Money Management

Need a personal loan? Read on to see if having good credit is enough to land one. 

When you have a need to borrow money, whether to fix up your home or start a small business, you may be inclined to look into a personal loan. This can be an especially cost-effective move if you don’t have home equity to borrow against.

What makes personal loans so convenient is that they allow you to borrow money for any purpose. When you sign a mortgage, for example, you can only use your loan proceeds to finance a home purchase. But with a personal loan, you can use your proceeds however you want.

However, unlike mortgages, which are secured loans, personal loans are unsecured. Because of this, you’ll often hear that you need to have good credit to qualify for a personal loan — or at least one with a reasonable interest rate attached to it.

But having good credit may not be enough to get a personal loan. Your lender might also be interested in other factors relating to your financial situation.

It’s not just your credit score that matters

It’s fair to say that lenders rely very heavily on borrower credit scores when giving out personal loans. But that’s not necessarily the only information they look at.

A report by SFGATE says that some lenders use alternative data to determine borrowers’ creditworthiness. A lender you apply with might, for example, look at your bank account balance to see how much money you have in there. Or, it might look at your bank account transactions to see if you’ve been consistently paying your bills.

This trend apparently started as a way to help consumers and expand access to credit, since a credit score alone doesn’t always tell the whole story. But in some cases, it could make it harder for you to qualify for a loan.

For example, say you’ve been living at home with your parents and therefore have not had many bills in your name, like rent or utility payments. If a lender were to check your bank account history, they might not see the stream of consistent payments they’re looking for.

Now ideally, in that situation, a strong credit score would suffice in convincing a lender to give you a loan. But you never know.

How to increase your chances of getting approved for a personal loan

When it comes to setting yourself up to qualify for a personal loan, the best advice is still really to maintain a high credit score, or boost yours to get to that level. But paying your bills on time is also good advice, because if you can establish a pattern of on-time bill pay, it might sway a personal loan lender to approve your application.

Of course, timely, consistent bill payments and strong credit go hand in hand. Your payment history carries more weight than any other factor when calculating your credit score. But it’s good to be aware of the fact that these days, your personal loan lender might seek to look beyond that number before deciding you’re eligible to borrow money.

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Who’s buying homes these days? Read on to see which age group has comprised the largest share of recent buyers. 

When you imagine people on the hunt for a new home, who are you picturing? Young-ish couples, perhaps with a child in tow, or older folks who look like they might be on the cusp of retirement?

Chances are, you’d think of the former. But these days, older buyers are scooping up more homes than their younger counterparts. And there’s a good reason for that.

Millennials are no longer the largest group of home buyers

For years, millennials held the distinction of making up the largest share of home buyers. But a recent report from the National Association of Realtors reveals that baby boomers now comprise 39% of home buyers, which is a larger percentage than any other generation. Millennials, who represented the largest share of home buyers from 2014 until they were recently surpassed by baby boomers, now make up just 28% of buyers.

Why are baby boomers buying so many homes?

So why have baby boomers managed to bump millennials out of the top spot when it comes to home-buying activity? It’s simple. Boomers are likely to have been in their homes for a longer period of time. As such, they might have a lot more equity built up than their younger counterparts. And it’s that very equity that might be giving them more flexibility to purchase a home in today’s tough market.

These days, not only are home prices elevated, but mortgage rates are high compared to where they’ve sat for the past few years. But baby boomers with large levels of equity in their existing homes may not have to worry about signing a mortgage. Some of those boomer buyers might be in a position to sell their existing homes and walk away with enough money for a new home that they don’t need to finance at all.

Plus, many baby boomers are close to retirement age, or have retired already. And housing needs can change once retirement rolls around.

Perhaps some baby boomers paid a premium to live in cities so they could be close to their offices while they were working. If they’re now no longer working, they may not need that access — so why not buy a new home that offers more space and a lower property tax bill?

All told, it’s easy to see why baby boomers now make up the largest share of home buyers. This doesn’t mean that millennials aren’t seeking to buy homes, or that they shouldn’t buy. But boomers have a very clear advantage, whereas millennials who have never owned a home before might really struggle to break into today’s market.

Of course, once housing inventory opens up, it could allow for home prices to come down. And as that happens, millennials might manage to overtake boomers as the generation that’s buying the most homes. But until some financial relief comes down the pike for home buyers, millennials might have to sit on the sidelines and stay out of the real estate market while baby boomers continue to jump right in.

