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TIAA Bank Reach For The Peak Sweepstakes

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www.TIAABank.com/reachforthepeak

2019 TIAA Bank Reach for the Peak Excursion Sweepstakes

Enter to win a trip to Beaver Creek, Colorado in the TIAA Bank Reach for the Peak Sweepstakes.

Visit www.tiaabank.com/reachforthepeak and follow the on-screen instructions to enter.

Must be a legal resident of the United States and 18 years of age or older.

A purchase is not required and a purchase will not increase your odds of winning the trip to Beaver Creek, CO.

Sponsor and Administrator

TIAA is both the sponsor and admin of the TIAA Bank Reach for the Peak Sweepstakes.

TIAA is based at FSB, 501 Riverside Ave., Jacksonville, FL 32202.

Bonus Entries

a. Facebook Share Method: After successfully submitting a completed registration form, each entrant will be invited to click on the “Facebook” button to share on Facebook a unique registration link and message about the Sweepstakes. Subject to the one-registration per person, per day limitation described in Section 5(B) above, an entrant will receive (1) bonus entry into the Sweepstakes for each successfully submitted completed registration form, including a valid e-mail address, that results from clicking on the unique registration link on Facebook.

b. Tweet via Twitter Method: After successfully submitting a completed registration form, each entrant will be invited to click on the “Twitter” button to tweet a unique registration link and a message about the Sweepstakes. Subject to the one-registration per person, per day limitation described in Section 5(B) above, an entrant will receive (1) bonus entry into the Sweepstakes for each successfully submitted completed registration form, including a valid e-mail address, that results from clicking on the unique registration link on Twitter.

The trip prize winner will be announced on or around 11/4/2019.

SoFiRefi.com Review: Is it Really Fast and Easy?

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www.sofirefi.com

SoFi Refinance Review

You may have received a promotional offer from SoFi tempting you to refinance your student loans at a lower rate.

Fixed rates with autopay can start as low as 3.49% APR while variable rates with autopay can start as low as 2.51% APR.

Loan terms are available at 5,7,10, 15 or 20 years and loan amounts max out at $5,000 up to your total outstanding balance.

(Please note MOST applicants while not receive the lowest rate possible as that is reserved for those with an outstanding credit rating… learn how to raise your credit score now!)

BUT even though you will most likely not qualify for the lowest rate the SoFiRefi.com offer is still a good sandwich.

Let’s take a look at the pros and cons of the offer…

SoFi Refi Benefits

  • Will most likely lower your student loan rate
  • You can sign up for autopay to lower the rate further
  • The application is truly fast and easy (painless)
  • SoFi does not try to trick the applicant with any hidden fees

SoFi Refi Negatives

  • Co-signer release not available
  • Loan size minimum is higher than most lenders’

Please note in order to apply please go to sofirefi.com and enter your confirmation number.

Need a personal loan?

 

Your confirmation number 14 digits in length (format xxxxxx-xxxxxxxx) and can be found in the top right-hand corner of the Refinance with SoFi promotional letter.

Bottom Line

As you can see the benefits far outweigh the negatives.

By all means, if you have a student loan and received this SoFi Refi offer go ahead and apply!

MyIndigoCard.com Review: A Card Designed For Less Than Perfect Credit

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www.myindigocard.com

MyIndigoCard.com Quick Look

  • A good card for consumers looking to rebuild their credit rating
  • Major downside: $99 annual fee (but this is in line with rival cards i.e. Fortiva)
  • Looks cool (unlike rival cards)
  • You can check to see if you qualify before completing the application
  • If you have an average to good credit rating the Indigo card is not for you
  • To apply to visit www.myindigocard.com now

Must be 18 years of age or older and a legal resident of the United States to apply.

If you want a full review of the Indigo credit card please read on…

The Indigo MasterCard

If you are a consumer with bad credit you have likely already realized that finding a good credit card is a huge challenge.

The best choice for consumers in this situation are no fee secured credit cards.

However, these cards require an upfront deposit which not all consumers will be able to afford.

