Money Management

Paying a credit card bill a few days late isn’t ideal, but it also isn’t the worst thing. Read on to see why. 

Paying your credit card bills in full can help ensure that you don’t lose money to interest. And paying them on time can help you avoid costly late payment fees.

But what if you’re a few days late with a credit card bill? It may be that you got sick and were holed up in your bed at the time your bill was due. Or maybe you were under a lot of stress at work and simply forgot to make your payment on time.

Often, being a few days late with a credit card bill won’t cause damage to your credit score. But your credit card issuer may end up charging you a late fee in that situation.

When you’re only a few days past your bill’s due date

Being timely with bills is extremely important from a credit score standpoint. That’s because your payment history carries more weight than any other factor when coming up with that number.

The good news, though, is that if you’re a few days late with a payment, it generally will not negatively impact your credit score. That’s because credit card companies typically do not report late payments to the credit bureaus until you’re a full 30 days late. So if you have a payment due on the 15th of the month and realize on the 18th that you forgot to send your money in, you’ll usually be okay credit score-wise if you make your payment three days later.

That said, while being a few days late with a credit card payment may not hurt your credit score, your credit card issuer may opt to impose a late fee. Technically, it can do this if you’re even a day late.

However, if you’re an account holder in good standing and this is the first time you’ve ever been late with a bill, chances are, you can get out of paying that fee. You’ll probably need to call your credit card company, explain the situation, and ask to have the fee waived.

If you try to do this repeatedly, you may find that you end up getting denied. But if it’s the first time you’ve been late, there’s a good chance your credit card issuer will work with you.

Try to avoid late payments

Although being a few days late on a credit card bill may not harm your credit score, it has the potential to cost you money. So one good way to avoid that fate is to mark your calendar with your credit cards’ billing due dates and set up reminders so you’re prompted to make your payments.

You may also have the option to set up automatic payments on your credit card account so you’re never in a situation where you’re late with a bill. For this to work, you’ll need to make sure to keep enough cash in your checking account to cover at least your minimum payments. But if that’s something you’re able to do, you can avoid the hassle of dealing with late fees.

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 

This writer left her passport on a plane and wasted lots of time and money as a result. Find out what to do if you lose your passport when traveling abroad. 

It’s every traveler’s nightmare. You’re standing in line for immigration after a flight as you head out or return from a trip. You check for your passport. It isn’t there. Trying not to panic, you check your pockets. You empty your bag. Still no passport. After much searching, you realize you must have left it on the plane.

It takes two seconds to check around your seat before you get off an airplane. Look in the back pocket of the seat in front of you, and see if there’s anything on the floor. It’s all too easy to drop your wallet, passport, or other travel documents during the flight. And, as I discovered the hard way, that quick check can save you a lot of time and money.

What to do if your passport is lost or stolen

There are many ways you can lose your passport while traveling. If, like me, you lose it on a plane, the first thing to do is go back to the gate or ask an official for help. They can contact the airline and get someone to look around your seat — you may be able to get your documents back without any further trouble.

If they can’t find it, you’ll need to explain your situation at border control. It will help if you can show a photocopy of your passport or other documents that show your identity. If you’re entering the U.S., you’ll need to explain your situation to the immigration officials. They’ll likely try to complete the screening process using other forms of ID, such as a driver’s license.

If you’re on your way into another country, things can get more complicated. A lot depends on what country it is, your immigration status, and other factors. You might have to go to the U.S. embassy or consulate to get an emergency passport. In a worst case scenario, you might not be able to enter the other country at all and have to return to the U.S.

Lost or stolen passports in the U.S.

As soon as you realize your passport is missing, report it to the State Department. You can do this online, by phone (1-877-487-2778), or by mail. To get a replacement, you’ll need to fill out a form and provide it, along with evidence of your U.S. citizenship, ID, and a photo. For adults, a new passport book costs $130, as well as a $35 execution fee.

Ordinarily, passport renewals can be done online. Unfortunately, if you don’t have your old passport because it’s been lost or stolen, you will need an in-person appointment.

If you’re in a hurry, call the National Passport Information Center to schedule an appointment with a passport agency. There are two options, a life-or-death emergency service and an urgent travel service. The expedited service costs an extra $60 and fast delivery costs $19.53.If you have more time, you can use a passport acceptance facility. These are a mix of post offices, clerks of court, public libraries, and other government offices that accept applications. You can find your nearest facility online.

