Some newer versions of credit scoring calculations don’t consider debt collections under $100 and don’t ding you as much for medical debt collections. Even so, these blemishes can follow you around for years, hurting your ability to get approved for new credit cards, loans, and other credit-based services. Thankfully, debt collections won’t be on your credit report forever. The Fair Credit Reporting Act requires that debt collections fall off your credit report after seven years....

Lenders occasionally offer to increase your credit limit out of the blue. You might think it’s a trap (why wouldn’t you want a higher limit?), but in some cases, there’s no catch. Especially if you have good credit and you always pay on time, the offer might be worth accepting. Credit Limit Increases Can Help Credit Scores If a lender offers to increase your credit limit, that’s a good sign....

The Federal Reserve Board raises the federal funds rate to combat inflation. Here’s what you need to know about interest rates, when the Fed will raise them, and how your finances will be affected. What Interest Rate Hikes Mean for You Rising interest rates increase the cost of credit cards, loans, and mortgages. They also raise the interest you can earn on savings accounts and certificates of deposit (CDs). When the Fed decided to raise the federal funds rate, the stock market fell and borrowing money became more expensive for both businesses and consumers....

Most people keep their money at an online or brick-and-mortar bank or credit union. It’s common to have a checking account and a separate savings account to manage long-term financial goals. Some people don’t believe in banks and keep their money at home. Types of Banks Available A traditional brick-and-mortar bank that is well-known might be your first choice if you don’t yet have a bank account or are thinking about switching banks....

Asking the right questions can help you decide which path to take when working toward your investment goals. For instance, are you a risk-taker, or are you averse to risk? Are you looking for long-term growth or fast gains? Are you planning to be a do-it-yourself investor, invest through a robo-advisor, or hire an advisor? This kind of reflection can help you match your needs to your investing style. With that in mind, here are eight ways to invest, each with a special focus....

Learn how the Federal Reserve works, who actually owns it, and how they are held accountable. Who Owns the Federal Reserve? The Federal Reserve is an independent entity established by the Federal Reserve Act of 1913. At that time, President Woodrow Wilson wanted a government-appointed central board, but Congress wanted the Fed to have 12 regional banks to represent America’s diverse regions. The compromise meant that the Fed has both....

Budgeting for the Stay-at-Home Parent Whether you’re the primary breadwinner or supplementing the income of your partner, when you lose one income, you’ll have less money to pay the same number of bills. This means you have to allocate your monthly income more efficiently as a stay-at-home parent. Establishing a budget—a monthly plan for how to spend your money—will help you determine whether you will have enough to cover your expenses....

Retail sales jumped 1.0% in June from May, according to Friday’s report from the Commerce Department. The number was higher than expected, as analysts had forecasted an increase of 0.9%. It was also a big improvement over May’s figures, when retail sales dropped by 0.1%. The 9.1% inflation jump in June and fear of a potential recession didn’t stop Americans from opening their wallets last month. They spent more at furniture and home stores, as well as on catalog sales and online shopping....

“People should take advantage of it and hurry, because it expires in 30 days,” said Mark Steber, chief tax officer at Jackson Hewitt. “This is a benefit most people can take because, I would say, north of 80% to 90% of people take the standard deduction.” Up to $300 in cash contributions made to qualifying tax-exempt organizations can be deducted if taxpayers are taking the standard deduction on their returns....

1. Mutual Fund A mutual fund is a type of security that enables investors to pool their money together into one professionally managed investment. Mutual funds can invest in stocks, bonds, cash, and/or other assets. These underlying security types, called “holdings,” combine to form one mutual fund, also called a “portfolio.” Now for the simple explanation: Mutual funds can be considered baskets of investments. Each basket holds dozens or hundreds of security types, such as stocks or bonds....

There are many books out there on taking control of your finances, from how to get out of debt to how to build an investment portfolio. Books offer a great way to change your approach to managing money. To boost your savings, you can buy used financial books online or borrow them for free at your local library. Consider audiobooks if you would rather receive the advice by ear. To start, write down your income and all your expenses, and then subtract the expenses from the income to determine your discretionary spending....

Ten percent of U.S. adults do not have a savings or checking account at a bank or credit union and qualify as “unbanked,” data from a new poll by Morning Consult showed, and of those, half—or 5% of adults—report that no one in their household has an account. This roughly matches findings from a June 2019 study by the Federal Deposit Insurance Corp., which showed 5.4% of households in the U....

If you’re looking for reasons to maintain your good credit, here are some great benefits to consider. At a minimum, you might have to pay extra on your contract until you’ve established yourself with the provider. People with good credit avoid paying a security deposit and may receive a discounted purchase price on the latest phones by signing a contract. Security deposits are sometimes $100 to $200 and a huge inconvenience when you’re relocating....

The Basics Trading stocks: You hear that phrase all the time, although it is wrong—you don’t trade stocks like baseball cards. (“I’ll trade you 100 IBMs for 100 Intels.”) To “trade” means to buy and sell in the jargon of the financial markets. How a system that can accommodate one billion shares trading in a single day works is a mystery to most people. No doubt, our financial markets are marvels of technological efficiency....

How E-Commerce Works E-commerce is a way for businesses and consumers to sell and purchase products online. Instead of marketing products to a local demographic around a brick-and-mortar store, the potential customer base is much larger and can potentially be located anywhere there is internet. There are four different types of e-commerce: business-to-consumer (B2C), business-to-business (B2B), consumer-to-business (C2B), and consumer-to-consumer (C2C). In general, people think of business-to-consumer (B2C) transactions when they think about e-commerce....

As an educator, Amilcar has taught cryptocurrency at Cornell University, the Massachusetts Institute of Technology (MIT), and the Wharton School of the University of Pennsylvania. Prior to founding FinTech School, Amilcar was the co-founder and CEO of FundPaaS, a funding platform as a service servicing SMBs and holder of one of the few equity crowdfunding licenses in the US. Amilcar has also run a boutique management consulting firm focused on financial innovation which led a major fintech player to launch the world’s first wealth management cloud, a robust set of apps and APIs that power robo advisors and Digital Wealth Management Platforms....

Rather than paying employees time and a half in overtime pay, a company that operates a comp time policy gives paid time off from work, for the amount of time equivalent to the extra hours worked. Who is Eligible for Comp Time The laws surrounding compensatory time vary between exempt and nonexempt employees, federal and state law, and whether the employee is a public- or private-sector employee. Employees are considered either exempt or nonexempt based on their job duties and responsibilities....

What to Consider Before You Apply Although no one answer fits all candidates and all situations, there is some general advice worth considering before you start applying for jobs that may not be a strong match for your qualifications. You Don’t Know Who Else Applied Candidates can never know who the competition is for a particular position. Employers share the ideal qualifications in job postings, but don’t always receive applications from people who meet all the requirements....

During a bubble, investors continue to bid up the price of an asset beyond any real, sustainable value. Eventually, the bubble “bursts” when prices crash and demand falls. The outcomes are often reduced business and household spending and a potential decline in the economy. Understanding the causes and historical trends of asset bubbles can keep you from contributing and falling victim to a future one. Causes of an Asset Bubble Three chief conditions contribute to irrational exuberance and subsequent asset inflation:...

With so many retirement calculators to choose from, one of them may lead you to believe that you will have thousands more in retirement income, while another may say that you’re likely to run out of money. Choosing Your Calculator How do you know which retirement calculator you should use? It depends on a few factors, including your life phase and how complex your situation is. In the scorecard shown below, nine calculators were surveyed, and three main criteria exist for the rankings: accuracy, usability, and education....