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Here Are The Best Student Loans of 2021

The best student loans can help you earn a college degree that will lead to higher earnings later in life. They also come with low interest rates and reasonable fees (or no fees), which will make it easier to keep costs down while you’re in school and once you’re in repayment mode.

For most people, federal student loans are the best deal. With federal student loans, you can qualify for low fixed interest rates and federal protections like deferment, forbearance, and income-driven repayment plans. To find out how much you can borrow with federal student loans, you should fill out a FAFSA form. Doing so can also help you determine if you qualify for any additional student aid, and if so, how much.

While federal student loans are usually the best deal for borrowers, many students need to turn to private student loans at some point during their college careers. This is often the case when federal student loan limits have been exhausted, or when federal student loans are no longer an option due to other circumstances. We’re providing the top 8 options, at least according to us, as well as a guide to help you get the best rate.

Most Important Factors When Applying for Student Loans

  • Start with a federal loan. Fill out a FAFSA form prior to applying for a private loan to make sure you’re getting all the benefits you can.
  • Compare loans across multiple lenders. Consider using a comparison company like Credible to do so.
  • Always read the fine print. Fees aren’t always boasted on the front of a lender’s website, so take time to learn about what you’re getting into.
  • Start paying as soon as you can to avoid getting crushed by compound interest.

Best Private Student Loans of 2021

Fortunately, there are many private student loan options that come with low interest rates and fair terms. The best student loans of 2021 come from the following private lenders and loan comparison companies:

  • Best for Flexibility
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  • Best Loan Comparison
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  • Best for Low Rates and Fees
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  • Best for No Fees
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  • Best Student Loans from a Major Bank
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  • Best Student Loans with No Cosigner Required
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  • Best for Fair Credit
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  • Best for Comprehensive Comparisons
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#1: College Ave — Best for Flexibility

College Ave offers private student loans for undergraduate and graduate students as well as parents who want to take out loans to help their kids get through college. Variable APRs as low as 3.70% are available for undergraduate students, but you can also opt for a fixed rate as low as 4.72% if you have excellent credit. College Ave offers some of the most flexible repayment options available today, letting you choose from interest-only payments, flat payments, and deferred payments depending on your needs. College Ave even lets you fill out your entire student loan application online, and they offer an array of helpful tools that can help you figure out how much you can afford to borrow, what your monthly payment will be, and more.

Qualify in Just 3 Minutes with College Ave

#2: Credible — Best Loan Comparison

Credible doesn’t offer its own student loans; instead, it serves as a loan aggregator and comparison site. This means that, when you check out student loans on Credible, you have the benefit of comparing multiple loan options in one place. Not only is this convenient, but comparing rates and terms is the best way to ensure you get a good deal. Credible even lets you get prequalified without a hard inquiry on your credit report, and you can see loan offers from up to nine student lenders at a time. Fixed interest rates start as low as 4.40% for borrowers with excellent credit, and variable rates start at 3.17% APR with autopay.

Compare Dozens of Rates at Once with Credible

#3: Sallie Mae — Best for Low Rates and Fees

Sallie Mae offers its own selection of private student loans for undergraduate students, graduate students, and parents. Interest rates offered can be surprisingly low, starting at 2.87% APR for variable rate loans and 4.74% for fixed-rate loans. Sallie Mae student loans also come without an origination fee or prepayment fees, as well as rate reductions for students who set up autopay. You can choose to start repaying your student loans while you’re in school or wait until you graduate as well. Overall, Sallie Mae offers some of the best “deals” for private student loans, and you can even complete the entire loan process online.

Get Access to Chegg Study FREE with Sallie Mae

#4: Discover — Best for No Fees

While Discover is well known for their excellent rewards credit cards and personal loan offerings, they also offer high-quality student loans with low rates and fees. Not only do Discover student loans come with low variable rates that start at 3.75%, but you won’t pay an application fee, an origination fee, or late fees. Discover student loans are available for undergraduate students, graduate students, professional students, and other lifelong learners. You can even earn rewards for having a 3.0 GPA or better when you apply for your loan, and Discover offers access to U.S. based student loan specialists who can answer all your questions before you apply.

Apply for a Loan with Discover

#5: Citizens Bank — Best Student Loans from a Major Bank

Citizens Bank offers their own flexible student loans for undergraduate students, graduate students, and parent borrowers. Students can borrow with or without a cosigner and multi-year approval is available. With multi-year approval you can apply for student funding one time and secure several years of college funding at once. This saves you from additional paperwork and subsequent hard inquiries on your credit report. Citizens Bank student loans come with variable rates as low as 2.83% APR for students with excellent credit, and you can make full payments or interest-only payments while you’re in school or wait until you graduate to begin repaying your loan. Also keep in mind that, like others on this list, Citizens Bank lets you apply for their student loans online and from the comfort of your home.

#6: Ascent — Best Student Loans with No Cosigner Required

Ascent is another popular lender that offers private student loans to undergraduate and graduate students. Variable interest rates start at 3.31% whether you have a cosigner or not, and there are no application fees required to apply for a student loan either way. Terms are available for 5 to 15 years, and Ascent even offers cash rewards for student borrowers who graduate and meet certain terms. Also note that Ascent lets you earn money for each friend you refer who takes out a new student loan or refinances an existing loan.

Get a Loan in Minutes with Ascent

#7: Earnest — Best for Fair Credit

Earnest is another online lender that offers reasonable student loans for undergraduate and graduate students who need to borrow money for school. They also offer a free application process, a 9-month grace period after graduation, no origination fees or prepayment fees, and a .25% rate discount when you set up autopay. Earnest even lets you skip a payment once per year without a penalty, and there are no late payment fees. Variable rates start as low as 3.35%, and you may be able to qualify for a loan from Earnest with only “fair” credit. For their student loan refinancing products, for example, you need a minimum credit score of 650 to apply.

