"Money for me has only one sound: liberty." - Gabrielle Chanel

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Credit

What Does The Average Millennial Debt Look Like?

By 2 Comments

Average Millennial Debt

Financially, most Millennials – those born between 1981 and 1996 – are behind. On average, they earn just over $35,500 a year, and their net worth is a mere $8,000. Debt plays a big role in the low net worth numbers. And, since incomes aren’t increasing at rates similar to what Baby Boomers and Gen Xers saw, many are struggling to keep up. If you are wondering what the debt picture looks like, here’s what you need to know about the average Millennial Debt.

Millennial Debt Total

According to data from the Federal Reserve, Millennials owe more than $1 trillion in debt, in total. That’s across all debt-related categories, including credit cards, mortgage, and other kinds of loans.

Student loan debt for Millennials – the total of what’s owed by approximately 43 million Millennial borrowers – far outpaces previous generations in that category. It’s over 300 percent greater than what Gen X deals with, for example.

However, Millennials tend to have less in credit card and mortgage debt than Gen X. The lack of mortgage debt is partially a sign of the difficulty the generation has when it comes to entering the housing market. As for credit card debt, it’s a byproduct of Millennials’ general aversion to debt.

Credit Card Debt

Often, credit card debt usually comes with higher interest rates than many other types of debt. While Millennials are more debt-averse than different generations when it comes to credit cards, their balances have been rising. Over the course of one year, the average balance grew by 7 percent. As for the average balance, that hit $4,712.

Older Millennials tend to have higher credit card balances than their younger cohorts. For those who turn 39 in 2020 (the oldest Millennials), their average balance was $6,675. The youngest Millennials – anyone turning 24 in 2020 – come in at $2,288 on average.

Mortgage Debt

While many Millennials haven’t been able to buy homes, a decent number of their brethren scooped up properties. On average, Millennials with mortgages owed about $222,211 in Q1 2019. That’s a 5 percent increase over the previous year’s average.

Millennials are outpaced by Gen X when it comes to the average. Gen Xers came in at $237,753 on average. However, Millennials averages are growing faster than nearly every other generation. The only exception is Gen Z, which has a 15 percent growth rate. However, Gen Z had a lower average balance, sitting at $138,193.

Auto Loan Debt

For auto loans, Millennials have the fastest growth of any generation. On average, they owe $18,201 (as of Q2 2019), representing a 28 percent increase in just a seven-year period.

Gen Z does come in with a lower auto debt average, sitting at $14,272. However, both Gen X and Baby Boomers have higher averages, coming in at $21,570 and $18,759, respectfully.

New vehicle prices have mainly been growing. On average, a light vehicle (car, SUV, non-commercial trucks and vans, and other commuter-style four-wheeled vehicles) cost $38,948. As prices rise, loan sizes tend to follow.

Student Loan Debt

Student loan debt has been a shackle for many Millennials. The cost of college is over twice what it was in 1980, and Millennials have largely been told that getting a degree is either the key to success or an outright necessity.

The total amount of student loan debt has already crested $1.6 trillion. During Q2 2019, borrowers between 25 and 34 years of age (a large portion of Millennial graduates) owed an average of about $33,000 in student loan debt.

Ultimately, Millennials often have substantial debt loads and are often financially hindered by their student loans. However, they certainly aren’t the only generation battling against debt.

 

Do you think debt Millenial debt is holding you back? Do you have any tips that can help Millennials conquer their debt? Share your thoughts in the comments below.

 

Read More:

 

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Are You Owed Money From The Equifax Breach?

By Leave a Comment

Equifax breach

It was two years ago when Equifax announced hackers had gotten ahold of more than 147 million people’s personal information. While the Equifax breach itself is nothing new, this week the major credit bureau announced a settlement of $700 million. Individuals could get up to $20,000 each.

About The Equifax Breach

As mentioned above, nearly half of United States citizens had their information stolen in the breach. Equifax reported this data collected included birth dates, names, and around 146 million Social Security numbers.

After two years, Equifax has come to a settlement of $700 million. Immediately, the company will pay $300 million into the consumer fund. Additionally, funding for reimbursement will be paid out-of-pocket.

Consumers can receive up to $20,000 in reimbursement for documented loses traced back to the Equifax breach. These costs may include time spent monitoring your credit score, hiring attorneys, or the cost of freezing and unfreezing your credit. Documentation will be required to prove these loses and preventative measures and consumers will be paid accordingly.

