Money Management

It’s a situation you don’t have to get stuck in. 

Being denied credit in any shape or form could be a blow to your self-esteem. But worse yet, it could mean not getting to meet a major life or financial goal.

Let’s say you’ve applied for a mortgage loan after having found your dream home. If your application is denied, you won’t be able to buy it.

Similarly, maybe you’ve always wanted to start a small business. If you’re denied a business loan or a personal loan, you won’t have the seed money to get that venture off the ground.

If you’ve been denied credit, you’re not alone. Recent data from the Consumer Financial Protection Bureau says that 22% of all consumers were turned down or not given as much credit as they applied for at least once.

But still, it’s not a good feeling to have a loan application denied. So if that’s happened to you, the best way to avoid a repeat scenario is to boost your credit score. And here are two key ways you can do just that.

1. Pay all bills on time

Your payment history carries a lot of weight when calculating your credit score. When you have a solid history of paying on time, it sends the message to lenders that you can be trusted to borrow money. But a poor payment history could send the message that loaning you money is a risk.

If you want to see your credit score improve, pledge to pay all bills on time. Set calendar reminders so you don’t forget when bills are due, and follow a budget so you have the money to tackle your bills as they roll in.

2. Pay down some existing credit card debt

If you make your minimum credit card payments every month, you’ll be considered timely with your bills — even if you’re still carrying a balance forward. And that’s important, since, as we just discussed, a strong payment history could bring your credit score up.

But the amount of credit card debt you have could also impact your credit score. Specifically, too much of it could drag your score down. So take a look at the balances you’re carrying and try to figure out if you’re using up more than 30% of your total credit limit. If so, whittling your balances down could help your credit score improve.

Keep in mind that when we talk about not carrying a balance that’s more than 30% of your total credit limit, we mean revolving credit — which is what a credit card gives you. Installment loans, like mortgages, don’t count toward that calculation since that’s not revolving credit, but rather, a set loan.

Being denied credit could put you in a really tough spot. If that’s happened to you, do your best to boost your credit score quickly. In addition to the moves above, always make a point to check your credit report every few months, and work to correct errors you spot. You never know when a mistake on the part of a credit bureau is the reason for a lower score — and a denied credit application.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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 

A romantic night with your lover doesn’t have to be expensive. 

Valentine’s Day will be here before you know it. If you want to celebrate the holiday with your favorite person but are on a tight budget this year, there are affordable ways to make your feelings known. It’s never a good idea to go into credit card debt to show affection. Here are some fun, low-cost ways to spoil your honey this Valentine’s Day.

1. Serve breakfast in bed

Who doesn’t love breakfast? You don’t have to go to a fancy restaurant or stay at an expensive hotel to enjoy a tasty breakfast. Treat your lover to a yummy start to the day by preparing breakfast and bringing it to them to eat in bed. I promise they will remember this sweet gesture.

2. Go for a nature walk

If you both like to spend time outdoors and enjoy being active, you can take a hike or go for a nature walk together. This is an activity that won’t break the bank. You can take photos together during your adventure to look back on later. Don’t forget to pack water and snacks.

3. Enjoy a picnic in the park

If you’re hoping to plan the perfect weekend date afternoon, consider a picnic in the park. You can pack up a homemade lunch and spend time outdoors together. If you want to surprise your honey, you can plan all the details. Another option is to get them involved in planning the menu and preparing the meal to make it a more collaborative experience.

4. Build a fort and watch movies or TV shows

If you’re craving a cozy night in with your lover, you may want to plan a movie night at home. You’re probably already paying for streaming services, so put them to use. You can collect blankets and pillows, build a cozy fort, and watch your favorite movies. If there’s a show you’ve been meaning to watch, this is the perfect time to binge it together. Don’t forget to buy cheap movie snacks like popcorn and candy.

