Money Management

You can answer the question of whether you can get a personal loan quicker and easier than you think. Here’s how. 

Over the past decade or so, the personal loan industry has evolved and grown tremendously. There are now more companies than ever willing to originate personal loans, and many of them operate almost exclusively online.

However, these personal loan companies have a wide variety of credit standards, so it can be difficult to know where you’ll qualify. Fortunately, many lenders make it quick and easy to find out.

Personal loan prequalification

Most personal lenders make it quick and easy to check your personalized rate offers and whether you’re likely to get approved for a loan. Typically, this involves visiting the personal loan originator’s website, filling out a short form with identifying information, and clicking “submit.”

The best part is that virtually all of the top personal lenders will allow you to prequalify and see your personalized rate and term offers without impacting your credit score, by using something known as a soft credit check.

What is a soft credit check?

When creditors check your credit, there are two different ways they can do it. A hard credit check can be thought of as a formal credit pull. This is also known as a “credit inquiry,” and will show up on your credit report. Hard credit checks can potentially hurt your credit score, although the impact of a single hard inquiry is likely to be minimal.

On the other hand, a soft credit check can be thought of as a creditor taking a peek at your credit report, but not making a formal inquiry. A soft credit check doesn’t affect your credit score and works the same way that credit card companies “pre-qualify” you for offers you receive. This is what personal loan companies mean when they say “check your rate without affecting your credit score.”

To be perfectly clear, you don’t have to agree to a hard credit check to see your personalized rate offers and pre-qualify for approval. But once you accept a lender’s offer and formally apply, a hard credit inquiry (which may slightly impact your credit score) will likely be conducted.

Check your offers even if you’re sure you’ll qualify

Because most lenders will allow you to see your personalized loan offers with a quick and simple soft credit check, there is no reason not to shop around — even if you’re virtually certain that you’ll qualify for a loan from any personal lender.

Simply put, you might be surprised at the difference in personal loan rates the same borrower will be offered by several different lenders. As stated earlier, each lender has its own credit standards and underwriting process. And as a result, it’s entirely possible for a borrower with good credit to get an offer of an 8.49% APR from one lender and a 12.99% APR from another, even if you’re requesting the same repayment terms and loan amount.

The bottom line is that since most personal lenders offer the ability to check your rates and qualification status without a hard credit pull, it’s a good idea to take the time to shop around. Not only will you know where you’ll be able to get a personal loan, but you’ll also know that you’re getting the best deal available to you.

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Attending concerts has gotten expensive. Read on to see how you can snag a limited-time discount on tickets. 

What happened

Between May 10 and May 16, music fans will have an opportunity to score $25 concert tickets during a special LiveNation promotion. Tickets will be available at this discounted price point for thousands of shows across the U.S.

So what

In 2022, the average ticket price paid for one of the top 100 tours in North America was $111, says the New York Times. Considering that the average price paid for recent Taylor Swift tickets in Houston was over $1,000, and that the most expensive Swift tickets were listed for more than $18,000 (yes, you read that correctly), $25 reads like a bargain.

LiveNation’s $25 tickets include the fees you might otherwise expect to see tacked onto your purchase, so you won’t be caught off-guard by additional charges that have the potential to cost as much as your tickets themselves. State and local taxes, however, might apply.

“The limited-time ticket offer includes over 300 of today’s biggest acts across a wide variety of genres,” says LiveNation. “Concert Week features live events across all venue sizes – from clubs and theaters, to amphitheaters and arenas.”

Now what

For consumers on a budget, the cost of attending a concert can be prohibitively expensive, especially when factoring in added fees and surcharges. Anyone interested in buying $25 tickets can purchase them directly from LiveNation here.

Hilton Honors members can also use points to pay for part or all of their ticket purchases. Consumers who don’t have this option can instead aim to buy their tickets with credit cards offering a nice amount of cash back for live events.

Of course, this promotion is only available for a limited time, and ticket quantities are limited. If you don’t manage to score $25 tickets through LiveNation’s promotion, you can save money on live events by purchasing tickets directly from the box office instead of online. Doing so could mean avoiding the fees and surcharges you’ll commonly face by buying tickets through services like Ticketmaster.

If you have a Sam’s Club membership, you can also use it to score discounted tickets for concerts. Costco, too, offers discounted tickets to select events.

Finally, don’t hesitate to check out sites like StubHub for last-minute concert tickets. Ticket holders can use this site to unload tickets they can’t use, and you can then buy them at a discount. The closer you’re willing to get to an event itself to buy tickets, the more of a discounted price you might snag.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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If you order a Starbucks Refreshers drink with no water, prepare to pay more. Find out why Starbucks is charging a $1 fee for this popular customization. 

