Personal Finance

How Accurate Is Credit Karma-Our Review

July 9, 2020 By Tamila McDonald Leave a Comment

Your credit score and report are critical for your financial well-being. That’s why many people actively track their information over time, allowing them to address issues or make choices to improve their situation. Credit Karma is one option for monitoring your details. But is Credit Karma accurate? Is Credit Karma the best way to track your credit score? If you’re considering questions like that, here’s what you need to know.

What Credit Karma Shows You

When you sign up with Credit Karma, you get access to various kinds of information. While much of what’s available is offers for financial products and services, users also gain insights into their credit.

By heading to the “Credit” section of the app, users can see their most recent score as well as an overview of how various credit factors impact that score. For example, there’s an entry for the user’s payment history, with the percentage reflecting the number of payments that are listed as on-time. It also has a notation for how impactful that factor is, with payment history being listed as “high impact.”

Those details help a person understand where they are shining and if there are specific areas where they could improve. This empowers users to take control of their credit, making sounder choices that lead to higher scores.

For users who want to take a deeper dive, they can view their full credit reports. Here, they’ll see their score again. However, they can also peruse a list of their accounts (open and closed), the state of those accounts, recent inquiries, accounts in collections, and more.

All of the details help a person see if there may be errors harming their score. Plus, they can scan the accounts lists looking for accounts that aren’t theirs, which could be a sign of a mistake or, in the worst-case scenario, identity theft.

Are Credit Karma’s Credit Reports Accurate?

Yes, Credit Karma’s credit reports are generally accurate. In reality, Credit Karma isn’t creating a new credit report. Instead, it’s pulling information directly from a credit bureau or two and showing that information to you. As long as the source credit bureau’s information is accurate, Credit Karma’s will be as well.

Typically, the only time this isn’t the case is when there’s new activity. Credit Karma does refresh the information as frequently as every seven days, depending on how often you log into the app. That means if something changes in your report before the next refresh, the information may be out of date.

Additionally, since Credit Karma relies on reports from bureaus, if a bureau doesn’t have a recent activity on your report, it won’t show for Credit Karma either. For instance, it can take 30 to 60 days for a new account to show up on your credit report.

Plus, not all lenders report to all bureaus, so information may be missing because that bureau wasn’t informed of that account. That’s one of the reasons why your report and score can vary from one bureau to the next, as they are working off of different information.

In those scenarios, the information you see from Credit Karma isn’t technically inaccurate. It’s correct based on what the bureau knows. The trick is, the reporting system itself isn’t perfect.

However, errors in credit reports are always possible. If the credit bureau has incorrect data or you’ve been the victim of identity theft, Credit Karma’s report will also have that inaccurate information. Again, this isn’t the fault of Credit Karma as they have no way of knowing that there’s an issue with the bureau’s data. If that occurs, you need to reach out to the bureau, not Credit Karma, to get it corrected.

Are Credit Karma’s Credit Scores Accurate?

Yes, Credit Karma’s credit scores are mainly accurate. The issue is, Credit Karma doesn’t use the credit score you’re expecting, and that can make it look like there is a discrepancy when there isn’t.

When people apply for credit, the lender usually pulls FICO credit scores. Since they are more widely used, these are the credit scores people are used to seeing.

However, Credit Karma provides users with their VantageScore (currently based on the VantageScore 3.0 model). That isn’t as widely used by lenders when they decide whether to extend a person credit, up a credit limit, or make a similar lending decision. This decreases the degree of familiarity with the scoring model.

This wouldn’t be in issue if the VantageScore and FICO score were calculated in the same manner. However, even though both use the same score range (300 to 850), how a VantageScore is calculated does differ from how a FICO score is calculated.

As a result, a user’s VantageScore and FICO score can be dramatically different, which can cause some confusion. But that doesn’t make either one inaccurate; they simply use different approaches to determine a person’s creditworthiness.

Generally, people’s VantageScores and FICO scores do align to a degree. For example, if your VantageScore qualifies as “good,” there’s a strong chance your FICO score does as well. However, some people do see deviations. For instance, they might have a “good” FICO score and a “fair” VantageScore, even though those scores came from the same bureau.

Using Credit Karma to Track Your Credit

Ultimately, Credit Karma is accurate. You just have to understand that most lenders don’t look at your VantageScore when deciding whether to approve you and that your VantageScore does differ from your FICO score.

