The average car age for U.S. drivers. A new record, thanks to sky-high prices and interest rates. These days, a new car will set you back about $45,000, on average. No wonder folks are holding on to their clunkers.
Buy now, pay later isn’t as simple as you think
You see them on about every shopping site now. Think of “BNPL” (buy now, pay later) as a short-term financing plan. With a few clicks, you request a limited loan agreement to pay for items over time.
Even Apple is getting in on the action. With Apple Pay Later, buy that $1,000 iPhone today and pay it off over four payments. PayPal has one, too, along with services like Afterpay, Affirm and Klarna.
I like to put on my detective hat (it looks like Columbo’s) when a new wave of financing apps like these pops up. They can feel a little … scammy. Hidden strings can lead to unexpected charges, unpleasant contracts and new debt disasters. Not cool! But certain BNPL apps with “soft” credit checks, like Apple’s service, can help manage payments.
Don’t worry. I’m on the case! If you or a loved one is using buy now, pay later apps, I’ve got the red flags you need to watch for to avoid rotten deals.
Red flag 1: Sneaky interest rates
Almost all BNPL apps say they have “zero interest payments.” For some, like Apple, that’s true. If you make payments to your Apple Card account on time, you won’t accrue interest. But BNPL apps aren’t well-regulated, and some make false promises and hide interest rates in the fine print.
Sorry to say, but you need to grab your reading glasses. Check every line and link of fine print for hidden interest rates. As a rule, don’t accept any form of interest rate, even 1% or 1.5%. That may sound great on a mortgage — but you can get these mini loans for zero interest!
Red flag 2: Hidden fees
Late fees are standard for BNPL apps. Miss a payment? You’re gonna get some heat. But hidden fees are the real worms in the apple. Surveys have found that almost 30% of people who use BNPL run into problems, like being overcharged for a purchase for no reason. No good.
Hit the Better Business Bureau site and check for anything concerning before you say “Yes, please.”
Red flag 3: You can’t buy that
Even reputable BNPLs have limits. They’ll only work with specific merchants, for example. Check to see if that big purchase is covered before signing up.
Are home prices way up or down in your city?
It’s a strange time in real estate. Interest rates are high, borrowing costs are too expensive for a lot of folks and depending on where you look, the market is doing very different things.
Zillow’s latest research, analyzing home values from July to August, found five cities where home values are up — and five where they’re down.
The true cost of cash advance apps
Need money to pay bills in a pinch? Many rely on cash advance apps to make it to their next check. While these services offer a helping hand, you could wind up in a jam if you’re not careful.
A recent study took a deep dive into 15 of today’s most popular cash advance apps. The scoop? An advance might cost more than you bargained (or budgeted) for.
Payday loan ads are all over social media - Here's how they're skirting the rules
It has been a tough few years for many Americans. Unfortunately, trying to stretch every dollar to buy the necessities has become the norm. Some might look into a second or third job to pay the bills.
This is precisely the type of person that payday loans are targeting. Promising quick cash without telling the whole story of the loan costs, these advertisements have been popping up on social media platforms like TikTok.
The one thing that can impact your credit score you never thought of until now
Having good credit can open a lot of avenues for you. In most cases, you can be offered better interest rates, pay lower financial charges on credit cards, or qualify for a bigger loan. Tap or click here to check your credit report for free — and what you need to look for.
Why your score on Credit Karma seems higher than it should
Having a good credit score is something many aspire to, and it can be difficult to achieve. A good score can give you access to bank loans, credit cards with better interest rates or even more housing options.
But what happens when you get two vastly different scores from competing reporting agencies? Which is the one can you trust? Does the one company have more information on you than the others? Tap or click here to get your free annual credit report.
5 best online banks and how to choose one
If you’re looking for a new bank account, you’re aware that you have a ton of choices in banks, credit unions, and other financial outlets. But are you aware that you also have a choice of online banks?
That’s right — in addition to your traditional brick and mortar banking institutions, there are virtual banks that do just about everything traditional banks can do. These online options offer deposit accounts, investment accounts, and other banking products, and there are often major perks to trading off in-person service for virtual help — and most, if not all, are FDIC-insured. RELATED: FBI warns crooks are targeting banking apps.
5 things to consider before closing a credit card account
Like many of us, you’ve probably been doing a lot of excess online shopping while stuck at home. It might be time to limit your purchasing, and you can do that by closing some of your credit cards.
But it’s not as simple as just cutting up the cards. You need to properly close a credit card account down to keep it from negatively affecting your credit score — which can happen anyway if you’re not careful with which cards you close.