The Indigo MasterCard offers a card for individuals with poor credit.

The best feature about this card is that you can check your pre-qualification before applying.

This is great for consumers with poor credit and will give you a much better idea about your likelihood of approval.

The unfortunate downside is that this card charges an annual fee up to $99.

The Indigo MasterCard - MyIndigoCard
The Indigo MasterCard

Indigo MasterCard Features and Benefits

By far and away the best feature of this credit card is the ability to pre-qualify yourself before applying.

The chances of credit card approval is greatly diminished for individuals with poor credit.

What is even worse is that applying for a card and being denied will result in a credit check against you.

This can negatively impact your credit even further.

With The Indigo Card, you can see if you are qualified for the card before completing the application.

This will perform what is know as a “soft credit check”.

This will not be reflected on your credit report and will not impact your score.  This is a huge benefit for consumers who are having a hard time finding a credit card.

As mentioned above, the annual fee for this card will vary depending on your creditworthiness.

There are zero annual fee credit card agreements available for the card.  Alternatively, annual fees for this card can be as high as $99.

Unfortunately, most non-secured cards designed for poor credit also have annual fees within this range.

While I highly recommend against paying an annual fee, this card can be a useful stepping stone towards improving your credit if no other options exist.

Use Your Card Anywhere MasterCard Is Accepted

It is also worth noting that this card functions just like any other MasterCard Credit Card.

You can use your card online and in-store anywhere MasterCard is accepted.

Customers will also get to select their favorite card design after they have been approved.

Approvals decisions for the card are typically available right away after submitting your application.

Drawbacks Of The Indigo Card

Major credit card issuers like Discover and Capital One offer secured credit cards designed for less than perfect credit.

These cards have zero annual fee.  The downside is that you will be required to provide money upfront to “secure” you card.

The amount you deposit typically reflects your card limit.

While this fee is 100% refundable, not all consumers can afford the security deposit.

Overall, the secured card is a better option but if you are in a bind The Indigo Card is not a terrible choice.

Managing Your Account Online – MyIndigoCard

  • 24/7 account access online with your account
  • Free online bill payment options to pay your balance
  • Paperless statements available to avoid unnecessary mail
  • Registration is required to access your account online

Final Thoughts On The Indigo Card

Overall, this card does provide some utility for individuals who are having a tough time getting approved for a credit card.

The pre-qualification option is great and while the annual fee is not ideal, it is in line with competing for credit cards.

If you do decide to get a card like the Indigo MasterCard or another subprime credit card these should be seen as a stepping stone towards a better option.

Cardholders need to do their best to keep their balance low and always make their payment on time.

Following simple credit building tips like this will see a much faster impact to your score than you may realize.

Have you had a card designed for poor credit?  Let us know about your experience in the comments below!

Helpful Links:

www.MyIndigoCard.com (Online Account Registration)

www.IndigoCard.com (Pre-qualification Application)

Wells Fargo CPI Settlement (File Claim for Refund or Cash Payment)

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http://www.wellsfargocpisettlement.com

Wells Fargo CPI Class Action Lawsuit

A massive 394 million dollar settlement has been proposed to resolve claims associated with the class action lawsuit entitled In re: Wells Fargo Collateral Protection Insurance Litigation.

Visit www.wellsfargocpisettlement.com to file a claim or learn more about the case.

The case is under review in the U.S. District Court for the Central District of California.

WellsFargoCPISettlement.com Contact Information

  • Wells Fargo CPI Settlement, c/o The Notice Plan P.O. Box 4990, Portland, OR, 97208-4990
  • Email: info@WellsFargoCPISettlement.com
  • Phone:1-877-641-8815

Class Counsel

Roland Tellis David B. Fernandes Jr. BARON & BUDD PC

Roman M. Silberfeld & David Martinez & Kellie Lerner & Benjamin D. Steinberg & Aaron M. Sheanin from ROBINS KAPLAN LLP.