What happened

As of May 9, 2023, customers who order one of the popular Refreshers beverages from Starbucks with no water will pay an extra $1. The coffee company will impose a $1 fee to cover the additional ingredients used to replace the water so the cup is filled. However, there is some good news. Customizations, such as no ice or light ice, will not incur additional fees.

So what

Refreshers are a popular cold beverage sold at Starbucks, especially in the spring and summer. These fruity drinks are caffeinated, and some include milk or lemonade. Some customers have been ordering their Refreshers beverages without water for a more flavorful taste.

Starbucks noticed this customization is becoming more common. When customers don’t want water added to their drink, more juice base is added to fill the cup. Starbucks wants customers to pay for the extra ingredients used.

There has been some confusion regarding the fee on social media. While some thought the fee also applied to beverages ordered with light or no ice, that’s not true. As reported in a recent article by USA Today, a Starbucks spokesperson noted, “Starbucks Refreshers Beverages can still be customized with light or no ice free of charge.”

Now what

Before ordering a Refreshers beverage at your local Starbucks, be mindful of this change. If you order your drink without water, you’ll pay an extra $1, making your sweet treat more expensive. Regularly ordering your drink with this customization could hurt your personal finances.

If you want to save money, consider a customization that won’t impact your checking account. Ordering your drink with light or no ice may help make the drink taste less diluted. Another customization that won’t cost you is adding extra freeze-dried fruit to your drink.

If you’re a Starbucks loyalist, you may want to utilize the free Starbucks Rewards program to earn rewards. You can redeem your earned rewards for free drinks. While recent program changes have made some redemptions more costly, it’s still worthwhile if you’re a brand loyalist. Earning one or more complimentary beverages a year can be a win for your wallet.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends the following options: short April 2023 $100 calls on Starbucks. The Motley Fool has a disclosure policy.

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Higher levels of inflation remain a problem. Read on to learn more. 

What happened

In April, the Consumer Price Index (CPI), which measures changes in the cost of consumer goods and services, rose 4.9% on an annual level. Compared to March, the CPI rose 0.4%. Higher food and energy costs were big drivers of April’s increase.

So what

In June of 2022, annual inflation, as measured by the CPI, peaked at 9.1% and has been gradually declining since. In April, the cost of gasoline and fuel oil dropped substantially, as did the cost of used vehicles. But most consumer expense categories saw a year-over-year increase. And that’s not likely to sit well with the Federal Reserve, which has been trying to cool inflation for more than a year.

“Inflation is still sticky: I don’t think that the Fed is going to look at this and cut rates, or heave an especially big sigh of relief,” said Priya Misra, head of global rates research at TD Securities.

Now what

The Federal Reserve has made it clear that it wants to see inflation creep back down to the 2% mark. It’s that level of inflation, the Fed feels, that’s most likely to lend to economic stability.

To combat rampant inflation, the Fed has been implementing interest rate hikes for more than a year. And so far, it’s raised rates by 0.25% three times in 2023. But as painful as inflation has been for consumers, interest rate hikes have been equally problematic.

The Federal Reserve does not set consumer borrowing rates directly. Rather, it oversees the federal funds rate, which is what banks charge each other for short-term borrowing. But when the Fed raises its benchmark interest rate, the cost of borrowing tends to increase, making it more expensive to sign everything from an auto loan to a personal loan.

Given April’s inflation numbers, the Fed is unlikely to back down on interest rate hikes, so it’s likely the central bank will raise rates again the next time it meets. As such, consumers looking to borrow could face even higher costs. And consumers with existing variable-interest debt could see their credit card and HELOC payments increase.

Now the one silver lining is that rate hikes tend to lead to higher interest rates for savings accounts and CDs. But many consumers don’t have money to save due to inflation. If anything, they remain reliant on credit to cope with higher living costs. So the fact that borrowing has the potential to get even more expensive is not a good thing at all.

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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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Inflation levels rose in April. Read on to see why that might be a good thing for your savings account. 

Inflation has been surging since the latter part of 2021. And at this point, consumers are no doubt tired of paying higher prices for just about everything.

Unfortunately, it looks like inflation is holding steady at stubbornly high levels. In April, the Consumer Price Index (CPI), which measures changes in the cost of consumer goods, was up 4.9% on a year-over-year basis. It also rose 0.4% from March.

April’s inflation reading is unlikely to sit well with the Federal Reserve, which has made it clear that it really wants to see inflation get down to 2%. As such, the Fed is likely to continue implementing interest rate hikes until inflation declines even more.

That’s not a good thing from a borrowing perspective. But from a savings perspective, it can be quite beneficial.

Rate hikes are good for savers

The Fed has been implementing interest rate hikes for more than a year to slow the pace of inflation, and those rate hikes have driven the cost of consumer borrowing up. To be clear, the Fed is not in charge of setting rates for things like auto and personal loans. Rather, the Fed oversees the federal funds rate, which is what banks charge each other for short-term borrowing.

