Money Management

Good news — your credit score will never go as low as 0. But read on to see why a score of 300 isn’t any better. 

Your credit score is one of those things you may not stop to think about until you’re gearing up to apply for a credit card or sign a loan. But actually, that number is really important, because it tells lenders how reliable a borrower you are — or not.

The most commonly used credit scoring method is FICO, which ranges from 300 to 850. So if you’re wondering if it’s possible to have a credit score of 0, the answer is no.

However, a 300 is basically the same thing as a 0. And anything below 580 is considered poor. So if your credit score is hovering in unfavorable territory, it’s best to do what you can to raise it.

What a really low credit score means for you

A really low credit score sends the message to lenders that you don’t tend to repay your bills and debts on time, and that you may already have more debt than you can handle. So if you have a credit score in the 300s, it’s very unlikely you’ll be approved to take out any sort of loan.

If your credit score is below 580, the same holds true. Clearly, a credit score of 500 is better than a 320. But you may not have many borrowing options with a 500, either. And even if you do manage to get approved for a loan, you could end up with an exorbitant interest rate on it.

How to raise your credit score

If your credit is poor, one thing you should know is that it can take a fair amount of time to build up your score to a more favorable level. It’s important to recognize that so you don’t get discouraged if you don’t see results within a few months. But in the course of a year, for example, you might see a notable improvement in your score.

You can take several steps to raise your credit score, but the most important thing to do is establish a solid payment history. That means being timely with bills and paying them in full.

Another big step you can take to boost your credit score is to pay down some existing credit card debt. This is an especially important thing to do if you’ve maxed out your credit cards. Your credit utilization, or the amount of revolving credit you’re using at once, also plays a big role in calculating your credit score.

Lenders like to see that you’re only using a modest percentage of your total available credit. So once you rack up a balance on your credit cards that exceeds 30% of your total spending limit, it can reflect poorly on your credit. And if you’re using 100% of your credit limit, that’s even worse. So if you’re able to whittle down your credit card balances over time, your score might start to improve nicely.

Finally, check your credit report for mistakes. Perhaps there’s a delinquency on your record that’s not actually legitimate. Successfully disputing any errors you find will result in them being removed from your credit report and a positive effect on your credit score. And depending on the error, this effect could be a small bump in score, or one more meaningful.

A study conducted by the Federal Trade Commission a few years back found that 20% of people have an error on their credit report, so read yours carefully and be on the lookout for mistakes. Credit bureaus are obligated to investigate reported errors, so the sooner you raise an issue (if applicable), the sooner that mistake might get fixed.

While your credit score can’t get down to 0, it can get down to 300, and that’s just not a good thing at all. If your credit needs work, make the above moves to open the door to more borrowing possibilities.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Unsure where you want to go for college? Check out a breakdown of universities that provide quality education and give students the most value. 

As the cost of tuition and student debt continues to rise, finding an affordable college education is becoming more important than ever. The good news is that there are plenty of universities out there that offer high-quality education without wrecking your personal finances. Whether you’re a high school student or a working adult looking to further your education, this article will help you make an informed decision about which college to attend.

What are the best value schools?

The schools mentioned here excel academically and are significantly more affordable compared to many others, considering the financial aid they provide through need-based grants and scholarships.

For example, Harvard is one of the most expensive schools in the nation, costing about $60,000 in tuition and fees per year. But its generous need-based financial aid program means that over half of students receive aid, and on average, students end up paying around $15,000 per year. Not bad for an Ivy League school!

Given Harvard’s above-average graduation rate, low student-to-faculty ratio, and the tendency of its graduates to secure higher-than-average salaries, Harvard can be considered a college of high value, assuming you can get in.

After analyzing the top reputable lists of schools compiled by Princeton Review, U.S. News & World Report, Forbes, The Wall Street Journal, and other sources, the schools listed below were consistently at the top. The schools are listed in no particular order and are split between public and private universities.

The average cost of tuition and fees in 2021–22 for a public university was $10,338 for in-state students and $22,698 for out-of-state students. Private schools tend to be more expensive, with the average cost for a private college at $38,185.

Best value private universities

Not surprisingly, many of the Ivy League schools make the list. A large number of graduates commonly get high-paying jobs at the largest companies. They are able to get generous amounts of financial aid, grants, scholarships, and other sources of funding.

Harvard UniversityMassachusetts Institute of TechnologyCalifornia Institute of TechnologyStanford UniversityYale UniversityUniversity of PennsylvaniaColumbia UniversityWilliams CollegeDartmouthBrigham Young University

Best value public universities

Many of the top public universities are in California. Although not on this list, in addition to the University of California system, the California State Universities also consistently ranked high among all the lists.

University of California BerkeleyUniversity of California Santa BarbaraUniversity of California San DiegoUniversity of California IrvineGeorgia Institute of TechnologyUniversity of VirginiaUniversity of North Carolina at Chapel HillCity University of New York’s Baruch CollegeUniversity of Florida

This list is certainly not exhaustive, and the best value college will depend on what is right for you, where you live, what you want to major in, and more. For those that don’t want to pay a dime for college and get one of the best educations in the world, any of the Service Academies, such as the U.S. Military Academy at West Point and the Naval and Air Force Academies, are great options. However, you will owe at least five years of service to Uncle Sam.

