Money Management

Looking for ways to improve the customer experience through personalization? Doing so can benefit your small business. Here are four easy examples. [[{“value”:”

No matter what kind of small business you run, it’s essential to consider the customer experience when making everyday business decisions. Putting effort into making your customers feel valued can go a long way toward finding success with your business venture.

Happy customers return, and they continue to spend money. If you’re working with a limited budget, you may be seeking low-cost ways to make your customers feel appreciated. Here are a few affordable ways to personalize the customer experience.

Send personalized notes

If you rarely interact with customers one-on-one, they may feel like they’re just another number. But they will feel appreciated if you go out of your way to communicate with and thank them. Sending personalized notes is an affordable way to personalize the customer experience. You won’t have to worry about getting a costly business credit card bill.

One idea is to send handwritten thank-you notes to your customers. You could do this when they make a bigger purchase, to show that you value their business. Another idea is to send handwritten birthday cards to your customers. Snail mail has become less common in recent years, so this gesture is likely to be appreciated.

Provide personalized deals through rewards programs

If you have a rewards program in place to thank your loyal customers, you can take it one step further and offer personalized rewards. Many businesses have such programs, but every customer earns the same rewards. Personalization takes extra effort, but can be valuable.

Implementing personalized rewards shows you’re paying attention to your customers’ habits. Earning a free side dish is nice. But getting $3 off their go-to order is even better.

Segment your marketing email lists

Most people have constant clutter in their email inboxes. When you send marketing emails, you’re competing against many other businesses doing the same thing. If you send email newsletters that aren’t interesting, they’re highly likely to end up in the trash.

Segmenting your marketing email lists is one way to improve the customer experience. By breaking your marketing lists into smaller groups based on specific criteria, you can better reach each customer. This way, each message is more likely to be opened, read, and absorbed. It also shows that you understand your customers and their needs.

Send out occasional polls

Learning what your customers want can improve your marketing and sales processes and help you better meet their needs. Occasionally, sending polls via email or polling your audience on social media is an excellent way to gather useful information about your customers and target market. You can do this with free survey and information-gathering tools like SurveyMonkey and Google Forms.

You don’t have to spend a lot to improve the customer experience

As you can see, many ways exist to improve the customer experience without draining your business checking account balance. These are only a few ideas. It pays to be open to making positive changes to how you run your business, so you can make your customers happy. For additional business-related tips, check out our small business resources.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Target. The Motley Fool has a disclosure policy.

“}]] Read More 

Many high-limit credit cards offer over $10,000 in spending power. Find out what would happen if you spent this much with your credit card. [[{“value”:”

With credit cards, you can spend up to your credit limit. So if your card has a $10,000 limit, it can carry a balance of up to $10,000.

Credit limits are often a whole lot more money than most people typically spend. So you might be wondering: What would happen if you actually tried to spend more than $10,000 on your credit card? Or what if you eventually found yourself with that amount of credit card debt?

There are a few things that will happen — and some serious financial dangers to watch out for.

Having that much credit card debt could lead to expensive interest charges

Let’s start with the biggest risk of spending this much on your credit card: If you don’t have enough money to pay it back, you’ll be deep in credit card debt. Credit cards have high interest rates, and they’ve gotten higher in recent years. The average credit card rate is 21.59%, according to Federal Reserve data.

At that APR, a $10,000 balance would cost you $2,159 per year. That’s about $180 in monthly interest charges. For this reason, it’s not a good idea to take on such a large balance unless you have the money to pay it off right away.

If you have quite a bit of credit card debt, look into balance transfer credit cards. These have a 0% intro APR on balance transfers. You can use them to refinance debt and pay it off interest-free during the intro period.

It cuts your spending power and raises your credit utilization

As you spend money on your credit card, it lowers your available credit. If your card has a $20,000 limit, and you spend $12,000, then that leaves you with $8,000 in spending power.

This can cause a few issues. It leaves you with less spending power if you really need it. For example, if you need to pay for an emergency home repair, but you already have a sizable balance on your credit card, you may be out of options.

Using a large portion of your credit can also hurt your credit score. It’s generally recommended to use less than 30% of your credit. On a card with a $20,000 limit, that would mean keeping the balance under $6,000. If you spend more than that, it will likely cause your credit score to drop.

