Taxes aren’t important just one day of the year. A recent poll has found that voters want a presidential candidate who will focus the rhetoric on the piece of their paychecks going to Washington every payday. How important that is as an issue may depend on your credit status.
Note to presidential candidates. Forget about hand size and wife bashing. The majority of potential voters want to know what you are going to do about Social Security, healthcare and taxes. A recent Credit Karma survey showed respondents – including more than one in five undecided voters – are actually united on the issues they say are their top priorities.
Your credit card utilization rate – your collective credit card balance divided by your collective credit card limit – is an important factor used by most credit scoring models to calculate your score. Generally, lenders see that if you’re using a greater amount of available limit, there is an indicator of a greater risk of not being able to pay your debts. In general, a credit card utilization rate of less than 30 percent is recommended.
In Credit Karma’s recent Credit Fumble™ research, almost half of all people surveyed (47 percent) said that they had missed one or more payments on a credit card or loan before they entered their 30s. Where are millennials doing the best job maintaining financial health today?
The number eight is a symbol of good financial fortune and prosperity in Chinese culture. When you consider Credit Karma’s impact on American consumers over the last eight years, there may be some significance to the number eight.
Borrowing to pay for a college or university education can also be a major source of financial strain for young adults. According to Credit Karma’s Credit Fumble™ survey, 32 percent of all loan defaults were on student loans.
Credit Karma’s new app redesign, available now on both Android and iOS, features direct, specific and proactive product features that will help members live their best financial lives.
Missing a utilities bill or credit card payment happens more than we’d like to admit. Letters requesting payment can be tossed in the recycling bin, caller ID can make it easy to avoid phone calls, but the debt does not disappear. After a few months it may be sent on, or sold, to a collections agency for payment, leaving a derogatory mark on a credit report that may stay there for seven years or longer.
Credit Karma now serves more than 50 million members who trust us to help them manage over $3 trillion in debt. This gives us insight into more than one-fifth of all household debt in America.
At Credit Karma, we define a “Credit Fumble™” as being the phenomenon where young adults, new to credit and many without any financial education, make largely avoidable financial mistakes. When we finished our recent research into this pattern, even we were surprised to find out that more than two-thirds of young adults we surveyed experienced at least one Credit Fumble before they turned 30.