Money Management

Very few Americans have an 850 credit score. Find out how many do, and whether this score is really necessary to get the best loan and credit card offers. [[{“value”:”

Having an amazing credit score is pretty great.

My score is above 800, and I’ve been able to qualify for a low-interest mortgage, not to mention some awesome credit cards that provide top-notch perks.

My score isn’t perfect, though. To be perfect, you’d need a FICO® Score of 850.

The big question is, just how many Americans have that? And is it really necessary to qualify for the best credit cards, or can you get affordable loans and good rewards cards even if you fall short?

How many Americans have a perfect 850 score?

When it comes to credit scores, very few Americans achieve perfection In fact, just 1.31% of Americans have a FICO® Score of 850, according to a credit score study from The Motley Fool Ascent.

The vast majority of people with a perfect score are baby boomers, as they’ve had time to build the credit they need to achieve this milestone.

There’s a good reason so few people have a perfect score, as so much goes into earning one. You not only need a 100% positive payment history, but you also need the right mix of different kinds of debt, a low balance on your credit cards, and a record without too many hard credit inquiries (these are put on your credit report when you open a new card).

Looking to lower your credit card balances and take a step towards credit score perfection? Click here to learn about some excellent balance transfer card offers, with 0% intro APRs for as long as 21 months to help you pay down debt.

Should you aim for an 850 score?

While earning an 850 credit score might get you some bragging rights, there’s no other reason why you’d need a score that high. A score above 700 is considered good, and one above 800 is considered excellent. If you can get yours somewhere within that range, you’ll be in pretty good shape.

It doesn’t hurt to take steps to try to improve your credit if you haven’t achieved perfection yet, especially since most of the steps to earning good credit will benefit your finances anyway. Here’s how.

Pay your creditors on time

You’ll always want to pay your credit cards and loans on time, as payment history is the most important component in your credit score (worth 35% of your FICO® Score). You can set up automatic payments to make sure you do that every month.

Keep your credit utilization ratio low

You’ll also want to keep your credit used to less than 30% of your available balance. This is called your credit utilization ratio and it’s the second most important factor in determining your score. A lower ratio is ideal, since maxed-out cards could suggest you’re struggling with managing credit.

Manage other credit score factors

Other factors that affect your score include having the right mix of different credit, the average age of your credit history, and the number of inquiries on your record. You don’t want to open too many new credit cards at once, and it’s also beneficial to have different types of debt like credit cards and installment loans with fixed monthly payments. This shows you can handle many different financial obligations responsibly.

Can a new credit card help?

If you want to improve your score and haven’t opened a card for a while, you actually may want to think about doing so. The Motley Fool Ascent’s research found that those with a perfect 850 had more cards than the average person, at 5.9 cards vs. 3.9. Having more cards open makes it easier to keep a low utilization ratio, plus you can benefit from all the different perks and rewards each one offers.

In the market for a new credit card and also looking to maximize your cash back rewards? Check out our curated list of the best cash back credit cards to learn more and apply for one today.

By focusing on the factors that impact your credit score, you can raise it over time and, while you might not end up perfect, you’ll still open up many doors that come along with having a credit history to be proud of.

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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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Five Below is a fantastic low-cost retailer with great product variety and affordable prices. Find out which Five Below deals are worth your money. [[{“value”:”

Many people are looking for ways to stretch their dollars further. One way to do this is by shopping at low-cost retailers like Five Below. If you have yet to shop here, consider strolling the aisles to see what items it has. There are great finds for kids and adults.

As its name suggests, the retailer sells many items for $5 or less, but you’ll also find other goods that cost more. You can keep more money in your checking account by shopping for the best bargains at Five Below. Here are some fantastic deals you can shop online or at your local store.

1. 20-inch by 14-inch Cuddler Pet Bed: $5.55

Pet supplies can be a great buy at Five Below. There is no shortage of goods for your favorite furry pal, such as cheap pet beds. For example, you can get a 20-inch by 14-inch Cuddler Pet Bed for $5.55. This is a good buy for small dogs or cats.

Pet beds vary in size, style, and material. But I’ve found at other affordable retailers like Marshall’s and TJ Maxx, you can expect to spend at least $10 to $15 for a small pet bed for your furry pal. To avoid overspending, you should visit Five Below the next time you shop for your pet.

If you love saving money, consider paying for your purchases with a rewards credit card. You can earn cash back when you shop for yourself or your furry friends. Want to save even more? Click here to explore our list of the top cash back credit cards to see how easy it is to earn cash back rewards.

2. Series-8 Fitness Five-pound Dumbbell: $5 each

If you’re a fitness enthusiast on a budget, Five Below’s workout equipment and accessories are worth checking out. One item you can get for cheap at Five Below is dumbbells.