David S. Casey Jr. and Gayle M. Blatt from CASEY GERRY SCHENK FRANCAVILLA BLATT & PENFILED LLP

Important Dates

  • 10/7/2019: Exclusion deadline
  • 10/28/2019: Settlement faireess hearing
  • Claim form deadline: Not shown

Selecting Your First Credit Card

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Guide To Picking The Best First Credit Card For You

Selecting your first credit card is an important step towards establishing great credit. The first thing to keep in mind is that this should be a card that you will keep forever. The length of your credit history is a substantial factor when your credit score is calculated. For this reason, it is important that your first card is one that you will be continually happy with.

If you are new to credit cards there are a number of factors to consider before opening your first card:

  • What cards will you qualify for?
  • Which type of rewards do you want to earn?
  • What card features are important to you?

First, let’s take a look at these questions and then we will review good spending habits and provide several examples of great first cards. Read more to learn more about what you can do to improve your approval odds for a new credit card.

What Cards Will You Qualify For

Your credit card options will vary depending on your credit score. You may qualify for a premium card if you have established credit through loans, mortgages, or other lines.  However, for many first time credit card applicants their options will likely be much more limited.

Credit cards can be obtained in the US once you have reached the age of 18. If you are a young adult with no prior credit you will need to look for cards tailored for your demographic. There are a number of great cards available from major credit card issuers specifically designed for consumers with no prior credit.

There are a number of actions consumers can take to ensure the card they select will likely be available for approval. For instance, many of the major credit card issuers allow consumers to view their pre-approved offers. These offers are not guaranteed approvals but will greatly increase your chance of approval.

Additionally, consumers can view their credit score at no cost with many free services such as Credit Sesame and Credit Karma. These are both highly reputable companies that offer credit scores with no payment necessary. Once you have access to you score you can review cards based on your individual score.

Which Type of Rewards Do You Want To Earn

Selecting your first card should be done with your rewards in mind. Nearly all credit cards offer some type of rewards. Even most “entry level” credit cards will provide cash back or reward points.

The two primary categories to choose from are cash back rewards and travel rewards. For first time applicants, cash back cards are going to provide more options. Many travel reward cards are designed as more premium reward options and may not be available for consumers new to credit.

If you are deciding between credit cards with particularly spending categories it is important to select categories that will benefit you for the long term. Daily spending options like groceries, gas, and dining are great options for flexible reward options.

What Card Features Are Important To You

The best credit card features will depend on the individual. For instance, many banks and credit unions offer low interest credit card options. If you are concerned about high interest then a low interest card may be a good choice. However, it is worth pointing out that consumers should never get a new card with the intention of carrying a balance.

Another great feature for new individuals new to credit is credit and credit score monitoring.  Discover, for instance, provides your free FICO Credit Score with each statement balance and is updated every month. Chase provides their customers with the Credit Credit Journey service which provides a modified score and tools to track your credit.

Other features to consider are travel insurance, foreign transaction fees, and late payment fees. Determining what features are most important to you will ensure your card has a valuable place in your wallet for years to come.

Your First Card – Credit Card Spending Habits

Understanding the best practices for using a credit card is extremely important for new cardholders. The primary guideline to follow is to never carry a balance on your card. Credit card users are not subject to interest when you pay your balance in full each month. A single month of carrying a balance can quickly wipe out any rewards you earn on your new card.

Another great strategy is treating your credit card as if it directly linked to your checking account. This strategy ensures you never exceed a balance you are capable of paying off in full at the end of the month. If you credit limit allows you to exceed what you are able to pay off you may consider setting a limit that will force you to use your card responsibly.

Finally, if you find you are routinely carrying a balance on your card it is important to know when to set the card aside and address your balance. If your balance gets out of control it is extremely important to know when to quit spending on your card. Cardholders can stop using their card until their balance is paid off and then set up a budget once you begin using your card again.

Top Picks For First Time Credit Cards

These cards were selected as they do not require excellent credit for approval. Secured cards will be the best choice for consumers who are not qualified for other cards. Unfortunately, secured cards rarely offer rewards.  If possible, you should apply for a card which provides rewards for every purchase you make.