Research the right school for you

Choosing a college can be a difficult decision, especially when you’re on a budget. But there are plenty of options out there for those who want a high-quality education without breaking the bank. These universities are just a few examples of schools that offer excellent educational opportunities and generous financial aid programs to students from all backgrounds. As you begin your college search, consider the schools on this list and do your own research to find the school that’s right for you. Good luck on your journey to higher education!

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Should you spring for a Disney trip when your kids are very young? Read on to find out. 

When a friend of mine told me she was taking her infant on a trip to Disney World, I did my best not to actively wince. Sure, it’s cute to parade a 10-month-old around Magic Kingdom. But given the expense of a Disney trip, I wondered why she was willing to grapple with that massive credit card bill when she could easily take her daughter to the mall for stimulation without her being any the wiser.

That said, I know a lot of people who have taken very young kids to Disney. And there are some benefits to going with super young children. But there are also some clear drawbacks.

Pro No. 1: You won’t be charged for young kids

A Disney trip could cost many thousands of dollars. And the exact amount you’ll spend will hinge on factors that include when you go, how you choose to dine, whether you stay at a Disney property, and whether you opt for a budget hotel or one that’s higher-end.

The upside of taking a very young child to Disney is that you may not have to pay for their ticket. Children under age 3 get into Disney for free, and they’re able to eat free at certain restaurants. That could be a huge source of savings right there.

Pro No. 2: Disney is easier when you have a child in a stroller

Some people will tell you that Disney is easier to manage once you’re past the stroller phase. And sure, once your kids are, say, 8 or 9, that’s true.

But there’s a very tricky in-between phase — let’s call it ages 4 to 7 — where your kids may not want to be in a stroller, but they’re also apt to get exhausted from the many miles of walking that tend to come with a Disney trip.

The upside of taking a very young child to Disney is that they’ll be more likely to want to be carted around in a stroller. That means you won’t have to deal with whiny “I’m tired” complaints. And just importantly, you’ll have somewhere to stash your stuff as you go about your day.

Con No. 1: A younger kid won’t remember anything

I’m not an expert on child development, so I’d be the wrong person to pinpoint when it is that children form long-term memories. But I’m pretty confident when I say that a 9-month-old or 15-month-old is not going to actually remember being at Disney for five days and meeting Mickey Mouse.

Sure, you could always show your child pictures so there’s proof they were there. But is it really worth spending all that money on a trip your child will have no recollection of?

Plus, there’s a good chance that once your kids get older, they’ll start begging to go to Disney. And if you respond by reminding them that they’ve already been there, they might counter with a very valid “but I was too young to remember it.”

Con No. 2: They’ll be too small for a good number of rides

One nice thing about Disney is that many of the rides are family friendly and suited for younger kids. But there are also a number of rides with height requirements. And if you take a very young child, they might miss out on a lot.

Also, you might miss out on a lot. If your child is too young to get on a given ride, someone’s going to have to wait on the sidelines while your spouse, partner, or tripmate gets on. But unless you’ve paid for the ability to skip the line, wait times for rides at Disney can be lengthy. So chances are, if you wait on a 40-minute line for a faster ride and hang back with your young child once your spouse gets on, you’re not going to want to then repeat that process (though some attractions may have Rider Switch that allows you to skip the line).

Clearly, there are pros and cons to visiting Disney with a very young child. One thing you may want to ask yourself is whether you intend to visit Disney multiple times, or once only. If it’s the latter, you may want to wait until your child is at an age where they can appreciate Disney more.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Retirement balances go up with age. But when, and by how much? Take a look at the data. 

Building up enough retirement savings is a long process. Ideally, it starts in your 20s (or even earlier!). And even under perfect circumstances, it takes literally decades.

When progres is so slow, it can be hard to recognize it. Even comparing to other folks’ retirement savings can be tough, since time plays such a huge role.

In the end, the best way to gauge your retirement savings progress against other folks is to do so by age. This levels the time advantage enough to get a fairer assessment than comparing yourself to folks much further ahead — or behind.

Retirement balances, by age

One major source of retirement savings data is the annual How America Saves Report from Vanguard. It looks at data from 5 million participants across the brokerage‘s business.

Here’s a look at the data, by age bracket.

As you might expect, account balances increase with age, and folks the closest to retirement age had the highest balances. That said, the highest savings rates were from younger brackets, with balances more than doubling each bracket until participants hit their mid-40s.

The problem with averages

One very important distinction to make with the data above is that between the average balances and the median balances.

Although people casually use the term “average” to mean “typical,” that’s not the case when it comes to statistics. The average balance is found by totaling up everyone’s balances, then dividing that amount by the total number of participants. So if a few of the participants have unusually high balances, the average will be higher than is strictly “typical.”

For example, suppose you look at a subset of 20 participants. Three of them have balances of $1 million each. The other 17 participants each have a balance of $50,000. You’d likely say then that the “typical” balance is $50,000. But the average balance would be: $3.85 million divided by 20 people = $192,500. The average is nearly four times higher than the “typical” balance.

