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Link Roundup: 5 Tips to Lower the Cost of Sending Your Child to Preschool

Jenna — Fri, 17 May 2013 16:58:30 +0000

5 Tips to Lower the Cost of Sending Your Child to Preschool “Instead of raiding your child’s college savings account, consider the various options to cut the costs of preschool while still ensuring that your child gains all the wonderful benefits.” Money Crashers

Save Like Danny Tanner & Live Like Uncle Joey “At times I feel like I’m at odds with myself as well when it comes to saving and spending. But rather than Jekyll and Hyde, it’s closer to how I’d imagine Danny Tanner and Uncle Joey would be when it comes to saving and spending.” Our Freaking Budget

4 Ways to Keep More of Your Money “Like most people, you probably work simply to pay bills. Even if you’re financial responsible, your mortgage payment, health insurance and other necessary expenses may take a large portion of your income. This leaves very little for savings, which can make it difficult to survive an emergency. ” Rambling Fever Money

How to Spend Less on Some of Your ‘Needs’ “Enough about historical comparisons and international economics. Let’s look at a few examples of what Americans today consider needs and just how ridiculous (and expensive) they are. While we’re at it, let’s consider some common sense alternatives.” Free From Broke

Why and How to Freeze Your Credit “With identity theft on the rise, more people are looking at ways to protect their identities. Options like identity theft protection and simple credit monitoring can certainly help. But what if you want to take more drastic measures?” Doughroller

Four Basic Habits That Will Keep You Mired in Debt “Being in debt is largely a matter of second grade arithmetic — if we spend more than we earn then we’ll get in debt; if we continue spending more than we earn then we’re likely to stay in debt.” Len Penzo

5 money lessons I learned after graduation “According to the National Center for Education Statistics, more than 1.7 million students will graduate from college this year. Graduation season is one of my favorite times of year. It reminds me of a time when the future was full of possibility. However, there are some things about life and money that I wish I had known before entering the ‘real world.’” Money Blue Book

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Financing Home Improvements: A Step by Step Guide

Jenna — Wed, 15 May 2013 19:17:05 +0000

**Today’s guest post is contributed by Brandon.**

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.

Step 1: Know Your Credit Scores

Many programs require minimum credit scores in order to qualify. If you don’t already know your scores, you can check them for free from Credit Karma .There are programs available for all credit types, from excellent to bad credit.

Step 2: Determine How Much You Need for Your Project.

This includes getting estimates from qualified contractors and determining how much cash (if any) you want to put towards the project. This will give you the final amount that you’ll need to finance.

Step 3- Narrow Down the Loan Programs That Would Best Fit That Amount.

Our research shows that most projects that are under $15,000 are best financed by 0% or low interest credit card products. Projects that are between $15,000 and $50,000 are generally a good fit for a personal or unsecured loan. Any loan amount that exceeds $50,000 is typically best financed with a home equity line of credit or a cash out refinance mortgage. You can use a simple home improvement loan calculator to run some payment scenarios to see what would best suit your budget.

Step 4- Find the Best Program.

Many contractors partner with finance companies that specialize in financing home improvement projects. Ask your contractor if they have a company to recommend or find one by researching online.

Step 5- Give Yourself Enough Time to Get the Loan Approved and Funded.

Many credit card issuers can give instant approval but it can take about a week for you to receive your card in the mail. Personal loans companies can also give you a very fast approval but it can take one to two weeks to get your loan processed. The home equity and mortgage programs not only require the most paperwork and fees, but also can take anywhere from 3-5 weeks to fund.

If you follow these simple steps to financing your home improvements you will ensure that you find the best financing program to suit your project and your family’s financial goals. Good luck!

Brandon Perry is the President of AMS Financial Solutions, Inc., a consumer finance company serving the Home Improvement, Swimming Pool, Medical & Dental, Travel, and Wedding industries since 2004. AMS services consumers direct and partner with thousands of service providers in these verticals to offer financing programs to their customers.

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Infographic: Android vs. iOS

Jenna — Mon, 13 May 2013 16:20:25 +0000

We thought it was time to have some fun with our infographic series with a little healthy competition. This week Credit Karma is comparing Android and iOS users to see who has the higher credit score. Scroll down to see who won the battle.

Let us know your thoughts in the comments section!

Amy Leone is the Public Relations Coordinator at Credit Karma. Before joining the team in June 2012 she spent most of her career as a TV news producer. When she’s not helping promote Credit Karma on a variety of media outlets, she’s probably out running or exploring her new state of California.

