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☆ Credit Card Balances Hit New Peak
▼ + stars: | 2023-08-18 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

The average interest rate charged on cards that carry balances was about 22 percent in May, the New York Fed reported, while second-quarter data from the credit bureau TransUnion found the average card debt per borrower was almost $6,000. He recommended tallying up how many cards you have and noting both their balances and the interest rate you are paying. There are two popular strategies for paying down credit card debt. After you pay off a credit card, it can help your credit score to leave the account open while minimally using it. The more unused credit you have, the better the effect on your credit score.

Persons: TransUnion, Ted Rossman, Alvarado Organizations: New York Fed, Bankrate

☆ Homeowners are tapping into home equity to get cash
▼ + stars: | 2023-08-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

That means homeowners are now collectively sitting on nearly $30 trillion in home equity, according to the St. Louis Federal Reserve. Other reasons that borrowers gave for taking out a HELOC or home equity loan included debt consolidation and emergency cash management. Hidden source of valueA homeowner’s equity in their home can be a tremendous source of wealth. A homeowner’s equity will fluctuate over time as they make payments on their mortgage and real estate market dynamics impact the current value of the home. Mortgage balances stay high because of home equity loansNationally, mortgage balances remain near record highs as some people turn to home equity loans, rather than HELOCs, according to a quarterly report from TransUnion.

Persons: ”, Marina Walsh, ” Walsh, HELOC originations, Joe Mellman, Freddie Mac, Mellman Organizations: DC CNN, Louis Federal Reserve, Equity Lines of, Mortgage, Association, TransUnion, “, refinances Locations: Washington, originations, U.S

☆ US watchdog to announce plans to regulate 'surveillance industry'
▼ + stars: | 2023-08-15 | by ( ) www.reuters.com time to read: +2 min

Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File PhotoAug 15 (Reuters) - The top U.S. agency for consumer financial protection will announce plans at the White House on Tuesday to regulate companies that track and sell people's personal data, part of the Biden administration's widening scrutiny of that industry's privacy practices, officials said. "The CFPB will be taking steps to ensure that modern-day data brokers in the surveillance industry know that they cannot engage in illegal collection and sharing of our data," he said in a statement. President Joe Biden last year called on the U.S. Federal Trade Commission (FTC) to help protect the data privacy of women seeking reproductive healthcare who may face law enforcement action in some states. The CFPB in March opened a public inquiry into the conduct of companies like credit bureaus and background screening firms.

Persons: Andrew Kelly, Biden, Rohit Chopra, Joe Biden, CFPB, Douglas Gillison Organizations: Consumer Financial Protection Bureau, Washington , D.C, REUTERS, U.S, White, U.S . Consumer Financial, Bureau, U.S . Federal Trade Commission, FTC, Fair, Thomson Locations: Washington ,, Idaho

☆ US FTC fines Experian unit for spamming consumers
▼ + stars: | 2023-08-14 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

Experian logo is seen on a smartphone in front of displayed stock graph in this illustration taken, December 1, 2021. The accord also requires it to stop sending marketing emails that lack an opt-out mechanism. In a statement, Experian said its marketing emails now include an "Email Preferences Center" that goes beyond the changes sought by the FTC. "Although we disagree with the FTC's allegations, the agreement allows us to move forward and continue to focus on serving consumers the best way possible," Experian said. The case is U.S. v. ConsumerInfo.com Inc, U.S. District Court, Central District of California, No.

Persons: Dado Ruvic, ConsumerInfo.com, Samuel Levine, Experian, Jonathan Stempel, Richard Chang Organizations: REUTERS, Federal Trade Commission, FTC, Experian Consumer Services, ConsumerInfo.com Inc, Court, District of, Thomson Locations: Costa Mesa , California, California, Los Angeles, District, District of California, New York

☆ Here are 3 reasons you can’t stop comparing yourself financially to others, says bestselling author
▼ + stars: | 2023-08-14 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +3 min

Easy access to credit Readily available lines of credit may encourage consumers to live up to standards that are not economically feasible, said Thakor. Credit card balances are up almost 20% from a year ago, according to a quarterly credit industry insights report from TransUnion. Social media "Social media puts everything on steroids," said Thakor. People who consume social media are often exposed to content that shows images of people they may know, or from influencers, that make them feel, quite often, inadequate. Remember that social media can be misleading "The bottom line is we are inundated with misinformation around how people become wealthy and how wealthy people spend their money," he said.

