Latest news with #personalFinance
Yahoo
4 days ago
- Business
- Yahoo
How the Fed's July rate cut decision impacts American wallets
Federal Reserve officials are expressing mixed sentiment about whether to cut interest rates or hold them steady in the July FOMC meeting. Wealth Alliance CEO Rob Conzo joins Mind Your Money with Brad Smith to discuss how either outcome would impact Americans' everyday finances. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Well, Federal Reserve officials are split on whether an interest rate cut in July is on the table, depending on whether the FOMC holds rates steady or reduces the benchmark rate. What does that outcome mean for your everyday finances? Here to explain and discuss further, we've got Rob Conzo, who is the Wealth Alliance CEO. Rob, good to have you here with us. How does the Fed's benchmark rate affect people's personal finances? Great to be with you, Brad. Um, it's a very misunderstood rate. It's the rate, the rate that banks charge each other to borrow money, but how does that affect you personally? Well, first thing it affects you either way. Number one on the expense side, meaning borrowing. So we all know that, right? We have mortgages, and credit cards, and auto loans, and student loans, and, and small business loans. So when the Fed sets a rate, right now it's between four and a quarter and four and a half, well, then all the banks look at that rate and decide where they're going to charge you for the debt side of it, your expense. And let's not forget half of the American economy is small business. So when they have to pay more for lines of credit loans, well, it hurts them, they hire less, and it's a problem for the economy. That's why everybody wants the Fed to lower rates. So Rob, let's get specific. How are mortgage rates impacted by the Fed's next move? And what does and does a cut mean that we could see lower mortgage rates as well? Yeah. So the longer you go out with lending, the longer other factors are involved. I'll give you an example. Let's talk about money markets. That's money you're earning. Well, that's every single day, and all it matters is what the Fed's going to charge, and what the bank wants to make. And there's a rate, a mortgage, money expense, you're spending. Well, that's different. Now suddenly the bank goes, alright, let's see what the Fed is going to charge. Four, four and a quarter. Okay. Now, you want to get a mortgage. So the Fed rate is one aspect. Uh, how much of a mortgage is a second. How long are you going out? What's your salary? How the house is valued at. So the longer the debt, the more Fed rates, uh, the more your personal stuff gets involved and muddies the water between just the Fed rate. So the Fed rate is just a little part of it when you're going out longer. You know, while we have you here now, let's go to credit cards. Say, you know, maybe not me, but somebody I know has a lot of debt, debt and, and uh, racked up here. Will a lower benchmark rate from the Fed mean that I have to pay less interest perhaps? Great question. The credit card one is the one that's a little unique in the sense that credit card companies charge upwards of 15, 20, 25% in interest. And you're saying to yourself, well, how could it be so high? And it's so high because credit card companies want to make a lot of money. So at the end of the day, there's so much leeway in the credit card company. You would think if the Fed lowered rates, you would see credit card rates come in as well. That may not be the case. Some credit card companies just hold it steady and it is what it is. I'll tell you, give you another example. Sometimes, forget credit cards, again, when you had a bank savings account, and you're getting very, very little interest rate, but yet the Fed's rates at 4 and a quarter, 450. Why is that the case? The bank has the right to say, look, we're only going to give you 0.2%. Meanwhile, another brokerage account could give you 4% on a money market. So there is business parts of what the interest rate you pay or you receive on top of the Fed rate mandated. What about savings vehicles like CDs, certificates of deposit? How are they impacted depending upon the Fed's decision? So CDs, saving vehicles of all sorts, money markets is a is a standard one. Bank savings accounts, people know. Again, there's two aspects of it. Fed, surely, if the Fed raises rates like they have, well, then you're going to typically get more in bank savings accounts and CDs. And we've seen that, people getting 5% CDs. The Fed starts lowering rates, if they do, and we don't think they're going to be doing that this July, but good chance they could be doing that in September, the Fed starts lowering rates, you'll see those CD rates and savings rates come in. And that's why a lot of financial advisors are saying, hey, you may want to lock in a longer rate now while it's still high before the Fed cuts. And finally, while we have you here, Rob, when the Fed finally cuts interest rates, should you adjust your, yeah. Should you adjust your financial plans, things like your budget or borrowing or, should you just stay the course? Now, um, it's a very good question. And it it depends really. A lot of answers to financial questions are, it depends, unfortunately. But the real answer is when the Fed starts cutting rates, if it's just very, very minimal, a quarter of a point, um, that's not going to make a big difference on things. But as things start to go down further, if they do, well, then you want to start preparing for that now. You want to get your financial plan in order, understand how long your debt is going out. Are they credit cards with really high interest rates? And on the income side, on my income vehicles, bonds, CDs, savings accounts, giving me the interest that I need to make my retirement and financial goals. Rob, thanks so much for taking the time here. We're going to be watching closely as we know that you will be too for when they do start to cut interest rates. Thanks so much. Alright. Thank you.