Learn Your Rate in Minutes with Earnest

#8: LendKey — Best for Comprehensive Comparisons

LendKey is an online lending marketplace that lets you compare student loan options across a broad range of loan providers, including credit unions. LendKey loans come with no application fees and variable APRs as low as 4.05%. They also have excellent reviews on Trustpilot and an easy application process that makes applying for a student loan online a breeze. You can apply for a loan from LendKey as an individual, but it’s possible you’ll get better rates with a cosigner on board. Either way, LendKey lets you see and compare a wide range of loan offers in one place and with only one application submitted.

Pay Zero Application Fees with LendKey!

How to Get the Best Student Loans

The lenders above offer some of the best student loans available today, but there’s more to getting a good loan than just choosing the right student loan company. The following tips can ensure you save money on your education and escape college with the smallest student loan burden possible.

Consider Federal Student Loans First

Like we mentioned already, federal student loans are almost always the best deal for borrowers who can qualify. Not only do federal loans come with low fixed interest rates, but they come with borrower protections like deferment and forbearance. Federal student loans also let you qualify for income-driven repayment plans like Pay As You Earn (PAYE) and Income Based Repayment (IBR) as well as Public Service Loan Forgiveness (PSLF).

Compare Multiple Lenders

If you have exhausted federal student loans and need to take out a private student loan, the best step you can take is comparing loans across multiple lenders. Some may be able to offer you a lower interest rate based on your credit score or available cosigner, and some lenders may offer payment plans that meet your needs better. If you only want to fill out a loan application once, it can make sense to compare multiple loan offers with a service like Credible.

Improve Your Credit Score

Private student loans are notoriously difficult to qualify for when your credit score is less than stellar or you don’t have a cosigner. With that in mind, you may want to spend some time improving your credit score before you apply. Since your payment history and the amounts you owe in relation to your credit limits are the two most important factors that make up your FICO score, make sure you’re paying all your bills early or on time and try to pay down debt to improve your credit utilization. Most experts say a utilization rate of 30% or less will help you achieve the highest credit score possible with other factors considered.

Check Your Credit Score for Free with Experian

Get a Quality Cosigner

If your credit score isn’t at least “very good,” or 740 or higher, you may want to see about getting a cosigner for your private student loan. A parent, family member, or close family friend who has excellent credit can help you qualify for a student loan with the best rates and terms available today. Just remember that your cosigner will be liable for your loan just as you are, meaning they will have to repay your loan if you default. With that in mind, you should only lean on a cosigner’s help if you plan to repay your loan amount in full.

Consider Variable and Fixed Interest Rates

While private student loans offer insanely low rates for borrowers with good credit, their variable rates tend to be lower. This is why you should always take the time to compare variable and fixed rates across multiple lenders to find the best deal. If you believe you can pay your student loans off in a few short years, a variable interest rate may help you save money. If you need a decade or longer to pay your student loans off, on the other hand, a low fixed interest rate may provide you with more peace of mind.

Check for Discounts

As you compare student loan providers, make sure to check for discounts that might apply to your situation. Many private student loan companies offer discounts if you set your loan up on automatic payments, for example. Some also offer discounts or rewards for good grades or for referring friends. It’s possible you could qualify for other discounts as well depending on the provider, but you’ll never know unless you check.

Beware of Fees

While the interest rate on your student loan plays a huge role in your long-term loan costs, don’t forget to check for additional fees. Some student loan companies charge application fees or prepayment penalties if you pay your loan off early, for example. Others charge origination fees that tack on a few additional percentage points to your loan amount right off the bat. If you can find a student loan with a low interest rate and no additional fees, you’ll be much better off. Since loan fees may not be prominently advertised on student loan provider websites, however, keep in mind that you may need to dig into their fine print to find them.

Make Payments While You’re in School

Finally, no matter which loan you end up with, it makes a lot of sense to make payments while you’re still in school if you’re earning any kind of income. Even if you make interest-only payments while you attend college part-time or full-time, you can save yourself from paying thousands of dollars in additional interest payments later in life. Remember that compound interest can be a blessing or a curse. If you can keep interest at bay by making payments while you’re in school, you can squash compound interest and keep your loan balances from growing. If you let compound interest run its course, on the other hand, you may wind up owing more than you borrowed in the first place by the time you graduate school and start repayment.

What to Watch Out For

A private student loan may be exactly what you need in order to finish your degree and move up to the working world, but there are plenty of “gotchas” to be aware of. Consider all these factors as you apply for a new private student loan or refinance existing loans you have with a private lender.

  • Interest that accrues while you’re in school: Remember that subsidized loans may not accrue interest until you graduate from college and enter repayment mode, but that unsubsidized loans typically start accruing interest right away. Since private student loans are unsubsidized, you’ll need to be especially careful about ballooning interest and long-term loan costs.
  • Getting a cosigner: Make sure you only apply for a private student loan with a cosigner if you’re entirely sure you can repay your loan over the long haul. If you fail to keep up with your end of the bargain, you could destroy trust with that person and their credit score in one fell swoop.
  • You’ll lose out on some protections: Also remember that private student loans come with fewer protections than federal student loans. You won’t have the option for income-driven repayment plans with private loans, nor will you be able to qualify for federal deferment or forbearance. For this reason, private student loans are best for students who are confident in their ability to repay their loans on their chosen timeline.

In Summary: The Best Student Loans

Company Best Of…
College Ave Best for Flexibility
Credible Best for Loan Comparison
Sallie Mae Best for Low Rates and Fees
Discover Best for No Fees
Citizens Bank Best Student Loans from a Major Bank
Ascent Best Student Loans with No Cosigner Required
Earnest Best for Fair Credit
LendKey Best for Comprehensive Comparisons

The post Here Are The Best Student Loans of 2021 appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

Do College Rankings Matter?

student at college campus mobile

All articles about college rankings should perhaps be read with a grain of salt and primarily through a lens of what matters most to individuals about the college experience and what they’re hoping it will be an investment toward.