Chase Freedom

The Chase Freedom is a top pick for two reasons.  First, the card requires “good” credit. Good credit is typically considered any score above 670. This card will be widely available for many new credit applicants. Additionally, the card provides a huge sign up bonus. The current offer provides $200 after spending $500 in the first three months of opening your new account. Additional features include:

  • 1% cash back on all purchases
  • No interest for the first 15 months
  • No annual fee

Discover IT/Discover IT Secured

Discover provides two options for the IT card. A secured card and a non-secured option.  The secured option will be tailored for individuals with poor or fair credit (below 670 credit score). Ideally, you should shoot for the Discover IT Card instead of the Discover IT Secured.

Secured cards require a deposit which will reflect your total credit limit. This deposit is completely refundable if you choose to close your account. You may also have the option of upgrading your card after responsible use.

Discover IT provides the following features:

  • Monthly FICO Credit Score
  • 1% cash back on all purchases
  • Rotating 5% cash back for select categories
  • No annual fee (for either card)

Capital One Quicksilver Card

The Quicksilver Card offers one of the best cash back rates for an easily accessible card. Customers will need to have “fair” credit which typically means a score of at least 600. All purchases will receive 1.5% cash back. This is the best overall rate of the cards highlighted here. There is no new customers bonus offer unlike the Chase Freedom. Card features include:

  • 1.5% cash back on all purchases
  • No foreign transaction fee
  • No annual fee

Final Thoughts – Your First Credit Card

When you pick your first card you should think for the future. Establishing your credit with a credit card is one of the fastest and most effective ways to improve your credit score. Find a card that matches your spending needs and plan to keep the card open for as long as it is useful. Even if you upgrade to a better card, you may still want to consider keeping the account active as old accounts in good standing will benefit your credit score.

What was your first credit card and why did you select it? Let us know in the comments below!

Anderson Capital One Settlement Lawsuit (Full Refund of any Payments!)

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www.AndersonCapitalOneSettlement.com

Capital One Credit Card Class Action Settlement

A settlement has been proposed in the class action lawsuit against Capital One.

According to court documents Capital One has agreed to pay $10.5 million to resolve claims that they violated the terms of bankruptcy discharges in relation to consumer credit card accounts.

To learn more about the case please visit www.andersoncapitalonesettlement.com.

To file a claim in the case please visit www.andersoncapitalonesettlement.com/Notice.

You will need the notice ID when filing a claim online.

The notice ID is a unique, nine-digit number that appears above your name and address on the postcard notice you received.

Anderson Capital One Settlement Administrator

  • Anderson Settlement Program c/o BrownGreer PLC P.O. Box 25428 Richmond, VA 23260
  • 1-(888)-627-9594

If you have any questions or concerns about the case or claim form please call 1-888-627-9594.

Who is a Class Member

Class members in the Anderson Capital One Class Action Settlement are defined as anyone in the United States “who had a Capital One credit card account, whose debt related to that account was charged off and sold to a debt buyer after Jan. 1, 2008, and who (after the debt sale) had their debt discharged as part of their bankruptcy through March 22, 2016.”

Need to improve your credit score?

Please check out CreditLiftoff Credit Score Improvement Guide and improve your score today!

AndersonCapitalOneSettlement.com Important Dates

  • 4/25/2019 – Preliminary Approval Order Entered
  • 8/8/2019 – Deadline to (1) request exclusion (“opt-out”) from the Settlement or (2) object to the Settlement
  • 9/11/2019 – Claim deadline
  • 9/11/2019 – Fairness hearing

Please note if you would like to attend the fairness hearing you must notify the court.

You can reach out to the United States District Court for the Southern District of New York by dialing (212) 805-0136.

Finally the Settlement Award

A full refund of any payments made on a sold Capital One credit card account after a bankruptcy discharge. Additional compensation may also be available.

Capital One Cyber Incident 2019

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Capital One Cyber Breach Facts – 2019

Following the data breach Capital One has set up an informational page to explain the data breach incident.  The full information can be found at CapitalOne.com/Facts2019.

