Money Management

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Car insurance premiums spiked 26% this year, leaving many Americans with sticker shock every month.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. You probably already know that your driving habits and credit score impact your insurance premiums, but you might not have known that your car insurance costs could drastically differ depending on whether you lease or buy your vehicle.Here’s what you need to know.Why leasing a vehicle will cost you moreIf you lease your vehicle rather than finance it, you’ll probably pay more for car insurance.You’re not charged higher insurance premiums just because you’re leasing the vehicle, but it costs you more because the leasing companies usually require you to have better coverage and lower deductibles.Here are some common reasons why auto insurance for leases are more expensive:Leasing companies typically require low deductibles for collision coverage, which increases your monthly premium.They usually want low deductibles for comprehensive coverage, too.They typically require liability coverage above the state minimum.You may have to buy gap insurance to cover the full vehicle price if it’s totaled.Insurance tip: You always have the option to choose your own car insurance company. This matters because insurance companies charge different rates, and you can likely find a better deal when you compare quotes. Click here to find out more about the cheapest car insurance companies.How you can save on insurance if you own your vehicleIf you finance your vehicle or already own it, you have more ways to lower your insurance costs. Here are just a few money-saving tips.1. Raise your deductibleRaising your deductible is one of the best ways to pay less for car insurance. Speak with your insurance agent and ask how a higher deductible could potentially lower your premiums. The Insurance Institute says opting for a higher deductible could lower your insurance premiums by up to 40%.2. Reduce your coverageIf you’ve got an older vehicle or really need to save money on your monthly insurance costs, cutting back on some of your coverage could be a smart decision. If your premium is more than 10% of your car’s value, it might be time to drop your collision and comprehensive coverage.3. Bundle your home and auto insuranceStop me if you’ve heard this one before, but you can save money if you bundle your home and auto insurance. Some insurance companies say that new customers can save up to 20% by bundling.Related: If you haven’t compared insurance quotes in a while, you could be missing out on big savings. Click here to get quotes from the best car insurance companies.While leasing a vehicle may cost you more in terms of insurance, it’s worth noting that the type of vehicle you lease or buy also affects how much you pay. For example, AAA says compact SUVs are some of the cheapest to insure. In contrast, electric vehicles are often the most expensive.This means that if you’re really looking for the best deal on car insurance, you might want to get a few quotes for specific vehicles before you go to the dealership.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Car insurance premiums spiked 26% this year, leaving many Americans with sticker shock every month.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

You probably already know that your driving habits and credit score impact your insurance premiums, but you might not have known that your car insurance costs could drastically differ depending on whether you lease or buy your vehicle.

Here’s what you need to know.

Why leasing a vehicle will cost you more

If you lease your vehicle rather than finance it, you’ll probably pay more for car insurance.

You’re not charged higher insurance premiums just because you’re leasing the vehicle, but it costs you more because the leasing companies usually require you to have better coverage and lower deductibles.

Here are some common reasons why auto insurance for leases are more expensive:

• Leasing companies typically require low deductibles for collision coverage, which increases your monthly premium.
• They usually want low deductibles for comprehensive coverage, too.
• They typically require liability coverage above the state minimum.
• You may have to buy gap insurance to cover the full vehicle price if it’s totaled.

Insurance tip: You always have the option to choose your own car insurance company. This matters because insurance companies charge different rates, and you can likely find a better deal when you compare quotes. Click here to find out more about the cheapest car insurance companies.

How you can save on insurance if you own your vehicle

If you finance your vehicle or already own it, you have more ways to lower your insurance costs. Here are just a few money-saving tips.

1. Raise your deductible

Raising your deductible is one of the best ways to pay less for car insurance. Speak with your insurance agent and ask how a higher deductible could potentially lower your premiums. The Insurance Institute says opting for a higher deductible could lower your insurance premiums by up to 40%.

2. Reduce your coverage

If you’ve got an older vehicle or really need to save money on your monthly insurance costs, cutting back on some of your coverage could be a smart decision. If your premium is more than 10% of your car’s value, it might be time to drop your collision and comprehensive coverage.

3. Bundle your home and auto insurance

Stop me if you’ve heard this one before, but you can save money if you bundle your home and auto insurance. Some insurance companies say that new customers can save up to 20% by bundling.