Prominent publications and people have conveyed a variety of views about whether college rankings matter:

The editor-in-chief of the Science Family of Journals said no in May 2020. “To any logical scientific observer, the fine distinctions of where schools show up on this (U.S. News & World Report Best Colleges) list are statistically meaningless—but try telling that to a roomful of alumni or parents,” H. Holden Thorp wrote.

Ian Bogost, distinguished chair at Georgia Tech, wrote in The Atlantic in June 2020: “The absurdity of a numerical ranking mechanism for colleges becomes apparent the moment you look at how U.S. News calculates it. The methodology reads like a Dungeons and Dragons character sheet: 8% for class size; 10% for high-school-class standing; 4.4% for first-to-second-year student retention, and so on.”

But just because the consensus leans toward “no” doesn’t mean it should be the last word on anyone’s ultimate decision about where to go to school.

Even U.S. News & World Report says on its best-colleges website: “The rankings provide a good starting point for students trying to compare schools. … The best school for each student, experts say, is one that will most completely meet his or her needs, which go beyond academics.”

What Are the College Rankings?

There is no single, ultimate, etched-in-stone set of college rankings. All over the world, there are entities using a wide array of criteria to appraise universities.

Rather than expecting a “yes” or “no” to the question of whether college rankings matter, it would be more beneficial to understand why “It depends” could be more appropriate.

If you’re aiming for an education from a prestigious school, and money is no object—well, first of all, congratulations and good luck.

NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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The post Do College Rankings Matter? appeared first on SoFi.

Source: sofi.com

When Is the Best Time to Buy a Car?

Best Time to Buy a Car

Timing is everything and when it comes to buying a car, that saying couldn’t be more true. Negotiating and haggling with car salesmen can reduce the price of what you have to pay for a new whip. But if you want to get the best deal on a car, you’ll need to know when to show up to the dealership. Whether you’re buying a used vehicle or a brand new ride, we’ll tell you the best time of year to buy a car. Being that the purchase of a car is rather pricey, consider meeting with a financial advisor in your area to discuss your finances beforehand.

When Is the Best Time to Buy a New Car?

If you’re on a budget, one of the best times to buy a new car is the end of a model season. New car models are often introduced each year between late summer and early fall. While you might miss out on some new features, buying a new car in August or early September may save you some money.

Waiting until the end of the year to buy a new car can work in your favor as well. Many car dealers offer year-end sales in an effort to get rid of older vehicles and make room for new inventory. Buying a new car on a holiday like Christmas Eve or New Year’s Eve is another way to get a deep discount.

If you can’t wait until December to get a new car, you might want to buy a car at the end of the month or the end of a quarter. If a salesperson hasn’t sold very many vehicles in weeks, he or she might be willing to compromise and lower the price of the car you want to buy. Even if a salesman has managed to sell multiple cars throughout the month, he might want to close one last deal in order to meet a sales goal or score a bonus.

Shopping for a car at the end of the day may or may not be effective. If you stop by a dealership an hour before it’s set to close, a salesperson may be open to negotiating so that he or she can end the day on a high note. But if he or she is used to working long hours, your sales associate may not be that flexible.

The Best Time to Buy a Used Car

Best Time to Buy a Car

A recent study from iseecars.com ranked the best times to buy a used car. At the top of their list are holidays including Black Friday, Veterans Day, Thanksgiving and Columbus Day. The months of November and December are also considered good times to purchase a used car.

According to the study, the months of April, May and June are some of the worst times to buy a used car. Specifically, Easter, Mother’s Day and Father’s Day are bad days for used-car buyers. But the No. 1 worst day to purchase a used car is the Fourth of July.

When Not to Buy a New Car

Generally, one of the worst times to buy a new car is in the spring. During this time of year, you’ll see more people on car lots looking to soak up some sun and cash in their tax refunds. Other bad times to shop for new cars are whenever a particular vehicle is popular among consumers and whenever a new car model has been released.

Some people seem to think that buying a car on a rainy day is a good idea. But that approach usually doesn’t work. In fact, you can expect car dealerships to be filled with people when there’s bad weather simply because people tend to believe that they’ll find great deals on rainy days.

Bottom Line 

Best Time to Buy a Car

The best time of year to buy a car ultimately depends on your personal preferences and how much you’re willing to spend on a vehicle. If you’re rolling in dough and you want your car to have top-of-the-line features and amenities, you might want to buy a car as soon as a new model comes out. But if you’re trying to shave hundreds of dollars off your purchase price, experts say that it’s best to head to the dealership at the end of a period in the fall or winter, like the end of the month, quarter or year.

Our advice? When it comes to buying cars and getting your way at the dealership, it helps to know what you’re looking for. Doing plenty of research and knowing the make and model that you want your car to have can make it easier to figure out when to purchase your new vehicle.

Tips for Taking Care of Your Finances

  • If you find yourself having some financial struggles, perhaps it’s time to have an outside resource step in to help you out. Financial advisors typically have extensive experience in a number of important areas of finance, like tax planning, retirement planning, budget planning and more. SmartAsset’s advisor matching tool can set you up with as many as three suitable advisors in just 5 minutes. Get started now.
  • The best way to manage your money on both a short- and long-term scale is to create a firm budget. SmartAsset’s budget calculator can help you figure out exactly where you’re overspending.

Photo credit: ©iStock.com/cosmin4000, ©iStock.com/ViewApart, ©iStock.com/kali9

The post When Is the Best Time to Buy a Car? appeared first on SmartAsset Blog.

Source: smartasset.com

Things To Do While You’re Stuck In Your Apartment

Creating An Inspiring Home Office Space

Guest Post

Things To Do While Stuck In Your Apartment During the Coronavirus Pandemic

By now, almost everyone in the country is under some kind of shelter-in-place or stay-at-home orders from government agencies due to the coronavirus pandemic. Authorities stress that this is the main way to try to flatten the curve of new infections.