But when the Fed raises its federal funds rate, the cost of consumer borrowing commonly increases, putting a burden on those who need to borrow money. What also tends to happen, though, is that rate hikes lead to higher interest rates for products like savings accounts and CDs. So savers with money in the bank could benefit from the fact that inflation levels were still high in April.

In fact, right now, you might manage to snag a 4% interest rate on your money in a high-yield savings account. And if you’re willing to tie some money up in a CD (certificate of deposit), you might snag an interest rate as high as 5% (or even more).

And that’s just based on what these accounts are paying at present. If the Fed raises interest rates again on the heels of April’s CPI reading, you might get to earn even more interest on the money you have in the bank.

Rampant inflation is still not a good thing

Let’s be clear — while April’s CPI data might lead to another Fed rate hike, and while that might end up being good for savers, soaring inflation is something consumers should continue to wish away. You might be earning more money on the cash you have in the bank. But chances are, in return, you’re spending more money to do things like put food on the table and pay your electric bill.

But the broader issue is that higher levels of inflation could have a negative effect on the economy. When it costs companies too much money to procure parts and inventory, for example, they might have to compensate by laying off staff, since they have to obtain the components they need to sell their products.

We’ve already seen a number of large companies announce layoffs since the start of 2023. And the problem might only get worse as inflation drives more employers to aggressively conserve funds. So even though savers might welcome another Fed interest rate hike, they should instead hope that inflation levels continue to dip so the central bank can leave interest rates where they are, or even start to bring them down.

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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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Inflation rose in April. Read on to see why that might make your next personal loan more expensive. 

Inflation has been a problem since the second half of 2021. And while it’s been declining steadily since peaking in June of 2022, we still have a long way to go before inflation reaches what the Federal Reserve considers a normal or manageable level.

In April, the Consumer Price Index (CPI), which measures changes in the cost of consumer services and goods, rose 4.9% on a year-over-year basis. It also rose 0.4% compared to March.

Here’s why that’s a problem, though. The Fed has made it clear that it wants to see inflation dip back down to the 2% mark. The Fed has firmly held that 2% inflation is needed to create a stable economy.

As such, the Fed is likely to implement another interest rate hike at its next meeting in an attempt to bring inflation levels closer to 2%. And that’s not a good thing for personal loan borrowers.

Prepare to spend more to borrow

The Federal Reserve is not in charge of setting consumer borrowing rates. Whether you’re taking out a mortgage, an auto loan, or a home equity loan, ultimately, it’s your individual lender that will decide what interest rate to attach to your loan.

Rather, the Fed is in charge of the federal funds rate, which is what banks charge each other for short-term borrowing purposes. But when the Fed raises its federal funds rate, the cost of consumer borrowing tends to increase. And that means personal loan borrowers are likely to be impacted by the latest inflation data.

To be clear, if you’re in the process of paying off an existing personal loan, any additional rate hikes that occur this year shouldn’t affect you. That’s because personal loans commonly come with fixed interest rates, so your monthly loan payments shouldn’t change even if the Fed raises its federal funds rate again.

However, if you’re planning to take out a personal loan in the near term, another rate hike could make it so that loan is more expensive to sign. As such, you may either want to put a personal loan in place now, before the Fed has another opportunity to raise interest rates, or you may want to make the decision to hold off on borrowing altogether.

Even without another Fed rate hike, right now, you’re generally looking at a higher interest rate on a personal loan than what you would’ve been in line for a year ago. So if you’re able to wait on borrowing money, you might put yourself in a position to finance your next big project or purchase at a lower cost.

How to increase your chances of getting the best personal loan rate

Maybe you’re looking at signing a personal loan to pay for a much-needed home repair you can no longer put off. In that scenario, waiting a year to sign a personal loan may not be feasible for you.

Still, you can increase your chances of snagging the most competitive interest rate available on a personal loan by going in with a high credit score. Personal loans are unsecured, so they’re not tied to a specific asset the way a mortgage is. As such, lenders need to be cautious when giving out these loans.

If you come in with a strong credit score — one in the upper 700s or higher — it sends the message to lenders that you’re a reliable borrower. That might result in a more affordable interest rate than someone with a lower score.

A couple of things you can do to boost your credit score fairly quickly are check your credit report for errors (and get mistakes corrected if they’re harmful to your credit history) and pay off a chunk of existing credit card debt. However, if you’re in a position where you need a personal loan, then chances are, you don’t just have a pile of cash on hand to knock out a credit card balance.

Of course, paying your bills on time is a really good way to boost your credit score. But that can take time. And you may not have so much time if your need for a personal loan is pressing.

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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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