May 20th, 2013
**Today’s guest post is contributed by Christian.**
If you want to maintain a healthy credit history, stay away from payday loans.
A recent Consumer Financial Protection Bureau report shed light on how damaging these pay-advance options can be. Check out the study yourself to get the full picture. You’ll likely notice how the fees can quickly add up since the fee is calculated as a fixed dollar amount per $100 borrowed.
Or maybe you’ll see that the median amount borrowed was $350. Perhaps the fact that 14 percent of borrowers had more than 20 payday loan transactions in a 12-month period stands out to you. But the most impactful statistic highlights how toxic payday loans can be.
Two-thirds of consumers in the report took out at least seven payday loans in a year. These consumers often opened a new loan within a day of closing one, but most often opened a new loan within 14 days of closing one. Payday loans basically become a constant source of cash in place of paychecks.
So how do you avoid the payday loan trap when you need money in advance? Take a look at these options.
Credit Cards
Being smart with a credit card is a great financial move. As long you’re paying the balance of in full every month, credit cards are much safer than payday loans. Swipe a card and pay it off as soon as you get your paycheck. You may even be able to take out a cash advance on a credit card. The interest rate will still be high, but even if it’s 40 percent, it’ll cost far less than 300 to 500 APR on a payday loan.
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May 15th, 2013
Financing home improvement projects doesn't have to be complicated. If you follow some simple steps to determine what type of program best fits your needs, you’ll be well on your way to getting your loan approved and getting your project started.
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May 6th, 2013
For one out of four Americans, “cash only” is a way of life.
17 million Americans lack access to any type of formal bank account and are classified as “unbanked.” In addition, 51 million Americans do access basic bank services such as a savings account, yet they still rely on alternative financial institutions as well. These individuals might frequent check-cashing joints, fall prey to payday lenders, and often incur exorbitant fees associated with such alternative banking methods.
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April 22nd, 2013
For one out of four Americans, “cash only” is a way of life.
17 million Americans lack access to any type of formal bank account and are classified as “unbanked.” In addition, 51 million Americans do access basic bank services such as a savings account, yet they still rely on alternative financial institutions as well. These individuals might frequent check-cashing joints, fall prey to payday lenders, and often incur exorbitant fees associated with such alternative banking methods.
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April 18th, 2013
These days, everyone is trying to
save a little extra money. And while it’s not a bad idea to pursue a few simple
money saving ideas, what we sometimes forget is that we can also improve our finances (and our credit) by finding ways to make a little more money. Pinching pennies and giving up our lattes only goes so far. Instead, take a look at the collaborative economy, where it’s easier than ever to earn more with what you already have. A growing number of people are providing services and short-term access to goods directly to each other - and you can take advantage of this new economy as well.
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April 8th, 2013
Even if your child hasn’t yet learned to walk, it’s never too early to start saving and budgeting for his or her college education. In these tough economic times, when it comes to creating and adhering to a successful savings plan for college, you may need to work over the long term to save enough money. In order to get a substantial head start on the rising cost of tuition, it’s a good idea to have several eggs in your basket when you're budgeting for college.
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April 4th, 2013
Hey there! It's that exciting time of the month where we get to meet another awesome member of the
Credit Karma team! Last month, we introduced you to
Juan, one of our amazing operations engineers. Today, meet Igor! Igor moved from Berlin to the United States 8 years ago "because [he] wanted some excitement in [his] life". And we're super glad that he found the US exciting enough to want to stay... he's a great addition to the team! Want to learn more about Igor? Read on!
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April 1st, 2013
Spring is in the air. At least it is where I live (until it turns cold again, as it did last week... but the warm days outnumber the cold ones!). The snow has given to rain and I get to run outside again instead of at my local gym. This time of year usually coincides with a keen interest in cleaning the home and yard, sprucing it up after a long winter of accumulating clutter.
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March 26th, 2013
We are back with another
Credit Q&A Series post… and one just in time for
tax season! As we have mentioned
before, our CEO and founder Ken Lin continues to make weekly appearances on the
Ed Shultz Radio Talk Show. Ken uses his expertise to help educate Ed’s listeners on the impact credit scores have on consumers’ overall financial health. Today’s question tackles paying the tax man on time.
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March 25th, 2013
Getting married is one of the most exciting things that can happen in your life. But for those of us who work hard to maintain a solid financial plan, it can also be a scary financial endeavor. How do I know? Because I’m on that road myself. I’ve had a major shift in my financial philosophy since my early 20s that has led me to track all my spending and avoid buying anything I don’t technically need.
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