5. Plan an at-home spa day

A trip to the spa can quickly break your budget, but an at-home spa day is an affordable alternative solution. If your honey’s love language is acts of service or physical touch, an at-home spa day is a fantastic low-cost way to shower them with love. You can buy face masks and other self-care products like aromatherapy candles and give your sweetie a massage.

6. Get your game on at game night

For couples who like to play games and do puzzles together, a game night is an easy and fun way to celebrate Valentine’s Day without going into debt. You can check to see what games you already have around the house or pick up a few games at a budget-friendly store like Five Below. If you’re really low on cash, you can borrow some games from friends or family.

7. Dine out during happy hour

If you want to dine out but are committed to your personal finance goals, you can enjoy a happy hour together. Many restaurants host happy hours with affordable drink and food menus. You can treat your sweetie to a night out without worrying about an expensive bill. Research the best happy hours in your community to find the best spots that won’t drain your checking account.

Thoughtful gestures are the best way to show you care

Whether you’re hoping to celebrate Valentine’s Day or show your lover extra appreciation on a random day of the week, there are many affordable ways to show you care. You don’t have to go overboard or spend a lot of money. Instead, look for low-cost ways to spend time together. The fondest memories tend to be the unexpected ones, so don’t be afraid to plan something outside the norm this Valentine’s Day.

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 expert loves 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 expert even uses 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 

It’s a change Americans should prepare for. 

Following the COVID-19 outbreak, a number of provisions were put into place in an effort to protect the public. One was the declaration of a national and public health emergency, which, over the past few years, has made it possible for Americans to receive COVID-19 testing, treatment, and vaccines at no out-of-pocket cost.

But President Biden plans to let that public health emergency expire on May 11, reports CNN. And once that happens, consumers could see their COVID-related costs increase.

Consumers should prepare to pay

At a time when inflation is wreaking havoc on consumers and forcing them to resort to drastic measures like racking up credit card debt to cover bills, the last thing anyone needs is to see their healthcare costs rise. But once the aforementioned public health emergency comes to an end, some people could end up on the hook for out-of-pocket costs related to COVID-19.

Specifically, Medicare beneficiaries could face out-of-pocket costs for at-home COVID testing once the public health emergency expires. However, those on Medicare will still be eligible for no-cost vaccines and free testing that’s ordered by a healthcare provider.

Still, this change is far from ideal. Medicare enrollees, by nature, are largely 65 and older (it’s possible to qualify at a younger age due to certain medical conditions). Many are retirees on a fixed income that consists of modest Social Security benefits and IRA withdrawals. To incur added costs related to COVID might really prove to be a burden.

Plus, state Medicaid programs will continue paying for COVID tests ordered by providers and vaccines, leaving patients with no out-of-pocket costs for those items. But those on Medicaid could soon have to pay for COVID treatment.

Consumers with private insurance aren’t getting off easy, either. Those in that boat could soon face charges for lab tests even when ordered by a healthcare provider. Thankfully, vaccines are expected to remain free for those with private health insurance. But plans might require enrollees to stick to in-network providers for those vaccines or otherwise face out-of-pocket costs.

A big change to gear up for

Since the start of the pandemic, Americans have been able to access free COVID-19 vaccines, treatment, and lab testing. And while rapid tests taken at home initially weren’t covered, private insurers have been paying for them since early 2022.

Come spring, Americans could face a host of out-of-pocket costs in an effort to screen appropriately for COVID and get treated as necessary. And at a time when living costs are so extraordinarily high, that could put a lot of people in a pretty dire financial situation.

Now, the good news is that anyone with funds socked away in a health savings account or flexible spending account should be able to use that money to cover the cost of COVID testing or treatment that isn’t covered 100% by an insurance plan. But not everyone has money specifically allocated to healthcare expenses, and consumers who don’t could be in for a world of pain come May. Worse yet, some might even opt out of treatment due to the cost involved, and that could end up being dangerous for their 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 expert loves 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 expert even uses 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