This data breach impacted nearly 100 million US consumers.  An additional 6 million Canadian Consumers were also impacted.

The data breach goes back to data from 2005 and up to 2019.  Most of the data collected was collected during self reported application processes.  Less than 1% of individuals had social security numbers associated with their data.  No credit card account numbers were lost as a result of this breach.

Customers who bank account and social security information was impacted by the breach were notified directly by mail.  Other data breached included names, credit scores, credit details (such as balances, etc.), addresses and other contact information, and self reported income figures.

The individual who was responsible for this data breach has been identified and arrested.  At this time it does not appear that the data has been used for fraud.

Capital One Is Providing Free Credit Monitoring

All impacted individuals will be provided with free credit monitoring managed through Trans Union.  It is highly recommended to take advantage of this service.  The service will notify customers of any changes to their credit profiles.

The service will be offered for 2 years following the data breach.  Consumers will have access to their credit report throughout this period of time.  Impacted individuals can sign up for this service with TransUnion at no cost and doing so will not waive any legal rights.

Impacted customers can sign up for alert notifications to indicate changes to their credit online through their Capital One Account.

Protecting Your Identity

Data breaches such as this highlight the necessity to take personal responsibility when it comes to your credit.  Unfortunately, these types of incidents are becoming more and more common and this trend is likely to continue (this is just coming off the heels of the massive Equifax Breach).  Companies typically receive a slap on the wrist when they do not properly protect their client data.

Free credit monitoring services like Credit Karma and Credit Sesame are simple ways to keep track of your credit score and report.  Unauthorized activity needs to be reported immediately.  There are also many paid services available but most consumers can monitor their report without these services.

Another resource is AnnualCreditReport.com.  This is a federally authorized service which provides customers with their credit report at no cost each year.  More than ever, consumers need to take it upon themselves to protect their information from these types of massive cyber breaches.

Contact Capital One By Phone:  1-800-227-4825

Helpful Links:

AnnualCreditReport.com

CapitalOne.com/Facts2019

Southwest Priority Card Upgrade Offer Review

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Upgrade To Earn 5,000 Rapid Reward Points

Eligible Southwest Credit Card holders are receiving notice with an offer to upgrade their credit card.  This offer reflects the recent changes made to the family of Southwest Consumer Credit Cards offered by Chase Bank.

The new Southwest Priority Card provides customers with several very valuable upgrades to their reward program.  As a special offer, customers have the option to upgrade for an additional 5,000 points.  However, this card does come with a higher annual fee than other Southwest Credit Cards.

Is it time to upgrade to Priority?  Let’s take a look at this offer and the changes you can expect if you make the move.

Picture of the Southwest Priority Card
Southwest Priority Card – An Inspiring Redesign To a Classic Brand

Southwest Card Upgrade Bonus Offer

If you are a current Southwest Credit Card customer with a Premier or Plus version of the card, it is possible you have received an offer to upgrade to the Priority Card.  This upgrade is not available to all customers.  Cardholders are receiving notice by mail and email if they are eligible for the upgrade offer.

To step your card up to the next level you can complete the process online at www.PriorityCardUpgrade.com.  In order to check your eligibility or begin the process you will need to verify your account.  Eligible customers will be able to proceed with the upgrade process.

The one time bonus offer will provide you with 5,000 Rapid Reward Points simply for upgrading.  No spending requirements are necessary to qualify for the bonus.

Southwest Rapid Reward points are generally valued at about 1.5 to 2 cents per point.  This puts the offer at a value of about $75-$100.  The actual value will depend on your specific flight but this figure can be used as a rough guideline to help you make the decision.

Priority Card Benefits and Features

  • Receive 7,500 RR Points each year for your card anniversary
  • Cardholders will receive 4 upgrading boardings per year (availability restrictions apply)
  • Yearly $75 travel credit for Southwest Flight Purchases
  • 20% back on in flight purchases (WiFi and Drinks)
  • 2x Points with Southwest and Select Southwest Partners (hotel and car rentals)
  • 1x Points for all other purchases with your credit card
  • No Foreign Transaction Fees
  • $149 Annual Fee

How Does This Card Compare To The Other Southwest Cards?

