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A bad credit score with FICO is below 670, while a bad VantageScore credit score is below 661. FICO breaks its risk categories into the following:Poor: Below 580Below 580 Fair: 580-669580-669 Good: 670-739670-739 Very good: 740-799740-799 Excellent: 800 and aboveUnder FICO, any credit score below 670 is considered a bad credit score or a subprime credit score. What's the Difference Between Having a Bad Credit Score and No Credit Score? That's why having no credit score is, in many ways, better than having a bad credit score because you're starting from a clean slate. Bad Credit Score Frequently Asked Questions (FAQ)What goes into credit score calculations?

☆ Here's what the Federal Reserve's 25 basis point interest rate hike means for your money
▼ + stars: | 2023-02-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +7 min

The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. "Credit card interest rates are already as high as they've been in decades," said Matt Schulz, chief credit analyst at LendingTree. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. "A 0% balance transfer credit card remains one of the best weapons Americans have in the battle against credit card debt," Schulz advised. The average interest rate for a 30-year fixed-rate mortgage is now around 6.4% — up almost 3 full percentage points from 3.55% a year ago.

☆ U.S. lender Citizens stepping back from auto loans - CEO
▼ + stars: | 2023-01-30 | by ( Saeed Azhar | ) www.reuters.com time to read: +2 min

Citizens has reduced its auto loan portfolio to about $10 billion as of now from a peak of $14.5 billion in December 2021, Bruce Van Saun recently told Reuters. "We basically made a decision to move that portfolio down materially over time," Van Saun said. Van Saun said it will be brought down to $5 billion to $6 billion by 2024. "We believe that most banks recognize the growing risks in auto lending outside of the super prime segment," he said. Citizens' Van Saun said the bank is also tightening its appetite for new mortgage credit, but that move is mot as dramatic as that for auto loans.

☆ The Federal Reserve is likely to hike interest rates again. What that means for you
▼ + stars: | 2023-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

What the Fed's rate hike means for youThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. After rising at the steepest annual pace ever, the average credit card rate is now 19.9%, on average — an all-time high. Student loans Federal student loan rates are also fixed, so most borrowers won't be impacted immediately by a rate hike. Savings accounts On the upside, the interest rates on some savings accounts are higher after a run of rate hikes.

☆ Recession 2023: Jerome Powell's Legacy Will Dictate Inflation, Stock Market, Economy
▼ + stars: | 2023-01-30 | by ( William Edwards | ) www.businessinsider.com time to read: +15 min

This obsession with controlling inflation — and potentially causing serious pain for average Americans — is driven by one major factor: legacy. High inflation eats away at consumers' purchasing power, and persistent inflation seeps into expectations for price and wage adjustments, which further fuel inflation. What's more, the full impact of the Fed's rate hikes have yet to hit. Legacy actsThere are signs that certain Fed officials are ready to dial back on the inflation fight. And navigating such a tricky economy — without throwing hundreds of thousands of Americans out of work — could cement Powell's legacy.

☆ Tesla’s price war can only go so far
▼ + stars: | 2023-01-25 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

The $450 billion car company’s industry-leading profit margins give it plenty of ammo. Tesla’s fat margins mean it likely accounts for most of the profit made in the electric car industry. Either he could let demand fall further short of supply, potentially leaving Tesla’s rapidly expanding - and expensive - factories running idle. Recent reductions to Tesla's prices will help cheaper models qualify for federal tax credits, making them even more attractive. Zeroing out that profit could reduce Tesla’s implied global average selling price from $51,421 now to $38,949.

A TransUnion survey found 5.8 million people opened their first credit account in 2021, up from 5.1 million in 2020. New credit users, primarily led by Gen Z, are recovering to pre-pandemic levelsThe TransUnion survey reports that 5.8 million consumers opened their first credit account in 2021, nearly reaching pre-pandemic levels. The survey found that credit consumers generally perform at comparable levels to more established credit consumers across the nine countries surveyed. In some cases, though not in the US, new credit consumers had lower delinquency rates than older credit consumers. High interest rates can make it challenging to build a positive credit history, but you need a positive credit history to qualify for lower interest rates.