Lost or stolen passports abroad

If your passport is lost or stolen when you’re out of the country, the process is a bit more complicated. You’ll probably have to go to the U.S. embassy or consulate, and each one has its own process. You may be able to get a temporary emergency passport and replace it when you’re back in the U.S.

As with a missing passport in the U.S., you’ll need to provide a completed form as well as various documents to prove your identity. The fee also depends on what country you’re in. To give you an idea, according to the websites for the U.S. embassies in both the U.K. and Peru, the charge to replace a missing passport for an adult is $165.

Will insurance cover a lost or stolen passport?

Many travel insurance policies will help if your passport is lost or stolen. Plus, if you have a travel credit card that offers extra insurance as a perk, this may also apply. Make sure you file a police report quickly — sometimes it’s required within 24 hours. Check for other documentation that the insurer might ask for when you claim.

Here are some aspects of your insurance policy that could apply:

Emergency telephone line: Some policies have 24-hour hotlines you can call for assistance if your passport, or other documents are lost or stolen. You can get help filing a police report and submitting paperwork.Trip delay coverage: If your missing passport means you have to delay parts of your trip, you may be able to claim back some of the costs.Baggage and personal effects coverage: Personal effects often include passports and similar documents. As such, many travel insurance policies will cover the cost of replacing your passport.

Be vigilant about identity theft

Sadly, replacing your missing passport is not always the end of the story. In my case, the airline never found my passport and it wasn’t handed in to the border security. Authorities block passports as soon as they’re reported missing, so nobody can travel using my identity. But there’s a lot of personal info in that passport that may now be in someone else’s hands. That means I’m now on alert for potential identity theft. I’ve frozen my credit and am checking my bank statements more carefully than normal.

All in all, it’s a lot of hassle and damage to my bank account balance for something I could have avoided. That said, lost passports are a pretty common occurrence. At the time it can induce panic, but it’s relatively easy to get a new one — especially if you have scans or photocopies of your important documents saved and travel insurance to cover your costs.

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 

The average credit score has increased quite a bit since 2010. Find out the average American’s credit score and see what you can do to improve yours. 

Your credit score is an important number. It affects the credit cards you can get, interest rates on loans, and even if you get approved to rent a home. If you’re wondering how your credit score stacks up compared to the national average, here’s the latest data.

Here’s the average American’s credit score

The average American’s credit score is 714 as of 2022, according to Experian. That’s the average under the FICO® Score system, the one that’s most widely used by lenders.

Credit scores range from 300 to 850. Scores between 670 and 739 fall into the “good credit” range. While a score of 714 isn’t in the highest possible range, it’s an impressive score, especially considering it’s the national average. With that kind of score, you could likely get approved for many of the best credit cards and secure low interest rates on loans.

Although the average credit score didn’t change from 2021 to 2022, it has been trending upward over the years. The average score was 689 in 2010. For the most part, it has been steadily increasing since then.

Factors that affect your credit score

Your FICO® Score consists of five factors. Here are those factors and how much they impact your credit score:

Payment history (35%): Your history of paying bills on time or late (but only payments that are at least 30 days past due can be reported as late on your credit file).Amounts owed (30%): The amount of money you owe on your credit accounts. What’s most important here is your credit utilization ratio, which is your credit card balances compared to your credit limits.Length of credit history (15%): The length of time you’ve been using credit, including the age of your oldest account, newest account, and your average account age.Credit mix (10%): The types of credit accounts you have. It’s better for your credit score to have multiple types of accounts, such as credit cards and installment loans, instead of just one.New credit (10%): Your number of new credit applications. These have a small impact individually, but that impact can add up if you apply for many new accounts in a short amount of time.

How to improve your credit score

There are lots of potential benefits to having a higher credit score. For example, the best credit cards offer much higher rewards rates, meaning you can earn more cash back or travel points with them. But to qualify for cards like that, you typically need a high credit score.

While nobody needs a perfect 850 credit score, it’s good to build and maintain a score in the mid-700s. A score of about 760 is generally high enough to qualify for anything you need, including the lowest mortgage rates. If your score isn’t there yet, here’s what you can do to improve your credit:

Always pay your bills on time. Specifically, it’s credit cards and loans that get reported on your credit file, meaning each on-time payment helps your credit score.Use less than 30% of your credit limit. For example, if your card has a $10,000 credit limit, keep the balance under $3,000 at all times. This is good for your credit utilization.Don’t apply for new accounts too often. It’s fine to do this when you need a new credit card or loan, but be selective while you’re building your credit. New account applications have a small impact on your credit score, and if you’re approved for an account, it also lowers your average credit history.