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.

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John Liang is one of the most popular financial influencers on TikTok. Check out some great advice he offers about the best ways to use credit cards. 

Seeing a family member struggle with credit card debt is enough to scare many people away from using credit cards. That wasn’t the case with John Liang. Although he saw his father go into credit card debt to pay for graduate school, Liang realized that with a different approach, he could use credit cards to save money.

Liang is now a top FinToker, a term used for financial influencers on TikTok. He has 2.2 million followers thanks to his advice on credit cards and other personal finance topics. He considers credit cards to be a useful financial tool, when used correctly.

In a recent interview with MarketWatch Picks, Liang revealed his best credit card advice. He shared some good tips, so if you want to improve how you manage credit cards, here’s what Liang had to say.

Use a cash back card with no annual fee for daily expenses

This first tip is an easy way to make some extra cash, just from money you’re already spending. Instead of using a debit card to pay for purchases, use a cash back credit card with no annual fee. If you pay your credit card bill in full, you won’t be charged any interest, so you come out ahead from the cash back you earn.

Pay annual fees for credit cards if you know you’ll use them

No annual fee credit cards are always a good option, since they won’t cost you any money to carry. However, credit cards with annual fees often have more benefits. If you see a credit card with valuable features you’re sure you can use, it could be worth it to pay an annual fee.

For example, many travel credit cards charge annual fees. But they also have perks that outweigh those fees, if you can use them. For example, there are cards that offer free checked luggage, elite status at hotels, or spending credits. With the right card, you could come out ahead compared to what you pay for it.

Pay your credit card’s full balance every week

One of Liang’s more unorthodox tips is to pay off your credit card’s entire balance at the end of every week. He recommends this because one of the biggest parts of your credit score is your credit utilization ratio. That’s the ratio between your card balances and your credit limits, and the lower it is, the better.

By paying off your cards in full every week, it keeps your balances low, which is good for your credit score. You’ll also stay out of debt this way.

Keep in mind that there’s nothing wrong with paying your credit card monthly instead of weekly. What’s important is paying by the due date and paying off the full balance so you can avoid interest charges and debt. It’s up to you if you prefer paying every week or once per month.

Think twice about flashy or expensive purchases

This is more general personal finance advice than credit card advice, but it bears repeating. As you make more money, including as your income increases and as you earn credit card rewards, it’s tempting to spend on expensive luxuries. Liang recommends that you prioritize investing instead.

There’s nothing wrong with treating yourself from time to time. Just make sure you’re being responsible with money by building your savings and investing for the future, too.

Making money using credit cards doesn’t need to be complex. As you can see from Liang’s tips, the most important things to do are find a rewards card that works for you and pay the full balance regularly.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Getting a good bargain is great; getting every penny out of that bargain is even better. Here’s how to do it with Costco’s $5 chicken deal. 

You can find a lot of great deals at Costco, even in the under $10 range. However, arguably the best deal at Costco is its $4.99 rotisserie chicken. Not only is it a solid option from a personal finance aspect — where else can you get an entire chicken for $5? — but it’s also a great buy solely from a “What’s for dinner?” point of view.

What do I mean? Well, you can get a whole lot of use out of one little chicken. Even for a family of four, a single rotisserie chicken could help you put multiple meals on the table. Here are a few ways to get your money’s worth out of that $5 bird.

Hot and fresh dinner

For most of us, the first meal from a Costco chicken is the simplest: slicing the breasts right off the chicken, then serving with some veggies and other sides. On a well-sized bird, the two chicken breasts alone can easily feed a family of four as part of a well-balanced dinner.

According to the American Heart Association, the serving size of poultry for adults is 3 to 4 ounces; for children, it’s less than 3 ounces. While chickens can vary widely in size, a large chicken breast could be equal to up to 12 ounces of meat. Even a smaller breast can yield 5 ounces of meat, making smaller chickens ideal for a family of three or a couple.

Sandwiches, tacos, and more

Don’t toss that bird after dinner is over. There’s still a ton of meat left that can be used for all manner of delicious meals. For example, shred the meat from the thighs and legs, and you have an excellent addition to a salad for lunch or dinner.