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Link Roundup: The Finer Points of Getting Rid of Your Junk for Profit

Jenna — Fri, 10 May 2013 21:26:05 +0000

Funny Money: The Finer Points of Getting Rid of Your Junk for Profit “Since you read awesome personal finance blogs like this one, surely you’re aware of the mystical powers of compound interest. But did you realize that the same principles apply to stuffed animals and squeeze bottles?” Money Under 30

Why Saving In Your 20s Is Easier Than Waiting “We’ve been over before why saving when you’re young is so beneficial, it gives your money a lot of time to double over and over. At an 8% rate of return (which is merely average over a long period of time), a $10,000 investment at age 25 will grow to be over $217,000 by age 65. That’s almost 22 times your initial investment! Saving while you’re in your 20s will yield incredible benefits, you just need to make sure you sock away as much as possible while you’re still young.” Sweating the Big Stuff

Overlooked Secrets to Do Away With Debt “To eliminate debt, you have to be both patient and persistent. There is no overnight solution to owing lots of money, but there are ways to minimize the obligations over time. Some of the most common techniques are reducing spending, making larger credit card payments, and getting a second job.” The Wisdom Journal

Pay Yourself First to Grow Your Savings Automatically! “One of the best ways to avoid dipping your fingers into your savings (especially your emergency fund for non-emergencies) is to automate your savings accounts so that your money flows through your personal economy without much interference from you. When you automate your savings accounts, you can force yourself to practice financial discipline — and work toward financial freedom.” Being Frugal

The Difference Between Financial Freedom And Financial Independence “What is the difference between Financial Freedom and Financial Independence? Most people will tell you that they mean the same thing. They’ll say that it’s just a difference in terminology that can be used interchangeably. I won’t say that those people are wrong, but I have a slight difference in opinion.” Budget For Wealth

Don’t Overpay for Your Insurance “If there’s one thing that we all hate to pay, it’s insurance. In fact, I recently spoke to my car insurance agent and he even said that he hated to pay his insurance, and that’s his own field! But, even though we may not like it, and even though it feels like we’re just throwing our money away, it’s a necessary expense.” Not Made of Money

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The Nerds Behind Credit Karma: Alex

Jenna — Thu, 09 May 2013 15:30:18 +0000

Hi there! Ready to meet another awesome member of the Credit Karma team? Last month, we introduced you to Igor, our Front-End Web Developer Lead.

Today, meet Alex! Fun fact about Alex: he’s a HUGE fan of spicy food and regularly buys ghost pepper (the hottest pepper in the world) hot sauce to put on his food.

Want to learn more about Alex? Read on!

The Interview

What’s your title at Credit Karma?
Front-End Developer

Describe what you do at Credit Karma.
I build and style the visual part of our website, emails, or whatever our great designers deliver to me.

How long have you worked at CK?
One and a half years!

What’s your favorite thing about working at CK?
Nerf gun wars!

What’s your favorite snack in the CK kitchen?
I can’t share that… it’s a big secret because I don’t want people to touch my favorite snack! But I’ll give you a hint… it starts with an “h”.

What is something your coworkers probably don’t know about you?
I weighed under 100lb before I graduated high school.

What was your worst subject in elementary school?
History. It was a good time to fall asleep.

What’s a secret (or not-so-secret) talent you have?
I think I’m a really good singer when I’m drunk. But this has never been proved.

If you could pick any superhero power, what would it be and why?
Definitely teleportation! I’d be able to have lunch with my friends who live in other places in the world without wasting time and money.

What’s your best credit/money tip?
Schedule payments! Check on your credit health!

Want to meet more members of the Credit Karma team?

Meet Ezra, Jonathan, Cathy, Greg, Danielle, Jason, Andrew, Ian, Juan, and Igor!

Stay tuned as we continue to reveal the nerds behind Credit Karma!

I’ve been to karaoke with Alex and he is indeed good,

Jenna, Credit Karma Contributor

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How Technology is Changing the World of Personal Finance

bethy — Wed, 08 May 2013 20:36:45 +0000

As a 90s child, I can just barely remember a time when technology wasn’t pervasive in my life. Technology has revolutionized how we communicate and connect, and the financial services industry has not been left behind.

You used to write checks, and now you can pay bills online. You used to get your bill in the mail. Now you can find out how much you owe by logging into your online account. With banks upgrading their mobile apps to video chatting through an ATM, technology continues to make it easier for us to control the state of our money.