Determining whether or not the upgrade is right for you will depend on how the new benefits compare to your current benefits.  There are several features that are unique to this card that should be considered.

The Priority Card is the only Southwest Airlines Card that offers an annual travel credit valued at $75.  This credit is good for flight purchases made directly with Southwest Airlines.  The offer does not apply to in flight purchases.

The Priority Card also provides the highest anniversary bonus.  Customers will receive 7,500 points each year as a cardholder.  The Premier Card offers 6,000 points yearly and Plus Cardholders will receive 3,000 points.  This provides about $25 and $75 of value compared respectively to the other card options.

Finally, the Priority Card is the only option which provides 4 Boarding Upgrades each year.

The Priority Card has the highest annual fee of the three card options ($149).  The Plus Card and Premier Card have an annual fee of $69 and $99.  The Annual Travel credit and the extra yearly anniversary points will more than make up for the extra annual fee if you are able to capitalize on the Travel Credit.

Looking For Something Besides Southwest?  Check Out This Related Content:

Final Thoughts: Time To Upgrade Your Card?

For many Southwest Travelers this upgrade option is a no brainer.  If you are frequent Southwest Travel the extra value provided by the Priority Card will far exceed the other credit card options.  The key to maximizing your value with this card will depend on whether or not you will be able to make use of the Annual Travel Credit.

The offer does include an expiration date.  It will be best to make your decision quickly in case the 5,000 point offer goes away.  Even if you do not have the upgrade offer, many Southwest Cardholders will still find the switch to be well worth the additional cost.

For infrequent customers who do not often fly Southwest the best choice will likely be one of the less expensive credit cards.  The value of this card depends on your ability to use the $75 Travel Credit – the rest of the enhanced features are just icing on the cake.

Helpful Links:  www.PriorityCardUpgrade.com

FICO vs. FAKO: A Case Study To Understand Your Credit Score

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Making Sense of Your Numbers

There are many different ways to access your “credit scores”.  Banks frequently provide their customers with one number.  Your credit card company likely provides you with a second number.  Your credit monitoring service provides you with a third.  Interestingly, these numbers are often quite different, so what does it all mean?

The common theme people report is that the scores are almost never the same.  Given that all of these sources are looking at similar data, it seems impossible that they would all arrive at different scores.

The reality is that each source is accessing your score through different sources.  They are also using different formulas to calculate the score you see each time you log in to your account.  Significant variation is not uncommon.

Here we will take a look at the different scores available to consumers and what they actually represent.  I will also provide a personal case study which will provide a great example of the variability consumers can expect when checking their credit scores.

What is a FICO Score?

Credit scoring began in the 1980s when Fair, Isaac and Company (FICO) developed a method to assess consumer credit risk.  Today, the FICO score is the most common credit assessment tool used by financial institutions.

Scores range from 300 up to 850.  The higher your score, the less risk you represent to potential credit issuers.  When you apply for a new line of credit, your approval is generically based on this score.  FICO scores are also commonly reviewed by landlords, insurance companies, potential employers, and many other circumstances.

Your FICO score is determined primarily by the following factors weighted as percentages:

credit score factors
Source: MyFico.com

While the FICO score is without question the “gold standard”, there are other methods to used to assign credit scores.

What is a FAKO Score?

In short, FAKO scores are any credit score assessment that is not a FICO score.  The term certainly has a negative connotation but the truth is that these scores are very valuable for consumers.  Free credit monitoring services like Credit Sesame and Credit Karma are popular services which provide FAKO scores.  They are highly informative and provide a great resource for consumers.

One of the most popular methods to calculate non-FICO scores is called the Vantage Score.  This score assess the same variables as a FICO score but calculates using slightly different formulas.

Importantly, consumers need to understand that most institutions will review your FICO score, not your FAKO score.  This is not to say that it isn’t an important metric to use when measuring your credit health.  The scores are generally very similar but as you will see, there are often substantial differences on a monthly basis.

