualify you for a loan to get that car or house you’ve always wanted.
Even if you’re opting to rent for the rest of your life, some landlords will dismiss your application if they see that your credit report isn’t established enough. This is known as having a thin file, and in many cases, makes the chances of you moving into an apartment slim to none. When used responsibly over a period of time, credit cards can be the tools that will build the foundation for a prosperous financial future.
Learn Before You Leap
If the fear of mounting interest rates or your ever-present student loan debts has kept you from applying for a credit card, learning how to use them responsibly can go a long way in demystifying them. There are countless blogs on the internet written by professionals (like the one you’re reading) with the sole purpose of providing you with knowledge about the credit card industry.
Pulling up your favorite web browser on your phone and spending a few minutes reading posts from experienced and reputable individuals may answer some of your questions about how to build your credit, pay down your credit card bills fast, and other related topics. Credit card issuers themselves are also a great source of knowledge that you can take advantage of when learning how to conquer your fear of credit cards. As they want you to sign up for their financial products, they’ll do their best to provide you with the information that puts their credit cards in the best light.
You can again rely on the internet to do your due diligence, but most major issuers can also be conveniently reached over the phone to answer questions that you may have as well. Combining the info you get from credit card companies and unbiased online reviews should give you a good indication of which credit card is best for your specific situation.
Build and Maintain Responsible Financial Habits
Not paying the balance in full on your credit cards in the past may have led to lots of fees and debt, but there are programs available now that are designed to help you manage how you use them. A quick search online will show you that many lenders and third-party companies have created intuitive applications to help people manage their credit card debt. These apps often allow you to make automatic payments and send alerts right to your phone if you hit certain credit card balances, reducing the chance of your debt becoming past due.
Spending within your budget is an important lesson when overcoming your fear of credit cards, too. Opening a low introductory APR balance transfer credit card in order to pay less interest on your current debt may seem like a good idea, and there are ways to do so, but if you continue to create debt without paying it down the cycle of making only interest payments will never end.
Habits to Avoid:
Ignoring the Signs
Do not ignore your credit card balance. Credit card apps are an easy way to manage and keep tabs on your card balance. Use the apps to stay alert on charges, billing due dates, and more.
Not Knowing Your Credit Score
Knowing where you stand with your credit score can help you capture mistakes to correct. Often checking your credit report can help guide and provide insight into what you need to work on to build or repair your credit.
Not Setting or Keeping a Budget
Planning a monthly budget and setting financial goals helps credit card users stay responsible with their credit card spending. Budgeting creates a plan for your money on what you can and cannot spend to remain current with your credit card payments.
Maxing Out Your Credit Cards
Maxing out a credit card is never a good idea, as it significantly affects your credit utilization ratio. Experts recommend keeping your credit utilization ratio at 30% or less.
Balance Transfer Overload
Balance transfers create an option for those who wish to transfer existing credit card debt to another to gain a lower interest rate to save money and pay off debt faster. It's essential to plan your balance transfer payments and goal to pay off your transferred debt before the promotional low APR period is over. Otherwise, you will continue to rack up interest on your credit card debt.
Scale Up with Secured Cards
Secured credit cards may not have high credit limits or impressive rewards but using them is still a great way to improve your FICO score if you don’t qualify for an unsecured credit card just yet. Even with bad credit or no credit, chances are that you’ll be able to put money down and open a secured credit card. Ideally, you’ll want to find a secured credit card that can become an unsecured credit card. All you’ll need to do then is pay your balance in full every month and maintain a low credit utilization ratio (not maxing out your card’s limit) in order to increase the chances that your next credit card application will be approved.
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The fear of missing out on fun activities because you’ve got to pay down your credit card debts instead may seem like a good reason to be afraid of getting one but think about what you won’t be experiencing if you DON’T have a credit card. There are people who, with careful planning, take their entire family on trips all over the world free of charge using only the points they’ve earned on their rewards card.
That sounds like a much better deal than any discounted hotel rate you may come across online. Following the advice given earlier about learning the ins and outs of credit cards, you’ll be able to find one that not only gives you the rewards you want but allows you to earn points or miles on purchases that you’re already making every day. It may sound like a dream scenario, but it can very much be a reality for you as soon as you overcome your fear.