Persons: Jennifer Aniston, Rachel Green, Matt LeBlanc, Joey Tribbiani, David Schwimmer, Ross Geller, Lisa Kudrow, Phoebe Buffay, Hannigan, Matthew Perry, Chandler Bing, Courteney Cox, Monica Geller, Bing, Thakor, They've, Credit Karma, Bradley T, Klontz, Juan Algar Organizations: NBCU, Credit, YMW Advisors, CNBC Locations: New York, TransUnion, influencers, Boulder , Colorado

☆ Average consumer carries $5,947 in credit card debt — a 10-year high
▼ + stars: | 2023-08-10 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

On the heels of another rate hike last month by the Federal Reserve, the average credit card rate is now more than 20% on average, an all-time high. "People aren't financing purchases at 20% because they have other options," said Greg McBride, chief financial analyst at Bankrate. "As a result, they are tapping into these available credit products to help them cope with rising expenses." As the number of credit card accounts in the U.S. rose, delinquencies notched higher, the report said. How to tackle high-interest credit card debtkrisanapong detraphiphat | Moment | Getty Images

Persons: John Sedunov, Greg McBride, Sedunov, Gen, TransUnion, Michele Raneri, Raneri Organizations: New York Fed, Villanova University's School of Business, Federal Reserve, Bankrate, TransUnion Locations: U.S

Digital Federal Credit Union Credit Builder Loan 4.1 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Learn moreDigital Federal Credit Union Credit Builder Loan 4.1 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Origination Fee $0 Regular Annual Percentage Rate (APR) 5.00% View Full Details Learn more Compare optionsDigital Federal Credit Union Credit Builder Loan Learn more Compare options Details Regular Annual Percentage Rate (APR) 5.00% Origination Fee $0 Editor's Rating 4.1 /5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.1 out of 5 Stars Pros & Cons Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. More Information The information related to Digital Credit Union Credit Builder Loan has been collected by Business Insider and has not been reviewed by the issuer. Read our review Read Our Review A looong arrow, pointing rightAs the name suggests, a credit builder loan can help you build credit and improve your financial standing. How the DCU Credit Builder Loan WorksDCU offers credit builder loans from $500 to $3,000, with loan terms between 12 and 24 months. DCU Credit Builder Loan Pros and ConsDCU's credit builder loan is much less costly than many alternatives, but you'll have to jump through some hoops to become eligible.

Persons: it's, you'll, there's Organizations: Federal Credit Union, DCU, Digital Credit Union, Business, Reading Chevron, DCU doesn't, Better, Loan, Social Locations: New England, Marlborough , Massachusetts, Massachusetts, New Hampshire

☆ Over half of student loan borrowers racked up credit card debt during the payment pause—now experts worry about 'shock'
▼ + stars: | 2023-08-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Federal student loan borrowers have had a break from paying back their student loans for over three years now. Over 50% of borrowers added debt on regular credit cards during the student loan payment pause and another 31% racked up balances on retail cards, a recent TransUnion analysis found. Here's what's coming for student loan borrowers this fall. "Then you tack on $300 [student debt payment] for the average consumer and that's a pretty significant payment shock," she says. How to lower your student loan payment

Persons: Here's, Grace, Biden, they've, Liz Pagel, Pagel, they're Organizations: CNBC

See our picks for the best personal loans for bad credit >>Steps to get a loan with bad credit1. Get your most recent credit scoreIt's one thing to suspect you have bad credit, and another to know exactly how bad it is. Consider a credit unionCredit unions are a great option for those looking to get a loan with bad credit. Where to get a personal loan with bad creditYou can get a personal loan with bad credit from many banks, credit unions, and online lenders. How to get a loan with bad credit FAQsIs there really a way to get a loan with bad credit?

Persons: It's, it's, We've, Jamie Young, Young, Priyanka Prakash, Prakash, Nathalie Noisette, Experian, Holly Johnson, Johnson, Banks, Josh Goodwin, Eric Rosenberg, you'll Organizations: Service, you'll, Credit, Companies, Business, Goodwin Mortgage Group, National Credit Union Administration, Chevron Locations: Wall, Silicon

☆ How to Build Credit Without a Credit Card
▼ + stars: | 2023-07-31 | by ( Emily Sherman | ) www.wsj.com time to read: +11 min

The problem: The best way to build your credit score is to make regular payments on your credit card — and often you can’t get a credit card until you already have a good credit score. Become an authorized userThe fastest and easiest way to build your credit score — if it’s an option for you — is for a family member or friend with a good credit to add you as an authorized user to their credit card. Once a cardholder adds you to their account, you’ll get your own credit card, earn rewards (if applicable) and get credit for on-time payments and a credit utilization ratio. Get a secured credit cardIf you don’t have any of the loans listed here or find you need another option for building credit, a credit card is still an option. Specifically designed for those just getting started building credit, secured credit cards use a deposit as collateral to reduce risk, so even those with poor credit can qualify.