Pros and cons of Happy Money personal loans Pros No prepayment or late fees. You'll have to borrow at least $5,000 with a Happy Money loan, which is more than other competitors require. You'll have to borrow at least $5,000 with a Happy Money loan, which is more than other competitors require. 640 Editor's rating 4.25/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Regular Annual Percentage Rate (APR) Fixed rates from 7.99% APR to 23.43% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. See our ratings methodology for personal loans »How to apply for a Happy Money personal loan1.

☆ The U.S. hit the debt ceiling — here's what that means for your money
▼ + stars: | 2023-01-21 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

The U.S. hit the debt ceiling on Thursday, which forced the Treasury Department to begin taking so-called "extraordinary measures" to continue paying the government's bills. Read on for the answers to the most relevant questions about the debt ceiling, and why, as a long-term investor, you shouldn't be paying too much attention to the headlines. Remind me — what's the debt ceiling again? Where does the debt ceiling stand now? Aside from stock market volatility, you'd see ramifications across the economy.

☆ Ally Is Racing to Outrun Auto-Loan Losses
▼ + stars: | 2023-01-20 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

More borrowers are likely to hit the skids on their car loans this year. But that doesn’t necessarily mean the end of the road for auto lenders. Ally Financial , one of the U.S.’s major auto finance providers, said on Friday in its fourth-quarter earnings report that it expects its net charge-off rate on retail auto loans to rise this year. Ally anticipates an annualized net charge-off rate of 2.2% in retail auto lending in the fourth quarter of 2023, versus 1.7% in the fourth quarter of 2022. Its fourth-quarter average was just 1.6% in the couple of years before the pandemic.

☆ Hitting your own 'debt ceiling': What a maxed-out card does to your credit score
▼ + stars: | 2023-01-19 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

Hitting your own "debt ceiling" or reaching the spending limit on your credit cards can cause trouble for your personal finances. A good credit score can help you qualify for and receive better rates on mortgages, auto loans and more. Credit utilization is one of the five factors that make up your credit score, and understanding how it works can help you improve yours. Your credit utilization rate is the percentage of credit you are using relative to the credit available to you. So if you max out your credit cards, your credit utilization rate would be closer to 100%, well above the expert-recommended 30% maximum for healthy credit.

☆ Lack of financial literacy cost 15% of adults at least $10,000 in 2022. Here's how the rest fared
▼ + stars: | 2023-01-19 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

A report from the National Financial Educators Council shows that 38% of individuals in a recent survey said their lack of financial literacy cost them at least $500 in 2022, including 15% who said it set them back by $10,000 or more. The majority (68%) of respondents said poor financial literacy cost them somewhere from zero to $499. For instance, adults correctly answered, on average, 50% of the 28 basic money questions in the 2022 TIAA Institute-GFLEC Personal Finance index, the sixth annual barometer of financial literacy. Financial literacy is 'a key tool in the toolkit'Advocates of financial literacy say the teaching needs to start before teens reach their high school graduation. "There's good data showing people make better decisions when they have financial literacy," said Nan Morrison, CEE president and CEO.

☆ Wells Fargo might owe you money—here's how to get it
▼ + stars: | 2023-01-19 | by ( Mike Winters | ) www.cnbc.com time to read: +1 min

If you had a Wells Fargo account between 2011 and 2022, you might be one of the 16 million customers who qualify for damages, says the Consumer Financial Protection Bureau (CFPB). As part of a $3.7 billion settlement, Wells Fargo has agreed to pay more than $2 billion directly to customers harmed by "illegal activity," ranging from incorrect overdraft fees to wrongful foreclosures, according to the CFPB. Wells Fargo customers who might be affected include those with car loans, mortgages or bank accounts. For bank account holders, some were incorrectly charged overdraft fees on debit and ATM withdrawals, as well as having money unfairly "frozen" if Wells Fargo suspected a single deposit was fraudulent. The total amount of damages owed to each affected customer will vary, according to numbers provided by the CFPB.