That same shredded meat, left plain, can make an excellent sandwich with just some cheese and greens. Or add a little BBQ sauce and turn it into a delicious — if somewhat messy — meal with some beans and slaw on the side.

Slip leftover chicken shreds into a taco shell, add some guac or pico de gallo, and you’ll have an excellent taco night. Add beans, roll it up, and turn it into a burrito for a handy to-go meal as you run your errands.

Don’t forget soups, too. You can turn even a canned vegetable soup into something more filling by adding bits of chicken from any part of your leftover rotisserie meat. And speaking of soup — don’t throw out that carcass once the meat has been recovered.

Turn bones into liquid gold

Even after every last scrap of edible meat has been cleaned off the bones, your bird isn’t done. Now it’s time to make chicken stock!

Toss the bird bones into a large pot — you can break it down into smaller bits to better fit — then add some chopped carrots, onion, and celery (roast your vegetables first for extra flavor). Cover it all with water and let it simmer for a few hours. (Don’t let it boil, that will muddy the stock.)

Strain your stock into smaller containers and let them cool before tucking them into the fridge. For longer-term storage, put the stock into freezer-safe containers and pull out just what you need; it will last at least a few months in the freezer.

You can use your homemade stock in just about anything. While making your own soup from scratch is the obvious choice, you don’t need to be even that motivated to get good use of your own flavorful stock. (We like to use chicken stock in place of water when making instant mashed potatoes!)

Good to the last bite

It always feels good to score a great deal. But it feels even better to turn that deal into a downright bargain by ensuring you make use of every last piece. Costco’s $5 rotisserie chicken is a darn good deal on its own. And you can make it even better by using these tips as inspiration for turning it into as many meals as possible.

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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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Most credit card rewards programs let you earn as many points as you want. Find out what could go wrong if you have too many credit card points. 

For most people, having too many credit card points isn’t an issue. If anything, many consumers look for ways to earn more rewards so they can pay for all their vacations in points.

But there are also those who find themselves with more points than they know what to do with. For example, if you own a business and put all of its expenses on your credit cards, you could end up with millions of points. Most credit card companies don’t put a cap on the number of points you can earn.

So, is this no big deal, or could it come back to bite you? There are a couple of issues that can come up when you have too many credit card points, which is why you should probably make some changes.

You could have trouble using your credit card points

When you have a huge number of points, it can actually be hard to figure out how to use them. Now, this depends on the type of credit card points you have. Some are redeemable as cash back, in which case you always have a way to use them.

Some types of points are more limited, though. This is especially true with travel rewards credit cards. Many of these earn points that can only be used for certain types of travel spending. For example, if you have 500,000 points on a hotel credit card, but you don’t plan to stay there anytime soon, then you may not have any redemption options.

In this situation, double check all the ways you can redeem your points. You might find that the rewards program offers some other options you didn’t know about. Going forward, it’s also a good idea to consider switching to a credit card with rewards you can use more easily. Cash back credit cards work well, or you could look at a more flexible travel card.

You might lose track of them

If your points are spread across several credit cards, you may forget about some of them. With most rewards credit cards, points don’t expire as long as your card remains open, but there are still ways this could be problematic.

For one, points don’t do you any good if you forget about them. The whole purpose is to save money with them, so it doesn’t benefit you to not use them. And there are ways you could lose access to your points. If you close the credit card without realizing you still had points left, then you’ll lose them. Or, if you don’t use the card, the card issuer may cancel it due to inactivity.

To make sure you’re not missing any points, gather all your credit cards and log into your account for each one. If you’re having trouble keeping track of everything, think about simplifying things by only using one or two cards from now on.

It’s not the worst problem to have, but you should still work on it

As far as financial problems go, having too many credit card points is pretty low on the list. You really only need to figure out a way to redeem them, and that might involve getting a lot of cash back or booking a nice vacation for yourself.

However, this could be a sign that you’re not making the best use of your rewards cards. Hoarding points, whether intentional or not, is a waste. You only save money with points when you use them, and it’s better to do this ASAP. If you wait around, it’s possible your points could go through a dreaded devaluation, where something changes in the rewards program that makes them worth less.

If you have trouble using your points, shop around for a new credit card. Finding the right card will make it easy to redeem your rewards, and that’s how it should be.

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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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