Yahoo
6 days ago
- Business
- Yahoo
This map highlights the average credit score in every state
Your credit scores play a key role in your personal finances and daily life, from the interest rates you qualify for to whether you can rent an apartment or get approved for a loan. Think of a credit score like your financial grade point average: The higher your score, the better you appear to prospective creditors. But how does your score stack up against others in your state — or across the country? Here's a breakdown of the average credit score in every U.S. state, and what regional trends reveal about Americans' financial health. According to the latest analysis by Experian, the national average FICO credit score is 715 as of the third quarter of 2024. That average has remained the same since late 2023. That's great news for Americans, since a score within this range falls into the "good" category, which generally qualifies for favorable rates on loans, mortgages, and credit cards. Of course, this is just an average. Several factors can impact credit scores, and average scores vary across age groups, genders, and even states. According to Experian, the state with the lowest average credit score is Mississippi with an average FICO score of 680. Still, this falls within the lower end of the good credit score range. The state with the highest average credit score is Minnesota with an average score of 742. 'Everyone's financial situation is unique, which means a variety of factors can influence a person's credit score,' said Christina Roman, consumer education and advocacy manager for Experian. However, she noted that two of the most important factors are 'payment history' and 'credit utilization' (the amount of credit used compared to available limits). 'Payment history is especially influential, and missing even one payment can have a quick and significant negative impact on a credit score,' Roman said. Read more: How are credit scores calculated? Knowing your credit score is important because it directly affects your financial opportunities and overall financial health. So if it's been a while since you looked at your scores, take a few minutes to check in. There are several ways to check your credit scores, many of which are free. For instance, some banks and credit card companies offer free access to your credit score within your mobile app and/or online banking dashboard. You can also view your scores from each of the three major credit bureaus — Equifax, Experian, and TransUnion — which let you check your credit score for free and also provide optional services for a fee. Or you can sign up for a website such as Credit Karma or Credit Sesame, which offer free scores and also provide personalized insights and product recommendations to raise your score. It's important to note, however, that many free score providers give you access to your VantageScores, which are not used as often by lenders and likely vary from your FICO scores. If you want to see your FICO score specifically, you can sign up for the free version of myFICO and get access to your FICO 8 score from Experian. Read more: VantageScore vs. FICO: How these two major credit scoring models compare It's also important to understand that your scores may vary depending on the specific scoring model and what information has been reported to each bureau. Even so, checking one score will give you a general idea of where your credit stands. If your credit score isn't quite where you want it to be, there are steps you can take to move the needle in the right direction. This starts by identifying the factors that are driving your score down. Have you missed a few payments? Consider setting up automatic payments to ensure you're never late. Are you using too much of your available credit? Prioritize paying more than the minimum payment on your credit cards or requesting a credit limit increase to reduce the overall percentage of credit used. 'Improving your credit score is a marathon, not a sprint,' Roman said. 'It takes time and consistent financial habits, but the long-term payoff is a healthier credit profile and a stronger financial footing.'