Long Term Score Trends Are Key

Credit scores are sensitive to change.  If you have recently applied for a new line of credit, opened or closed a credit card, received a new loan, or done any of the hundreds of factors that impact your score, you will see immediate variability.  Consumers should not focus on their score of the day but rather the long term trend of their scores.

Checking your score monthly is the surest way to recognize positive and negative trends.  Daily activities like carrying a large credit card balance may impact your score briefly.  Over a period of months, you will see that this actually does not impact your long term score substantially (so long as your address the debt and pay it off).

Reviewing Data: A Case Study

Over the past several months I have noticed huge variations between my credit scores.  I receive scores from banks, credit card issuers, and credit monitoring services.  Beginning in June I saw my scores drop significantly.  What was interesting is that not all of my scores dropped the same way.

So what happened?  Well, to set up the scenario I had three major changes to my finances in the past several months.  I recently financed a new car (pre-owned, but new to me!).  I also refinanced thousands of dollars of student loan debt at a lower interest rate.  Finally, I had a major expense which I charged to a credit card.

All three of these activities caused a huge disruption to my credit score.  Let’s take a look at the impact reported from two sources.

FICO Score Bank of America
FICO Score – Provided by Bank of America

As you can see, my score dropped 25 points from May to July.  This was most likely the result of new credit inquiries and a new loan reflected on my credit report.  Now let’s take a look at my Credit Karma FAKO score.

FAKO Score Graph Credit Karma
FAKO Score – Provided by Credit Karma

While my FICO score showed a modest drop, you can see that my FAKO score plummeted over 50 points.  It has now risen back to about where it was prior to the finance activities I made over the summer.

Despite significant changes to my credit report, my credit score will soon level back out to it’s long term trend.  For this reason, consumers should not be alarmed by short term drops as long as your are managing your credit properly.

Why Do These Scores Differ?

Both scores showed a drop, but as you can see my FAKO score suffered a much bigger impact.  These scores were reflected similarly with other sources.  I also receive a FICO score from Discover and it barely showed any change at all – a drop of about 10 points.  My FAKO score with Chase Credit Journey showed the largest change, dropping by more than 60 points.

Understanding how these scores are calculated will give us a good idea of the variation.  Both scores review your account changes but FAKO scores can be far more sensitive to change.  During the refinancing of my student loans, my credit reports, per Credit Karma showed two loans during the payoff period.  During this time their calculation was based on a doubling of my student loan debt!

Additionally, I made a very large credit card purchase.  It was paid in full when the statement was due but for one month my score was being calculated by Credit Karma reflecting the large amount of credit card debt.

Both of these factors caused the FAKO models to show a far bigger drop than would have otherwise been reflected.  These scores are updated weekly and provide a “real-time” snapshot of your credit score.  In this case, the score was not accurate.

What To Do When Your Score Changes

As discussed above, the key to understanding your credit score is done so by viewing the long term trends.  If you see a significant drop in your score the first thing you should do is assess what caused the drop.  In my case, I knew that my score would be impacted due to all of the changes I had made to my credit report in a very short period of time.  If you can identify the reason for the drop, there is no cause for alarm.

When a major drop occurs that you do not understand it will be time to review your credit report.  You can access your credit report for free and many credit monitoring services also provide report overviews.  Consumers should review their report to ensure that there is no unauthorized activities.

If your report looks good, the best thing to do is monitor your score closely for the next several months.  In all likelihood you will see your score trend back towards your average.  If your score stays low, then it is time to assess ways to improve your credit.

Maximize Your Credit Scores

There are many resources available to educate yourself on the best ways to improve your credit score.  Several of the most basic rules are the following:

  • Always pay your bills on time
  • Keep a low or zero balance on your credit cards
  • Work on paying off your outstanding debts
  • Diversify your lines of credit as necessary

These simple rules will go a long way towards improving your credit score, however, they only begin to provide a full picture of what is necessary to maintain excellent credit.  The CreditLiftoff Spider Web Method provides excellent and detailed actions you can take to improve your credit.  This is just one of many excellent guides available online to understand your credit score.