The retailer sells a five-pound dumbbell for $5, so you can get a set of two for $10. Meanwhile, Target sells five-pound dumbbells for $10 each, or $20 a set. If you need more fitness equipment (like yoga mats, resistance bands, and beyond), check out the options at Five Below before shopping elsewhere.

3. Tacocat Spelled Backwards Card Game: $5

Board games, puzzles, and card games are another fantastic Five Below buy — you can easily boost your collection of activities for family game night. One such deal is the Tacocat Spelled Backwards card game. Amazon lists the retail price of this game as $14.99. But you can get it for $5 from Five Below.

This is one of many game night finds the retailer sells. There are affordable options for people of all ages.

4. Art Maker Creative Coloring Book: $5

Whether you’re looking for activity books for your kids or adult coloring books for yourself, Five Below has plentiful options. One example of a worthwhile deal is the Art Maker Creative Coloring Book. It costs only $5, while many adult coloring books sold at Target cost over $10.

Maximize your savings by earning rewards

In addition to looking for the best deals and shopping at low-cost retailers, you can maximize your savings by earning rewards. Using credit cards that offer rewards opportunities means you can pay yourself back with rewards, which is a win for your wallet.

A credit card that earns flat-rate rewards (such as 1.5% or 2% cash back on all purchases) is a great choice for Five Below shoppers, since this store doesn’t fit into a set credit card bonus category. With this kind of card, you can earn rewards in a simplified way every time you swipe your card at checkout. Check out our list of the best rewards credit cards to find your ideal card.

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.
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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A Federal Reserve rate cut means lower rates on bank accounts. Keep reading to learn why this isn’t worth worrying about too much. [[{“value”:”

After many months of speculation, it finally happened: The Federal Reserve lowered its benchmark interest rate by half a percentage point on Sept. 18. This rate isn’t the same as rates on consumer bank accounts, like CDs, savings, and money market accounts, but they do tend to move in concert.

Diligent savers will soon see the APY on their savings accounts fall, if it hasn’t already. Is this a moment to panic? Nope. Here’s how opting for the right kind of savings account and not overfunding it can help you breathe easier.

Opt for an online savings account

If you want to ensure you’re earning a good rate, no matter the macroeconomic factors at play, you need to look online. Check out our picks for the best online high-yield savings accounts and watch your money grow with a higher APY than average — and much higher than what big brick-and-mortar banks pay.

Why do online HYSAs pay so much better? It comes down to overhead costs. When a bank exists solely in cyberspace, it doesn’t have to maintain and staff physical bank branches. In exchange, you get to enjoy higher interest rates on your saved cash, a lack of pesky account maintenance fees, and stellar mobile apps that make managing your money easier.

My own online high-yield savings account has already seen its first post-Federal Reserve rate cut drop to its APY — but the money I keep in it is still earning 4.00% APY. That’s far above the average rate across all banks (0.46%), and also beats my savings accounts with a big national bank and the tiny local credit union where I have my mortgage.

Don’t overfund your savings account

The other way to cope with falling savings account APYs without much worry is to ensure your saved cash is in the right places to match your goals. Ideally, your savings account is best used for money you need in the short term (such as savings for a vacation next year or a home purchase in two years) and money you could need anytime (your emergency fund).

If you’re saving for various near-term goals in your savings account, and you also have the expert-recommended three to six months’ worth of expenses, you’re in a good spot with your savings account. If you’re not already using a savings account that offers buckets, I recommend switching to one — it makes saving for multiple goals so much easier (and dare I say, more fun?).

What if you have cash beyond what you need for near-term goals and unplanned expenses, and you don’t have a set timeline for it beyond “the future”? Here’s when you can diversify with your savings. If you’re saving for retirement or for some point at least a decade in the future (maybe sending your newborn child to college?), consider investing that cash.

Investing vs. savings accounts

The best stock brokers make it easy and inexpensive to take advantage of the possibility of long-term growth in the stock market. To talk numbers, the S&P 500 gained value in 40 of the last 50 years, and generated an average annualized return of 9.4%. A return of 9.4% is unheard of for a savings account, online or otherwise.

Investing comes with more risk than keeping cash in a savings account (pretty low risk, at least if you’re using an FDIC-insured bank), which is why it’s best done over the long term. Your investments can lose value in the short term, but if you keep investing in something like an S&P 500 index fund and stay the course (buy and hold), you can reasonably expect to come out ahead in the end.

Take a deep breath. You’re likely to see your savings account’s APY continue to fall over the coming months, as the Fed continues to reduce its benchmark rate and banks follow suit. But even with a lower APY, your savings account serves an important purpose. It keeps your cash accessible and safe for when you need it. Don’t give up on it now.