Small business credit cards give companies the purchasing power and flexibility they need from a payment tool. Business cards offer large credit lines, lower-than-average interest rates, and often they also earn rewards. However, they also provide some great benefits that average consumers may not be aware of. Here are some lesser-known business credit card perks you should keep an eye out for when applying for your next business card:
4 Lesser-Known Features of Business Credit Cards
Some of the best features of business credit cards are easy to imagine. Things like scalable credit lines, additional capital, and no annual fees are common features of business cards – but did you know there’s more than meets the eye when it comes to business credit cards? Here are four things to keep an eye out for when deciding on your next small business credit card:
Free Employee Cards
Business credit cards work best when your whole company can earn rewards for everyday business expenses – such as travel, office supplies, marketing costs, utilities, and more. Fortunately, many business credit cards offer free additional employee credit cards.
Providing additional business cards for employees is also a great way to track spending. Because the further free cards are tied to the same account, companies can spend less time reimbursing employees for business purchases while also enjoying a centralized statement highlighting each employee’s spending. Not to mention, employee cards allow your spending to be in more places at once, giving you more flexibility when handling your purchasing. One of the cool features of the Ramp Card, for example, is the ability to provide custom-branded employee cards at no additional cost. Having your brand design on all your employee cards? Now that’s a cool feature.
Expense and Spend Tracking Tools
Most business credit cards also offer annual and monthly reports on business expenses. Small business credit cards make it easy to download spending records and integrate into popular software programs like Quicken, QuickBooks, and Microsoft Excel.
Take the BILL Divvy Corporate Card – a corporate card – as an example. Businesses can take advantage of easy dispute resolution, report drill-downs, simple reimbursements, spending notifications, instant categorization, and a two-step review process. All data is stored and accessible in one place, making the BILL Spend & Expense program an end-to-end spend management platform allowing companies to control their business finances.
Travel Perks
Complimentary employee cards offer a great way of streamlining expenses. Still, travel perks are a business credit card feature that can save companies when employees hit the road to meet clients or oversee logistics. Some business cards come with no foreign transaction fees, a welcome bonus offer worth a free flight after you spend a certain amount within the first few months of card membership, and more.
The Business Platinum Card® from American Express is one of the best options for companies that frequently send employees on trips for business, conferences, and other events. The Platinum Card is a traveling juggernaut with plenty of travel perks to justify its substantial annual fee.
These perks include:
Up to $200 each calendar year in statement credits for checked baggage fees, lounge day passes, and more at one selected airline
$189 CLEAR® statement credit. CLEAR® is available at more than 50 U.S. airports and stadiums
Complimentary access to the American Express Global Lounge Collection®
No foreign transaction fees
But what if your business travel takes you closer to home? In that instance, a business card like the GM Business Card from Marcus by Goldman Sachs makes more sense. The card is ideal for companies seeking to expand their fleet size, thanks to a lengthy 0% intro APR on purchases for the first year, and 5% in Earnings on GM dealership parts, accessories, or service purchases. But the card is also great for companies who plan to issue cards to employees – and expects a heavy fuel spend. The card earns 3% in Earnings on purchases at gas stations, restaurants and office supply stores, and 1% on purchases everywhere else – so no matter where your employees spend, you’ll earn towards new GM vehicles.
Business Savings
Travel statement credits and lounge access aren’t the only perks business credit cards provide. Business credit cards often include software savings, shipping discounts, and other similar offers. Typically, these features are provided by the payment network, with both Visa and Mastercard (the two largest networks in the industry) offering different benefits.
Mastercard, for example, offers businesses the following additional savings:
Receive up to $100 in Uber vouchers when you make qualified purchases with an eligible Mastercard business card
Earn up to $1,000 in Uber Freight load credit with an eligible Mastercard small business card
Save 30% on QuickBooks Online, QuickBooks Self-Employed, or QuickBooks Online Payroll for 12 months
Visa also provides exclusive savings for small businesses through its credit cards. The Visa SavingsEdge program enables statement credits when you use select Visa business cards at participating merchants, including names like Chevron, Auto Zone, Plastiq, Stamps.com, Mailchimp, and more.
The Fair Credit Reporting Act is a federal law that regulates the collection, dissemination, and use of consumer information by credit reporting agencies. Consumer reporting agencies collect and maintain information on consumers to provide consumer reports to third parties. Here’s everything you need to know about the Fair Credit Reporting Act.