You might need the card issuer to approve the charge

Credit card issuers have fraud detection systems. These flag transactions outside a cardholder’s normal spending habits. So if you’re planning to spend over $10,000 in one purchase, then it may trigger your card issuer’s fraud detection — unless this is a regular occurrence for you.

While this might seem worrisome, it’s no big deal. Your card issuer may just notify you of the transaction as a head’s up and let you know how to report the purchase as fraud if you didn’t make it. Or it may reject the transaction and ask you to confirm it’s legitimate. Once you give your approval, you’ll be able to make the purchase.

There’s nothing wrong with using your credit card to make a large purchase. If you’re paying for home renovations, an engagement ring, or any other big-ticket purchases, it’s perfectly fine to do that with your credit card. The danger is when you spend more than you can afford and end up with costly debt. The best way to avoid this is to only spend what you can pay back with money in your bank account.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.

“}]] Read More 

Want to apply for a new credit card? Banks might be making it harder. See what tighter approval standards could mean for you. [[{“value”:”

A new Federal Reserve survey of bank lending officers shows that some banks are tightening their lending standards for credit cards and other consumer loans. Most people might not even notice these changes, and the changes are not likely to be drastic or devastating for people who need access to credit. But this trend is worth knowing about if you’re in the market for a new credit card. Some banks might soon require a higher minimum credit score or give applicants a lower credit limit thanks to these changes.

Let’s look at the new Fed survey about credit card standards and see what it might mean for your next credit card application.

Why banks are tightening credit card standards

The Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) is a regular survey from the Federal Reserve that tracks overall attitudes among banks’ senior executives. The goal: See how banks feel about credit standards — and whether (and how much) they’re willing to lend to customers.

Making loans is banks’ biggest reason for being in business, but sometimes banks have to cut back on the number of loans they issue. Banks are constantly calculating and making risk assessments about how much money they can afford to lend (and which customers they want to lend to) compared to how much money they have in deposits and in reserves. Credit cards are part of this mix.

If a bank believes that it’s taking on too much risk, or that customers are less likely to repay their loans and credit card balances, banks might tighten their credit standards — which means they issue fewer loans and decline more credit card applications.

Times of higher interest rates can make banks less likely to lend money, especially when banks have to compete harder for deposits. When it’s harder for banks to get deposits from customers, this can lead to tighter credit standards from banks — less money going into the banks (as deposits) can mean less money coming out (as loans).

Three big trends affecting credit card applications

According to the April 2024 SLOOS from the Federal Reserve, “significant” numbers of banks are tightening their standards for credit card loans. This includes raising required minimum credit scores, lowering credit limits, or making it harder to approve loans for customers who don’t already have qualifying credit scores. Another change that more banks are making is to increase the “spreads” of interest rates over the banks’ cost of funds — charging higher interest rates (APR) on loans.

Here are a few insights from senior bank executives interviewed by the Federal Reserve SLOOS survey that show how new credit cards could be getting more difficult to obtain.

1. 21% of banks have tightened standards for credit card applications

The Fed survey found that about 21% of banks overall, and 32% of large banks, said that in the past three months, their standards for approving credit card applications have “tightened somewhat.”

2. 22% of banks are tightening credit limits

Some bank executives also told the Fed that their banks are tightening credit standards, in the form of lowering credit limits. In fact, 22% of banks, and 23% of large banks, said their credit limits for credit cards have “tightened somewhat” in the past three months.

For example, a customer who might have been approved for a card with a $10,000 credit limit a few months ago might now only be approved for $8,000. Existing credit card customers can also have their credit limits lowered by the bank, at any time. This can hurt your credit score by increasing your credit utilization ratio if you’re carrying debt.

3. 24% of banks are raising minimum required credit scores

The survey also found that banks are raising the minimum credit scores required to get a credit card. Of those surveyed, 24% of banks and 32% of large banks told the Fed that their minimum required credit scores have “tightened somewhat” in the past three months.

This survey doesn’t show any specific credit scores or ranges of credit scores affected. If you are struggling with your credit score, you might want to use a credit-building tool or secured credit card. Try to increase your credit score before you apply for your next credit card; with credit standards tightening, it’s more important than ever.

Bottom line

Some banks are tightening credit standards, and this means that some applicants might be declined for loans or credit cards, even though they would’ve been approved a few months ago. But this doesn’t mean it’s impossible for most people to get approved for credit cards.