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.
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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Are you falling victim to these common Costco traps? If you’re new to the store, you might be. Read on so you can break the cycle. [[{“value”:”

I’ve been a loyal Costco member for 18 years. And for roughly the past five years or so, I’ve been shopping at Costco weekly to stock my pantry and fridge with groceries and household essentials. I’ve spent my fair share of time at Costco.

And because of this, I know which savings strategies are worth employing and which mistakes are likely to result in wasted money. But if you’re a new member, you may not know the ins and outs of maximizing your Costco savings just yet. And that means you risk falling victim to some of the blunders I made back in the day.

Here are three to avoid.

1. Not upgrading to the Executive membership

I was a Costco member for several years before an employee suggested I get the Executive membership. At first, I was hesitant, since it costs twice as much as a basic Gold Star membership. But then I realized what a great deal it is.

With an Executive membership, you earn 2% cash back on your Costco purchases. And that’s on top of any cash back your credit card gives you.

Want to save even more at Costco? Check out this list of credit cards that offer extra rewards for Costco shoppers.

Of course, the trick is to spend enough money at Costco to make back the cost of an Executive membership upgrade and come out ahead financially. Based on the store’s current fee structure, you need to spend $3,250 a year at Costco to break even on the upgrade. That’s because a Gold Star membership costs $65 per year, but an Executive membership costs $130 per year, or $65 more.

But if you don’t make back your Executive membership upgrade fee, Costco will let you downgrade to a Gold Star membership after a year and refund you the price difference. So I say you might as well go for the upgrade and see what happens.

Say you only spend $1,200 at Costco after a year, and therefore only get $24 back from your Executive membership. If you switch to a Gold Star membership at that point, Costco will give you back the $41 you didn’t earn. Really.

I wish I would’ve started with an Executive membership, because while I wasn’t buying as much food in bulk back in the day due to not yet having kids, I also made one-time purchases at Costco, like clothing and electronics, that probably would’ve made the higher-cost membership worth it. And I’m certainly glad I switched over when I did. Since upgrading my membership, it’s been worth it every year.

2. Not shopping when their gas tanks are near empty

When I first started shopping at Costco, the idea of buying gas there wasn’t even on my radar. I was so used to filling up on certain days of the week at my local gas station that the thought didn’t cross my mind.

That was a mistake, though. I later realized that Costco has some of the best gas prices in town. And not only that, but one lesser-known benefit of Costco fuel is that it’s TOP TIER certified, which means it’s actually designed to lead to better engine performance.

Now, when I plan my Costco outings, I make sure to do so when my car’s gas tank is pretty low. That way, I can fill up while I’m there and take advantage of those lower prices and higher-quality fuel.

3. Not giving Kirkland products a chance

I’ve never been the type to care about name brands in the context of clothing or footwear. But I’ll admit that when it comes to food, I can sometimes be a bit picky about the products I bring home.

That pickiness cost me a lot of money as a new Costco member, though. Back when I first started going to the store regularly, I almost always passed over the Kirkland products because I assumed they were inferior versions of the brands I knew and loved. I then did some research and realized that not only is Kirkland, Costco’s signature brand, high in quality, but it’s considerably cheaper than name brands.

Costco has explicitly said that its goal is to offer its Kirkland line for at least 20% less than name brand counterparts. So buying laundry detergent with the Kirkland label, for example, could mean spending $16 or less on a product that might otherwise cost you $20. That’s not a deal you want to pass up.

And if you’re worried you won’t like your Kirkland products as much as your name-brand buys, remember that Costco guarantees your satisfaction on every purchase you make. So if a Kirkland product doesn’t work out, just bring it back for a refund.

When you’re new to any given experience, it’s common to make some missteps. But don’t fall victim to these blunders like I did. Take my advice and consider an Executive membership from the start, fill up your gas tank at Costco as often as you can, and load up on Kirkland products for the added savings.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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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Is the media just hyping up rate cuts? Here’s what you need to keep in mind. [[{“value”:”

It wasn’t exactly shocking that the Federal Reserve opted to cut its benchmark interest rate by half a percentage point during its mid-September meeting. Due to cooling inflation, the general consensus expected the central bank to make its first rate cut last month. It was simply a question of whether it would be a less aggressive quarter-point cut or a more aggressive half-point cut.

But JPMorgan Chase CEO Jamie Dimon was quick to downplay the Fed’s mid-September decision, saying “it doesn’t mean that much” at a conference hosted by Georgetown University’s Psaros Center for Financial Markets and Policy. The reality, though, is that rate cuts have the potential to help borrowers while hurting people with money in savings.