Related: If you haven’t compared insurance quotes in a while, you could be missing out on big savings. Click here to get quotes from the best car insurance companies.

While leasing a vehicle may cost you more in terms of insurance, it’s worth noting that the type of vehicle you lease or buy also affects how much you pay. For example, AAA says compact SUVs are some of the cheapest to insure. In contrast, electric vehicles are often the most expensive.

This means that if you’re really looking for the best deal on car insurance, you might want to get a few quotes for specific vehicles before you go to the dealership.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: Getty Images
Credit scores have a lot of influence on your financial health — with a high one, you’ll pay less for auto insurance in most states, will have an easier time renting an apartment, and might even get hired for a job more easily. But if you struggle with your credit, you’ll be resigned to paying more for insurance and interest when you borrow money — say, to buy a car.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Can you buy a car with an auto loan if your credit score is just 500? Probably, but it’ll cost you more. Let’s take a closer look.There may be a car loan for you, but it’ll be expensiveA credit score of 500 (which is in the “poor” range for FICO® Scores) indicates to lenders that you’ve had trouble managing borrowed money in the past. Perhaps you’ve defaulted on credit accounts, made payments months late, or are using most or all of your available credit. Whatever the reason, it’s likely to be harder for you to get approved for an auto loan — and it’ll cost you more.According to data collected by U.S. News & World Report, the average auto loan rates for car buyers with a credit score of 500 are currently 14.54% for a new car and 14.79% for a used car.What does this mean in real money? Let’s compare these rates with the current average rates available for car buyers with credit scores of 750 or higher. According to Edmunds, the average price for a new car was $47,542 in Q3 2024, while an average used car went for $21,177. Assuming a 10% down payment for each of those, here’s what you’d pay:Credit ScoreAverage Interest Rate for a New CarAverage Interest Rate for a Used CarExpected Monthly Payment for Average New Car (60-month term)Expected Monthly Payment for Average Used Car (36-month term)50014.54%14.79%$1,008$65975011.03%11.28%$931$627Difference3.51%3.51%$72$32Data source: U.S. News & World Report; Edmunds; author’s calculations. Comparing monthly payments to monthly payments, the difference isn’t terribly stark — but consider how much extra interest you’d pay overall for each vehicle with that higher rate: $4,320 more for a new car (total over 60 months) or $1,152 more for a used one (total over 36 months). That’s cash that could pad your emergency fund, pay down other debt, or just give you a little more breathing room in your budget every month.It’s a better idea to boost your credit first, if you canYou might be able to finance a car with a credit score of 500 — but given the choice, wouldn’t you rather save money and hassle on the whole endeavor? It’s worth making some moves to improve your credit before applying for an auto loan, assuming it’s not an immediate emergency that you buy a car. Here’s how.Build positive payment historyPayment history is the most significant factor in determining your credit score — it represents 35% of your FICO® Score, the one most commonly used by lenders. So building a record of making on-time payments should be the cornerstone of your credit-building efforts. Pay your creditors on time every month, and over time, you’ll see improvement.Pay down debtThis is easier said than done, but the amount of money you owe constitutes 30% of your FICO® Score, so paying down what you owe can also have a huge impact. Personally, the best way I’ve found to pay off debt was to grow my income. Cutting your budget to the bone will quickly prove unsustainable (and contrary to what some finance gurus will tell you, life should still have some fun in it, even if you have debt).If you can pick up more hours at work or a side hustle, everything you earn (less taxes) can go toward debt payoff.Check your credit report for errorsCredit report errors are frighteningly common — in fact, Consumer Reports found that almost half of consumer complaints to the Consumer Financial Protection Bureau in 2023 were regarding credit report problems.The good news is that if there are inaccuracies on your credit reports (like delinquent accounts that aren’t yours), you can petition the credit bureau that issued the report to remove them. Get free copies of your credit reports from AnnualCreditReport.com to start the process.Consider a secured credit cardFinally, if you need to rebuild or build credit from scratch, a secured credit card can be a good way to do it. You put down a security deposit that becomes your credit limit, and as you spend and pay off the balance, the card issuer will report positive credit behavior to those credit bureaus. Click here for our picks for the best secured credit cards and start boosting your score today.While there might be an auto loan out there for you with a 500 credit score, you’ll have an easier and cheaper time of buying a car if you focus on improving your credit first. Make the above moves and be patient — good credit takes time, but it’s worth it.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Credit scores have a lot of influence on your financial health — with a high one, you’ll pay less for auto insurance in most states, will have an easier time renting an apartment, and might even get hired for a job more easily. But if you struggle with your credit, you’ll be resigned to paying more for insurance and interest when you borrow money — say, to buy a car.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Can you buy a car with an auto loan if your credit score is just 500? Probably, but it’ll cost you more. Let’s take a closer look.