If you have a good credit score, you might not notice any effects of these tighter standards; most banks might still be happy to offer you a credit card. But you might want to ask for pre-approval (with a soft credit check) before you let the bank do a hard credit pull that affects your credit score. And be prepared to ask for reconsideration if you get declined for a credit card.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

“}]] Read More 

A CD ladder is a popular strategy to take advantage of high CD rates. Check out how it works and see the amount you could earn if you invested $5,000 this way. [[{“value”:”

Many banks are offering some of their best rates in years on certificates of deposit (CDs). Since rates may drop later this year, now could be a smart time to open a CD so you can lock in the current rates.

If you’re worried about not being able to access your money, CD laddering is a great solution. Instead of opening just one CD and putting all your savings there, you open multiple CDs of different lengths. Here’s how much you could make this way if you have $5,000 saved.

Here’s how much you can make with $5,000 in a CD ladder

The amount you earn from a CD depends on the amount you deposit, the annual percentage yield (APY), and the length of the CD. For this example, we’ll assume that you divide $5,000 equally into five CDs ranging from three months to two years.

The table below shows how much each $1,000 CD would earn in interest at its maturity date. The rates used were the best CD rates I found at the time of writing.

In two years, your CD ladder earns a total of $252.83 in interest. That’s a return of 5.06% on your $5,000.

CD ladders like this work well, because they get you the benefits of CDs while minimizing the drawbacks. You get a fixed interest rate on all your CDs, so you’re protected if rates drop. Since you have CDs of different terms, you’ll also have a portion of your savings available every few months. You won’t need to wait years for money to free up, like you would if you put all your money in a 2-year CD.

How to build your own CD ladder

Ready to start a CD ladder? It doesn’t take long. Start by figuring out how much you’ll deposit in total and how you’ll divide that up between different CDs.

Pro tip: Even though CD ladders are more flexible than a single CD, it’s still not a good idea to put all your savings in them. Your emergency fund, for example, needs to be easily accessible at any time. High-yield savings accounts are a better choice for that.

Next, start shopping around for CDs. Keep in mind that you don’t need to open all of them with the same bank. In fact, it may be better that you don’t. It’s rare that one bank has the highest CD rates across the board. By opening CDs with different banks, you can maximize your earnings.

The main factor to look for in a CD is the APY, since that determines how much interest your savings will earn. Make sure the bank you choose also has FDIC insurance that protects your money in the event of a bank failure (or NCUA insurance if it’s a credit union).

Finally, see if there’s a minimum deposit requirement. If so, make sure it works for the amount you plan to deposit. Don’t worry if you’re not depositing much money — there are plenty of CDs with $0 minimums.

Once you’ve found your CDs, you can open each one and deposit your money. After that, just wait for your CDs to mature, and you can collect your earnings.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.

“}]] Read More 

Should you buy a fixer-upper in today’s market? Read on to see why it may be a move that backfires on you. [[{“value”:”

It’s not an easy time to be a first-time home buyer. Not only are home prices elevated, but mortgage lenders are charging pretty high interest rates for the privilege of financing a real estate purchase.

If you’re worried about being able to afford a home in today’s market, then you may be toying with the idea of buying a fixer-upper. Recent data from TD Bank finds that 52% of first-time home buyers are interested in a fixer-upper. But if you go this route, you may encounter these major drawbacks.

1. What you save on your purchase price, you might spend on repairs

The upside of buying a fixer-upper is that you might save a fair amount of money on your home’s purchase price compared to buying a home that’s move-in ready or otherwise in better condition. But what you save in terms of a purchase price, you might spend to get your home into decent shape. You might end up not only negating your savings, but spending more money all-in. If you’re going to purchase a home that clearly needs a lot of work, get estimates from contractors before moving forward with an official offer.

Let’s say the typical home in your target neighborhood costs $350,000, but there’s a fixer-upper on the market for $250,000. That might seem like a great deal. But if you’re given estimates totaling $130,000 to get that home into move-in condition, then suddenly, it’s clear that you’re not getting a bargain at all.

Plus, remember that it’s not so pleasant to live in a construction zone. So unless you’re looking at a lot of savings by purchasing a fixer-upper, you may want to go a different route.

2. You might incur additional costs when fixing up your home

Having work done in your home can be unpleasant due to the noise, dust, and disruption. But living in a construction zone might also make your home unusable for a period.