The Independent
23-06-2025
- Business
- The Independent
Why your credit score is important and easy ways to improve it
We live in an era dominated by instant financial transactions, from contactless payments to 'Buy Now, Pay Later' schemes and rapid online loan approvals. In light of this, maintaining a robust credit score has become an increasingly complex challenge for many. Yet, this metric plays a quiet but integral role in countless aspects of modern life, from securing a mortgage or switching utility providers to simply signing up for a new mobile phone contract. The ease and affordability of accessing these essential services are often directly tied to one's credit standing. Despite its pervasive influence, a significant number of individuals remain unaware of how their credit score is calculated, let alone how to effectively improve it. To demystify this crucial aspect of personal finance, consumer finance experts are now offering essential insights into understanding and boosting your credit standing. A credit score explained and why it matters Many of us wouldn't dream of applying for a job without knowing what our CV says – yet when it comes to borrowing money, we often forget to check the financial CV that is our credit score. This three-digit number, used by lenders to judge our trustworthiness, can affect everything from mortgages to mobile phone contracts. 'A credit score is a personalised number that lenders use to assess how trustworthy you are when it comes to borrowing money,' explains TV's consumer finance expert and founder of Nous, Greg Marsh. 'A higher score means you're more likely to get approved for a loan, and offered better rates.' These scores are based on information held by three main credit reference agencies – Experian, Equifax and TransUnion – and each can possess slightly different records. Marsh says it's worth checking all three periodically. What affects your score Your score isn't arbitrary – it reflects your financial past. It includes whether you've paid bills or loans on time, how much of your credit limit you're using and the age of your accounts.' Avoid going over your credit limit or using too much credit, as this will incur additional fees and charges and potentially damage your credit score,' says Tesco Bank' s director of Help Me Borrow, Mamta Shanbhag. Opening too many credit cards in a short space of time, or maxing them out, can count against you. 'Making multiple credit applications at once – such as several credit cards in a week – can negatively affect your score, as it signals to lenders that you may be in financial difficulty,' says Equifax UK' s chief strategy and innovation officer, Craig Tebbutt. How to improve it Improving your score is less about tricks and more about habits. 'It's crucial to pay your bills and loan repayments on time to show lenders you've been reliable in the past,' says Marsh, 'setting up Direct Debits is useful as you don't need to remember to make a payment.' Other positive steps include keeping credit card balances low, staying within any arranged overdraft and registering to vote at your current address – a surprisingly important detail for verifying identity. 'Being on the electoral register and having a positive track record with different types of credit can also boost your score,' says Tebbutt. 'The best way to improve your score is to always pay your bills on time, keep credit card balances low, and avoid applying for too much new credit in a short period of time.' Shanbhag recommends using 'eligibility calculators' before applying for credit. These tools show how likely you are to be accepted without affecting your score. 'If you apply for a credit card or loan in full and get rejected, or complete multiple applications, it could affect your credit score,' she warns. What tools to use It's important to remember that you don't have to pay to check your credit score. There are several free and paid-for tools to monitor and improve your score. ' ClearScore gives free access to your Equifax report, while Credit Karma offers your TransUnion file,' says Marsh. 'Experian Boost also lets you add regular payments – like council tax or Netflix – to your score to demonstrate reliability.' He also points to paid-for sites like Loqbox, which reports your savings habits to credit agencies, and specialist credit cards for those with low scores – although these can carry high interest rates if not paid off in full. Credit scores don't change overnight. 'Generally, you'll start to see improvements within three to six months after making positive changes,' says Marsh. But rebuilding after defaults or missed payments will take longer. The key is consistency and patience. 'Check where you stand, build good habits and monitor your progress,' says Shanbhag. 'It's not about perfection – it's about showing that you're responsible with money.'