There may be a car loan for you, but it’ll be expensive

A credit score of 500 (which is in the “poor” range for FICO® Scores) indicates to lenders that you’ve had trouble managing borrowed money in the past. Perhaps you’ve defaulted on credit accounts, made payments months late, or are using most or all of your available credit. Whatever the reason, it’s likely to be harder for you to get approved for an auto loan — and it’ll cost you more.

According to data collected by U.S. News & World Report, the average auto loan rates for car buyers with a credit score of 500 are currently 14.54% for a new car and 14.79% for a used car.

What does this mean in real money? Let’s compare these rates with the current average rates available for car buyers with credit scores of 750 or higher. According to Edmunds, the average price for a new car was $47,542 in Q3 2024, while an average used car went for $21,177. Assuming a 10% down payment for each of those, here’s what you’d pay:

Comparing monthly payments to monthly payments, the difference isn’t terribly stark — but consider how much extra interest you’d pay overall for each vehicle with that higher rate: $4,320 more for a new car (total over 60 months) or $1,152 more for a used one (total over 36 months). That’s cash that could pad your emergency fund, pay down other debt, or just give you a little more breathing room in your budget every month.

It’s a better idea to boost your credit first, if you can

You might be able to finance a car with a credit score of 500 — but given the choice, wouldn’t you rather save money and hassle on the whole endeavor? It’s worth making some moves to improve your credit before applying for an auto loan, assuming it’s not an immediate emergency that you buy a car. Here’s how.

Build positive payment history

Payment history is the most significant factor in determining your credit score — it represents 35% of your FICO® Score, the one most commonly used by lenders. So building a record of making on-time payments should be the cornerstone of your credit-building efforts. Pay your creditors on time every month, and over time, you’ll see improvement.

Pay down debt

This is easier said than done, but the amount of money you owe constitutes 30% of your FICO® Score, so paying down what you owe can also have a huge impact. Personally, the best way I’ve found to pay off debt was to grow my income. Cutting your budget to the bone will quickly prove unsustainable (and contrary to what some finance gurus will tell you, life should still have some fun in it, even if you have debt).

If you can pick up more hours at work or a side hustle, everything you earn (less taxes) can go toward debt payoff.

Check your credit report for errors

Credit report errors are frighteningly common — in fact, Consumer Reports found that almost half of consumer complaints to the Consumer Financial Protection Bureau in 2023 were regarding credit report problems.

The good news is that if there are inaccuracies on your credit reports (like delinquent accounts that aren’t yours), you can petition the credit bureau that issued the report to remove them. Get free copies of your credit reports from AnnualCreditReport.com to start the process.

Consider a secured credit card

Finally, if you need to rebuild or build credit from scratch, a secured credit card can be a good way to do it. You put down a security deposit that becomes your credit limit, and as you spend and pay off the balance, the card issuer will report positive credit behavior to those credit bureaus. Click here for our picks for the best secured credit cards and start boosting your score today.