Building credit mainly depends on following a few easy financial habits with your credit cards and loans. Based on the average credit score, it looks as if many Americans are doing this, which is a good sign for the country’s financial health.

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 

Banks have the right to close an account at any time. Keep reading to learn what to do if your bank ever freezes, suspends, or closes your account. 

Imagine taking a friend out for dinner on their birthday, only to have your debit card declined. You know you have plenty of money in your checking account. You’re left feeling embarrassed and confused.

A similar scenario is faced by thousands of bank customers each day. The ATM won’t dispense money, a bank-issued credit card charge won’t go through, or a person’s debit card is denied. Unless that person keeps plenty of cash on hand, they may be in a pickle for a while.

Why is it happening?

Despite all the safety procedures in place, fraudulent activity exploded during the pandemic, leading banks to look closely at customer transactions. According to federal law, if a financial institution notices irregular behavior that cannot be easily explained, the bank must alert law enforcement and regulators by filing a Suspicious Activity Report.

If the situation appears to be serious, banks have the right to close the account entirely. While that may not seem fair, the financial institution can call it quits at any time — as hidden in the small print of the contract you signed when you first opened your bank account.

Why would banks risk angering customers?

Banks that fail to report suspicious activities are potentially on the hook for penalties if regulators later discover the issue. Banks view closing accounts as a safeguard against financial penalties.

A bank can also freeze, restrict, or close an account if it appears a third party is trying to defraud the customer. In that case, the bank is looking out for its interest and the customer’s well-being. Sometimes, when a customer can’t access their bank deposits, it’s because the bank has frozen or restricted their account just long enough to conduct a thorough investigation.

Banks must inform customers in writing of their decision to close an account. However, there’s no guarantee that the customer will see the letter before they attempt to access their money.

Once an in-house investigation has been completed and it becomes clear that the account holder isn’t up to any criminal activities, the funds are released back to the account holder. If the account has simply been frozen or restricted, the account holder can decide if they want to remain a customer with that bank or find another financial institution.

What to do if your bank account is frozen, restricted, or closed

Learning that you have no access to the funds in your bank account may leave you in a state of panic. However, there’s no time for that. There are steps you need to take to set things right.

1. Contact your financial institution

If your financial institution offers 24/7 customer service, you’re in luck. However, if your bank or credit union provides customer service only during business hours, you may be forced to wait until the next business day to ask about your account.

In either case, learn everything you can about why your account is unavailable. The earlier you find out, the more time you have to collect the evidence you may need to get a frozen or restricted account released.

2. Make a list of outstanding checks and automatic payments

If you’re still writing checks, look at your register to see if any are outstanding. If you’ve written a check, but it has not cleared your bank, contact the party to whom it was written. Let them know that your account is frozen, but you want to ensure they’re paid as promised.

If the check was written for a small amount of money and you have enough cash on hand to pay it, that’s one option. You can also use a credit card not issued by your bank to cover the expense until your account is cleared.

For example, if you have a Visa card through your home bank, it will be frozen along with your checking account, savings account, and any other accounts you hold with the bank. Any credit cards issued through other financial institutions will work as usual.

3. Gather evidence

Once the bank informs you of why there’s an ongoing investigation or your account has been closed, look for any evidence to prove the case wrong. For example, banks must report any deposits over $10,000. Let’s say you’re a contractor and are currently remodeling a home, and getting paid in increments of $10,000 to $15,000 for the work. The contract the homeowner signed before you began the project should be enough to prove that you’re not involved in criminal activity.

If all else fails, hire a legal professional to argue your case. If you can’t afford a lawyer at standard rates, USA.gov provides a list of free and low-cost legal assistance.

Ideally, the safeguards in place to catch the bad guys would be refined enough to recognize the difference between funding terrorism and making regular bank deposits. Until the system can tell the difference, though, it’s good to know that your accounts could become inaccessible. That way, if it does happen, you’ll understand why and know what to do next.

These savings accounts are FDIC insured and could earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.

 Read More 

Real estate inventory does not seem to be picking up. Read on to see why. 

There’s a reason 2023 has been such a tough year to buy a home. Not only have mortgage rates been high, but inventory levels have been extremely sluggish.

As of the end of April, there was a mere 2.9-month supply of homes for sale, according to the National Association of Realtors. That’s well below the six-month supply of homes that’s commonly needed to meet buyer demand in full.

Low inventory challenges buyers in a couple of ways. First, it makes it harder to find a suitable home to consider purchasing. It also increases the chances of being pitted against competing buyers — a scenario that can easily drive home prices up.