What is the Fair Credit Reporting Act?
Passed in 1970, the Fair Credit Reporting Act (FCRA) is a federal law that enforces the accuracy and privacy of consumers’ personal information when collected and shared by consumer reporting agencies. You may already be familiar with the three major credit bureaus – Experian, TransUnion, and Equifax – but there are other reporting agencies that keep track of personal information, such as background checks for employment screening, insurance, medical records, and rental history.
The FCRA applies to all these organizations. Also answerable to the FCRA are information furnishers, which are companies that supply consumer details to reporting agencies. Regarding credit information, the FCRA sets regulations to keep credit bureaus and the entities that interact with them, in check. In addition, it outlines certain consumer rights for their knowledge and protection. Below we’ll describe what these protocols are.
The FCRA and the Consumer
The FCRA was designed to promote accuracy, fairness, and privacy in the consumer reporting system. The law sets out specific requirements for consumer reporting agencies and gives consumers certain rights regarding the information collected and disseminated about them.
Here are the protections afforded to consumers via the Fair Credit Reporting Act:
① You have the right to ask for your credit score
You can submit a request for your credit score from the reporting bureaus; however, unlike your annual credit report entitlement, it’s not free. Note, though, that there are also certain credit cards that provide complimentary credit score information as part of their included benefits.
② You have the right to be informed when your credit report has been used to take action against you.
This includes when your application for credit or a loan is declined, if you are denied insurance or employment, or if you are approved at a high interest rate because of what’s found in your credit report. The user that performed this negative action must inform you of the decision and provide you with the contact information of the bureau from which it obtained your consumer data. You’re entitled to receive these details so you can verify and dispute, if applicable. In addition, you’re eligible to receive a free copy of your credit report if you’ve fallen victim to identity theft and placed a fraud alert on your profile, or if fraud has caused incorrect information to be reported on your file. If you’re on public assistance or unemployed yet seeking to apply for work within the next 60 days, you’re also qualified to get a free copy.
③ You have the right to dispute the information in your credit report.
If something doesn’t look right in your report – an account you paid and closed still shows as open, you see a delinquency that you did not commit, etc. – you’re allowed to contact the credit bureau and dispute the inaccuracy. Be aware that this is a multi-step process and you must have evidence to support your case.
④ You have the right to opt out of prescreened offers for credit and insurance.
Chances are you occasionally receive mailers from credit card issuers about products that you have been pre-approved for. Credit reporting agencies share your information with financial institutions, which allows them to target potential customers. However, you can opt out of receiving these offers. Mailers are required to include a phone number you can call in order to remove your details from their lists. Alternatively, you can call 1-888-5-OPTOUT.
⑤ You have the right to enact a security freeze on your credit report.
By placing a security freeze on your report, bureaus are not allowed to share your information without your consent. You may wish to do this if you don’t want unsolicited approvals for credit or loans. Note that this action only applies to entities you do not already have a relationship with that’s noted in your credit report. Companies through which you already have an account may still access your file for monitoring or collection purposes.
⑥ You have the right to pursue damages from FCRA violations.
You can sue a business that violates your FCRA rights in state or federal court. Such a case would be different from, say, an error committed by said business. However, if the business in question refuses to amend its mistake – thereby continuing to reflect negatively on you – you’re entitled to seek legal action.
The FCRA and the Consumer Reporting Agency
The FCRA also applies to credit reporting agencies. “Consumer reporting agencies” include the usual credit bureaus and agencies, such as Experian Equifax, and TransUnion, These agencies are bound by the following regulations through the FCRA:
① Reporting agencies must amend incorrect or inaccurate information.
If you dispute a legitimate inaccuracy on your credit report, both reporting agencies and furnishers are compelled to either correct or remove it from your file, usually within 30 to 45 days.
② Consumer reporting agencies may not report outdated negative information.
Adverse actions on your credit report, like late payments, collection accounts, or bankruptcies, should be removed from your file after a specified amount of time (seven years for most delinquencies and up to ten years for bankruptcies). Bureaus that continue to display such information after the required time has passed would be in violation of the FCRA.
③ Reporting agencies may only share your credit file with people or companies that have a valid purpose for accessing it.