While there might be an auto loan out there for you with a 500 credit score, you’ll have an easier and cheaper time of buying a car if you focus on improving your credit first. Make the above moves and be patient — good credit takes time, but it’s worth it.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: The Motley Fool/Upsplash
Keeping money in a checking account won’t make you rich. Unlike savings accounts and CDs, which are currently paying a lot of interest, or brokerage accounts, which allow you to invest in the stock market, a checking account is mostly a place to park some cash you might need any minute.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But it’s important to have a checking account balance that meets your needs. And if you’re wondering if $5,000 is enough to cut it, the answer is, it depends.What do your monthly bills look like?If you’re wondering if $5,000 is enough for your checking account, you’ll need to know what your monthly bills look like.It’s usually best to keep enough money in your checking account to cover a month of expenses. An even better bet is to have enough money in there for two months of bills, just in case your paycheck is delayed for any reason.You don’t want to end up in a situation where you’ve overdrawn your checking account — and gotten hit with a fee — due to a delay in pay that was outside of your control. Similarly, you don’t want to pay a bill late because your paycheck was delayed and get stuck with a late fee (or, worse yet, a ding to your credit score). So two months’ worth of bills protects you from those unwanted scenarios.Meanwhile, let’s say your monthly expenses come to $2,500. In that case, $5,000 is certainly enough to keep in a checking account.But if your monthly expenses come to $6,000, a $5,000 balance isn’t even enough to cover a full month of bills.How to boost your checking account balanceIf you have a decent sum of money in a savings account that’s linked to your checking account, you may not have to take action, even if your checking account can’t cover a month of bills on its own.Most banks let you instantly transfer funds from one account to another in that situation. So if you have three months’ worth of bills in savings and just under one month’s worth of bills in your checking account, you’re technically covered.If your checking account could use a boost and you don’t have money to transfer into it, try working a side hustle to come up with the extra cash. Now’s a great time of year to land a side gig, because many businesses need extra help during the holiday shopping rush.That said, some checking accounts give you a bonus for signing up. Some also pay a decent amount of interest. It pays to shop around for a new checking account if your current one isn’t giving you many benefits. Click here for a list of our favorite checking accounts.When it comes to funding your checking account, you need to strike a balance. You don’t want to keep too much cash in there, but having too little isn’t great, either. As a general rule, aim for one to two months of bills — whether that amounts to $5,000 or a completely different number.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Keeping money in a checking account won’t make you rich. Unlike savings accounts and CDs, which are currently paying a lot of interest, or brokerage accounts, which allow you to invest in the stock market, a checking account is mostly a place to park some cash you might need any minute.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But it’s important to have a checking account balance that meets your needs. And if you’re wondering if $5,000 is enough to cut it, the answer is, it depends.

What do your monthly bills look like?

If you’re wondering if $5,000 is enough for your checking account, you’ll need to know what your monthly bills look like.

It’s usually best to keep enough money in your checking account to cover a month of expenses. An even better bet is to have enough money in there for two months of bills, just in case your paycheck is delayed for any reason.

You don’t want to end up in a situation where you’ve overdrawn your checking account — and gotten hit with a fee — due to a delay in pay that was outside of your control. Similarly, you don’t want to pay a bill late because your paycheck was delayed and get stuck with a late fee (or, worse yet, a ding to your credit score). So two months’ worth of bills protects you from those unwanted scenarios.

Meanwhile, let’s say your monthly expenses come to $2,500. In that case, $5,000 is certainly enough to keep in a checking account.

But if your monthly expenses come to $6,000, a $5,000 balance isn’t even enough to cover a full month of bills.

How to boost your checking account balance

If you have a decent sum of money in a savings account that’s linked to your checking account, you may not have to take action, even if your checking account can’t cover a month of bills on its own.

Most banks let you instantly transfer funds from one account to another in that situation. So if you have three months’ worth of bills in savings and just under one month’s worth of bills in your checking account, you’re technically covered.

If your checking account could use a boost and you don’t have money to transfer into it, try working a side hustle to come up with the extra cash. Now’s a great time of year to land a side gig, because many businesses need extra help during the holiday shopping rush.

That said, some checking accounts give you a bonus for signing up. Some also pay a decent amount of interest. It pays to shop around for a new checking account if your current one isn’t giving you many benefits. Click here for a list of our favorite checking accounts.