Unfortunately, we may be stuck in this holding pattern of low inventory until mortgage rates start to come down. And it’s hard to say when that might happen.

Higher mortgage rates are a big part of the problem

In 2020 and 2021, it was easy to explain away low inventory as a symptom of pandemic-related concerns. Back then, sellers were probably turned off by the idea of having strangers traipse through their homes. But at this point, it’s more than fair to point to elevated mortgage rates as the reason why people just aren’t selling.

Many homeowners rushed to refinance their mortgages when borrowing rates dropped to record lows in 2020 and 2021. Selling their homes at this point would likely mean taking on much more expensive mortgages. That’s apt to be unappealing, which explains why so many sellers are opting to stay put instead.

Even homeowners who didn’t refinance their mortgages a few years back are likely to be sitting on borrowing rates that are lower than the mortgage rates we’re seeing today. After all, who would want to swap a 30-year mortgage at 5% for one at close to 7%, which is what the typical borrower might be looking at today?

It’s also important to note that the stock market had a terrible year in 2022. The market has managed to rally over the past few months, but all told, many investors were sitting on losses in their portfolios as of early 2023. That, too, may have been a contributing factor to a lack of inventory. If investment portfolios weren’t tappable, some sellers may have been forced to sit tight rather than move forward with plans to upsize.

When will things change?

A stronger stock market could potentially drive U.S. home inventories up a bit. But for the most part, it will likely take a dip in mortgage rates more so than anything else to lead to a notable uptick in housing inventory. And it’s hard to say when that will actually happen.

As such, today’s buyers may be stuck with limited choices for the foreseeable future. And they may also have to learn to make concessions if inventory levels don’t rise in the near term. That could mean giving up on certain home features or resigning themselves to higher purchase prices due to sellers continuing to have an upper hand.

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 

Dollar Tree offers some great products, including items you can offer as a special gift to friends and family. Check out gift options that won’t break the bank. 

Buying gifts can get expensive, but you don’t have to drain your savings account to do something special for friends and loved ones.

In fact, Dollar Tree has many great gift options that are worth considering. You can get these items for just a $1.25 charge on your credit card, but the gift recipients will often think they cost much more.

Here are a few examples of Dollar Tree items that make really great presents.

1. Fragrance warmers

Fragrance warmers can be a great decor item and they also allow you to give your home a relaxing spa-like atmosphere by burning a nice scent. Unfortunately, they aren’t cheap, with a price tag that often tops $12 or more on Amazon.

That’s why the Dollar Tree warmers make such a great gift. Dollar Tree has a good selection, including some seasonal summer bee fragrance warmers, that actually look more expensive than their costlier counterparts.

Check out this option as a great gift idea for friends or loved ones who enjoy scented candles or wax warmers as a part of their self-care.

2. Mugs

A nice mug for coffee or tea can make a great gift, and you can find a good selection of them at Dollar Tree. For example, fathers may appreciate a 16-ounce themed stoneware mug proclaiming them the “Best. Dad. Ever.” And monogrammed mugs could be a cute gift for newlyweds.

Check out your local Dollar Tree’s many available mugs to see if you can find one that would be a good fit for your recipient.

3. Picture frames

Picture frames allow you to decorate and preserve memories at the same time. They can also be expensive though, just like the other items on this list. But if you find one at the Dollar Tree, you’ll pay very little.

If you’re looking for a fun and meaningful gift, consider buying a Dollar Tree frame and adding a picture of yourself and the recipient (or another picture you know would be special to the person you’re buying the gift for, such as one of their pets or children). Frames from Dollar Tree come in all different colors and sizes, as well as in different materials, including wood and metal.

4. Foam gliders

If you are buying a gift for the children in your life, Dollar Tree has a huge selection of toys you can check out — many of which make great presents for kids of all ages. The foam glider airplanes are an especially great option because they’re a quiet toy parents will love and they provide endless hours of fun.

Kids who receive these as a gift will hopefully be so excited to go outside and see how they fly, they’ll be more than willing to get outdoors and away from their screens to try them out.

5. Attractive vases

Dollar Tree also has many vases to choose from, including some really stylish ones that will be a great addition to anyone’s decor. Check out a fun iridescent vase or one of the many other ones in the Tree’s selection. Add a small bouquet of flowers to the vase to make the gift even more meaningful.

Each of these Dollar Tree items has a low price, but looks impressive and is likely to be well received. Check out these options so you can find one that works for you.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

 Read More