OK, so what can you do while cooped up in your apartment. The options aren’t quite unlimited, but they are numerous. Take advantage of the space you have and undertake any activity that will be good for your mental or physical well-being. Here’s a look at some of the most popular:

1. Do a jigsaw puzzle

This has become quite popular around the country, with people finishing a jigsaw puzzle and then posting a picture of it on social media. The more pieces, the better, say, 1,000 or more. How long you’ll be able to do this to remain occupied depends on how many puzzles you have on hand, or how many times you’re willing to do the same puzzle over again.

If you don’t have jigsaw puzzles, maybe you have a Rubik’s Cube or a book of crossword puzzles. You can also find crossword puzzles online and in your daily newspaper, if you still subscribe.

2. Exercise!

If you have a set of weights in your apartment, use them. Or maybe you’re a packrat and still have exercise routines on VHS tapes or DVDs. If not, there are plenty of routines you can find for free online. 

If you can leave your apartment, go for a walk or a jog, as long as you observe the social distancing rules that are now the new normal. If you don’t want to go outside, walk up and down a stairwell or walk up and down your hallway. Again, give others their personal space.

Short of that, you can go old-school and do crunches, sit-ups and push-ups on your floor. You can also do isometric exercises using a rolled-up bath towel. For a refresher on the techniques, check out these workouts you can do in your apartment and then get to work. 

Whatever you chose, mix it up and keep it fresh as you stay in shape. 

3. Binge-watch

OK, the first two suggestions will put your mind and body to work. At some point you’ll feel like being a couch potato, so why not catch up on a series you’ve been meaning to watch on Netflix, Disney Plus or one of the many streaming services available? You’ve never had a better excuse than now. 

“Tiger King: Murder, Mayhem and Madness” has become all the rage on Netflix. It was released in mid-March and has given people something to do in the age of coronavirus. It is a true-crime documentary television series about the life of former zoo operator Joseph Maldonado-Passage.

If that’s not your thing, there are favorites such as “Narcos: Mexico” and “Stranger Things” on Netflix. If you’ve already seen them, what’s the harm in starting over? On Disney Plus you can watch “The Mandalorian,” “Star Wars: The Clone Wars” and “The Simpsons.”

4. Spring cleaning

It’s spring, and you have a lot of unexpected time on your hands. Now’s a great time to get in some spring cleaning of your apartment. Cut through the clutter and organize your closet and dresser. Most importantly, regularly clean and disinfect important areas such as kitchen surfaces and appliances that are used often. You should also keep your bathroom clean. 

5. Other stuff

There are plenty of other things you can be doing, such as catching up on your reading, playing a musical instrument, writing emails to friends and family and getting plenty of rest.

Read Things To Do While You’re Stuck In Your Apartment on Apartminty.

Source: blog.apartminty.com

Unlocking the Secret of Apartment Keys

You signed the lease. You cut the check for the security deposit. And the truck with all your stuff just pulled in. The leasing agent welcomes you and hands you the keys to your brand new place. But the key looks like a weird piece of plastic. And you’re not actually sure how it locks and unlocks doors. When did apartment keys get so complicated?!

Different types of keys mean different types of security. And that makes it harder for just anyone to gain access to buildings and units.

Many buildings now have electronic locks that log when a door was opened and whose card was used to open it. Others keep security by keeping close track of who has keys. Some use keycards and what the heck is RFID?

The good news is any combination of any of these locks, when used correctly, is a tested, secure and effective way to protect you and your home. And each method of security brings with it its own set of guidelines.

Metal keys

metal keys

Tried and true, metal keys will go through the wash and dry cycle and come out just fine. You can drop them, lose them, toss them and they’ll never let you down. Metal keys are the reason we don’t really think about them much. Cheap to make and as long as you can keep an eye on them, they’ll last forever.

But are they really your keys? Or are they the property of your landlord? You’ll want to check your lease, especially if you want copies made. Are you even allowed to get copies of your keys made? Well, if you look closely on your key, and see the words DO NOT DUPLICATE, you think you’d have your answer. But the truth isn’t that open and shut. (Open and shut. Get it? Because of doors? Never mind.)

You may need to go through your leasing office or landlord before you make the trip to the hardware store. Your landlord may have spares for free. And what happens if you lock yourself out of your apartment? Can your building’s superintendent come by and let you in? Or do you need to call a locksmith? As with all things for your apartment, check with your landlord.

Key cards

key cards

Convenient, skinny jeans-friendly, inexpensive to replace, the keycards you use to get into your building are just like the ones you use to get into your office. The only thing missing is an embarrassing photo of you on your first day. But not all key cards are the same.

Key cards are programmed by entering your information onto a card that’s read when it’s swiped or scanned. That information is either encoded on a magnetic strip on the back of the card or it’s loaded onto what’s known as a radio frequency identification (RFID) chip in the card.

A small chip containing your information is inserted into a plastic card and is powered by an induction circuit. When the card comes close to the scanner, it converts the electromagnetic field emitted by the scanner into electricity. That electricity powers the chip, which is then read by the computers. RFIDs are more secure than magnetic strip cards because the strips can become damaged more easily.

Key fobs

key fob

The key fob is just like an RFID keycard, only smaller. The fob is meant to be clipped onto your keyring so it’s always with you. These are quickly becoming a popular option with many new construction buildings, not only for garage and mailroom access but also for individual units. The fobs are small and also use a tiny induction circuit, so there’s never a need to change batteries or reprogram them.

The downside is these little plastic doodads can be expensive to replace. And you have to remember to have your keys with you all the time. So, if you’re the kind of person who frequently loses things and locks yourself out of your house, this may not be the option for you. And make sure you don’t lose it! Replacing these things can be expensive. Your landlord could charge a few hundred bucks for a replacement.

Key codes

key access code

Sometimes your apartment key might not be a key at all — but instead a code. Apartment communities have been using access codes for years for visitors to dial into your building. Some are using this same technology outside of your door.