When it comes to funding your checking account, you need to strike a balance. You don’t want to keep too much cash in there, but having too little isn’t great, either. As a general rule, aim for one to two months of bills — whether that amounts to $5,000 or a completely different number.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: Getty Images
Getting a perfect credit score isn’t impossible. As of the third quarter of 2023, 1.54% of U.S. consumers had a perfect score of 850, according to Experian. But what this tells us is that with enough effort, you can potentially join the elite few who have perfect credit scores.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. That said, there’s no reason to push yourself to achieve perfect credit if your score is already in great shape. And if you’re wondering what’s considered great shape, Experian says a score of 800 or above is exceptional. We’ll use that as our benchmark.With that in mind, here’s why you should be happy with a score of 800 or above — and why you shouldn’t chase that 850.1. You won’t necessarily increase your chances of getting approved for a loanThe higher your credit score, the more likely you are to get approved for a loan. But a credit score of 850 won’t necessarily increase your chances of approval more so than an 800 or an 810 or an 825.Once your credit score reaches the 800 mark, you’re highly likely to get approved to borrow money when you want to unless there’s another factor getting in your way. For example, say mortgage lenders in your area want an income of $100,000 to qualify for the size of loan you’d need.If you only earn $65,000 a year, you may be denied. But in that case, it’s not due to your credit score. Also, in that situation, an 850 credit score probably won’t convince a lender to budge on its income requirement to the tune of $35,000.2. You won’t necessarily get a better rate on a loanHaving outstanding credit could set you up for a lower interest rate on the next loan you sign, whether it’s an auto loan, mortgage, or personal loan. But again, you won’t necessarily get a better rate with a perfect credit score than with a score of 800 to 849.Now, you will most likely get a better interest rate on a loan with a score of 800 or more compared to a 600. So if your credit score is nowhere close to perfect, then it pays to try to boost it. You can do so by paying bills on time, reducing balances on your credit cards, and reviewing your credit report regularly for errors (which, thankfully, you can do every week for free if you so choose).But there’s a huge gap between a credit score around 600 vs. a score around 800. And if you’ve managed to get to around the 800 mark, then there’s no need to stress about going from there to a perfect score.How to maintain an already-strong credit scoreAlthough perfect credit is overrated, great credit is not. Having great credit puts you in a position to not only save money on a loan, but also qualify for some of the top credit card offers out there. And if you’re not sure what those entail, check out this list of the best credit cards to learn more.But if you’re sitting on a credit score of around 800 or higher, your goal should largely be to stay where you are instead of striving for perfection. And the steps discussed earlier to boost a credit score are the same ones to take to maintain an already-great credit score — pay your bills on time, keep outstanding credit card balances low, and ensure your credit report doesn’t contain false information that could work against you.Remember, it’s common for credit scores to fluctuate from month to month. So even if you do manage to achieve that perfect 850 at some point, it may be short-lived.Something as innocent as submitting a new credit card application could cause your score to drop by a few points, stripping you of perfect credit. Instead of pushing for an 850, a better use of your time and energy is to take the above steps to keep an already outstanding credit score as intact as possible.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Getting a perfect credit score isn’t impossible. As of the third quarter of 2023, 1.54% of U.S. consumers had a perfect score of 850, according to Experian. But what this tells us is that with enough effort, you can potentially join the elite few who have perfect credit scores.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

That said, there’s no reason to push yourself to achieve perfect credit if your score is already in great shape. And if you’re wondering what’s considered great shape, Experian says a score of 800 or above is exceptional. We’ll use that as our benchmark.

With that in mind, here’s why you should be happy with a score of 800 or above — and why you shouldn’t chase that 850.

1. You won’t necessarily increase your chances of getting approved for a loan

The higher your credit score, the more likely you are to get approved for a loan. But a credit score of 850 won’t necessarily increase your chances of approval more so than an 800 or an 810 or an 825.

Once your credit score reaches the 800 mark, you’re highly likely to get approved to borrow money when you want to unless there’s another factor getting in your way. For example, say mortgage lenders in your area want an income of $100,000 to qualify for the size of loan you’d need.

If you only earn $65,000 a year, you may be denied. But in that case, it’s not due to your credit score. Also, in that situation, an 850 credit score probably won’t convince a lender to budge on its income requirement to the tune of $35,000.

2. You won’t necessarily get a better rate on a loan

Having outstanding credit could set you up for a lower interest rate on the next loan you sign, whether it’s an auto loan, mortgage, or personal loan. But again, you won’t necessarily get a better rate with a perfect credit score than with a score of 800 to 849.

Now, you will most likely get a better interest rate on a loan with a score of 800 or more compared to a 600. So if your credit score is nowhere close to perfect, then it pays to try to boost it. You can do so by paying bills on time, reducing balances on your credit cards, and reviewing your credit report regularly for errors (which, thankfully, you can do every week for free if you so choose).