Why It Happened

Equifax CEO Mark Begor was quoted saying the settlement is the largest ever. “It reflects, from our perspective, the seriousness in which we took this matter,” he said. The company still denies any wrongdoing in the matter. It also plans to invest $1.25 billion into bettering its security.

According to Equifax, there have been no instances of identity theft that stemmed from the stolen data from the company in September 2017. There is an attorney out to prove otherwise though. Pennsylvania Attorney General Josh Shapiro stated some individuals had their identity stolen, but he was unable to quote any specific numbers. His office also reported receiving more consumer complaints during the period following the breach.

“This breach happened because Equifax was more interested in profits than in infrastructure to protect our data.,” said Shapiro. Before you get ahead of yourself, submitting a claim won’t always get you paid. Not everyone is owed money from Equifax.

Are You Owed Money?

Equifax plans to set up free credit monitoring for consumers and, for some, individual cash payments will be made.

Many people froze their credit after receiving the news, which impacts your ability to do some things financially (if anyone needs to pull your credit). Consumers affected by the Equifax breach will receive up to 10 years of free credit monitoring and identity protection. If individuals impacted by the breach already have a credit monitoring service, they are entitled to a $125 payment.

After the breach, many people spent more time looking at their credit report than they did before. Anyone who spent time taking preventative steps against identity theft or dealing with identity theft in any way can get up to $500. You must be able to prove you have spent time doing this to receive that payment. However, ten hours ($250) can be self-certified and requires no documentation. If you want the full $500, you will need bank and credit statements.

When Will The Claims Process Begin?

Once the settlement Equifax announced has been approved by a judge, the claims process will begin. This will likely take a number of months. The company expects a decision will be reached by the end of the year.

Are You Getting Money?

Four emails will be sent to class members that may be entitled to reimbursement through the settlement. Equifax also plans to put social media and advertising action behind educating consumers about the settlement as well.

It has already created a website pertaining to the breach where you can get information. On the website, you can enter your name and see if you are included in the class action lawsuit. If you’d prefer, you can also call the toll-free number Equifax set up for people with questions about the settlement. The number is  1 (833) 759-2982.

Photo: Flickr: GotCredit

Read More

15 Places to Get Your Credit Score for Free

By Leave a Comment

what is a credit score

While everyone can view one copy of their credit report from each major bureau each year for free through AnnualCreditReport.com, those don’t include any of your credit scores. Knowing your credit scores can be very beneficial – particularly if you are thinking about getting a new loan, credit card, or mortgage – and getting a free credit score is even better. Some sites dangle free credit scores at signup for a monthly service and, if you don’t cancel in time, you get stuck paying for something you might not need. However, there are free credit scores available. Here are some websites where you can get at least one of your credit scores for free.

Credit Karma

Credit Karma is one of the biggest names in free credit scores. They actually let users view both their Equifax and TransUnion VantageScore 3.0 scores right through the site or mobile app.

Credit Sesame

Credit Sesame is a lot like Credit Karma but only allows users to see their TransUnion Vantage Score 3.0 credit score. The score updates every month, usually triggered by your first log in during any given calendar month.

Bankrate

Quite a while ago, Bankrate purchased Quizzle, a free credit score service. Now, Bankrate users can view an updated TransUnion VantageScore 3.0 directly through the Bankrate site.

Experian

If you want to see your Experian FICO Score 8, you can access it through Experian’s FreeCreditScore website. The score updates no more than once every 30 days, and your login triggers the update request. You can also try to speak directly to live customer support at Experian.

Discover

Unlike some credit card companies, which only provide credit scores to cardholders, Discover lets anyone see their Experian FICO Score 8 for free. The Credit Scorecard service updates the information when you request it, but you can only make a request every 30 days. However, if you need to know your score before submitting a loan or credit card application, this is a nice option to have.

American Express

If you have an American Express account, the company automatically provides you with your credit score every month. You can view your Experian FICO Score 8 for absolutely nothing as long as you are the primary cardholder and you have enough activity to generate a monthly statement.

Non-cardholders can also view a free credit score through the American Express MyCredit Guide service. However, this isn’t a FICO score. Instead, it uses TransUnion VantageScore 3.0.

Bank of America

Bank of America credit card account holders can see their TransUnion FICO Score 8 for free on the bank’s website. It updates every month automatically, and all you need to do is log in and head to the “View Your FICO Score” section by clicking on the link.