At Credit Karma, we’re all a little nerdy about our finances. I’m interested in how technology makes new things possible, so here are some cool ways that the finance world is growing right now.

Snap a Pic, Deposit Your Check

We kind of take this for granted nowadays. It wasn’t that long ago when your bank’s app hurt your eyes and you only used it to find the nearest ATM. Now, with most major banking apps, you can deposit a check into your account by snapping a photo of it with your phone’s camera. (How many times have you seen this Chase commercial?) If you just don’t feel like getting out of your pajamas or the nearest banking branch is an hour away, this can be a really convenient feature.

Concerned? It takes confidence to believe that your phone or tablet is secure enough to transmit your check to your bank. And what are you supposed to do with the physical check afterwards?

Video Chat with an ATM

Earlier this month, Bank of America announced that they would be introducing ATMs with video chat capabilities in Boston. If you have a question or need to withdraw cash in denominations other than $20, you can connect with a remote teller who can help you out face-to-face. Sort of. I initially found this news surprising, but banks in 20 states have already installed these types of machines, so maybe it’s not that crazy of an idea after all.

Concerned? I don’t know how comfortable I’d feel talking to an ATM if other people are around. Even if private information isn’t being shared, people may still overhear how much cash I want to withdraw and take advantage of that.

Don’t Lose the Paper Trail

I’ve never really organized my receipts. I’d usually keep them until the return period expired and then I’d toss them out. But when I began tracking my transactions online, I felt that my banking accounts lacked context. Sure I went to Safeway, but what did I buy there and why did it cost so much?

Instead of burrowing through a folder of paper, you can use an app to save, store, and search through your receipts. I’ve given apps like OneReceipt and Lemon Wallet a try. Through Lemon Wallet, you can manually input your receipt information to organize on your own. OneReceipt allows you to take a photo of your receipt and they will automatically process the information for you in a day or so. It’s less work than Lemon Wallet, but you do have to wait. Whatever app or website you try (you’ll find plenty), this ability to extract and digitize information from paper makes the world easier for shoppers everywhere.

Concerned? Throwing your receipts away is, well, kind of permanent. It’s a smart idea to keep physical copies of important receipts if you think you’ll need to present them down the line.

Monitor your Money 24/7

The idea of account monitoring in itself is pretty amazing. The fact that we can know at any time if a transaction has gone through or if we were accidentally overcharged puts a lot of the power in our own hands.

If you haven’t heard, Credit Karma has recently launched free account monitoring. This new feature helps you stay on top of your game. When you link your online banking accounts, you can sign up for account monitoring and be alerted to various events, like when your bill is due in the next 3-15 days or if your available credit falls below a certain amount. You can also keep up on your transactions, net cash flow, daily balances and more. You can truly cover all of your bases in one place. Log in today and connect your accounts.

Concerned? In this age of hacking, how can you trust that your information is safe at your bank or a third-party site? Could a stranger profit from stealing your username and password? Legitimate businesses will store your data in a secure system and protect themselves from breaches, so look for a TRUSTe certification before doing anything else.

We’re living in a tech-obsessed world right now. While we could be arguing about unplugging, I think it’s important to look at how much we can do now. These tools let you handle your money whenever you feel like it — and I think we can all get behind that.

Charmaine Ng is a contributor to the Credit Karma blog. Before joining Credit Karma in February 2013, she constantly had to explain that social media marketing was a real job. When she isn’t writing her way through life, you can find her reading about the latest in entertainment, watching television, and advocating for libraries. Her favorite social network is Twitter. Say “hi” @noodlemaine!

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The Importance of Home Insurance Scores

Jenna — Mon, 06 May 2013 14:40:48 +0000

**Today’s guest post is contributed by Carrie and Shannon.**

A big part of financial responsibility is maintaining adequate insurance coverage. Premiums act as a safeguard for your assets, and a little money spent now might pay off big time in the future. How much you pay now, though, will vary. You probably don’t have the same premiums as your brother-in-law or neighbor. How can you predict rates then? Credit Karma already provides your auto insurance score and now provides your home insurance score as well.

What’s a home insurance score?

Insurance scores are similar to credit scores in that both are generated by an algorithm that weighs information in your credit report. Your credit score evaluates your payment history, the amount you owe, how long you’ve had credit, and the type of credit you use to predict the likelihood that you’ll become delinquent on your credit obligations over the next two years.