But there’s a huge gap between a credit score around 600 vs. a score around 800. And if you’ve managed to get to around the 800 mark, then there’s no need to stress about going from there to a perfect score.

How to maintain an already-strong credit score

Although perfect credit is overrated, great credit is not. Having great credit puts you in a position to not only save money on a loan, but also qualify for some of the top credit card offers out there. And if you’re not sure what those entail, check out this list of the best credit cards to learn more.

But if you’re sitting on a credit score of around 800 or higher, your goal should largely be to stay where you are instead of striving for perfection. And the steps discussed earlier to boost a credit score are the same ones to take to maintain an already-great credit score — pay your bills on time, keep outstanding credit card balances low, and ensure your credit report doesn’t contain false information that could work against you.

Remember, it’s common for credit scores to fluctuate from month to month. So even if you do manage to achieve that perfect 850 at some point, it may be short-lived.

Something as innocent as submitting a new credit card application could cause your score to drop by a few points, stripping you of perfect credit. Instead of pushing for an 850, a better use of your time and energy is to take the above steps to keep an already outstanding credit score as intact as possible.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: Getty Images
A recession can be a scary thing. And while recessions can play out in varying degrees, on a basic level, you’re looking at a period of economic decline.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. It’s common for unemployment rates to rise during a recession. And sometimes, stock values can fall.The good news on the recession front is that we seem to have avoided one in 2024. Granted, with another month left to go, anything can happen. But the likelihood of going from a reasonably strong economy to a downturn within the next five weeks or so is low.Things might change (for the worse) in 2025, though. The Federal Reserve puts the probability of a recession in the next 12 months at 42%. That’s not an overwhelmingly high percentage, but it’s certainly not a negligible one.What should you do upon hearing this? First, here’s what you shouldn’t do — panic. There’s no need to assume the worst, and that outlook could always change for the better in the coming months.But there are also some action items to put on your list for the coming weeks to protect yourself from a 2025 recession, just in case. Here are three worth focusing on.1. Boost your emergency fundSince a recession could put your job on the line, it’s important to prepare financially by having a solid emergency fund. At the very least, aim for three months’ worth of living expenses in the bank. This buys you some protection if your paycheck goes away all of a sudden.But don’t just leave that money in a checking account, where it might earn a negligible amount of interest or none at all. Instead, take advantage of today’s outstanding savings account rates.Even with the Fed cutting its benchmark interest rate twice this year, many savings accounts are still paying around 4%. Click here to shop around for the best high-yield savings accounts we’ve found.2. Grow your job skillsWorried about losing your job in a recession? Then another key thing to do is make yourself the most valuable asset to your company you can be.Growing your job skills could spare you from getting laid off if your employer is forced to make cuts. And if you end up out of a job, having more skills puts you in a better position to get hired elsewhere.If you’re not sure what skills to work on, a good bet is to look at listings for the types of jobs you’d be interested in having. Review those descriptions carefully to see what skills are listed as requirements, and then aim to build skills in that category you don’t currently have.3. Network like a beastIf a recession hits in 2025 and you end up out of a job, you may need to call in some favors. But imagine how those conversations might go if you haven’t been in contact with anyone from your professional network in ages.”Hey, Mike, long time. How’s the baby? Oh, right…the baby is 5 years old. Wow. Time flies. So listen…”Talk about awkward.If you want to put yourself in a better position to ask for help on the job front in 2025 should that become necessary, start networking now. And with the holidays coming up, you have a natural icebreaker.Invest a little money in a bulk package of holiday cards, and then spend the time writing personalized notes wishing your contacts well and asking to get back in touch. If you reconnect with those people months before you end up needing their help, you may have a much easier time getting it.There’s no reason to assume the economy is going to tank in 2025. But it’s best to be prepared for that situation. Taking these steps could be good for your peace of mind, so they’re worth doing even if economic conditions don’t sour in the new year.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

A recession can be a scary thing. And while recessions can play out in varying degrees, on a basic level, you’re looking at a period of economic decline.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

It’s common for unemployment rates to rise during a recession. And sometimes, stock values can fall.

The good news on the recession front is that we seem to have avoided one in 2024. Granted, with another month left to go, anything can happen. But the likelihood of going from a reasonably strong economy to a downturn within the next five weeks or so is low.