Simply punch in your code, just like you would at an ATM, to unlock your door and enter your unit. In most cases, you’ll be able to select your own code. Just make sure it’s one that you’ll remember!

Bluetooth-digital combination

bluetooth phone key

This is the high tech solution many landlords are now considering. Besides your keys, what’s the one item everyone takes with them everywhere now? Your phone. In this case, your phone acts like a fob. Except instead of a small induction circuit powering it, it’s simply your phone that connects to the door lock via Bluetooth. Digital locks like these often use a backup code to get inside if you ever accidentally lock yourself out.

But as great as these digital locks sound, they aren’t perfect. Digital lock scanners need to be hard-wired to the building’s main electrical system in order to work. So, if the power goes out, that will be a problem.

And if they’re not connected to the main electrical system, they can also operate on small backup batteries built into the units. But there’s no telling how often those batteries or replaced, so you could find yourself locked out.

Safe home, happy home with apartment keys

Whether your apartment keys are old school or new, they should help keep your home safe and secure — provided you use some basic common sense and good practices.

The post Unlocking the Secret of Apartment Keys appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

10 Risky Investments That Could Make You Lose Everything

If the stock market crashed again, would you respond by investing more? Is day trading your sport of choice? Do you smirk at the idea of keeping money in a savings account instead of investing it?

If you answered yes to these questions, you’re probably an investor with a high risk tolerance.

Hold up, Evel Knievel.

It’s fine to embrace a “no-risk, no-reward” philosophy. But some investments are so high-risk that they aren’t worth the rewards.

10 Risky Investments That Could Lead to Huge Losses

We’re not saying no one should ever consider investing in any of the following. But even if you’re a personal finance daredevil, these investments should give you serious pause.

Sure, if things go well, you’d make money — lots of it. But if things go south, the potential losses are huge. In some cases, you could lose your entire investment.

1. Penny Stocks

There’s usually a good reason penny stocks are so cheap. Often they have zero history of earning a profit. Or they’ve run into trouble and have been delisted by a major stock exchange.

Penny stocks usually trade infrequently, meaning you could have trouble selling your shares if you want to get out. And because the issuing company is small, a single piece of good or bad news can make or break it.

Fraud is also rampant in the penny stock world. One common tactic is the “pump and dump.” Scammers create false hype, often using investing websites and newsletters, to pump up the price. Then they dump their shares on unknowing investors.

2. IPOs

You and I probably aren’t rich or connected enough to invest in an IPO, or initial public offering, at its actual offering price. That’s usually reserved for company insiders and investors with deep pockets.

Instead, we’re more likely to be swayed by the hype that a popular company gets when it goes public and the shares start trading on the stock market. Then, we’re at risk of paying overinflated prices because we think we’re buying the next Amazon.

But don’t assume that a company is profitable just because its CEO is ringing the opening bell on Wall Street. Many companies that go public have yet to make money.

The average first-day returns of a newly public company have consistently been between 10% to 20% since the 1990s, according to a 2019 report by investment firm UBS. But after five years, about 60% of IPOs had negative total returns.

3. Bitcoin

Proponents of bitcoin believe the cryptocurrency will eventually become a widespread way to pay for things. But its usage now as an actual way to pay for things remains extremely limited.

For now, bitcoin remains a speculative investment. People invest in it primarily because they think other investors will continue to drive up the price, not because they see value in it.

All that speculation creates wild price fluctuations. In December 2017, bitcoin peaked at nearly $20,000 per coin, then plummeted in 2018 to well below $4,000. That volatility makes bitcoin useless as a currency, as Bankrate’s James Royal writes.

Unless you can afford to part ways with a huge percentage of your investment, bitcoin is best avoided.

4. Anything You Buy on Margin

Margining gives you more money to invest, which sounds like a win. You borrow money from your broker using the stocks you own as collateral. Of course, you have to pay your broker back, plus interest.

If it goes well, you amplify your returns. But when margining goes badly, it can end really, really badly.

Suppose you buy $5,000 of stock and it drops 50%. Normally, you’d lose $2,500.

But if you’d put down $2,500 of your own money to buy the stock and used margin for the other 50%? You’d be left with $0 because you’d have to use the remaining $2,500 to pay back your broker.

That 50% drop has wiped out 100% of your investment — and that’s before we account for interest.

5. Leveraged ETFs

Buying a leveraged ETF is like margaining on steroids.

Like regular exchange-traded funds, or ETFs, leveraged ETFs give you a bundle of investments designed to mirror a stock index. But leveraged ETFs seek to earn two or three times the benchmark index by using a bunch of complicated financing maneuvers that give you greater exposure.

Essentially, a leveraged ETF that aims for twice the benchmark index’s returns (known as a 2x leveraged ETF) is letting you invest $2 for every $1 you’ve actually invested.

We won’t bore you with the nitty-gritty, but the risk here is similar to buying stocks on margin: It can lead to big profits but it can also magnify your losses.

But here’s what’s especially tricky about leveraged ETFs: They’re required to rebalance every day to reflect the makeup of the underlying index. That means you can’t sit back and enjoy the long-haul growth. Every day, you’re essentially investing in a different product.

For this reason, leveraged ETFs are only appropriate for day traders — specifically, day traders with very deep pockets who can stomach huge losses.

6. Collectibles

A lot of people collect cars, stamps, art, even Pokemon cards as a hobby. But some collectors hope their hobby will turn into a profitable investment.

It’s OK to spend a reasonable amount of money curating that collection if you enjoy it. But if your plans are contingent on selling the collection for a profit someday, you’re taking a big risk.

Collectibles are illiquid assets. That’s a jargony way of saying they’re often hard to sell.

If you need to cash out, you may not be able to find a buyer. Or you may need to sell at a steep discount. It’s also hard to figure out the actual value of collectibles. After all, there’s no New York Stock Exchange for Pokemon cards. And if you do sell, you’ll pay 28% tax on the gains. Stocks held long-term, on the other hand, are taxed at 15% for most middle-income earners.