But even with that, that doesn’t mean you can’t make the most of Credit Karma. You can monitor your account lists for signs of errors or identity theft. Tracking your credit score is also a good idea. Usually, if your VantageScore rises, so does your FICO score, so you can use Credit Karma to see if you’re making positive progress.

Plus, Credit Karma is free. The company makes money through partnerships with the financial product and service providers it advertises or recommends. Users never pay directly for the service, which is another reason it’s worth considering.

In your mind, is Credit Karma accurate? Do any of the discrepancies above leave you concerned? Have you ever had an issue with the quality of Credit Karma’s information? Share your thoughts in the comments below.

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5 Tips on How to Short a Stock

June 30, 2020 By Trey LaRocca Leave a Comment

The market has been extremely volatile as of late. As a result, there are many people making ridiculous amounts of money day trading. Day trading, or shorting a stock, is essentially the act of buying and selling a stock in a very short amount of time. This sort of trading is high-risk, and is more akin to gambling than investing. that being said, it can make for much quicker gains than other types of stock trading. The issue is, it doesn’t take very long to lose a lot of money. This is due to the types of stocks people short. To make sure you don’t fall into some major losses, we have a few things you should know. So, here is how to short a stock:

Set a Conservative Goal

If you are trying to keep yourself as safe as possible, it is important to set a goal for your gains from the outset. When buying a stock, decide on a percentage gain you are looking to make from it. Once you have chosen this percentage, stick to it. If and when the value of the shares you purchased reach that goal, sell immediately. Don’t hang on and try to wring extra money out of it, as this is the way that people most often experience losses. On low-value stocks that people like to short, it takes only a few seconds for values to drop astronomically. So, if you are looking to make 5%, sell at 5%. Most people consider 5% gains a good goal for the year. Don’t lose money trying to beat it in a single day.

Set a Stop-Loss Around 1-2%

Due to the volatility of shorted stocks, it is important to use technology to your advantage. Most brokerage apps allow you to set a “stop-loss”. Stop losses are values at which you brokerage will automatically sell your shares. These make sure that you don’t look away from your phone and lose 10% of your portfolio. For most casual day-traders, you are betting almost your whole brokerage account on each trade. So, set a stop loss of only one or two percent of the current value of the shares when you buy them, and you will ensure that your losses never get worse than 1-2%. this will lose you a lot of shares, and you may miss out on a few upswings, but the security is worth it.

Only Short 3 Times Per Week

This one has less to do with strategy, and more to do with statute. In the United States, you will usually be marked as a “Pattern Day-Trader” if you buy and sell four or more times in a rolling five business-day period. Once you are flagged under these PDT rules, you are required to have $25,000 in your brokerage account to short a stock again. This is obviously an instant disqualifier for many, and so we recommend you keep it to 3 each week.

Join a Group

There are many day trading communities out there. Many of them use live chats to call out what stocks are looking good, which are most volatile (which leads to the fastest gains), and when certain stocks are spiking or falling. This can all be extremely helpful information, and can maximize both your gains, and your security when shorting stocks. Information is king in the stock-shorting game, and joining a community with a live chat like this is a great way to maximize your information.

Don’t

My best piece of advice for most people who want to short a stock is simple: Don’t. Why do I tell most people not to short stocks? Because most people lose money shorting stocks. In fact, according to the stock trading firm eToro, 80% of people lose money doing it. so unless you are going to be as safe as possible, and follow this advice exactly, don’t get involved in day trading. I’ve written another article regarding your personal ability to become a day-trader, even casually. It all comes down to discipline, and the effects of a loss on your life. Make a smart decision, and be responsible.

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Why Every Adult Should Have a Toolbox

June 30, 2020 By Trey LaRocca Leave a Comment

So much of our money is spent getting other people to do things for us. This can eat away at our budgets, and perpetuate a glaring weakness in our lives. No matter what your experience is with tools, it is vitally important that you have them. With the internet serving as an all-powerful learning resource, there is no excuse to go without a decent toolbox. There are many different ways that this will improve your life, and your financial standing. TO help make those clear, I’m gonna list the highlights for you. So, without further adieu, this is why every adult should have a toolbox.

Home Repairs

Little things go wrong at the house all the time. Finicky light switches, broken toilets, clogged plumbing, and any number of other little things can bring $100+ bills with an electrician or plumber. Once you realize how little you really need, in the way of both tools and experience, you will be kicking yourself. A screwdriver and some pliers may be all you need for that light switch. A decent wrench set and some cheap replacement parts can fix most basic toilet issues, clogs being easily fixed with a metal snake. These are just a few of the many issues that can be solved with a decent toolbox. Home ownership is expensive enough, it doesn’t need to be made worse with costly repairs. The cost of tools will never compare to the bills you will receive down the road without them– trust me.