Things might change (for the worse) in 2025, though. The Federal Reserve puts the probability of a recession in the next 12 months at 42%. That’s not an overwhelmingly high percentage, but it’s certainly not a negligible one.

What should you do upon hearing this? First, here’s what you shouldn’t do — panic. There’s no need to assume the worst, and that outlook could always change for the better in the coming months.

But there are also some action items to put on your list for the coming weeks to protect yourself from a 2025 recession, just in case. Here are three worth focusing on.

1. Boost your emergency fund

Since a recession could put your job on the line, it’s important to prepare financially by having a solid emergency fund. At the very least, aim for three months’ worth of living expenses in the bank. This buys you some protection if your paycheck goes away all of a sudden.

But don’t just leave that money in a checking account, where it might earn a negligible amount of interest or none at all. Instead, take advantage of today’s outstanding savings account rates.

Even with the Fed cutting its benchmark interest rate twice this year, many savings accounts are still paying around 4%. Click here to shop around for the best high-yield savings accounts we’ve found.

2. Grow your job skills

Worried about losing your job in a recession? Then another key thing to do is make yourself the most valuable asset to your company you can be.

Growing your job skills could spare you from getting laid off if your employer is forced to make cuts. And if you end up out of a job, having more skills puts you in a better position to get hired elsewhere.

If you’re not sure what skills to work on, a good bet is to look at listings for the types of jobs you’d be interested in having. Review those descriptions carefully to see what skills are listed as requirements, and then aim to build skills in that category you don’t currently have.

3. Network like a beast

If a recession hits in 2025 and you end up out of a job, you may need to call in some favors. But imagine how those conversations might go if you haven’t been in contact with anyone from your professional network in ages.

“Hey, Mike, long time. How’s the baby? Oh, right…the baby is 5 years old. Wow. Time flies. So listen…”

Talk about awkward.

If you want to put yourself in a better position to ask for help on the job front in 2025 should that become necessary, start networking now. And with the holidays coming up, you have a natural icebreaker.

Invest a little money in a bulk package of holiday cards, and then spend the time writing personalized notes wishing your contacts well and asking to get back in touch. If you reconnect with those people months before you end up needing their help, you may have a much easier time getting it.

There’s no reason to assume the economy is going to tank in 2025. But it’s best to be prepared for that situation. Taking these steps could be good for your peace of mind, so they’re worth doing even if economic conditions don’t sour in the new year.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: Getty Images
If you’re in the process of saving for retirement, you’ll often hear that it’s best to rely on the stock market to grow your nest egg rather than stick to safer assets like savings accounts or CDs.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Savings accounts and CDs offer the benefit of being able to grow your money in a risk-free manner. As long as your bank is FDIC insured and your deposit is $250,000 or less, you’re guaranteed not to lose money.But you should also know that historically, the stock market has delivered much higher returns than savings accounts and CDs. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for years when stocks did great and years when stocks lost value. If you compare 10% to what savings accounts and CDs are paying today — somewhere around 4% — stocks win by a longshot.Plus, when you invest your money over a long period, you minimize your risk by giving yourself plenty of time to ride out market downturns. It pays to open a brokerage account and use the power of the stock market to turn your retirement savings into a much larger sum of money over time. Click here for a list of our favorite stock brokers.But while it’s one thing to rely on stocks to build retirement savings, you may want to shift your approach once you’re getting ready to actually retire. That doesn’t mean getting rid of stocks completely, though.Strike a balance with your portfolioSince the stock market has such a strong history of rewarding long-term investors, it pays to go heavy on stocks when retirement is pretty far off.If you put $300 into a brokerage account or IRA every month for 30 years, you’re contributing a total of $108,000, which is a nice amount of money in its own right. But if your investments give you a 10% yearly return, then after three decades, your $108,000 in contributions will be worth around $592,000. That’s a gain of $484,000.That said, the one rule you must follow when investing in stocks is to give yourself time to ride out market downturns. For this reason, if you’re five years away from retirement, you should not keep all or even the majority of your portfolio in stocks.You want to make sure a good portion of that money is invested in a safer manner, because you might need to start withdrawing from your savings pretty soon. And if the market happens to be down at that time, you don’t want to get stuck cashing out investments at a lower value.But you also don’t want to dump your stocks completely. It’s important to keep some of your money invested in stocks during retirement so it can continue to grow. So what you may want to do once you’re five years from ending your career is keep about 50% of your savings in stocks, but put the other 50% into safer choices. That could be a combination of bonds and cash.In fact, if you’re five years from retirement, now’s not a bad time to open a 60-month CD while rates are still strong. That allows you to earn a decent chunk of interest on some of your savings in a virtually risk-free manner. Click here for a list of the best CD rates to get started.Consider your tolerance for riskGenerally speaking, it’s a smart idea to shift away from stocks as retirement nears. And if you’re five years away, limiting stocks to about 50% of your portfolio could be a wise move.But also take your personal risk tolerance into account. If you’re not comfortable with the idea of having half of your savings in stocks, go lower. On the flipside, if you’re willing to take on more risk, go higher — say, by keeping about two-thirds of your portfolio in the stock market if that won’t cause you to lose sleep.It’s OK to tailor your investment strategy to your comfort level as long as you understand the pros and cons of going lighter or heavier on stocks as retirement nears. Also, consider sitting down with a financial advisor if you’re not sure what route is best for you.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’re in the process of saving for retirement, you’ll often hear that it’s best to rely on the stock market to grow your nest egg rather than stick to safer assets like savings accounts or CDs.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Savings accounts and CDs offer the benefit of being able to grow your money in a risk-free manner. As long as your bank is FDIC insured and your deposit is $250,000 or less, you’re guaranteed not to lose money.