This is why any good dataset includes the median numbers alongside the averages. The median number is the one in the middle. In other words, if you made a list of everyone’s balances, the median balance would be right in the center of the list, so half of the balances will be below the median, and half of them above it.

If you’re going to compare your own progress with that of your age group, look at the median, rather than the average for a more accurate measure.

Keeping your savings goals

Even comparing yourself to the median balances could leave you feeling as though you’ve fallen behind. Or perhaps you know you’re on track — but it’s hard to stay that way.

In either case, here are a few tips for reaching your retirement savings goals.

Maximize employer matches. Many employers offer 401(k) or IRA matches. Contribute at least enough to maximize this each year (it’s part of your compensation package, after all).Save every pay period. Even if you make only small contributions each pay period, try to set something aside every time. Getting into this habit makes it easier to save consistently. Moreover, many employers will do this for you. Alternatively, set up automatic withdrawals from your checking account to your retirement account through your bank.Keep an eye on your portfolio. Don’t invest your money then forget about it. Check in on your portfolio regularly and rebalance as necessary.

One final bit of advice: Don’t be afraid to speak with a professional. If you’re truly concerned that your investments aren’t doing as well as they should, consider consulting a wealth management advisor. They may be able to help you optimize your investments and increase your savings.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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.

 Read More 

Dollar General stores frequently pop up in areas with a limited number of other shops. Still, it’s best to avoid these Dollar General products. 

As of September 2023, there are 19,388 Dollar General stores in the U.S., many of which are located in food deserts, which are areas with limited access to affordable, nutritious food. The big draw for customers — other than convenience — is low prices. As tempting as those low prices may be, there are products experts advise shoppers to steer clear of. Here are five of them.

1. Tools

Tools are not cheap, which helps explain why you might be tempted to pick up a new screwdriver or hammer at Dollar General. Dollar General tools tend to look like a steal, and there’s a good reason for that. They are not the best quality.

If you’re okay having a screwdriver around long enough to make a few simple repairs, go ahead and make the purchase. But if you’d like to store it away in a toolbox to be pulled out year after year, splurge on a more dependable brand. As BobVila.com says, “Tools should be sturdy and durable enough to stand up to tough work.”

The best tool kits are constructed of high-quality materials and often come with a warranty. If you’re in the middle of a job and the tool breaks, you should be able to replace it at little or no cost. The less money you spend replacing tools, the more you’ll have to invest or save for the future.

2. Electronics

There’s also a good reason electronics and electronic accessories are so stinkin’ inexpensive at Dollar General. They’re junk. The phone chargers and extension cords you find at a Dollar General store are not manufactured under the same rigorous standards as phone chargers and extension cords purchased elsewhere. Instead of taking a chance on an electronic gadget that will break quickly (if you’re lucky) or burn the house down (if you’re not so lucky), spend a little extra on a brand you know that’s UL certified. It doesn’t have to be the most expensive product on the market, just less likely to give you a shock or set the sofa on fire.

3. Cookware

You don’t have to be Wolfgang Puck to purchase a decent set of pots and pans. You know where you’re unlikely to find that decent set? That’s right; Dollar General. As Marie Clark, editor of CostContessa, told Best Life Online, you’re better off paying for kitchen-related items that will last longer. And you don’t have to break the bank to do it. Check out Costco, Sam’s Club, Target, Ikea, or Walmart for the cookware you need. You’ll pay a little more upfront, but can count on having it much longer.

4. Knives

It’s true that a really good chef’s knife will take a bite out of your checking account. That’s because a really good chef knife will last you for years (and years). Given that a quality knife is made of strong, high-carbon stainless steel, the price makes sense. However, that is not what you’re likely to find at Dollar General.

It doesn’t take much for a shoddy knife to cause injury. When Porch.com analyzed thousands of records from the Consumer Product Safety Commission, it found that kitchen knife injuries lead to nearly 323,000 emergency room visits annually for finger lacerations. That makes knives the most dangerous item in your kitchen, and illustrates why buying a well-made knife that won’t break away from the handle is worth the cost.

Consider this: The cost of a single ER visit would likely be enough to purchase a high-quality knife set that will last for decades. In the long run, it’s all about protecting your household budget.

5. Medications

When you see a name brand drug on the shelves at Dollar General, don’t automatically assume it’s the cheapest you can find. For example, the cost of 500 mg. Tylenol Extra Strength Caplets, 225 count at Dollar General today is $21.95. At Walmart, the same medication is $19.97. It’s never safe to assume that over-the-counter (OTC) drugs at Dollar General are your cheapest option.

And if you see an OTC drug that was manufactured in a foreign country, you may want to walk on by. The FDA has no say over how those drugs are made. According to BobVila.com, the FDA has been known to send warning letters to American dollar store companies for selling drugs from foreign manufacturers due to safety concerns.

A trip to Dollar General is sort of like trying to win a stuffed animal at a carnival. It’s sort of fun, but you can’t always be sure of the quality of the prizes you win.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More