Insurers use the same information, though it is weighted differently, to help predict your risk of filing a claim. Your home insurance score is used, along with other factors such as the size and value of your home, where you live, your claims history, and other factors to set your homeowners insurance rate.

Why are credit-based scores used, and are they fair?

Studies support the notion that credit scores help predict the likelihood of a policyholder to file claims. Here’s the thing: The equation used to determine your insurance score may be unique to your insurance provider. That’s one reason why you could get a range of quotes from different providers when you’re shopping for home insurance.

Are credit-based scores fair? The Federal Trade Commission conducted a study in 2007 that found there is a definite connection between credit and the likelihood of filing a claim. The Property Casualty Insurers Association of America also maintains there is a connection, though it admits it can’t explain it. The PCIAA says most studies show that policyholders qualify for more preferred policies when credit information is considered.

Which parts of a credit score influence an insurance score?

Insurance scores aren’t used to measure creditworthiness, so only specific parts of a credit report are used to determine them. Providers might examine a person’s number of retail credit cards, the age of the oldest account and the number of inquiries in the past two years.

Since only specific parts of a credit score are used to calculate an insurance score, you can’t always predict insurance scores based on overall creditworthiness. While an individual may have an overall pristine credit score, other factors might be lacking. For example if the same homeowner filed multiple homeowners insurance claims in the past few years, their insurance score may be negatively impacted regardless of their creditworthiness.

Do insurance companies credit checks hurt credit scores?

People who work hard to maintain good credit might worry about a large number of inquiries on their credit which can negatively impact their credit score. Luckily, most insurance providers carry out “soft checks.” Unlike “hard checks,” soft checks have no effect on a credit score. This is particularly good news for smart consumers who collect multiple quotes before partnering with a specific carrier.

This article was contributed by Carrie Van Brunt-Wiley and Shannon Casey of the HomeownersInsurance.com blog. HomeInsurance.com partners with the leading home and auto insurance providers in the country to shop for the best rates for consumers. It also serves as a resource for industry information, including shopping trends, rates by state and other tips for homeowners.

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Infographic: Average Number of Accounts vs. Average Total Debt

Jenna — Sun, 05 May 2013 22:06:47 +0000

Ready for another infographic? Credit Karma‘s weekly infographic series visually informs consumers about their credit and overall financial health. This week, we compare the average number of open accounts and average total debt among the different credit score ranges. Scroll down to check out the results.

Share with us how you are working to lower your debt.

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Link Roundup: How to Avoid Overusing Your Emergency Fund

Jenna — Fri, 03 May 2013 21:05:48 +0000

How to Avoid Overusing Your Emergency Fund “Building an emergency fund is one thing; keeping it intact and fully funded is quite another. There are a number of reasons why this is a problem. Overusing your emergency fund is one of the biggest. There are challenges that come with an emergency fund, and you’ll have to be resolute in your decision and efforts to keep it intact.” Faith and Finance

Being Broke Sucks, But It Forces You to get Creative “How many times have the words “I’m Broke” entered into your life? We’ve all been in a place where we have less finances than we need to survive, money problems are something we all must endure. Rather than complaining about why you are broke, many people find inspiration in the dustiest corners of their wallets and pocketbooks.” Generation X Finance

How I Won My Credit Bureau Dispute Fast “This is the key. Unless you put some elbow grease into this, the creditor isn’t going to give you the time of day let alone fix an error they made. They’ll just tell you that according to their records the report is accurate. It’s enough to drive you postal. I know because it happened to me twice.” Wealth Pilgrim

Avoid these 3 Pitfalls of Debt Consolidation “…Debt consolidation isn’t for everyone, and it’s no guarantee that you will be able to get rid of your debt effectively — especially if you fall prey to the following 3 pitfalls:” Good Financial Cents

How One Missed Bill Becomes One Costly Mistake “I’m about to do something that I rarely do. Admit that I made a mistake. I’ve lamented before about how credit scores can be a notoriously fickle thing and can begin to drop rapidly if you start missing payments. With a slight bit of shame, I’m about to give you a personal case study in how a missed bill affected my credit score and how that in turn cost me a big wad of cash.” The Sun’s Financial Diary

Can I keep my stuff if I file for Chapter 7 bankruptcy? “One of the biggest myths in bankruptcy, often perpetuated by the credit card companies, is that you lose all your assets once you file for bankruptcy. They try to scare you from doing bankruptcy and look for debt relief options. For the most part, you can keep all your assets.” Finance News Pro

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