Automotive Maintenance

With homes, you can often wait until something goes wrong to break out your tools. Cars are much different, and this can be a good thing. You can keep some extremely major, and expensive, issues from arising with your vehicle by equipping yourself to deal with routine maintenance. Oil and fluid changes, brake service, and basic diagnostics are all cheap to accomplish, and easy to learn. As a result, you’ll be saving hundreds, potentially even thousands, of dollars a year on car issues. It also helps you avoid the headache of wondering when a mechanic is trying to upsell or scam you. Automotive mechanics, especially at big chain operations, are notorious for trying to make you spent far more than you should. That, along with labor costing around $80-120 per hour, is reason enough to learn a few things on your own.

Confidence and Peace of Mind

This may be the most important, as intangibles tend to be. It is hard to truly understand the peace of mind that comes with being equipped to handle these issues until you are. The feeling of knowing that if your car acts up, you know how to handle it. The feeling of knowing that when the roof leaks, it won’t be leaking for much longer. All of this contributes to an overall reduction in daily anxieties, and a major boost in your self-confidence. Not only does it make you less anxious, it makes you feel so accomplished to be able to point out all of the things you have fixed. Nothing quite compares to putting in some sweat equity, and getting a much-needed job well done.

Is Walmart Open on July 4th 2020?

June 29, 2020 By Amanda Blankenship Leave a Comment

Independence Day, also known as the Fourth of July, is a federal holiday and it is just around the corner. Many people plan beach trips and travel to visit family. However, you might also need to stop by a “one-stop-shop” to get items for cookouts and other celebrations. Because it is a federal holiday, though, people are asking, “Is Walmart open on July 4th?”

Is Walmart Open on July 4th, 2020?

Many people rely on Walmart as their first choice for many of their shopping needs. Store hours during the holidays can be a bit confusing, so you are not the only one wondering about the Independence Day holiday hours. The stock market and other institutions recognize the fourth of July, so it makes it difficult to know what’s open.

Walmart will be open on July 4th. According to Walmart’s holiday schedule, Christmas is the only holiday in which Walmart closes its doors entirely. So, if you need anything from the retail giant on Saturday, you will be able to get it.

Is Walmart Open the Day Before Independence Day?

Walmart will be open on Wednesday, July 3. Walmart does not close its doors very often, and the day before Independence Day is not one of the few times it closes its doors.

Are Other Services Available?

Most Walmart stores have a bank, hair salon, nail salon, an optician and income tax preparation service inside the store. Those service providers are independent of Walmart and do not follow the same operating hours as Walmart stores. Check with your local store to see if those service providers will be closed on the Fourth of July or any of the days surrounding the holiday.

What Days is Walmart Closed?

Walmart only closes on Christmas each year. On Thanksgiving, some Walmarts close their doors and reopen in the evening for early Black Friday sales. These are the only two days that Walmart has an altered schedule.

When will Walmart stores be open?

Since Walmart will not be closed on Thursday, none of the days around it will be affected by the holiday either. They will be open the following hours the week of Independence Day:

Wednesday, July 1, 2020: Regular hours
Thursday, July 2, 2020: Regular hours
Friday, July 3, 2020: Regular hours
Saturday, July 4, 2020: Regular hours
Sunday, July 5, 2020: Regular hours

Will Walmart.com Be Available?

Because Walmart is still open for the Fourth of July, Walmart.com will still be fully operational. In fact, Walmart.com is operational every day, but delivery around holidays, such as Christmas, from the website may take a bit longer.

As Independence Day is widely celebrated, many people get confused as to what is open and what is closed for the holiday. However, you do not need to worry the Walmart superstore nearest you will be open.

Is There a Fourth of July Sale?

Not only is Walmart open on the 4th of July, but the retailer hosts a large sale to celebrate Independence Day. Usually, the sales last for at least a week, though many of the food item prices will be good for the entire week. Walmart has a sale on most major holidays. Around Independence Day, Walmart usually puts outdoor items on sale, such as grills, beer and food, beach supplies, sparklers, fireworks, and other outdoor activity supplies. You will also be able to find small American flags, large flags, and other patriotic items on sale.

