Money Management

Many things can be bought before you see them with minimal risk — but a house isn’t one. Find out why you shouldn’t buy before you visit. 

Buying a house is a huge decision, not only because of the cost — hello, six-figure mortgage! — but also because, well, you’re going to live there, probably for a long time.

Unfortunately, the housing markets in many areas are still facing inventory shortages, so properties are moving exceptionally fast (and with multiple offers). This can sometimes tempt buyers into skipping important steps — like, you know, actually visiting the house in person.

No matter what the market is doing or how fast things are moving, I don’t think anyone should put an offer on a house they haven’t seen. At the absolute least, you need to visit the property, in person at least once before you complete the sale. Here are a few reasons why.

1. Photos can bend the truth — or outright lie

As we’ve all learned from social media, a photo is an easy thing to manipulate, and I’m not just talking about photo editing software. How and when you take a photo can completely change the way the subject looks.

It’s a terrible idea to rely on photos, or even video, to see if a house may suit your needs. For one thing, you may not get the whole picture — literally. Stains, cracks, and broken items are easy to hide from photographs. Home listings can even skip entire rooms.

Additionally, scale is very hard to properly gauge through even an honest photograph, let alone ones specifically angled to make rooms look bigger. And everything from the lighting to the lens can change how large or small a room looks on a recording.

2. Location, location, location

If you wind up with some bad paint or a poor layout, you can probably fix it. But what about the location? It’s the one thing you can’t fix about a property no matter what you do. So you really need to show up and take a look at it all in person.

On your way to the house, take in the neighborhood. Are there trees? Are the roads busy? Do the houses look cared for and well maintained? If possible, swing back through the neighborhood after dark and on the weekend so you can see how busy it is when everyone is at home.

And, of course, you need to scope out the neighbors themselves. Once you own the home, moving gets a lot more complicated; you’re going to want to get an idea of what you’re taking on.

3. The smells and sounds are part of the house

With a really thorough video walkthrough and some great pictures, you might be able to get a decent idea of the size and layout of the house. But what about your other senses?

Until they perfect smell-i-vision, you won’t know about the house’s olfactory quirks. It may smell musty — or, worse, moldy — or reek of smoke. You can tell a lot about the history of a place by how it smells.

You always want to know how it sounds. Unless you’re carrying about a professional microphone, a video isn’t going to give you the full sound story. The neighbors may be loud, you may get street noise, or the house could be near the airport. Maybe the floors creak or the furnace knocks. All these little sounds will be part of the package, so it’s good to know about them upfront.

4. The inspection is vital, and I want to be there

Sometimes, touring before making an offer just doesn’t work. Maybe you’re buying out of state and simply can’t get there in time. I get it; life is, well, life. Even if I couldn’t tour the home before I’m under contract, however, I’d still need to see the place at least once because I couldn’t miss the inspection.

Getting a home inspection is extremely important before buying property. This is when you get to learn about all of the potential problems, from the big stuff — which you may want the buyer to fix — to the little bits of maintenance you’ll need to put on your own to-do list.

After the inspection, you’ll get a full written report about all the things that were found. But absolutely nothing beats walking the property with your inspector so you can get their firsthand impressions and ask your own questions.

5. It has to feel like home

In my opinion, one of the most important reasons to visit a house in person is to see if it feels like home. You know, you need to check its vibe, tune to its mojo. And yes, I know it sounds a bit like mumbo-jumbo, but I bet you still know what I mean.

A house can meet all of your needs on paper, but you walk in and it’s just not right. I toured many homes that met my online search parameters. But the one I chose in the end was the one that felt like home.

I’m definitely not saying you should make your home purchase based entirely on emotions, or some nebulous “feeling.” But, for me at least, it was certainly a factor.

I’ll buy a lot of things without seeing them in person first. Shoes, toothpaste, artisanal potato chips. But I’d never buy a house without visiting it first, and I definitely don’t suggest you do so, either.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 

Dividend stocks can be a great investment. But read on to avoid a major trap they tend to lead investors into. 

Your goal as an investor is to make money, and there are a couple of ways you can do that. First, you can load up your brokerage account with quality stocks and hold them for a long time, until their share prices appreciate a lot. You can also make money by investing in stocks that pay dividends.