You may have to stay at a hotel if the work being done creates so much dust and debris that it’s not safe to occupy your home. But then you’re incurring an additional expense — and a potentially significant one at that. Similarly, if you work from home full-time but will have a week of jackhammering and noise during renovations, you’ll need to find an alternative solution. That could mean having to rent a coworking space temporarily, which is another cost.

Or, let’s say you’re buying a home whose kitchen isn’t really functional and needs a total gut job. You may end up having to dine out or order in food for weeks on end in the absence of a working kitchen. You might spend $100 or more each week on takeout compared to the cost of buying groceries.

If you decide to move forward with a fixer-upper, ask the contractors you plan to hire what sort of disruptions you can expect, to get a sense of the changes you’ll have to make and their associated costs. That way, there won’t be unwanted financial surprises.

The nice thing about buying a fixer-upper, aside from potentially saving money on your purchase, is getting a place you can put your own stamp on via making extensive renovations. But keep these pitfalls in mind before making an offer on a fixer-upper, and do your research so you don’t wind up in over your head.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

“}]] Read More 

Should you join Sam’s Club? Here are some lesser-known ways a membership can benefit you. [[{“value”:”

If you’re a fan of saving money, then it pays to consider getting yourself a Sam’s Club membership. But should you stick with a basic membership for $50 or upgrade to a Plus membership for $110?

At more than double the cost, there had better be a good reason to buy the more expensive membership, right?

Well, there is. With a Plus membership, you earn 2% cash back on your Sam’s Club purchases, up to a total of $500 a year.

But that’s not the only reason to consider a Plus membership. Here are some lesser-known benefits you can enjoy.

1. Early shopping hours

Hate crowds? Then you may not enjoy shopping at Sam’s Club if your local store tends to have a lot of foot traffic.

However, a Plus membership can potentially solve that issue, since some stores offer early shopping hours to those with the upgraded membership. Incidentally, this is a perk that Costco used to offer to people with Executive memberships but has since done away with — much to many customers’ disappointment.

But getting into Sam’s Club early isn’t just about the convenience of shorter lines and fewer shopping carts to bang into. You may also be inclined to make smarter purchasing decisions if you’re less stressed due to the store being less crowded.

If you’re seeing massive lines forming around you, you may be more apt to throw items into your cart quickly to get out of there without thinking your purchases through. If you have a more relaxed shopping experience, you can assess your individual purchases more carefully.

2. Savings on pet medication

Owning a pet can be a more expensive prospect than expected. Forget about the costs you know to plan for, like food and supplies. All it takes is for your pet to be diagnosed with an ailment or condition, and bam — consider your budget busted.

Now it’s a good idea to put pet insurance in place so you’re protected from catastrophic costs in the event that your pet needs surgery, hospitalization, or intense, ongoing treatment. But even with insurance, you could face high out-of-pocket costs for medication — especially if your pet needs medication for a pre-existing condition your insurance won’t cover.

The good news is that Sam’s Club offers a host of pet medications at affordable prices. For example, if you get your pet’s medications through Sam’s Club, you can save extra as a Plus member on formulas to prevent ticks, heartworm, and other common dog ailments.

3. Extra savings on optical purchases

Wearing glasses isn’t something most people choose. Rather, it’s an obligatory expense when you can’t see well enough on your own. But the cost of eyewear can be exorbitant, especially if you don’t have great vision insurance (or you don’t have any at all).

One good thing about the Sam’s Club Plus membership is that it gives you access to added savings on eyeglasses — namely, you can get 20% off your purchase if you’re not using insurance. There’s also no limit on that 20%, so if you need prescription glasses and sunglasses, or you want a backup pair of glasses in case your main pair breaks, you’re covered.

A Plus membership could do you a world of good

These are only some of the benefits you might enjoy with an upgraded Sam’s Club membership. So even if you’re new to the store, you may want to go all in and sign up for the Plus membership from the start. And if you’re a loyal Sam’s Club member already, you may want to upgrade your basic membership to a Plus membership to enjoy added perks.

Remember, $3,000 in annual Sam’s Club spending allows you to break even on your Plus membership upgrade, since 2% back on that sum equals the $60 extra it’ll cost you. So if you’re already in the habit of spending that much per year, or you anticipate hitting that limit in the coming year, then upgrading could make a lot of financial sense.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.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.

“}]] Read More