Money Management

Your credit score doesn’t have to be mysterious. Here are a few things you should avoid if you’re working to improve your credit. 

Many things can hurt your credit score, including not paying your mortgage bill or racking up lots of credit card debt. But there are also a handful of events that could negatively affect your credit score — and do so very quickly — that you may not know about.

Here are five unexpected ways you can hurt your credit score overnight and a few tips on how to raise your score.

1. Transferring too many credit card balances

It can sometimes be a good idea to transfer credit card balances from multiple cards with high interest rates to one credit card with a low promotional interest rate (also known as a balance transfer credit card). Doing so can help you pay off your credit card debt faster by putting more money toward the principal balance, instead of the interest.

But if you habitually open new cards and transfer balances too often, it can hurt your credit score. Additionally, if a new card significantly lowers the average age of all of your accounts, it could cause your score to drop temporarily, according to Experian.

2. Making a late payment

Missing a single credit card payment may not seem like a big deal, but it is to the credit reporting agencies. On-time payments are the most important part of your credit history, accounting for 35% of your total FICO® Score.

So, even one missed payment could severely dent your score. The good news is that creditors may only report your payment if it’s 30 past due, according to Experian. This is why it’s essential to make any late payments as soon as possible, so you can avoid having a late payment recorded on your credit report.

3. Applying for credit

Some consumers may find that their credit score has dropped when they apply for a credit card. When companies issue a hard pull of your credit report, it can cause your score to drop, though it may not fall by much.

Still, it’s worth keeping this in mind when considering applying for credit, especially if you’re trying to improve your credit score.

4. Cosigning a credit application

Cosigning on a loan is essentially like signing onto the loan yourself. If the original borrower can’t make payments, you’re responsible for the debt. As such, being a cosigner could potentially hurt your credit score, according to Equifax.

Your credit score may not necessarily drop just because you’re a cosigner, but you should be aware that it can fall if there are any late payments on the account.

5. Canceling a credit card

Part of your credit score is based on your availability of credit and the length of your credit history. The longer you have had a credit account with a company, the better it can be for your credit score.

But if you close an account, even if you’ve always paid on time and have paid down the entire balance, it can hurt your score. That’s why it’s generally recommended to keep your oldest credit card accounts open, even if you don’t use them regularly. Keeping old accounts open boosts your average credit account age and also maintains your available credit, helping to keep your total credit utilization in check.

Two simple ways to boost your score

While all of the above will ding your credit score in some way, there are two simple things you can do to improve your score right now: Pay your bills on time and use less of your available credit.

As I mentioned earlier, paying your bills on time has the biggest impact on your credit score. So, if you’re currently late on any payments, try to get up to date as soon as possible. Your score may not improve overnight once you do this, but it will eventually increase significantly, especially if you have fair credit right now.

Secondly, how much you owe is a big determinant of your credit score, accounting for 30% of your FICO® Score. That’s why paying down your credit card accounts is important if you want to boost your score. The less available credit you use, the more responsible you seem, raising your score.

Keeping these events in mind, and avoiding some (or ideally, all) of them, will help you to improve your credit score, or at least help maintain the score you already have.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Thanksgiving is a big event for many American families, but it doesn’t have to be an expensive affair. These tips can help you spend less on a Turkey Day feast. 

Thanksgiving is only days away, so you may still be sorting out all the details of your holiday gathering. Whether you’re hosting friends and family and planning to prepare an entire spread or are celebrating on a smaller scale, it can be easy to overspend if you’re not careful.

Keep reading for more details on how much the average American spends on Thanksgiving dinner, and discover what you can do to keep your holiday food spending to a minimum this year.

The cost of a Turkey Day feast can add up fast

The American Farm Bureau Federation recently released its yearly survey, which examines the average cost of a Thanksgiving dinner for 10 people. The 2023 survey findings show that the average cost of a holiday feast for 10 people is $61.17, which ends up being less than $6.20 per person.

While this figure is 4.5% less than the average holiday dinner cost in 2022, it’s up 25% compared to the average cost in 2019. This pricing data suggests that pre-pandemic food costs were much more affordable than they have been in recent years. So if prices feel higher, you’re not imagining it.

One expense that is noticeably more affordable this year than last is the cost of a turkey. Many American families serve turkey as the main course for their Thanksgiving feast. This year, the average price of a 16-pound turkey is $27.35, which is 5.6% cheaper than last year.

How much do you plan to spend on your Thanksgiving meal this year? Knowing average meal costs before you fill up your shopping cart with must-have holiday food essentials can help you keep more spending in check as you cruise the grocery store aisles.