When a company pays dividends, it’s sharing a piece of its profits. It can be argued that companies that don’t pay dividends might have more growth potential because rather than sharing profits with stockholders, they’re investing all of their profits back into the business. But it can also be argued that plenty of companies strike a good balance between sharing the wealth and investing in their own long-term growth, so owning dividend stocks is by no means a bad thing.

But if you’re going to hold dividend stocks, whether in a brokerage account or IRA, it’s important to avoid one big trap that investors tend to fall into. Doing so could be pivotal to meeting your long-term financial goals.

Don’t be lured by dividends alone

It can be tempting to invest in companies whose dividends are generous. But one thing you don’t want to do is focus solely on dividends without digging into the financial health of the companies in question.

It may be that a company is paying such a high dividend that it’s not investing enough in research and development. That could lead to a lower stock price over time rather than a higher one. Or, it could stunt that company’s growth so its share price does grow in time, but not a whole lot.

In fact, one thing you may want to do in the course of choosing stocks is pick companies with a lot of growth potential and whose finances are solid. If those same companies happen to pay a dividend, great. But really, the dividend income you receive should be a bonus perk of owning shares of a given company — not the core reason you invest in that company.

Remember, companies are not required to pay dividends, and many don’t. And starting to pay a dividend does not obligate a given company to continue to do so.

Of course, some companies have a solid history of not only paying dividends, but increasing them. You can check out this list of Dividend Kings for companies that have increased those payments for 50 consecutive years. But still, before buying shares of any of the companies on this list, do your research to make sure the businesses themselves are solid and align with your investing strategy.

It’s not worth chasing those paydays

Dividend income is a great thing to have. You can use your dividends as cash or reinvest them to further grow your portfolio.

But don’t make the mistakes of buying a given stock for the express purpose of scoring a higher dividend. Not only might those payments cease to exist, but what you might gain in the form of dividend income, you might lose in the form of share price appreciation, or a glaring lack thereof.

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 

Have you ever wished you could use the same service for dining and rideshares? Well, look no further. Check out the best reasons to join Uber One. 

Rideshare and food delivery apps have become increasingly important in our world, and one of the best-known examples of these services in action is Uber. The company was founded in 2009, originally as a means to order a ride directly from a smartphone. Since then, Uber has grown by leaps and bounds and added food delivery service alongside rideshares in 2014. This led to a separate food delivery app, Uber Eats. But now Uber fans can find rideshares and delivery (both takeout and groceries) under the same umbrella again with Uber One.

Uber One launched near the end of 2021 and is currently priced at $9.99 per month (or $99.99 per year). The service features savings and special offers on both rides and delivery for members, which can definitely help you stick to your budget. Let’s run down some of the biggest perks of becoming an Uber One subscriber.

1. No delivery fees

This is perhaps the best reason to join Uber One, if you order food or grocery deliveries frequently. If you opt to order from restaurants and stores that participate in Uber One (you’ll see a gold Uber One logo under their names in the app), you won’t be charged a delivery fee. This’ll lower your credit card bill — although it’s important to note that you’ll still pay service fees and taxes on orders. The $0 delivery fee applies to eligible non-grocery orders of $15 or more, and eligible grocery orders of $35 or more.

2. Special pricing and discounts

Alongside those $0 delivery fees, an Uber One membership can give you the chance to save even more on eligible orders and rides with discounts and special prices. Uber One offers up to 10% off on non-grocery orders of $15 or more, and 5% off on eligible grocery orders of $35 or more. If you’re using Uber One for rides, you’ll get special member pricing.

3. Earn Uber Cash

Uber One subscribers can earn 6% back in Uber Cash on eligible rides. This perk replaces an earlier 5% discount on rides. Uber Cash can be used to pay for orders and rides, and this perk shows how those who use Uber frequently have the most to gain from an Uber One subscription. In addition to earning Uber Cash, you can also purchase it with your credit or debit card, or use Venmo or PayPal to add funds to your balance. Uber promotes Uber Cash as a way to help users budget and prepay for services.

4. Get paid Uber Cash if your order is late

Speaking of Uber Cash, this perk is another way to earn more of it. If you’ve ever ordered delivery through Uber, you’ve likely noticed that you receive an Estimated Time of Delivery and a Latest Arrival By. If you’re an Uber One member and you receive an eligible order after the Latest Arrival estimate, you’ll receive $5 in Uber Cash — which you can then use toward future orders and rides. This is the Uber One Promise.

