In the rush at the store checkout this holiday season, you may be tempted to say yes when asked if you want to apply for a store credit card — especially if you’re offered extra savings on that day’s purchase. It may help in the long run if you resist accepting an offer at checkout on the spur of the moment and instead dig deeper into the terms and conditions before signing up.
Soaring interest rates could mean you’ll ultimately pay more than you save from any perks a store brand offers. The average retail credit card charges a 26.72% annual percentage rate, with a high of 30.74% which measures how much it will cost per year if you carry ...
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Credit Card Applications Rise Despite Decreases in Other Forms of Credit
Americans’ appetite for credit cards grew this year, even as they shied away from other forms of credit, according to a new report from the New York Fed.
The NY Federal Reserve has reported that the application rate for credit cards increased to 27.1% in October 2022, up from 26.5% last year and above its pre-pandemic reading of 26.3% in February 2020. But application rates for mortgages, refinances, and auto loans fell during the same period.
The rise in credit card demand mirrors the growth in credit card balances over the past year, the New York Fed reported, and is expected to continue into 2023 even though credit card rates are ...
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Credit Card Balances Return to Pre-Pandemic Levels
Credit-card debt recently reached a new milestone - it has returned to where it was before the pandemic.
Total card balances in the U.S. hit $916 billion in September, nearly identical to December 2019 levels, according to the credit-reporting firm Equifax Inc. Balances are up 9% from January and about 23% higher than their pandemic low in April 2021.
Card balances fell sharply in the early months of the pandemic after Americans, out of work and stuck at home, cut back on spending. Stimulus checks later padded savings accounts and allowed many to pay down costly debt.
When the economy reopened and people went back to work, ...
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Record Consumer Debt Not Affected by Higher Interest Rates
American consumers are now more indebted than ever. A recently released Federal Reserve Consumer Credit report shows that U.S. consumer credit outstanding has reached historic levels as outstanding consumer credit is now at $4.7 trillion. In August, consumer credit increased at a seasonally adjusted annual rate of 8.3 percent. The previous rise in July had been 6.%.
These current levels of consumer debt show that the Federal Reserve raising rates has not slowed down consumer borrowing. While consumer credit declined in the years immediately after the 2007 – 2009 financial crisis, since the second quarter of 2011 until the second quarter of ...
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How Inquiries Can Affect Your Credit Score
If you have checked your credit report lately, you may have noticed an "inquiries" section. An inquiry refers to a request to look at your credit file and falls into one of two camps: hard or soft.
A credit inquiry occurs when you apply for a credit card or loan and permit the issuer or lender to check your credit. Some inquiries have no effect on your credit, but others can lower your credit score.
Knowing the difference between the two types of credit inquiries and how inquiries affect your score is a must.
What Is a Credit Inquiry?
A record of a request for your credit report is called a credit inquiry. You'll see an inquiry on ...
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Credit Card Companies Not Seeing Economic Reality – Too Much Debt Is A Bad Thing
Americans are projected to fall seriously behind on their credit card bills at the highest rate in a decade as banks push a record number of people to get plastic.
The share of credit card borrowers who are at least 90 days past due on their accounts will probably tick up to 2% next year, the highest level since 2010, according to a forecast by TransUnion. Still, the credit-rating company said the increase isn’t a cause for concern, noting that bad card debt still remains much lower than the level seen during the last recession.
The number of people with access to revolving credit reached a record 200.5 million in the third quarter. That ...
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How to Correct An Error on Your TransUnion Credit Report
Did you know that one in every five Americans has an error on their credit report, according to the Federal Trade Commission? If you're one of the unlucky ones with an error, you could be denied credit when you apply, pay more for loans, or face other problems with employer background checks, utility companies, or cell phone service providers who check your credit.
You don't want omissions or inaccuracies on your credit report to cost you financial opportunities or to make your loans more expensive. To avoid this, you need to keep tabs on your credit. If you spot a problem, such as inaccurate information on your TransUnion credit report, ...
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Start Off Right – 12 Financial Tips That Can Last A Lifetime
When you enter your 20s, you try to figure out life and (hopefully) learn from your mistakes. For many, it’s the first time they’re faced with dealing with finances completely on their own.
You may be taking out student loans or trying to pay them off. You’re learning to manage credit cards and pay your bills, and you’re entering the workforce. What you do with your money in your 20s -- your saving and spending habits, and the debt you incur -- will stay with you into your 30s and beyond.
Penny-pinching and living within a budget aren't fun, but it’s a whole lot better than finding yourself swimming in debt and stressed about money. If ...
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Delinquent Credit Card Debt – One Cycle Is All It Takes To Begin the Spiral
Delinquent credit card debt is like having mold in your house. As time passes, they both silently get worse and become more difficult to fix.
When you make a payment after the due date on your credit card statement, you have a delinquent credit card account on your hands. You might think that one missed payment doesn't matter. In fact, many people seem to believe this.
According to the National Foundation for Credit Counseling 2018 Consumer Financial Literacy Survey, 25 percent of Americans said they didn't pay their bills on time. While it's heartening to know that 75 percent do pay their bills on time, the 25 percent who don't are on ...
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My Credit Score Suddenly Dropped – Why???
Few things in personal finance are scarier -- or more bewildering -- than opening your credit report and seeing that your credit score suddenly has dropped.
Your credit score - that little number - plays a large role in your financial life. A poor credit score can damage prospects for getting the credit card you want, or the terms you need on a mortgage or auto loan. It could also influence what interest rate you potentially pay..
Many factors can cause your credit score to slip, or even to free fall. Knowing which financial actions lower your score can help you avoid such mistakes.
Top Two Reasons Your Credit Score Might ...
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