Persons: Emily Sherman, ”, Emily Irwin, Wells, Irwin, you’ll, doesn’t, it’ll, Freddie Huynh, isn’t, Huynh, Kenneth Chavis, You’re, “ Organizations: Debt, Experian, Versant Capital Management, Digital Federal Credit Union Locations: Wells Fargo, Minneapolis, It’s, Phoenix

International credit scores generally do not transfer to credit scores in the US. Nova Credit allows immigrants from some countries to apply for credit with an international credit score. FICO VantageScore Payment history (35%) Payment history (40%) Credit balance (30%) Length & type of credit (21%) Length of credit history (15%) Percent of credit used (20%) New credit (10%) Total debt/balances (11%) Mix of credit accounts (10%) Recent credit behavior and inquiries (5%) Available credit (3%)How credit scores work internationallyOther countries have a credit scoring system that differs from the United States. Alternatively, you can use credit builder products like a secured credit card or credit builder loan, which don't require high credit scores to qualify. Transferring international credit scores frequently asked questionsWhat happens to my credit score if I move to another country?

Persons: Misha Esipov, TransUnion, you've Organizations: Nova Credit, Nova Credit's, American Express Locations: United States, America, Canada, Japan, Nova, Australia, Brazil, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Spain, Switzerland, Chevron

☆ Interest rates just went up again: What the latest Fed move means for you
▼ + stars: | 2023-07-26 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

And the Fed’s preferred inflation measure — the core Personal Consumption Expenditures Index — inched down to 4.6% in its latest reading. Credit cards remain very expensiveWhen Fed rates go up, so do credit card rates. So it’s not surprising that card rates in the past year have been trending at around 20-year highs. As of July 19, the average credit card interest rate is 20.44%, down slightly from the 20.58% recorded the week before, according to Bankrate.com. Second-quarter data from the Fed shows the average rate for them is 22.16%.

Persons: ”, Greg McBride, Michele Raneri, you’ll, it’s, Matt Schulz, Cardholders, Freddie Mac, they’d, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, Consumer, JPMorgan Chase, Bank of America, Fed, LendingTree Locations: New York

☆ The Student Loan ‘Payment Shock’
▼ + stars: | 2023-07-22 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/student-loan-payments-transunion-report-student-debt-biden-administration-c9923d

Persons: Dow Jones Organizations: biden

☆ Junk fees, medical debt and artificial intelligence: CFPB chief lays out regulatory agenda
▼ + stars: | 2023-07-20 | by ( Chelsey Cox | ) www.cnbc.com time to read: +5 min

Medical debtChopra said that tens of millions of Americans are battling medical debt. The crisis is compounded by debt collectors that add medical debt to credit reports as a means of coercion. The agency's crackdown on junk fees has prompted some policy changes at big banks, he added. "Many of them are getting rid of their reliance on junk fees and making their fees much more reasonable," Chopra said. Rep. Blaine Luetkemeyer, R-Mo., has said the CFPB has "no authority" on the issue because junk fees is not a legal term.

Persons: Rohit Chopra, Tom Williams, Andy Barr, Chopra, servicers, We're, Experian, Blaine Luetkemeyer, Luetkemeyer Organizations: Consumer Financial Protection, Banking, Housing, Urban Affairs, Cq, Inc, Getty, Consumer Financial, Bureau, Federal Reserve, Governors, CNBC, Education Department, U.S, Kaiser Family Foundation, Bank of America, Biden, GOP, Rep, Financial Services Locations: Ky

☆ Some student-loan borrowers could be facing payments of over $500 this fall, a new study says — and they'll probably have to dip into their savings to afford it
▼ + stars: | 2023-07-19 | by ( Ayelet Sheffey | Noah Sheidlower | ) www.businessinsider.com time to read: +5 min

At the end of June, the Supreme Court struck down President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers. To attempt to mitigate the shock of the payment resumption, the Education Department at the end of June announced a series of temporary safeguards. Once repayment starts, those high-income borrowers may have to use those savings to pay the new student loan bills. Zhou said borrowers making less than $250,000 a year cannot support their total spending with the student loan payments. This means nearly all student debt holders will need to adjust their spending behaviors when payments resume.