5. Access to the best drivers (and upgraded customer service)

Using a rideshare app is very much a game of chance when it comes to being assigned a driver. The good news for Uber One subscribers is that they get priority ride service from top-rated drivers. And if something should go wrong with a ride (or a delivery order), Uber One members also get the best in customer service Uber has to offer.

Is it worth joining Uber One?

If you’re an Uber loyalist and rarely turn to one of its competitors (such as DoorDash or Grubhub for food delivery, Instacart for grocery orders, or Lyft for rides), Uber One could be a good fit for you. Crunch your own numbers to see how often you rely on Uber’s services and how much they’re currently costing you without a subscription.

It’s also worth looking for your favorite stores and restaurants on the app, because if they don’t partner with Uber One, you may not save much money unless you’re willing to change your dining and shopping preferences. But if you have one of the best Capital One credit cards, you might qualify for a complimentary Uber One membership. Check your card’s benefits and if this is one of them, consider opting in to save on food delivery and rideshares.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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 positions in and recommends DoorDash, PayPal, and Uber Technologies. The Motley Fool recommends the following options: short June 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.

 Read More 

Settling debts can help remove financial burdens, but it isn’t right for everyone. Read on to learn the pros and cons. 

Debt settlement means paying less than you owe in order to remove a debt obligation. For example, if you owe $5,000 on a credit card but can’t afford to pay off the balance, the creditor or collection agency that owns the debt may agree to take a lower amount — say, $3,000 — with the agreement that you’ll no longer owe any money after you pay.

If this sounds too good to be true, it’s because there are several downsides to keep in mind. Here’s a rundown of the pros and cons of debt settlement, some words of caution before you proceed with trying to settle your debts, and how to tell whether it could be a smart move for you.

Pros and cons of debt settlement

The biggest benefit of debt settlement is that you’ll eliminate a financial obligation for significantly less than you owe. And even though debt settlement is a generally negative factor in your credit score, it’s worth noting that a settled collection account looks significantly better than an unpaid one.

On the other hand, there are some big potential drawbacks to keep in mind:

Most significantly, settling a debt for less than you owe can have a major negative impact on your credit score for years to come. In most cases, debts you settle can remain on your credit report for seven years.A record of settling debts can make it difficult to obtain a new credit card or loan.Negotiating a debt settlement can take a long time (years in some cases). In the meantime, the debt is still yours, as is any required payment obligation.

Debt settlement companies

It’s certainly possible to negotiate debt settlements directly with your creditors, and this is especially true if you have accounts that have already been sent to collection agencies. After all, collection agencies typically have bought your debt for significantly less than you owe, so they can accept a reduced amount and still potentially make a profit.

However, there are companies that offer to renegotiate or settle your debts on your behalf. And while these can often be legitimate businesses, there are a few things to keep in mind, according to the Consumer Finance Protection Bureau (CFPB).

For one thing, these companies often charge high fees. The CFPB recommends avoiding any debt settlement company that charges fees before it settles your debts. Legally, the Federal Trade Commission (FTC) prohibits charging fees before debts can be resolved. It’s also a good idea to avoid companies that promise a specific amount or percentage of debt reduction, or that guarantees to make your debts “go away.”

Furthermore, many debt settlement companies encourage customers to stop paying their credit card bills while they are negotiating with your creditors. This can result in large penalties, higher credit card interest rates, and can cause even more damage to your credit score.

If you want to settle your debts for less than you owe, an alternative is to contact a nonprofit credit counseling agency, which can provide much of the same services and advice. It can work with your creditors to come up with a debt repayment plan you can afford and may even be able to lower your interest rates in some cases. Plus, nonprofit credit counseling services will only give you advice that’s in your best financial interests.

Is debt settlement right for you?

Debt settlement can reduce your financial burden while helping you avoid bankruptcy, but it isn’t the right move for everyone, especially if you feel overwhelmed with credit card balances that have not yet been sent to collection agencies. In these cases, it’s always a smart move to talk to your creditors first and let them know your situation. You might be surprised at how receptive and willing to work with you they can be.

One important thing to keep in mind is that it is in nobody’s best interest to send your debt to collections (except for the collection agency itself). So, while debt settlement is an option, it’s often smart to try to work with your creditors, or to have a credit counselor do so on your behalf before you decide to settle your debts.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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 

Credit card interest can be costly. Read on to see how you can steer clear of it. 

