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What to Consider (Other Than Fees) When Picking a Credit Union
Tweet Share on Facebook August 17, 2012 CommentBig banks continue to have a bad rap for raising fees and cutting perks on essential checking accounts. So consumer advocates are telling Americans to consider a long-overlooked alternative: credit unions.
Because credit unions are nonprofit financial institutions, all profits are returned to its members—not customers—in the form of lower product and service fees and better interest rates on deposit accounts and loans. This method of operation is deemed friendlier in the eyes of many consumers.
For some consumers, credit unions have such a direct impact through higher savings returns and cheaper loans that it’s worth leaving a bank. However, credit unions do have a few shortcomings of their own that may dissuade you from opening an account with them.
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10 Ways to Deal with an Expensive Emergency Room Bill
Tweet Share on Facebook August 16, 2012 CommentFor some of us, it's harder to recover from the emergency room bill than from the actual illness or injury. According to the U.S. Dept. of Health and Human Services, there were nearly 53 million emergency room visits at an average cost of $960 in 2009.
Here are 10 things you can do to make it easier to deal with an expensive emergency room visit:
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Why the Lowest APR Isn't Always the Best Mortgage Deal
Tweet Share on Facebook August 15, 2012 CommentWhen shopping for home loans, borrowers are usually most concerned with the annual percentage rate (APR) offered by a mortgage lender, rather than simply the interest rate, since the APR is meant to provide a more complete picture of how much a loan will truly cost. After all, APR calculations take into consideration all of the fees associated with loans, in addition to mortgage interest rates, which makes finding the best mortgage really easy; the lower the APR, the better the deal—right?
Not so fast.
Yes, it's true that the APR on a home loan is a more comprehensive representation of how much that loan will cost you year-over-year. However, you should not trust the APR alone for an accurate understanding of it's true cost. Why? There's no standard governing which fees have to be included in an APR, essentially allowing lenders to choose what goes into the calculation, and what doesn't. Not to mention, the calculation itself is based on a number of assumptions that often don't hold true.
That's why when choosing a lender to finance your home purchase, your ultimate decision should not be based on the APR alone. Learning to scrutinize a mortgage lender's fees is crucial in avoiding being duped into paying excessive charges for a mortgage.
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How Mowing Your Lawn Could Affect Your New FICO Score
Tweet Share on Facebook August 14, 2012 CommentDid you forget to mow your lawn last week? Believe it or not, it could negatively impact your ability to get a mortgage.
Just when you thought you knew all the ins and outs of how your credit score is calculated, it all changes. Last month FICO announced a new partnership with CoreLogic to create a new FICO score for use in the mortgage industry. While there are many credit bureaus that provide scoring on Americans, your FICO score is the report most widely used for mortgages. That’s because FHA and other government-backed mortgages use FICO as part of their means testing for approval. If FICO standards change, it could have a large impact on families looking for mortgage approval.
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5 Money-Saving Gadgets for College Students
Tweet Share on Facebook August 13, 2012 CommentThere’s still time to stock up on essential supplies, electronic devices, and other essentials for your college student, and any frugal student will appreciate a few money-saving gadgets as they head back to campus. Many students count their dollars and find ways just to get by on a part-time income during their school years. Offsetting some daily living expenses makes any student’s standard of living that much more comfortable. Make sure some of these money-saving gadgets are on your college student’s back-to-school shopping list or your gift list this season:
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5 Reasons Mobile Wallets Aren’t So Great
Tweet Share on Facebook August 10, 2012 CommentA recent feature story in Fortune declared the "death of cash." The cover art showed a $100 bill hitting a smartphone's screen, and being obliterated into pixels on the other end. The implication is clear: Fortune thinks we won't have a need for cash soon, and our phones will take care of all of our financial needs. The story states that cash will be on “the endangered species list” because mobile wallets will be "as transformative as the advent of the credit card in the 1950s." And as everyone knows, no one has used cash since 1955—not once.
The breathless tone of so much coverage of mobile wallets can be a bit frustrating. Why must cellphones be cash-destroyers? Why are they presented as inherently better than cash? Why does no one point out the obvious problems a cashless ecosystem would bring? Do people really find handling cash so troublesome? Who are these people?
As a response to all this disruption fever, we've compiled a compelling list of reasons why mobile wallets might not be the end of cash, and why they may not be as exciting as everyone who writes about them seems to think.
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5 Ways to Shop Tax-Free, With or Without Tax Holidays
Tweet Share on Facebook August 9, 2012 CommentIn an effort to ease the purchase pain of back-to-school shopping, 12 states celebrated sales tax holidays the weekend of Aug. 3. You might be kicking yourself, however, if you didn’t buy all the back-to-school items you needed over the holiday, forgot the tax relief was happening, were away on vacation, or just live in a state with a penny-pinching tax collector.
Whatever the reason for your angst, you don’t need to be rankled every time you make a purchase and grimace at the price on the receipt. We break down how to shop tax-free online and explain the one large disclaimer that you need to know.
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4 Steps to Getting Your Way When You Complain
Tweet Share on Facebook August 9, 2012 CommentAll of us have complained about a product or service at one time or another. We've purchased a defective item, been the victim of bad advice, or were promised more than was delivered. If the problem is big enough, we'll pursue a solution with determination and perhaps legal counsel. If the problem is small, we'll likely grumble a bit and get on with our lives.
But what do you do about those complaints that aren't really big, yet aren't small enough to overlook? What about them? Most of us will just send out a nasty tweet or post something on Facebook and then drop it.
Sometimes that's not a satisfactory answer. If we're unhappy with the product or service, it's much more likely that we'll spend additional money trying to get what we originally expected. But that's rarely a good frugal strategy—especially when finances are tight.
You don't have to walk away from those consumer complaints. There is a way to get maximum results with a minimum of effort. Try following these four steps to get your way when you complain.
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5 Insurance Policies that Your Family Doesn’t Need
Tweet Share on Facebook August 8, 2012 CommentThe TV commercials where shoppers pick policies from off the shelf aren’t far off the mark from today’s market for financial products. You can insure your dog’s health or even Troy Polamalu’s hair. Given the right circumstances, many of these financial products are useful. However, not all financial products are created equal, and some provide little benefit for your family.
It’s not always easy to spot insurance that is useless. Sometimes it feels good to buy policies in order to alleviate fear and doubt that comes with uncertainty. These types of “feel good” policies come with a steep price tag and can easily cost you hundreds of dollars.
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10 Money Lessons from Billionaires
Tweet Share on Facebook August 7, 2012 CommentBillionaires have changed the way our world works. They’ve altered the way we communicate, travel, and live. And along the way, they have made incredible amounts of money for their efforts.
Learning from the 10 billionaires below is not only a good idea if you want to boost your bank account, but also if you want your work to make a difference.
With that in mind, here are 10 lessons from billionaires on earning money, succeeding in business, and finding happiness in life.