Barclays

Barclay’s credit cardholders also get access to a free TransUnion FICO credit score. You can view your history and current score by logging in and clicking “View My FICO Score.”

Capital One

Anyone with a Capital One account, regardless of whether you have a credit card with the company, can take a look at their TransUnion VantageScore 3.0 score in the CreditWise section of their account.

Chase Slate

Chase Slate cardholders also have access to their Experian FICO Score 8 every month. It displays right on your website dashboard and is updated each month automatically.

Chase

Anyone who doesn’t have a Chase Slate card can still view their credit score for free thanks to the Chase’s Credit Journey feature. This provides you with access to a TransUnion VantageScore 3.0 version and is refreshed weekly.

Citi

Select Citi credit cards make cardholders eligible for a free Equifax credit score. Users can take a look at their Equifax FICO Bankcard Score 8, which is updated each month.

Mint

Anyone who uses Mint can check out their TransUnion VantageScore 3.0 score for free. However, many free options (that aren’t related to a credit or lending account) only require the last four of your Social Security Number to get started. Mint bucks that trend, asking for your entire Social Security Number instead.

US Bank

US Bank cardholders can take a look at their TransUnion free credit score by heading to CreditView on their dashboard.

Wells Fargo

Primary account holders for a variety of consumer accounts can receive a free Experian FICO 9 Score through their online dashboard. The information updates each month, no later than the 5th business day of the month. This applies to credit card, mortgage, and similar borrowing or lending-style accounts.

FICO vs. VantageScore: What You Need to Know

When you look for a free credit score, you may have the ability to see either your FICO score or your VantageScore 3.0. While they are both forms of credit scores, they have different calculation criteria. Plus, lenders usually give more clout to one over the other.

While the details of how credit score calculation usually aren’t disclosed, we do know that the algorithms are different. As a result, your VantageScore may differ from your FICO score dramatically.

Most lenders use FICO credit scores to determine whether you are eligible for a financial product. This means that viewing your VantageScore alone might not be helpful if you are planning on opening a new account, as it may not align with your FICO score, even though both options have a range of 300 to 850.

Plus, there are multiple kinds of FICO scores, including some industry-specific versions that try to anticipate how likely a person is to repay a particular type of debt, like a mortgage or auto loan. Those industry-related scores can also have a range of 250 to 900, which may confuse consumers who aren’t aware of that fact.

From a monitoring perspective, VantageScore 3.0 credit scores can still be valuable. Generally, if your VantageScore is consistently rising over time, your FICO score like is as well. However, if you want to make sure you know your credit score before applying for a new account, then checking your FICO score is a better move.

Different FICO Scores from Each Bureau

It’s important to note that your FICO and VantageScore credit scores can vary from one credit bureau to the next. Even if they use the same scoring model (like the FICO Score 8), your Experian, Equifax, and TransUnion scores can all be different, though usually only slightly.

Not all lenders report to all three credit bureaus. As a result, one bureau may have a record of one of your credit accounts while another does not, impacting the bureau’s calculation of your score.

Before you apply for new credit, you may want to ask the prospective lender which credit bureau and score they use. Then, you can either try to find an option to view that bureau’s score for free or may want to pay to see your scores before you apply.

Can you Rent A Credit Score From Someone Else?

This almost didn’t make the cut.  In fact, it is possible to rent someone else’s credit score – but its not free.  This is know in the industry as tradelines.  A tradeline is basically a line on your credit score.  What you do is you find a company, or a person, who is willing to be listed on your own credit score.  This immediately improves your score as their history of on-line payments and debt to credit ratio is added to yours, thus improving the overall score.   Suffice to say, its not free.

How do you usually check your credit score? Share your experience in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Top 5 SBI Credit Cards

By Leave a Comment

SBI Credit Cards
Being one of the most trusted banks of the country, State Bank of India has the onus to offer worthy credit card options. And, the bank has shouldered that responsibility well. SBI offers a range of simple and easy-to-use credit card options that people can rely upon. Their categories include shopping cards, travel cards, premium cards, classic cards and exclusive cards. Each one of their card has something unique and special to offer ranging from reward points, concierge services, lounge access facilities to movie tickets, flexi payment in EMIs and many more. Their every card offers a different set of benefits. So let’s take a look at the five of their most popular ones which you must consider while applying for a SBI credit card.