Persons: TransUnion, Joe Biden's, Biden, Liz Pagel, we're, Anna Zhou, Zhou Organizations: Service, Education Department, UBS, Bank of America Institute, Bank of America, Consumers Locations: Wall, Silicon

Certain forms of identity theft, like synthetic identity theft or child identity theft, are harder to detect. You can also enroll in an identity theft protection service that can monitor the dark web for your information and provide identity theft insurance, usually up to $1 million. The best identity theft protection services will also provide you with personalized expert assistance if you experience more identity theft. While credit-related identity theft is more common, "identity theft can occur in other areas, including medical records, tax filings, social media accounts, employment history, and even criminal records," says Josh Amishav, founder and CEO of Breachsense, a data breach monitoring platform. Identity theft recovery frequently asked questionsCan you fully recover from identity theft?

Persons: you'll, David Burroughs, IdentityTheft.gov, You'll, Burroughs, you've, Equifax, Allen, Michael Bruemmer, haven't, Josh Amishav Organizations: FTC, Federal Trade Commission, Social, FBI, Social Security, Services, Social Security Administration Locations: AnnualCreditReport.com, Atlanta, Allen , TX, Chester ,

Medical debt can affect your credit score, but its been deprioritized by the credit industry. While FICO has lessened the weight of medical debt on your credit score, VantageScore completely removed medical debt from its calculations. How to improve your credit after medical debtWhile unpaid medical debt doesn't have the same impact on your credit score as an unpaid credit card bill, it can impact your credit nonetheless. Once you transfer that debt to your credit card, those protections you and your credit score have against medical debt no longer apply. Medical debt frequently asked questionsIs medical debt being removed from credit reports?

Persons: FICO, VantageScore, —, doesn't, Experian, Tiffany Cross, Rick Eicheldinger, You'll, Cross Organizations: Service, Consumer Financial Protection Bureau, Kaiser Family Foundation Locations: United States

You can enroll in an identity theft protection service so you don't fall victim to theft. There are many companies out there that solely focus on identity protection — you can read our guide to the best identity theft protection services — but you may be able to enroll in an identity theft protection service through your credit card provider. Pros Check mark icon A check mark. Covers up to 10 children under 18 at no extra cost Check mark icon A check mark. With services comparable to some of the best identity theft protection services at a competitive price, this is an appealing option to Discover cardholders.

Persons: Capital One's CreditWise, David McMillin David McMillin, Guy, David, he's Organizations: Social, Federal Trade Commission, Research, Express, American Express, Chase, Credit, Business, Capital, Mastercard, Theft Locations: cardholders, Experian, AnnualCreditReport.com, Chicago, Alaska , Utah , Oklahoma, Vermont

☆ The Best Debit Cards for Kids and Teens
▼ + stars: | 2023-07-02 | by ( Kerri Anne Renzulli | ) www.wsj.com time to read: +15 min

Banks, credit unions, financial technology companies and even investment firms all offer debit cards geared toward under 18-year-olds. With Greenlight, children receive a physical debit card with their name on it. In addition to its abundance of customizable features, Greenlight also rises above other kids debit cards thanks to the educational tools and games included in its app. This is possible because the Step Visa Card is not technically a debit card, though it functions very similarly. How we pickedTo pick Buy Side from WSJ’s Best Debit Cards for Kids and Teens, we looked at card options available to those under the age of 18, including prepaid debit cards, checking account-linked debit cards, secured credit cards and brokerage account-linked debit cards.

Persons: Kerri Anne Renzulli, they’ve, Banks, we’ve, Greenlight, Chase, it’s, Side’s, —, Equifax, Roth Organizations: Community Federal Savings Bank, Capital, Teens, Chase, Teen, Fidelity, Learning, Kids

☆ India’s push to democratise credit tests limits
▼ + stars: | 2023-06-30 | by ( Shritama Bose | ) www.reuters.com time to read: +4 min

Yet barely half of them have active loans and only up to 10% have a credit card. That’s why the regulator is allowing the use of RuPay credit cards, the country’s low-cost answer to Mastercard (MA.N) and Visa (V.N), for UPI payments. Earlier, in June 2022, the central bank had allowed lenders to link RuPay credit cards to UPI accounts. HDFC Bank became the first private bank to go live on UPI with RuPay credit cards in February. Paytm tied up with SBI Cards and Payment Services in May to issue RuPay credit cards to its consumers via UPI, offering cashbacks on small-value payments.