☆ Carvana adopts 'poison pill', sells $4 billion of auto loans
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +1 min

Companies Carvana Co FollowJan 17 (Reuters) - Carvana Co (CVNA.N) has adopted a "poison pill" to limit shareholders from raising their stakes and has reached an agreement to sell up to $4 billion of auto loans, the struggling used car retailer said on Tuesday. Carvana said the "poison pill" will help safeguard its "significant" U.S. federal net operating loss (NOLs) that could be available to offset its future taxable income. The company's ability to use the NOLs would be substantially limited if its 5%-shareholders increased their ownership, Carvana said. Companies with large NOLs often adopt poison pills to enable them to cut their tax bill. Poison pills are also adopted to ward off hostile takeovers.

DAVOS, Switzerland, Jan 16 (Reuters) - SkyBridge Capital is betting on a sustained turnaround in cryptocurrency markets in 2023, the firm's founder Anthony Scaramucci said, while admitting this view was "overly bullish". "If bitcoin could trade back to $35,000, SkyBridge is going to have an amazing year," Scaramucci told the Reuters Global Markets Forum in Davos, Switzerland. Bitcoin is trading at around $20,800, a 26% gain so far this year after falling by more than 64% in 2022. SkyBridge has invested in bitcoin, ethereum , solana and altcoin algorand , and is also eyeing the structured credit market to drive 2023 returns after the firm's losses in 2022. "Structured credit, mortgage-backed securities, credit card debt, auto loans -- that's an attractive space again," Scaramucci said.

☆ Wells Fargo's solid 4Q and planned share buybacks support our thesis for the stock, as shares climb
▼ + stars: | 2023-01-13 | by ( Zev Fima | ) www.cnbc.com time to read: +10 min

Sequentially, the biggest driver was higher interest rates, as well as a benefit from higher loan balances and lower mortgage-backed securities premium amortization. Key company metrics Net interest income: $13.43 billion, up 11% quarter-over-quarter and 45% year-over-year, outpacing analysts' forecasts of $12.99 billion. Net interest margin: 3.14%, compared with 2.11% during the same period a year prior, and above the consensus estimate of 3.02%. Within consumer lending, home lending was down 57% from last year, while credit card revenue increased 6% over last year. Noninterest expenses increased 4% year-over-year but were down 3% sequentially, with the annual increase resulting from higher operating costs and salary expenses.

☆ Premaket stocks: Auto sales are falling — but profits are surging. Welcome to the new normal
▼ + stars: | 2023-01-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —The US auto industry just posted its worst sales in more than a decade — but that’s not necessarily a bad sign for the sector. What’s happening: 2022 was the worst year in more than a decade for the auto industry, largely because manufacturers couldn’t keep up with consumer demand. To put that into historical perspective, auto sales topped 17 million each year between 2015 and 2019, before Covid. But the auto industry saw sky-high profits even as sales plummeted. The auto industry has entered a new era: Less choice, higher prices and larger profit margins.

☆ Premarket stocks: Bruised tech investors are hedging their bets
▼ + stars: | 2023-01-10 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN —There are two certainties in today’s market: The tech sector has been beaten down and interest rates are higher. What’s happening: Investors are purchasing put options, a bearish bet that a stock will fall during a set period of time, on certain tech stocks at historic rates. The losses also created a booming market for investors who hold put option contracts that allow investors to sell shares of these stocks at a price higher than their current levels. Rising interest rates also dried up the easy money tech companies relied on to fuel big bets on future innovations, and cut into their sky-high valuations. Beyond that, the growing number of layoffs may also give certain tech companies some cover to take more severe steps to trim costs now than they may have otherwise done.

☆ US consumers increased their borrowing by $28 billion in November
▼ + stars: | 2023-01-09 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —US consumers’ credit-hungry approach to spending continued in November, with borrowing rising by nearly $28 billion, according to Federal Reserve data released Monday. Revolving credit, which includes mostly credit cards, grew by 16.9%. It’s the largest jump in revolving credit seen in three months and the fifth-largest monthly increase in Fed record-keeping that goes back nearly 55 years. “It’s really revolving credit, mostly credit card debt, that’s carrying the day right now,” Rossman said. That has filtered down to historically high, if not record, interest rates for car loans, credit cards and personal loans.