Plus, there’s also the risk of losing your entire investment if your collection is physically destroyed.

7. Junk Bonds

If you have a low credit score, you’ll pay a high interest rate when you borrow money because banks think there’s a good chance you won’t pay them back. With corporations, it works the same way.

Companies issue bonds when they need to take on debt. The higher their risk of defaulting, the more interest they pay to those who invest in bonds. Junk bonds are the riskiest of bonds.

If you own bonds in a company that ends up declaring bankruptcy, you could lose your entire investment. Secured creditors — the ones whose claim is backed by actual property, like a bank that holds a mortgage — get paid back 100% in bankruptcy court before bondholders get anything.

8. Shares of a Bankrupt Company

Bondholders may be left empty-handed when a corporation declares bankruptcy. But guess who’s dead last in terms of priority for who gets paid? Common shareholders.

Secured creditors, bondholders and owners of preferred stock (it’s kind of like a stock/bond hybrid) all get paid in full before shareholders get a dime.

Typically when a company files for bankruptcy, its stock prices crash. Yet recently, eager investors have flocked in to buy those ultracheap shares and temporarily driven up the prices. (Ahem, ahem: Hertz.)

That post-bankruptcy filing surge is usually a temporary case of FOMO. Remember: The likelihood that those shares will eventually be worth $0 is high.

You may be planning on turning a quick profit during the run-up, but the spike in share prices is usually short-lived. If you don’t get the timing exactly right here, you could lose big when the uptick reverses.

9. Gold and Silver

If you’re worried about the stock market or high inflation, you may be tempted to invest in gold or silver.

Both precious metals are often thought of as hedges against a bear market because they’ve held their value throughout history. Plus in uncertain times, many investors seek out tangible assets, i.e., stuff you can touch.

Having a small amount invested in gold and silver can help you diversify your portfolio. But anything above 5% to 10% is risky.

Both gold and silver are highly volatile. Gold is much rarer, so discovery of a new source can bring down its price. Silver is even more volatile than gold because the value of its supply is much smaller. That means small price changes have a bigger impact. Both metals tend to underperform the S&P 500 in the long term.

The riskiest way to invest in gold and silver is by buying the physical metals because they’re difficult to store and sell. A less risky way to invest is by purchasing a gold or silver ETF that contains a variety of assets, such as mining company stocks and physical metals.

10. Options Trading

Options give you the right to buy or sell a stock at a certain price before a certain date. The right to buy is a call. You buy a call when you think a stock price will rise. The right to sell is a put. You buy a put when you think a stock price will drop.

What makes options trading unique is that there’s one clear winner and one clear loser. With most investments, you can sell for a profit to an investor who also goes on to sell at a profit. Hypothetically, this can continue forever.

But suppose you buy a call or a put. If your bet was correct, you exercise the option. You get to buy a winning stock at a bargain price, or you get to offload a tanking stock at a premium price. If you lose, you’re out the entire amount you paid for the option.

Options trading gets even riskier, though, when you’re the one selling the call or put. When you win, you pocket the entire amount you were paid.

But if you end up on the losing side: You could have to pay that high price for the stock that just crashed or sell a soaring stock at a deep discount.

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What Are the Signs That an Investment Is Too Risky?

The 10 things we just described certainly aren’t the only risky investments out there. So let’s review some common themes. Consider any of these traits a red flag when you’re making an investment decision.

  • They’re confusing. Are you perplexed by bitcoin and options trading? So is pretty much everyone else.If you don’t understand how something works, it’s a sign you shouldn’t invest in it.
  • They’re volatile. Dramatic price swings may be exciting compared with the tried-and-true approach of investing across the stock market. But investing is downright dangerous when everything hinges on getting the timing just right.
  • The price is way too low. Just because an investment is cheap doesn’t mean it’s a good value.
  • The price is way too high. Before you invest in the latest hype, ask yourself if the investment actually delivers value. Or are the high prices based on speculation?

The bottom line: If you can afford to put a small amount of money in high-risk investments just for the thrill of it, fine — as long as you can deal with losing it all.

Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

A complete guide to airline companion passes

Flying can be a hefty expense – especially when you’re buying more than one airline ticket at a time. If you frequently fly with a companion, whether it be your child, spouse or friend, a companion pass can drastically reduce your travel costs.

While the terms vary depending on the airline and credit card, generally, companion passes allow a second passenger to fly with you for free or at a significantly discounted rate. Some credit cards automatically offer a companion pass when you are approved for the card or each year on your account anniversary. Others require you to charge a certain amount within a given time frame to earn the pass.

For more details on some of the most common companion passes, including what they offer and how to earn them, read on.

Which airlines offer companion passes?

  • Southwest Airlines
  • American Airlines
  • British Airways
  • Delta Air Lines
  • Hawaiian Air
  • Alaska Airlines
  • Lufthansa Airlines

Southwest Rapid Rewards® Plus Credit Card
  • Southwest Rapid Rewards® Premier Credit Card
  • Southwest Rapid Rewards® Priority Credit Card
  • CitiBusiness®/AAdvantage® Platinum Select® Mastercard®
  • AAdvantage® Aviator® Silver World Elite Mastercard®
  • British Airways Visa Signature® Card within a 12-month period, starting on Jan. 1 and ending on Dec. 31. For example, if you opened your card account in June 2020, you have until Dec. 31, 2020 to reach the spend requirement for that year.

    How long is the Travel Together Ticket valid?

    The Travel Together ticket is valid for 24 months from the date of issue.

    Which cards help you qualify?
    British Airways Visa Signature® Card

    Delta SkyMiles Reserve® American Express Card

    Hawaiian Airlines® World Elite Mastercard® (50 percent and $100 discounts)
  • Hawaiian Airlines® Bank of Hawaii World Elite Mastercard® (50 percent and $100 discount)
  • Hawaiian Airlines® Business Mastercard® (50 percent discount)
  • Alaska Airlines Visa Signature® or Alaska Airlines Visa® Business cardholder. As part of the introductory offer, you much spend $2,000 in the first 90 days to receive a companion fare. You will automatically receive the companion fare each year on your account anniversary.