Grills and Camping

With temperatures rising, and people still being required to social distance, grills and camping supplies will be popular sales items this July 4th. You can also find fishing supplies on sale. Some of the items available at discounted prices include:

Bait
Tackle boxes
Rods and reels
Boats
Boat accessories

Ultimately, the 4^th of July is a great time to score some deals. Just be aware that stores may draw crowds as some people will take advantage of the savings since they have the day off work. Be sure to stay safe!

Do you plan on shopping at Walmart on the 4th of July? Tell us about it in the comments below.

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Here Are 5 Major Financial Decision to Make Before 30

June 25, 2020 By Tamila McDonald Leave a Comment

For many people, your 20s are spent figuring out who you are and where you want to go in life. Many of the major financial decisions you may during this period have a significant impact on your future. Usually, this is because they have a chance to snowball. You can develop habits that shape your choices down the line, both positive and negative. Ideally, you want to make the process intentional, allowing you to shape your financial future. If you aren’t sure where to begin, here are five major financial decisions to make before you turn 30.

1. Where You Want to Live

This isn’t just about picking a house or apartment. The city and state you choose to call home have a significant impact on your finances. Along with housing costs, your residency can determine whether you pay certain kinds of taxes as well as the cost of living you’ll contend with while you’re there.

Additionally, where you live influences your earnings potential. Big cities tend to offer higher salaries than the same jobs in smaller towns. Whether they come in high enough to offset the cost of living differences varies, but it’s a facet that needs to be explored.

Ideally, you want to select a location that best meets your needs in your 20s. That way, you can transition (if necessary) and start putting down roots in your preferred city.

2. Where You Go to College

Your choice of college impacts your financial future in several ways. First, it determines how much you’ll pay for your education. While the average student loan debt comes in at $32,731, many people end up with much higher balances. It can take decades to pay off a loan, and many people ultimately default, leaving the debt hanging over the head for practically all of their lives.

Second, the college you choose may impact your professional life. A school’s reputation could influence hiring manager decisions, for one. For another, some colleges have more robust alumni amenities, including job placement assistance.

Both of these factors impact your financial life. That’s why you need to think about more than just where you’d like to go to school (or where your friends are going) before you make a decision.

3. Whether You Want to Buy a Home

For some people, buying a home down the road is a must. Even though it means staying in one place for a while, dealing with maintenance responsibilities, and similar obligations, they can’t envision their future any other way.

However, not everyone feels the same. Many prefer the convenience and flexibility renting can offer, so they never plan on making a home purchase.

While you’ll usually spend at least part of your 20s in a rental, it’s wise to decide whether buying a house is one of your goals. It’s a major financial decision, and it takes time to prepare if you want to become a homeowner. By figuring out whether that’s something you want to do, you can start saving right away. Then, when the time comes, you’ll have enough set aside.

4. Whether You Want Children

The cost of having kids can be incredibly high. One estimate showed that raising one child can cost $233,610. That’s a major financial burden.

Even if you don’t want kids right away, it’s wise to consider if you would like to have children in the future. That way, you can start planning for the added cost in advance. Along with setting aside cash in savings, you can make sure that you can support your other goals and needs before you move forward. Otherwise, while you’re trying to cover childcare and healthcare for your kids, you might find yourself forgoing retirement savings, leaving you in a bind down the road.

5. What You Want Retirement to Look Like

When it comes to saving for retirement, time is both your friend and your enemy. The earlier you start, the bigger difference compound interest makes, potentially allowing you to use smaller monthly contributions to reach your goal.

However, you need to know what that goal is to make sure you are headed in the right direction. Ideally, you should have an idea of how’d you would like to live when you step away from the workforce or, at least, leave your main full-time career.

Additionally, if the idea of retiring early is enticing, planning now is a must. It’s possible to shave years, if not decades, off the process. But you can only pull that off if you make that a priority as soon as possible.

Ultimately, it’s best to have the major financial decisions above handled before you turn 30. That way, you can set your life on the right course, allowing you to move toward your goals with greater ease and to avoid missteps that could derail your plan.

Can you think of any other major financial decisions a person should make before 30? Share your thoughts in the comments below.

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New Costco Locations for 2020 — UPDATED

June 25, 2020 By Amanda Blankenship 123 Comments

Costco has been expanding and has plans to continue doing so for the next few years. While information about new Costco locations tends to be limited, partially because of the complex agreements that have to be handled with the various cities, some details are available.

New Costco Locations in 2020

Costco opened two new locations in March 2020. Those were located in Ridgeland, MS and Perth Airport, Australia.