  1. SBI Platinum Card– Being from the premium card category, this card offers a range of exclusive offers on dining, international store purchases and discounts on shopping from departmental stores. It is a good option if such expenses account for a major share of your annual spending and you wish to earn points from that spending. The joining and annual fees for the card is Rs 2999, but it is worth paying the amount considering the offered benefits and gift vouchers you receive on joining and on renewal thereafter. These vouchers, worth Rs 3000, are valid for shopping apparels and hence are useful for one and all.
  2. SBI Signature Card- The SBI Signature card is one of the high-end cards and an expensive one offered by SBI. One of the most striking features of the card is the welcome gift, under which you are offered vouchers worth Rs 5000 redeemable at Raymond’s, Jabong.com, Lifestyle or Shopper’s Stop or a free one-way domestic ticket from Indigo airline. This one is a perfect card for you if you have got immense love for travelling and shopping and tend to spend a lot on these. Other reasons to apply for this SBI card includes the bonus offered on making spend of over Rs. 5 lakhs.
  3. SBI Gold Card– This gold card is a preferred choice for the ones who wish to have revolving credit for their day–to-day expenses. The expenses billed via the card will generate points that they can redeem for extra benefits. With a nominal joining and annual fee of Rs 499, this card is a perfect fit for paying utility bills, dining and shopping for groceries. The add-on facility of being able to avail cards for spouse and family also makes it a popular choice among individuals.
  4. Yatra SBI Credit Card-This co-branded, travel card can be of great use to you if you love visiting foreign lands or have to travel extensively because of work commitments. The range of benefits offered on this card includes discounts on holiday packages and on international shopping too. SBI in partnership with Yatra.com brings to you some amazing package deals meant exclusively for Yatra SBI credit card users. Other than making your vacations awesome, the card also enables you to pay for your day to day requirements like groceries, utility bills and departmental purchases.
  5. SimplyClick SBI Card– This high-tech contactless card is worth all the popularity it has secured in recent times. The numerous perks and rewards associated with the card are especially useful for the current generation who is fond of online shopping. SBI has collaborated with some of the leading e—commerce brands like Foodpanda, Bookmyshow,Lenskart, Ola cabs etc in order to offer the best of discounts and reward points to the card users.

You can opt for any of these credit cards based on your requirements, affordability and suitability. Once decided, you can easily apply online for a SBI credit card. Online portals like Paisabazaar can make the task easier for you.

Photo: 401(K) 2012

1 In 4 Kids Will Be Victims Of ID Fraud Before Age 18

By Leave a Comment

1 In 4 Kids Will Be Victims Of ID Fraud Before Age 18It’s hard for young Americans to leave the security of their childhood home and find their way in the real world. It’s even harder when identity thieves have stolen their identity and ruined their credit before they even have a chance to establish their own record.

The Federal Trade Commission (FTC) reported just under 14,000 cases in 2017 and over 15,000 cases in 2016 involving identity theft of Americans age nineteen and younger.

The credit bureau Experian reports that around 17 percent of their annual fraud cases target children, and they estimate that 25 percent of children will experience a form of identity theft or fraud before they turn eighteen.

ID Fraud Before Age 18

Identity thieves consider a child’s ID a gold mine. Parents don’t think to check for fraudulent accounts established in their minor child’s name.

They may not find out about the identity theft until bills or collection notices arrive or tax forms are rejected – perhaps years after the damage is done.

How do thieves get children’s information? A Social Security number is generally all they need – the rest can be pieced together with a basic Internet research.

Your Child’s Number

Think of all the places that your child’s Social Security number is collected and stored – schools, medical facilities, tax forms, day care centers – even sports leagues and summer camps often require Social Security numbers for identification.

Every reveal of your child’s Social Security number is an opportunity for hackers to steal that information. Hold back your child’s Social Security number and other personal information unless it’s essential. Safely store any documents containing your child’s personal info and shred the non-essential ones.

Consider your definition of “safe” very carefully – family members and friends can also perpetrate child identity theft.

Social Media

Social media also provides plenty of information for thieves to use. They may not find a Social Security number, but they may find enough information (place and date of birth, etc.) to successfully open accounts. Be careful about what you post online.

If your child has a credit report, you can place a credit freeze in your child’s name with the three major credit bureaus (Experian, Equifax, and TransUnion).

If your child has no credit file, you can create one and place a freeze on it. The recently-passed Economic Growth, Regulatory Relief, and Consumer Protection Act will make these actions free starting in September 2018.

Freeze It

A credit freeze prevents anyone from accessing your child’s credit file – even you or your child – and prevents thieves from opening an account in their name.