    Travel must be booked on alaskaair.com.

    How long is the fare valid?

    The Famous Companion Fare is valid from the date of issue until your next account anniversary.

    Which cards help you qualify?
    • Alaska Airlines Visa Signature® credit card
    • Alaska Airlines Visa® Business

    How to get the Southwest Companion Pass, Earn sign-up bonus miles with the Southwest Rapid Rewards cards

    The Bank of America content of this post was last updated on March 20, 2020.

    Source: creditcards.com

    Best cards for food delivery and meal kit subscriptions

    Credit cards for foodies are the latest trend, with more and more rewards programs and additional card benefits catering to both dining in and eating out. Restaurant and grocery bonus categories are becoming commonplace – letting cardholders rack up a few extra points or cash back on those purchases.

    But what about those who prefer to order delivery? If you like to take advantage of popular food delivery services like DoorDash or Uber Eats or simplify cooking with a meal kit subscription, there are plenty of credit card rewards and benefits you can leverage to save a little money.

    Finding the best card for your favorite services

    Finding the best card for your favorite food delivery or meal kit service depends on a variety of factors, including the card’s yearly credits, special perks or rewards rate. For example, many dining cards offer bonuses that are tailored to a specific delivery service, as a monthly Uber credit.

    See Related: Food delivery perks on luxury travel cards

    For meal kit services, matching rewards is a little more complicated. You could opt for a rewarding grocery card, as many meal kit brands are now partnered with major supermarkets – so you can buy them in the store.

    merchant category code that qualifies for a point or cash back bonus. You can test it by making a small charge to your card and seeing what rewards you earn.

    Online shopping rewards, on the other hand, are much more flexible. They apply to both web and app purchases, so whether your order from your phone or computer, you can rack up bonus points or cash back.

    See Related: Make the most of an online shopping bonus category

    Best cards by delivery service or meal kit subscription

    With all this in mind, here are some of our favorite cards for some of the most popular food delivery and meal kit subscription services.

    Delivery service Card Rewards rate Why we like it
    DoorDash Chase Sapphire Reserve
    • 10 points per dollar on Lyft purchases (through March 2022)
    • 3 points per dollar on travel and restaurants (excluding purchases covered by $300 travel credit)
    • 1 point per dollar on general purchases
    • Generous rate on dining purchases
    • Receive a yearly statement credit for DoorDash purchases ($60 in 2020 and $60 in 2021)
    • Get at least one free year of DashPass when you enroll with your card (activate by Dec. 31, 2021)
    Uber Eats The Platinum Card® from American Express
    • 10 points per dollar on eligible purchases at U.S. gas stations and U.S. supermarkets, on up to $15,000 in combined purchases, during the first 6 months of card membership
    • 5 points per dollar on flights booked directly with airlines or with American Express Travel (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
    • 5 points per dollar on eligible hotels booked with amextravel.com (starting January 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
    • 1 point per dollar on general purchases
    • Terms apply
    • Get up to $200 in Uber credits per year ($15 per month, plus an extra $20 in December), which can be applied to Uber Eats
    • Automatic Uber VIP membership (where available) without ride requirements
    Instacart Capital One Savor Cash Rewards Credit Card
    • 8% cash back on Vivid Seats tickets (through Jan. 2022)
    • 4% cash back on dining and entertainment
    • 2% cash back at grocery stores
    • 1% cash back on all other purchases
    • Top-tier cash back on restaurant delivery, including most delivery services
    • Grocery bonus category includes eligible grocery delivery services, including Instacart
    • As a Mastercard, offers complimentary a 2-month Instacart Express membership if enrolled before Mar. 31, 2021
    Grubhub/Seamless/Boxed/Instacart American Express® Gold Card
    • 4 points per dollar at restaurants worldwide
    • 4 points per dollar at U.S. supermarkets (on up to $25,000 in purchases per year, then 1 point)
    • 3 points per dollar on flights booked directly with airlines or amextravel.com
    • 1 point per dollar on other purchases
    • Terms apply
    • Enroll to receive up to $10 in statement credits per month (up to $120 per year) to use at participating restaurants, including Grubhub, Seamless and Boxed
    • Excellent rewards on grocery delivery services, such as Instacart
    HelloFresh Blue Cash Preferred® Card from American Express
    • 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%)
    • 6% cash back on select U.S. streaming subscriptions
    • 3% cash back at U.S. gas stations and on transit purchases
    • 1% cash back on general purchases
    • Terms apply
    • Generous rate on U.S. supermarket purchases (HelloFresh meal kits are sold in supermarkets such as H-E-B and Giant Food) and eligible grocery delivery services, such as Instacart
    • Unlimited 3% cash back on delivery purchases from ride-share services, like Uber and Lyft
    Home Chef Blue Cash Everyday® Card from American Express
    • 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
    • 2% cash back at U.S. gas stations and select U.S. department stores
    • 1% cash back general purchases
    • Terms apply
    • Generous rate on U.S. supermarket purchases (Home Chef meal kits are sold in select Kroger locations)
    Other delivery services Bank of America® Cash Rewards credit card
    • 3% cash back on a category of choice (gas, online shopping, dining, travel, drugstores or home improvements and furnishings)
    • 2% cash back at grocery stores and wholesale clubs
    • $2,500 combined limit on 2% and 3% categories each quarter
    • 1% cash back on other purchases
    • Generous rate on online shopping purchases (if you select it as your 3% category) and good rate at grocery stores
    • Can swap choice 3% category monthly to account for different delivery services. For instance, the dining category rewards Grubhub purchases and the travel category rewards ride share purchases from services like Uber

    If you don’t have a delivery service you prefer – or if you like to switch back and forth based on restaurant availability – a card with rewards on online shopping is your best bet.