But you should also know that historically, the stock market has delivered much higher returns than savings accounts and CDs. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for years when stocks did great and years when stocks lost value. If you compare 10% to what savings accounts and CDs are paying today — somewhere around 4% — stocks win by a longshot.

Plus, when you invest your money over a long period, you minimize your risk by giving yourself plenty of time to ride out market downturns. It pays to open a brokerage account and use the power of the stock market to turn your retirement savings into a much larger sum of money over time. Click here for a list of our favorite stock brokers.

But while it’s one thing to rely on stocks to build retirement savings, you may want to shift your approach once you’re getting ready to actually retire. That doesn’t mean getting rid of stocks completely, though.

Strike a balance with your portfolio

Since the stock market has such a strong history of rewarding long-term investors, it pays to go heavy on stocks when retirement is pretty far off.

If you put $300 into a brokerage account or IRA every month for 30 years, you’re contributing a total of $108,000, which is a nice amount of money in its own right. But if your investments give you a 10% yearly return, then after three decades, your $108,000 in contributions will be worth around $592,000. That’s a gain of $484,000.

That said, the one rule you must follow when investing in stocks is to give yourself time to ride out market downturns. For this reason, if you’re five years away from retirement, you should not keep all or even the majority of your portfolio in stocks.

You want to make sure a good portion of that money is invested in a safer manner, because you might need to start withdrawing from your savings pretty soon. And if the market happens to be down at that time, you don’t want to get stuck cashing out investments at a lower value.

But you also don’t want to dump your stocks completely. It’s important to keep some of your money invested in stocks during retirement so it can continue to grow. So what you may want to do once you’re five years from ending your career is keep about 50% of your savings in stocks, but put the other 50% into safer choices. That could be a combination of bonds and cash.

In fact, if you’re five years from retirement, now’s not a bad time to open a 60-month CD while rates are still strong. That allows you to earn a decent chunk of interest on some of your savings in a virtually risk-free manner. Click here for a list of the best CD rates to get started.

Consider your tolerance for risk

Generally speaking, it’s a smart idea to shift away from stocks as retirement nears. And if you’re five years away, limiting stocks to about 50% of your portfolio could be a wise move.

But also take your personal risk tolerance into account. If you’re not comfortable with the idea of having half of your savings in stocks, go lower. On the flipside, if you’re willing to take on more risk, go higher — say, by keeping about two-thirds of your portfolio in the stock market if that won’t cause you to lose sleep.

It’s OK to tailor your investment strategy to your comfort level as long as you understand the pros and cons of going lighter or heavier on stocks as retirement nears. Also, consider sitting down with a financial advisor if you’re not sure what route is best for you.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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