Why the Fed’s rate cuts should matter to you

The Federal Reserve doesn’t directly set consumer interest rates. The interest rate you lock in on a mortgage, for example, is set by the mortgage lender you borrow from. Similarly, the amount of interest you earn from your bank will depend on the bank itself, not the Fed.

However, when the Fed’s benchmark interest rate rises, it tends to lead to more expensive borrowing and better rates on products like savings accounts and CDs. And when the Fed’s benchmark interest rate declines, it tends to lead to cheaper borrowing and less attractive savings account and CD rates.

It’s not exactly accurate to call the Fed’s rate cuts “a minor thing” like Dimon recently did. Granted, a single rate cut may not be so monumental. But a series of rate cuts, which is what’s expected, could significantly impact your financial situation.

What to do now that the Fed is cutting rates

The Fed’s mid-September rate cut is expected to be the first of many. That could mean different things for your finances.

On the plus side, it could make borrowing money cheaper. You might lock in a better interest rate on a personal or auto loan, or on a mortgage.

However, since the Fed’s rate cuts are likely to continue, you don’t want to sign a loan right now if you can help it. Waiting a few months for a few more cuts could leave you with a better interest rate on a loan and cheaper monthly payments.

On the flipside, you may not earn as much interest on the money you have in the bank as the Fed’s rate cuts continue. Now’s an important time to shop around for the best savings account rate available.

Also, you may want to consider locking in a CD before rates drop even more. Check out this list of the top CD rates you can snag today for some great options.

Jamie Dimon may be convinced the Fed’s interest rate policies aren’t so important. But while they may not be such a big deal to a person with his level of wealth, on an individual level, they could be quite significant, especially in the coming months. Pay attention to what the Fed does over the next few quarters in particular, since that could impact your finances.

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.
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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Like a friend, you know what to expect with a CD. Keep reading to learn more about how a CD can make your life more comfortable. [[{“value”:”

It may be tough to think of a financial product in the same vein as a good friend, but it occurs to me that the two share several traits. Whether you’ve dipped your toe in the certificate of deposit (CD) pond with a 1-year CD, or you’ve been toying with the idea, here’s what I think these interest-earning beauties have in common with a good friend.

Friends are faithful

There’s no bait and switch when you invest in a CD. For example, you could open a high-yield savings account with a solid rate, but there’s no guarantee that the initial rate will stay the same. In fact, most financial products are pretty fickle and rates tend to change as the wind blows.

For example, as the Federal Reserve continues to decrease the prime interest rate (the rate at which banks loan money to each other), you can also count on the rates paid on savings and other deposit accounts to drop.

Not so with CDs. The rate you’re promised when you open a CD is the rate you’ll receive until the day your CD matures. Whether that’s three months or five years from now depends on your chosen term.

If you’re looking for a place to earn a steady, dependable rate while inflation cools and consumer interest rates drop, click here to check out a selection of the best CD rates available now.

Friends want what’s best for you

Another thing CDs have in common with a good friend is wanting what’s best for you. Lately, I’ve been saving money to cover any extra medical costs my husband and I may face when he retires. I’m trying to make the most of that money by putting it into a 5-year CD where I won’t be tempted to touch it until it matures.

But let’s say that CD rates have plummeted in five years, and all I want to do when my current CD matures is to cash it out. That’s OK. I have that option. Maybe there will be a better place to keep (and grow) those funds.

However, if the annual percentage yield (APY) on CDs is high again, I can always roll the principal amount and any interest earned over into a new CD. In other words, I can do whatever is best for us when the time comes.

Good friends welcome you back at any time

I don’t know about you, but I typically feel nervous when I do anything for the first time. For example, the first time I invested in a CD, I was unsure of the rules and was scared that I would mess things up. It may have been a silly worry, but it felt legitimate all the same.

Another time, when we were still young, I remember desperately needing the money I’d invested in a CD to cover an emergency expense. This was back before I got serious about building an emergency fund, and I didn’t know what else to do other than cash the CD out and take a penalty for an early withdrawal. I can still remember how sick I felt about that penalty.

Fortunately, like a good friend, I’ve always been welcomed back by CDs. As rates have risen and fallen over the decades, I’ve learned how helpful it can be to harness the fixed rates offered by CDs. It’s not as though there’s a “naughty list” somewhere showing who made early withdrawals in the past.

Each time I buy a new CD, it’s a brand new arrangement. I don’t drag the mistakes of the past with me, and no one seems to remember them (except me).

If you’re looking for a safe place to park money while the economy finds its footing, you may want to learn more about how a CD works and what it can do for you. If nothing else, you’ll learn how safe and warm a CD can feel when everything else feels shaky. You know, like a friend.

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.
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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