    Bottom line

    Ordering food can be expensive, but using the right rewards card can help you alleviate some of that cost by racking up points or cash back. With some cards, you might even get a few extras that cover your next couple of meals.

    Source: creditcards.com

    15-Year Fixed vs. 30-Year Fixed: The Pros and Cons

    It’s that time again, where I take a look at a pair of popular mortgage programs to determine which may better suit certain situations. Today’s match-up: “15-year fixed mortgage vs. 30-year fixed mortgage.” As always, there is no one-size-fits-all solution because everyone is different and may have varying real estate and financial goals. For example, [&hellip

    The post 15-Year Fixed vs. 30-Year Fixed: The Pros and Cons first appeared on The Truth About Mortgage.

    Source: thetruthaboutmortgage.com

    Under the Influence: 40% of Americans Have Purchased Something Seen on Social Media

    Social media has wormed its way into most aspects of our lives. It’s how many adults make friends, find dates, and even build career networks. It’s a virtual portfolio of our personal and public selves, and of course many of us want to show our best online. Which presents the question — how do you influence others, and how do others influence you on social media?

    More than a third of Americans admit that social media has influenced their spending habits and that they overspend to keep up with their friends’ fun. Meanwhile, 64 percent of Americans are wondering how their friends can afford the expensive trips and trends they’re sharing online.

    Online shopping has seen significant gains since the start of quarantine in the U.S. Recent reports find that 40 percent of consumers have increased their online spending to some degree. Food is the most popular item bought online, and 31 percent of Americans say they’ve ordered takeout. Hygiene is the second most popular online purchase with 27 percent of Americans shopping disinfectants and other items online, followed by clothing at 26 percent. 

    The feeling of needing to keep up with friends and perform on social media is at the core of many poor online spending decisions and can be detrimental to your financial health. A $30 concert ticket may not seem like much, but this builds a habit of overspending that can impact savings goals and unbalance your budget. 

    We surveyed 1,500 people to learn more about social media spending and found:

    • 40 percent of Americans have made a purchase because of social media influence
    • A quarter of Americans have bought clothing or accessories, the most popular category, because of social media
    • Nearly 20 percent of Americans admit to judging others for sharing their purchases

    40% of Americans Have Made a Purchase Influenced by Social Media

    Bar graph displaying what products Americans are buying after seeing them on social media.

    Our survey found that 40 percent of Americans admit to purchasing an item or experience after viewing something similar on social media. Clothing and accessories was the most popular category, with 24 percent of respondents sharing that they’ve shopped new looks on social media. 

    This percentage drops significantly to just 12 percent buying beauty and health products — the second most popular category. Vacation experiences were the least influential category with just 5 percent of Americans planning a trip because of social media. 

    Generation X (ages 35–44) is the most likely to purchase with social media influence. Forty-four percent of Gen X respondents say they’ve purchased something they saw online, with clothing and accessories keeping its popularity at 27 percent.

    On the other hand, Baby Boomers (ages 65+) were the least likely to buy from social media at 31 percent, followed by Generation Z (ages 18–24) at 36 percent. Only 40 percent of Baby Boomers use social media, while 70+ percent of other age groups connect online. This is likely why fewer Baby Boomers shop with social media. 

    Additionally, 46 percent of women have purchased something they saw on social media while only 34 percent of men had done the same. Both women and men prefer clothing, but men put more value in experienced-based purchases, like events and vacations, than women seem to. 

    Clothing and Accessories Have the Most Influence

    Clothing and accessories remained the top influencer across age and gender groups. Gen X women are the most interested in fashion with 38 percent buying clothing or accessories they saw shared on social media. Men were less interested in fashion than women, and Gen Z and Baby Boomers were the least interested with just 14 percent of men in each generation buying fashion trends from social media. 

    The fashion industry has built a huge market around the ability to control messaging and increase accessibility through visual apps. A quick and easy example of this is the 847+ million posts under #fashion on Instagram. 

    Even among fashion influencers, 42 percent shop directly through Instagram. The cycle of trending fashion grows as 86 percent of influencers purchase items they’ve seen other influencers wear, and are likely to then share the trend on their own account. 

    Nearly 20% of Users Judge Others for Sharing Their Purchases Online

    20% of users judge others for sharing their purchases, 64% wonder how their friends afford these purchases

    While a large percentage of Americans admit to making purchases they see on social media, a fifth of respondents also admit to judging others for sharing their purchases online. Interestingly, younger generations were the most judgemental. Twenty-three percent of Gen Z users judged their peers’ purchases, while just 15 percent of those 55 and older judged others’ purchases. 

    It seems men are the most likely to judge others for sharing what they buy. Twenty-seven percent of Gen Z men admit to judging others’ purchases, while just 19 percent of the youngest generation’s women do the same. 

    Recent research suggests that there may be a direct tie between envy and conspicuous consumption on apps such as Instagram. Preliminary research suggests that many users believe others are posting their purchases to flaunt exclusivity, which builds envy and may support why so many users are quick to judge others. Those who reported high levels of envy were also more likely to consciously purchase items they had seen in an attempt to close the perceived wealth gap. 

    Social media trends are here to stay, and marketers are taking advantage of the authenticity of influencer marketing. A third of Americans admit to spending more than they can afford to keep up with their friends, and social media envy plays a large part in this influence. The best way to stay financially secure is to commit to a budget. Apps like Mint can help you plan and stick to your larger savings goals and combat the habit to impulse buy.

    View the Social Media Influences infographic

    Sources: Charles Schwab | Intellifluence | HelpGuide | Harvard School of Public Health | Medium 

     

    Methodology 

    This study consisted of two survey questions conducted using Google Surveys. The sample consisted of no less than 1,500 completed responses per question. Post-stratification weighting has been applied to ensure an accurate and reliable representation of the total population. This survey ran during August 2020. 

    The post Under the Influence: 40% of Americans Have Purchased Something Seen on Social Media appeared first on MintLife Blog.

    Source: mint.intuit.com