Pros and cons of Digital Federal auto loansPros New, used, and auto refinancing available . Apply for a loan On Myautoloan.com's website Apply for a loan On Upstart's websiteWho is Digital Federal best for? Digital Federal is best for borrowers with energy-efficient cars, as the credit union offers discounts on loans for them. How Digital Federal auto loans compareHow Digital Federal auto loans compare DCU Auto LoanNavy Federal Auto LoansHuntington Auto Loan Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. No minimum Apply for a loan On Digital Federal Credit Union's website Apply for a loan On Navy Federal Credit Union's website Apply for a loan On Huntington's websiteBoth Digital Federal and Navy Federal require borrowers to be members to take out a loan.

Today, there are 54 Hispanic American banks and credit unions that are FDIC or NCUA insured around the US. We selected Hispanic American-owned credit unions from the National Credit Union Administration's list of minority depository institutions which was also updated in September 2022. In our list of Hispanic American-owned banks and credit unions, many of the institutions listed offer customer support in Spanish and English. You can open up savings accounts, checking accounts, CDs, and money market accounts in most of the institutions listed. To help you learn more about a specific Hispanic American-owned bank or credit union, we've included links to reviews of individual institutions.

☆ Michigan Democratic Senator Stabenow will not seek re-election in 2024
▼ + stars: | 2023-01-05 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

Senator Debbie Stabenow (D-MI) listens during a Senate Finance Commmittee hearing on President Biden's 2023 budget, on Capitol Hill in Washington, U.S., June 7, 2022. REUTERS/Evelyn Hockstein/File PhotoWASHINGTON, Jan 5 (Reuters) - Michigan Senator Debbie Stabenow, the chair of the agriculture committee and a key lawmaker on electric vehicle and cryptocurrency policy, said on Thursday she will not seek re-election in 2024. Democrats currently control the Senate by a narrow 51-49 majority but must defend 23 seats in the 2024 election - including seats of three independents who caucus with Democrats - while Republicans have 10 seats to defend. The current $428 billion farm bill expires on Sept. 30. About 75% of farm bill funds go toward anti-hunger programs including the Supplemental Nutrition Assistance Program (SNAP), also called food stamps.

☆ Wall Street analyst calls on Thursday including Tesla & Amazon
▼ + stars: | 2023-01-05 | by ( Michael Bloom | ) www.cnbc.com time to read: +9 min

Barclays names Starbucks a top 2023 pick Barclays said the coffee giant is a "best-in-class" stock for 2023. UBS names Chipotle a top 2023 pick UBS said the Mexican chain restaurant is defensive in a "tough macro." Bank of America downgrades PNC to underperform from neutral Bank of America said shares of PNC are trading at a premium. Bank of America downgrades Ally Financial to underperform from buy Bank of America said Ally is most exposed to auto loans. Bank of America reiterates Amazon as buy Bank of America said Amazon layoffs are "not a positive signal, but good for sentiment."

Depending on the loan type, lenders can repossess collateral or get repayment through other options. In other words, failing to keep up your end of a loan agreement can eventually push your loan into default. Even a short reprieve might give you enough time to get back on track with your loan payments. Loan type Standard amount of time until loan considered default Standard amount of time until nonpayment reported to credit bureaus Student loan 270 days 90 days Auto loan 30 days 30 days Personal loan 30 days 30 days Mortgage 30 days 30 daysQuick tip: The specific timeline of defaulting on a loan can vary based on the lender. As your default period stretches out, you may also rack up thousands of dollars in unpaid interest.

☆ Share of new car buyers with a monthly payment of more than $1,000 hits record high
▼ + stars: | 2023-01-04 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Amid rising interest rates and elevated auto prices, the share of new car buyers with a monthly payment of more than $1,000 jumped to a record high, according to Edmunds. At the same time, the interest rate on new car loans reached 6.5%, up from 4.1% a year earlier, Edmunds data shows. As the Federal Reserve continues to raise interest rates to combat persisting inflation, auto loan rates could tick even higher, although consumers with higher credit scores may be able to secure better loan terms. Now, more consumers face monthly payments that they likely cannot afford, according to Ivan Drury, Edmunds' director of insights. Car buyers are hit with "shock and awe" as high prices and rising rates cause monthly payments to balloon, he said.

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