Another great method that provides nearly instant results is understanding your credit card utilization.  Your credit card debt can play a major role in your score (as reflected in my huge FAKO score drop seen above).  Minimizing your debt to credit ratio is one of the fastest ways to boost your score.

For Best Results, Stay Vigilant

As we discussed, your FICO and FAKO scores are excellent tools to monitor your credit health.  All consumers should make sure they have access to at least one of these scores, updated monthly.  Checking your score regularly will keep you informed and able to recognize red flags before they become a problem.

Free services like Credit Sesame and Credit Karma are a great place to begin the process.  You should also check with your bank and credit card issuers to see if they provide you with a credit score.  Whether you are receiving a FICO score or FAKO score is not nearly as important as staying vigilant and understanding how your financial actions impact your credit.

Do you have a favorite credit monitoring service?  How about your best tips for improving your credit score?  Let us know in the comments below!

Merrill Edge: Your Offer Up To $600 Review

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Bonus Offer For New Self Investment Accounts

Merrill Edge is currently providing new clients with up to $600 when they open a new investment account.  With so many investment accounts to choose from it is possible that a bonus offer may be the difference maker.

Bank of America offers this investment platform for US traded stocks, ETFs, and more.  This offer is only available to Bank of America clients.  Bank of America is well known for their generous new account offers.

The current offers run through October 14th, 2019.  Let’s take a look at the offer and the features provided for Merrill Edge Accounts.

Logo of Merrill Edge Investment Account
Merrill Edge Investment Account

Bonus Offer Based On Total Deposit

There are four tiers for this new account offer.  The total cash bonus you are eligible for will depend on how much money you deposit in to your account.  The more you deposit, the more you will be eligible to receive.

The lowest tier eligible for a bonus requires a deposit of $20,000.  Customers at this tier will receive a $100 bonus.  Depositing at least $50,000 will provide new accounts with a $150 bonus.  Investments of $100,000 will earn $250.  Finally, top tier bonuses are eligible with a minimum deposit of $200,000 and will receive the full $600 bonus.

When creating a new account customers will need to provide the offer code “600AUG19” at the offer website MerrillEdge.com/YourOffer.  Your bonus will be based on the total deposited in to your account within the first 45 days of opening your new investment account.

After 90 days of opening you new account your cash reward will be assessed.  Reward offers will be deposited about 2 weeks after the 90 day period.  Total is based off of deposits and will not be impacted by gains or losses to your investments.

Accounts Features Provided With Merrill Edge

One of the primary benefits offered with Merrill Edge that draws clients is their free trade offers for stocks and ETFs.  Free trades are offered to Preferred Reward clients.  If you are not a Preferred Rewards client you will be charged $6.95 per trade.

Qualifying for Preferred Rewards Gold Status requires at least $20,000 in your combined Bank of America Accounts.  You will receive 10 free trades each month.  A balance of $50,000 qualifies customers for Platinum Status and will receive 30 free trades per month.  Finally, a balance of $100,000 will allow for 100 free trades per month.

Preferred Rewards customers also receive many other benefits with their Bank of America Accounts.  Most notably, you will receive a huge reward bonus for your Bank of America Credit Cards.  Credit card rewards are increased by 25%, 50% and 75% respective to your Preferred Rewards level.

Merrill Edge offers trades for stocks, bonds, ETFs, options, and many mutual funds.

Selecting The Best Self Directed Investment Account

Investment platforms like Robinhood and Mint are revolutionizing the way individuals investment their money.  This has been great for consumers who use traditional investment platforms like Merrill Edge.  Many new incentives are being offered for new customers and features to maintain current customers.

Features like free trades are becoming very common.  If you are not eligible for Preferred Rewards you will not have free trades with Merrill Edge.  For this reason, investors who are just starting out with less than $20,000 may prefer less costly investment platforms.

Customers who are able to qualify for Preferred Rewards will find that they will rarely ever pay for a trade unless they are very high volume traders.  For investors who are “day trading”, making many trades per day, will want to look for lower cost options.