Costco does have more than one dozen new locations that are slated to open throughout the remainder of 2020. Three of those new locations are business centers:

Ontario, CA Business Center: August 2020
San Jose, CA Business Center: September 2020
St. Hubert, QC Business Center: September 2020

The other new Costco locations that are planned for opening in the next few months are:

Las Rozas, ES: July 2020
Kisarazu, JP: July 2020
Saratoga Springs, UT: August 2020
Idaho Falls, ID: August 2020
Bismarck, ND: August 2020
Sherbrooke, QC: August 2020
Gloucester, ON: August 2020
SW Calgary, AB: August 2020
Cherry Hill, NJ: September 2020
Surprise, AZ: September 2020

So, as you can see, there are five new Costco locations opening in the United States (along with two additional business centers) in the next few months. There are also several more opening around the world.

Possible New Costco Locations

There are a variety of other Costco potential locations in the works, though it isn’t clear whether they will come to fruition. For example, a Harrison, New Jersey Costco might open its doors during this calendar year, though that isn’t guaranteed.

Additionally, Costco has a number of cities that are proposed or in the initial planning phases. These could open as late as 2022, assuming that they do indeed move forward:

Murietta, California
Napa California
Pleasanton, California
Branford, Connecticut
Clinton, Connecticut
Athens, Georgia
Meridian, Idaho
Plainfield, Illinois
University City, Missouri
Cherry Hill, New Jersey
Patterson, New York
Bismarck, North Dakota
Cranston, Rhode Island
Bluffton, South Carolina
Dallas, Texas
El Paso, Texas
McKinney, Texas
Sherman, Texas

Finding Your Nearest Costco

By using the store locator feature on Costco’s website, you can find out which locations are closest to you. In total, there are 788 Costco stores throughout the world, more than 200 of which are outside of the United States.

548 Costco stores are spread across 45 states as well as Puerto Rico. 100 of the locations are in Canada (across nine provinces), 39 are in Mexico, 29 are in the United Kingdom, 26 are in Japan, 16 are in South Korea, 13 are in Taiwan, 12 are in Australia, two are in Spain, and there is one each in France, Iceland, and China.

In total, there are about 101.8 million Costco members worldwide. Approximately 163,000 people are employed by the company.

Costco Warehouse Store Operating Hours

While operating hours can vary somewhat from one Costco to the next, most follow a very similar schedule. Here is a look at the typical Costco warehouse location’s business hours:

United States

Monday through Friday: 10:00 am to 8:30 pm
Saturday: 9:30 am to 6:00 pm
Sunday: 10:00 am to 6:00 pm

Canada

Monday through Friday: 10:00 am to 8:30 pm
Saturday: 9:30 am to 6:00 pm (Quebec and Ottawa: 9:00 am to 6:00 pm)
Sunday: 10:00 am to 5:00 pm (Saint John 12:00 pm to 5:00 pm)

United Kingdom

Trade Members – Monday through Friday: 10:00 am to 8:30 pm
Individual Members – Monday through Friday: 12:00 pm to 8:30 pm
Saturday: 9:30 am to 6:30 pm
Sunday: 11:00 am to 5:00 pm

Australia

Monday through Friday: 10:00 am to 8:30 pm
Saturday: 9:30 am to 6:30 pm
Sunday: 10:00 am to 5:00 pm

See below for a link to info about how COVID-19 restrictions might have affected store hours.

Costco Holiday Closures

It is important to note that Costco does close on some holidays. In the US, this includes:

New Year’s Day
Easter Sunday
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day

Additionally, the retailer uses a reduced operating schedule on both Christmas Eve and New Year’s Eve. Usually, this means that the Costco stores will close at 6:00 pm instead of the typical 8:30 pm. You can find the 2020 Costco Holidays list here. Note, this article will also provide you with information about restricted hours during the COVID-19 pandemic.

Holiday schedules do vary by country, so those living outside of the United States will not necessarily see the same closure days as listed above.

Have you shopped at one of the new Costco locations? Are you looking forward to a new Costco that is coming to your area? Do you wish a Costco would open near your home? Share your thoughts in the comments below.

Costco Anywhere Visa® Card by Citi

If you are an avid shopper at Costco, we recommend applying for the credit card that is designed exclusively for Costco members. It has great cash back offer, earning as much as 4% cash back on gas! Plus there is no annual fee and you get a reward certificate every year that you can redeem for cash or purchases at Costco! Learn more about how the Costco Anywhere Visa® Card by Citi can work for you.

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