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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Buy Now Pay Later Could Lead to the Financial Downfall of a Generation
For the past 60 years, Americans have been impacted by the vicious cycle of credit cards. Now there is a new kid on the block.
"Buy Now, Pay Later" (“BNPL”) has taken the personal finance arena by storm. The number of Americans who have used the lending model, which is highly popular in Australia, has increased 300% every year since 2018, according to Bloomberg.
BNPL companies like Afterpay, Klarna and Affirm claim that the model is financially inclusive to people who can't access traditional forms of credit. Consumer Finance Advocates argue the model is under-regulated and poses risks to consumers. If this sector continues to grow, ...
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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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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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If Bankruptcy Is Not An Option – Negotiate Your Interest Rates
Americans are up to their ears in high-interest credit card debt, but, if bankruptcy is not an option, there is a way to decrease your monthly burden.
But before you start your journey - here is a sample of some recent surveys:
Experian: The typical American has a credit card balance of $6,375.00, up nearly 3 percent from last year.
Federal Reserve: Total credit card debt has reached its highest point ever, surpassing $1 trillion in 2017
Bankrate: Credit card interest rates are at a record high, at an average of 17 percent.
WalletHub: With the Federal Reserve's latest quarter-point interest-rate hike, credit card users will pay ...
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How Other People Can Affect Your Credit Score
Here are a few of the most common ways that other people can affect your credit score, along with some ways to protect yourself.
1. When you're an authorized user on someone else's credit card
You may think that being added as an authorized user places all the responsibility on the primary cardholder, but in fact, your authorized-user status will also be reported to credit bureaus. While you aren't primarily responsible for repaying the debt, all activity associated with the account will show up on your credit report.
This is why becoming an authorized user is sometimes recommended as a way to build credit. If the primary cardholder ...
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Fed Reports That Credit Card Debt Has Hit $1 Trillion
American's credit card debt has just hit a disturbing record of $1.02 Trillion according to the Federal Reserve. You may be surprised how much we owe.
Most of us owe money on some combination of mortgages, student loans, cars, and credit cards. Medical debts and personal loans are pretty common, too.
While being in debt may be considered “normal”, you may be wondering how your debt compares to your peers'. And now, you can find out thanks to the 2017 State of Credit report from Experian. Here are a few key findings from that report, along with some tips on what you can do if your debts are higher than you'd like.
How high is the ...
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What Makes Me Different From the Others?