As of the first quarter of 2023, U.S. credit card borrowers owed a whopping $917 billion, according to TransUnion. And chances are, at least some of those balances are still accruing interest to this day.

That’s a problem, because the more money you’re forced to spend on credit card interest, the less money you’ll have to put toward other expenses or goals, whether it’s saving up to retire comfortably or to buy a home.

If your goal is to reap the benefits of using credit cards without having to owe money in interest, you may want to take these important steps. They could help you avoid credit card debt and the stress that can easily come with it.

1. Check your balances every week

Some credit card users don’t check their balances until their statements pop up in their inboxes along with a payment due date. But if you wait until you’ve already charged up a world of expenses on your credit cards, you might end up in a situation where your balances are more than what you can afford to pay off in one fell swoop. The result? Interest charges.

A better bet may be to start checking your credit card balances on a weekly basis. That way, if you start to see that your balances are getting too high, you can take steps to put off certain purchases until your next billing cycle.

2. Follow a tight budget

The stricter you are about budgeting, the less likely you might be to end up with a credit card bill you can’t afford to pay outright. Set up a budget that accounts for your monthly expenses, and check in periodically to make sure you’re following it.

An even easier bet could be to sign up for a budgeting app that links to your checking and credit card accounts. That way, your purchases will be tracked automatically for you.

3. Pad your savings account

It’s important to have money in a savings account for unplanned expenses, like home and car repairs. You don’t want to make a habit of dipping into your savings every time a credit card bill of yours comes in higher than expected. But if you pad your savings so there’s extra money to access, you might manage to avoid credit card interest during a month when you have no choice but to charge extra expenses — such as if your car breaks down or you wind up having to cover surprise medical bills.

Many credit card companies reward consumers generously with perks like cash back on their purchases. But they don’t do that out of the goodness of their hearts. They do it with the hope that the people who use their credit cards won’t be able to pay off their balances in full and will end up forking over interest. You can avoid that scenario, though, by checking your balances every week, sticking to a budget, and making sure you have extra cash to tap in a pinch.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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 

Racking up too high a credit card tab could hurt your credit score. Read on to see why. 

It’s important to keep your credit score in top shape so you come off as a less risky borrower to lenders. That way, you’re more likely to not only get approved to borrow money when you want to, but also lock in favorable interest rates on upcoming loans, whether it’s an auto or mortgage loan.

For this reason, it’s important to understand the factors that go into calculating your credit score. Your credit utilization ratio is one of them. And once you recognize how it works, you may come to realize why it’s important not to charge too many expenses on a credit card at once.

Too high a credit card balance could hurt you

Your credit utilization ratio comprises 30% of your credit score. So as you might imagine, it’s important to keep that ratio in good shape.

Your credit utilization ratio represents the amount of available revolving credit you’re using at one time. If you have a total spending limit across your credit cards of $10,000, and you have outstanding balances of $2,500, that puts you at 25% utilization.

Your credit score can start to take a hit once your utilization ratio exceeds the 30% mark, whereas a lower utilization ratio can help your score improve. If you charge many expenses on a credit card but pay off your balance in full, that generally won’t hurt your credit score. It’s when you charge lots of expenses and carry a balance forward that your credit score can start to decline — especially if you’re beyond that 30% threshold.

How to lower your credit utilization ratio

There are two steps you can take to lower your credit utilization ratio and help your credit score improve. First, you can pay off a chunk of existing credit card debt. If you owe $3,500 on a total credit limit of $10,000 but manage to chip away at $500 of that total, you’ll be back into that more favorable 30% utilization zone.

Another option for lowering your credit utilization ratio is to ask your credit card issuers for a spending limit increase. If you manage to get a $10,000 spending limit across your cards raised to $12,000, then a $3,500 balance puts you at around 29% utilization.

The danger in going this route, though, is that a higher spending limit might tempt you to spend more on your credit cards. And that might not only hurt your credit score from a utilization standpoint, but also, create a scenario where you end up losing a lot of money to credit card interest.

All told, charging a large number of expenses on a credit card isn’t so problematic when you’re paying your bills in full. It’s when you charge too many expenses on a credit card that your score has the potential to take a hit. So it’s best to avoid that, and a good way to do so is check your balances every week.

If you see them getting too high for comfort, stop spending. Keeping yourself in check could not only help your credit score, but spare you the stress and cost of debt.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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