Yahoo
21-06-2025
- Business
- Yahoo
4 Secrets of the Truly Wealthy, According to Dave Ramsey
One of Dave Ramsey's most consistent pieces of financial advice is that wealth-building isn't necessarily tied to how much money you make, but rather how you manage what you have. Many people assume that earning a higher income automatically leads to wealth, but Ramsey points out that a disciplined approach to spending and saving is far more important. Find Out: Read Next: Truly wealthy people live below their means and when they do spend money, they don't advertise it. Essentially, saving consistently is more important than the size of your paycheck or what you splurge on. Known for his no-nonsense approach to personal finance, Ramsey has helped millions of people get out of debt and take control of their financial futures. But what separates those who simply earn a good living from the truly wealthy? According to Ramsey, 'When you quit worrying about what people think and you're actually living life for you and your family — that causes you to make completely different purchases and live a completely different lifestyle.' Here are key principles that truly wealthy people understand and practice consistently. The wealthy don't leave their financial futures to chance. They create a plan, stick to it and regularly review it, which doesn't leave a lot of wiggle room for extravagant purchases like designer clothing. Think about some of the billionaires you see in the news — many aren't dressing like a million bucks even though they have more than a billion bucks. Ramsey would recommend taking baby steps toward building an emergency fund, paying off debt or investing for retirement well before you spend thousands of dollars on pants or shoes. The truly wealthy know where their money is going each month and it's not hanging in their closet. For You: Ramsey is a strong advocate for long-term investing and wealth-building strategies. However, once someone has grown their wealth to be in a place where they are considered rich, they tend not to advertise how much they have or are spending. Some of the most lavish and luxurious expenses can include trips the wealthy take, but the truly wealthy don't let you know about those. Ramsey said, 'They enjoy nice vacations but they seldom post them for you to see on Instagram because they didn't take you on vacation. They wanted to go on vacation.' Generosity is a hallmark of the truly wealthy, and giving often brings even more fulfillment than financial success. However, that doesn't mean they spend everything they can afford to during the holiday season. Ramsey noted, ' The Christmas presents around the tree are very reasonable,' when referring to what the truly wealthy spend on presents. Showing people you care or being generous doesn't necessarily come with an expensive price tag. When it comes to giving to your children, generational wealth may be more the goal than how many presents are under the tree. True wealth comes from a long-term perspective and avoiding debt, which means big expenses such as luxury cars should be avoided when possible. 'The car that they drive is understated and the valet is seldom impressed until he gets the tip. It's usually a used Camry, a nice used Honda or a nice old pickup truck of some kind,' Ramsey said. This long-term perspective includes avoiding debt as much as possible, because, as Ramsey has said, 'Debt is a thief.' The wealthy understand that having a reliable car they don't have to make payments on goes much further down the financial road than other flashier options. The bottom line is that the truly wealthy aren't simply people with high incomes or luxurious lifestyles. They are individuals who consistently practice discipline, intentionality and long-term thinking in their financial lives. They understand that true wealth comes from wise decisions, which means anyone can build lasting wealth and live a financially peaceful life if they put their mind to it. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 How Much Money Is Needed To Be Considered Middle Class in Your State? 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 4 Secrets of the Truly Wealthy, According to Dave Ramsey Sign in to access your portfolio
Yahoo
21-06-2025
- Business
- Yahoo
Your Daily FinanceScope for June 21, 2025
The best things in life are free, but we could all use some extra cash. Let us lead you to the land of green with our daily finance horoscope! Earning ability, oddly enough, is not reflected in your ability to earn right now. That's just another indication of the topsy-turvy world you find yourself in. But don't fret. You'll earn it all back when things are no longer in disarray. Does it surprise you that some people don't think of decadence as the ultimate indulgence? If excess doesn't motivate them, then what does? This is your question of the day. Your accounts and your bills are at odds again. Something has to either line up or give. Or is it you who has to cry uncle? Be prepared to do whatever the situation calls for. Don't pour on the charm just yet. It will only be off-putting. Start by putting out some feelers and finding out exactly who's receptive to your ideas, then go from there. What would you do if you were pulled over for speeding? Would you act arrogant and above the law? If you think that just might double your fines, then use the same logic to figure out the right response to the situation you're in today. Need guidance? Your Numerology Reading is a mystic cheat-sheet to living your full potential. There are debts you can live with, and then there are toxic debts. Something is slowly poisoning your future. You can find out which is which without much soul searching. When it comes to something like eating, you have the rules of etiquette down pat. But there are other arenas where you can come off as a bit of a bore. Be especially careful whom you talk to about money. You're preparing for ambushes, but you really don't have to think in such calamitous terms. Imagine you're in a sport and not a war. The attitude adjustment alone could affect your bottom line. If you've ever been on a diet, you know that extra calories can be hidden in the details. That's where you have to look if you want to cut the fat out of your current budget. Don't be taken in by the larger picture. Being conscientious is becoming less and less appealing. If you need some incentive, conjure up the image of children. Their future is not only now, it's in your hands. Slog on. Learning changes everything. You don't have to stay stuck in the rut you're in, but the way out isn't through the usual channels. You need to change your tactics, your direction, your attitude -- what doesn't need adjusting? Make room for romance in your life. Set the atmosphere, make a good dinner, and ignore any mail that's not a love letter, and that goes for bills, too. In fact, it's especially true for bills. Find your cosmic purpose. Receive personalized astrological guidance with Astrology+.