Four tips to keep your holiday meal spending to a minimum

Thanksgiving is the perfect time to gather with your favorite people and share a meal. But it’s essential to keep your personal finances in mind as you decide what dishes you’ll prepare for your holiday feast. You don’t want to spend more than you can afford. Here are a few tips that may help you better honor your budget as you shop for the big event:

Shop for ingredients at discount stores: Where you shop can make a big difference. Avoid pricey retailers when shopping for Thanksgiving essentials. Buying food essentials at discount stores like Aldi could help you avoid overspending. This year, Aldi has select holiday items on sale for up to 50% off, so don’t miss out on extra deals like this. Get creative with the menu: It may be Thanksgiving, but you don’t have to serve a turkey. You can keep more money in your checking account by getting creative with the menu. Delicious dishes like chicken pot pie, veggie lasagna, quiche, and roasted squash are alternative entrees to explore if you want to save money on food costs. Buy generic items: You can save a lot of money by sticking with generic food essentials as you shop for your holiday meal. There’s no need to buy name-brand canned vegetables, cranberry sauce, and items like butter and milk. No one will know the difference, and you’ll waste less money by choosing generic alternatives. Shop the sales and use coupons: As you do your shopping, don’t ignore the sales flyer. It’s a good idea to browse the sales flyers for nearby stores so you know where to go for the best deals. You can also use paper coupons and in-app coupons from your favorite grocery stores to get an even bigger discount at checkout.

Don’t feel pressured to host an elaborate meal that drains your wallet. The above strategies can help you plan an enjoyable holiday meal that will impress without draining your bank balance. Consider using one of the best cash back credit cards to pay for your groceries to earn rewards on your spending. Check out our list of the best rewards credit cards to learn more.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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There are several ways to get around Europe. Find out if you’re better off flying, taking trains, or renting a car. 

Traveling around Europe is many people’s idea of a dream vacation. And if you have the time, it’s certainly doable. Countries in Europe aren’t that far from each other, and there are affordable transportation options. You could easily spend time in four or five countries over a two-week trip.

Flights, trains, and cars are three of the most common ways to get around, and each has its pros and cons. Figuring out the right option for each leg of your trip could help you save money and have a better time traveling from place to place.

My wife and I spent three months in Europe last summer. During that time, we took a few flights, went on several train rides, and rented a car at one point. If you’re deciding how to get around, here’s what I recommend.

For longer journeys: Planes

If you want to arrive as quickly as possible, flying is the best choice. It’s also more convenient for long trips that would take six hours or more by train. Taking a flight, on the other hand, could likely get you there in under two hours.

You can compare flights and trains for where you want to go online — I recommend Google Flights and Trainline. Enter your trip details on each one, and you can compare prices and travel times. You’ll be able to see if going by train is a viable option, or if a plane is the only way to arrive in a reasonable amount of time.

Somewhat surprisingly, flying is cheaper than train travel in most of Europe, according to recent research by Greenpeace. This isn’t always the case, though. I made a lot of last-minute bookings, and trains were normally more affordable. It’s also budget airlines that offer the cheapest airfare, and many of them charge extra for each piece of luggage beyond a personal item.

However, if you use travel credit cards and have miles available, you could redeem those to save on flight costs. Short-hop flights costing 100 euros to 200 euros are sometimes also available for just 5,000 miles to 8,000 miles.

For a relaxing travel experience: Trains

Europe has an excellent rail system, and I’d highly recommend using it if you can. It’s the quintessential European travel experience. You can settle in with a coffee or a drink, and watch the countryside pass by.

As far as when to use it, that depends on how far you’re going and how much train travel you’re open to. My general rule of thumb is to go by train when it’s less than five or six hours and doesn’t require any train changes. For anything longer or more complicated than that, I prefer flying, since it’s more convenient.

If you’re traveling within one country, the train is usually a good option. Trains are also perfect for day trips to cities that aren’t too far from each other. And they can also work well for trips between countries, too. For example, you can get from Paris to Amsterdam by train in under three-and-a-half hours.

When comparing how long it will take to fly compared to taking the train, keep in mind that travel times don’t tell the whole story. You don’t need to arrive that early when traveling by train, because there’s no extensive security check like there is at the airport. Train stations are also often conveniently located within major cities, not on the outskirts like many airports are.

For anything off the beaten path: Automobiles

In most of the United States, you get used to driving everywhere. If you’re planning to visit major cities in Europe, don’t feel like you need to rent a car. In fact, it may be better not to. It’s easy to get around with public transportation, and often faster than driving. Traffic is brutal in big cities, as is finding parking. The subway or the bus are both good alternatives. Many cities also have bike and scooter rentals available.

The exception is when you’re traveling to small towns and anywhere that doesn’t have fast public transportation. For example, when my wife and I stayed on a farm in Tuscany, renting a car was the only realistic option. If you’re not sure whether a car will be necessary, try searching online. You can also contact the host of your accommodations or the hotel where you’ll be staying.

If you rent a car at any point, make sure to read up on the traffic laws in the area you’ll be driving. There are plenty of stories out there about travelers who received tickets in the mail for breaking traffic laws, such as inadvertently driving in a restricted zone. I’d also recommend paying with one of the many credit cards that offer complimentary rental insurance.

The right way to get around Europe depends on where you’re going and your travel preferences. Personally, I found that I took the train the most, only flying if it would’ve been an arduous train trip. A car isn’t needed in much of Europe, but for certain destinations, it’s practically a must.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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