Your report cannot be accessed by anyone who does not have a permissible reason, such as consideration for a loan or credit application. The FCRA outlines entities and motives that are accepted for access.
④ Reporting agencies must obtain your written consent before they can share your credit information with your employer (present or future).
Companies you currently work for, or may potentially work for, may request access to your consumer information. However, you must first give authorization in writing before the reporting bureau can disseminate your details. When you apply for a job, you’ll typically find an area of the application that requests your consent to view your credit report.
The FCRA and Information Furnishers
Under the FCRA, information furnishers must provide accurate and complete information to reporting agencies. When they don’t, it can lead to a dispute on your part. If a furnisher fails to disclose information – or does it incorrectly – it’s generally not deliberate; otherwise, you can take legal action. Furnishers are required to investigate disputes initiated by consumers and correct any information found to be inaccurate. Related to the point above, if a consumer disputes a piece of information in their credit report provided by a furnisher, the latter must look into it along with the reporting agency. If there is indeed a mistake, it must be adjusted in a timely manner by all parties.
One Last Thing
The provisions under the FCRA apply at the federal level. Individual states, however, may have their own consumer reporting laws that grant you added protection. Reach out to your state’s Attorney General or consumer protection agency (if there is one) to find out whether there are additional stipulations worth knowing.
Overall, the Fair Credit Reporting Act and consumer reporting agencies provide essential consumer protections. By giving consumers access to their credit reports and the ability to dispute errors, the FCRA helps ensure that credit reports are accurate and that consumers are not unfairly penalized for past mistakes. The law also helps protect consumer privacy by limiting the dissemination of consumer information and requiring consent before credit reports are provided to third parties.
Is credit card debt getting in the way of new relationships? According to a further study, Millennials seem to be ghosting dates with credit card debt. It is a famous deal breaker in today’s dating scene across different generations. Here’s more on the survey findings discussing couples and their financial deal breakers.
Financial Deal Breakers and Relationships
In a recent study done by the Western & Southern Financial Group, the findings give insight into financial deal breakers in relationships. Looking for a special someone can include looking at factors like family values, beliefs, life goals, and more. However, finances are not out of the question. In fact, according to the survey, among the different generations lies a series of financial deal breakers for relationships.
For example, credit card debt is deemed a dating deal breaker for Millennials (born 1981-1996). According to the survey, Millennials saw credit card debt as the biggest red flag when it comes to dating. On the other hand, baby boomers (born 1955-1964) and Gen Xers (born 1965-1980) felt personal loans are their biggest turn-off in building relationships. Finally, Gen Zers (born 1997-2004) reflect they will not put up with financially illiterate partners. Furthermore, Student loans weren’t a top deal breaker for any generation surveyed. Although the average student loan borrower owes $28,950, survey participants considered a lesser amount a financial deal breaker in their relationships.
Millennial Dating and the Credit Card Debt
So, why is credit card debt such a burden among Millennials looking for dating prospects? It might be due to negative character traits often associated with credit card debt, said Nashira Lynton, an AFC accredited financial counselor in a CNBC.com article.
“Someone with high credit card debt could be working on a plan to get out of it,” Lynton said. “But if they are continuing to buy items they cannot afford or do not need, leading them to accumulate additional debt, this could be a pattern that could affect the relationship.” Source.
Lynton goes on to explain that the only way to tackle the issue of credit card debt as a couple is to communicate concerns regarding the debt in conjunction with monitoring the person’s displayed behavior. If a potential partner reveals they have credit card debt, do not panic right away. They might still have a shot. “Someone with high credit card debt could be working on a plan to get out of it,” Lynton said. “But if they are continuing to buy items they cannot afford or do not need, leading them to accumulate additional debt, this could be a pattern that could affect the relationship.”
Other Survey Findings
The survey reveals other surprising findings. As important as finances are in the dating scene, an astonishing 63.6% of Americans surveyed have never discussed debt with their spouse. This means only 36.4% of survey participants had a very important discussion about debt before tying the knot.
Moreover, the survey finds that when it comes to finances, couples with joint bank accounts are most likely to argue about spending habits. More than half of the couples with joint bank accounts said most of their fights are related to spending. The women in the survey also expressed they rather have their own money set aside, instead of arguing about it. However, couples most frequently argued about salary, savings goals, and strategies.