You can unfreeze the file when your child reaches age seventeen or is ready to establish credit – but be sure you properly store the PIN number required to unfreeze credit when the time comes.

If you haven’t checked to see if there is a credit report on your child, do so now. You can limit the damage caused by any identity theft and start the long process to clear your child’s name.

Other Resources

The Identity Theft Resource Center is an excellent resource for helping you assess the problem and walk you through the reporting and repair process.

Hopefully, there’s no damage and you can take pre-emptive action to keep identity thieves from opening accounts in your children’s names. Do your children a favor and protect their identity and their credit to the best of your ability.

Give them every opportunity to start life on their own with a clean slate – and then you can discuss whether their old room will be a craft room or a mancave.

This article was provided by our content partners at MoneyTips.com. Photo ©iStockphoto.com/Imgorthand

Read More

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

5 Credit Tips for Recent College Grads

By Leave a Comment

5 Credit Tips for New College Grads
Congratulations to the class of 2018. We have a graduation present for you: five credit tips for recent college grads.

One of your first post-graduate lessons should be on the proper use of credit. Poor early decisions regarding credit can have adverse effects for years. Here comes some credit tips for college grads.

In the words of millennial money expert Stefanie O’Connell, “It’s really important for millennials to understand what a critical role credit plays in your life … it’s critical at every life phase.”

To begin your credit education, we offer these five tips.

1. Set Up a Credit Plan

You should not avoid credit. Potential creditors will look for evidence that you manage debts well, and when gauging risk, having no history is almost as bad as having a poor history.

Use a credit plan to carefully build a positive credit history and a good credit score, which Adam Carroll, Founder and Chief Education Officer of National Financial Educators, calls “hugely important when it comes to making major life decisions.”

Start by thinking about how many credit cards you really need, and when you plan to use them. Stick to one or two cards such as a gas station card and/or a starter credit card (with terms designed for limited credit).

Verify that all cards report account activity to the credit bureaus. Make small purchases with these cards and pay them off monthly without burdening your budget. Using this method, you can build a solid credit history in a short time and qualify for better terms.

2. Research Your Choices

There’s more to choosing a credit card than seeking the best interest rate. A wide variety of cards are available that cater to individual markets.

Online comparisons and reviews are available to help you assess the positives and negatives of each card. Seek the card that best matches your preferences and perks.

If you take advantage of introductory offers, make sure that you fully understand how things change after the introductory period expires (such as the effect on interest rates and repayment terms), and what actions you might take that would void your great deal. For example, a single missed payment could trigger a high penalty interest rate.

3. Always Pay Bills on Time

You don’t have to pay your credit card bill in full each month – although if you can, you should, to avoid interest charges – but you should always pay at least the minimum payment amount on time, without fail.

Payment history accounts for a large portion of your credit score, and missed payments count against your credit score for a long time.

Payments that are late by at least 90 days stay on your credit report for 7 years. Multiple missed payments compound the effect.

Don’t forget other debts like utility bills — phone, cable, and Internet — and even student loans. Missing payments on any regularly scheduled bill or installment loan will also damage your credit score.

4. Don’t Max Out Your Credit

If you spend near your credit limits, your credit score will suffer even if you pay the bill off in full every month.

Lenders look at credit utilization, the amount of credit you use as a percentage of your credit limit, to assess the risk involved in lending you money. Credit utilization accounts for another large chunk of your credit score.

With a limited credit history and being near your credit limit, lenders assume a few unplanned expenses could push you over the edge. Try to keep your balance below 30% of your credit limit at all times.

5. Create a Budget

As a new graduate, you are likely to have significant student loan debt and probably not enough income to cover all your spending wants.

It’s too easy to use credit cards as a crutch to prevent hard budgeting decisions. Find out quickly at what rate you can refinance your student loan.

Lay out a realistic budget for the upcoming year that incorporates all your regular payments and new expenses that you are likely to require as you start your post-graduate life.

Rent, furniture, insurance, new work-related expenses, taxes … it’s easy to lose track of your cash flow and fall back on credit to handle mistakes.

 

Ask friends and recent graduates for help if necessary. Mom and Dad may also be happy to help you lay out a sample budget. They were young once, too.

You’re off to a great start! It’s time to venture out into the real world and test your credit knowledge, but feel free to use all your available resources for help at any time. Continuous learning usually leads to the best decisions, in credit or any other aspect of life.

This article was provided by our partners at moneytips.com. Photo ©iStockphoto.com/andres

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Read More