Persons: It’s, Paytm, –, Bernstein, Una Galani, Pranav Kiran, Thomas Shum Organizations: Reuters, UPI, Google, Reuters Graphics Reuters, Mastercard, Visa, Merchants, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Punjab National Bank, One97 Communications, Reserve Bank, Tiger, Uni, “, Reserve Bank of India, SBI Cards, Services, Thomson Locations: MUMBAI, India, Punjab

A Social Security number (SSN) allows the government and other entities to track personal information like employment history, tax contributions, and Social Security benefits. Qualifying reasons for new social security numberThe SSA outlines legitimate reasons to request a new Social Security number. Drawbacks of changing your Social Security numberA Social Security number change doesn't erase your financial history. New Social Security number frequently asked questionsCan you get a new Social Security number if your identity is stolen? Knowingly maintaining two Social Security numbers can result in a Social Security fraud charge, which can result in a maximum of five years in prison.

Persons: Nilsa Henriquez, Henriquez, —, TransUnion, It's, you've Organizations: Social Security, Social, SSA, Social Security Administration, New Social

Our experts answer readers' credit card questions and write unbiased product reviews (here's how we assess credit cards). Credit card usage is on the rise as inflation lingers and consumers lean on credit to make ends meet. In response to this increased usage, credit card issuers are stepping up their offerings in anticipation of increased originations. Before you add a credit card to your wallet, ask yourself these questions to make sure a credit card is right for you. Credit card debt can be the most expensive debt that you carry.

Persons: —, TransUnion, delinquencies Organizations: Service, Federal Reserve Bank of New Locations: Federal Reserve Bank of New York

☆ What Is a Jumbo Mortgage, and How Do You Get the Best Rates?
▼ + stars: | 2023-06-21 | by ( Beth Decarbo | ) www.wsj.com time to read: +9 min

What is a jumbo mortgage? Do jumbo loans come with jumbo mortgage rates? Many times, jumbo rates are lower than those for conforming loans, in part because the stringent requirements to qualify for a jumbo loan lessen the risk that borrowers will default. Tips to save on a jumbo loanWith some savvy strategies, house hunters in need of a jumbo mortgage can reduce their costs. Chase, for example, offers the highest jumbo limits (up to $9.5 million), which is one of the reasons it is Buy Side’s pick for best jumbo mortgage lender.

Persons: Beth DeCarbo, Fannie Mae, Freddie Mac won’t, Greg McBride, ”, Jacob Channel, Andy Wagner, Wagner, Bankrate’s McBride, Michael P, aren’t, Lani, —, Guy Cecala, ” Cecala Organizations: New, Federal Housing Finance Agency, Government, Jumbo, Nations Lending, ARM, American Mortgage Resource Inc, Inside Mortgage Finance, Bank of America, Chase, Mortgage Finance Locations: Minneapolis, Sacramento, CA, Denver, Boston, San Diego, New York City, Jackson, Chicago, Massachusetts, Wells, Fargo

☆ Here's the 14-page pitch deck a startup helping people build credit through rental payments used to raise $4.5 million from Clocktower VC and Plaid's cofounders
▼ + stars: | 2023-06-21 | by ( Bianca Chan | ) www.businessinsider.com time to read: +4 min

Boom is a startup that helps people build credit by reporting rent payments to credit bureaus. The startup raised $4.5 million in a seed round led by Starting Line. "I started helping them on their housing, find a new rental, build credit, get things removed from their credit report, access rental assistance, things like that," Whiting told Insider. That's when the lightbulb went off to start Boom, a startup that helps people build credit by reporting their rent payments to credit bureaus. Here's the 14-page pitch deck Boom used to raise its $4.5 million seed.

Persons: Rob Whiting, Whiting, Kirill Moizik, helms, Boom . Whiting, Moizik, Boom, Plaid's cofounders Zach Perret, William Hockey Organizations: Boston Consulting Group, Clocktower

☆ Average credit card interest rate is a record 20.69%, but 0% offers are still available, experts say
▼ + stars: | 2023-06-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

The Federal Reserve may have paused its aggressive interest rate hikes for now, but that offers little relief for anyone with credit card debt. The central bank raised interest rates 10 times since last year — the fastest pace of tightening since the early 1980s — and that has caused credit card rates to hit an all-time high. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. The average credit card now charges a record 20.69% — nearly five percentage points higher than the beginning of last year, according to Rossman. "While the skip means interest rates may not rise again this month, the high credit card interest rates consumers are currently seeing are going nowhere anytime soon," said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.

Persons: Ted Rossman, Michele Raneri Organizations: Bankrate, Finance Locations: TransUnion

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