Job creation that exceeded expectations in May has reinforced the perception that the Federal Reserve will maintain the same benchmark interest rates at its June meeting and may delay any rate cuts that were planned for this year. This means that mortgage rates are likely to be higher for even longer than previously expected.
The U.S. economy added 272,000 jobs in May, above the market consensus estimate of 180,000. It was also much higher than the 160,000 jobs delivered the previous month (the April data was revised downward by 15,000) and the 12-month average increase of 232,000, per data released Friday by the U.S. Bureau of Labor Statistics.
In May, job gains were most notable in industries such as health care (+68,000), government (+43,000), and leisure and hospitality (+42,000). The data shows that the average hourly earnings for private-sector employees grew by 0.4% month over month to $34.91 and were up 4.1% from a year ago.
Meanwhile, the unemployment rate was 4% (6.6 million unemployed people) in May, compared to 3.7% (6.1 million unemployed people) in the same month last year. That’s the highest level for the jobless rate since January 2022.
Following the jobs report, the 10-year U.S. Treasury, which historically correlates to mortgage rates, was at 4.42% on Friday morning, up 13 basis since market open. At HousingWire‘s Mortgage Rates Center, the 30-year fixed for conforming loans was at 7.2%.
The CME FedWatch Tool, which measures the likelihood that the Fed will change the federal target rate at upcoming meetings, on Friday showed a 99.4% chance of rates remaining unchanged at the next meeting, compared to 96.2% yesterday. The chances of a rate cut in September went down from 68.7% to 54.4% in the same period.
“Although this report is not uniformly strong, on net, it is showing a job market that is still quite tight, which likely means that the Federal Reserve will continue to hold at its current level of rates, as inflation is unlikely to drop back to target given this pace of wage growth,” Mike Fratantoni, chief economist for the Mortgage Bankers Association (MBA), said in a statement.
The MBA forecasts the Fed’s first rate cut in September of this year. Benchmark rates are now between 5.25% and 5.50%.
Lawrence Yun, president of the National Association of Realtors (NAR), said that yearly wage growth of 4.1% is respectable and better than the 3.4% consumer price inflation. But Americans have not shown recognition of an improving economy “due to the fact that the cumulative rise in consumer prices is still higher than the cumulative wage gain of the past four years.”
“Payroll data is considered much more reliable than household survey data. That is why Wall Street is expecting a further delay in the Fed’s interest rate cut. The mortgage rate looks to be stuck at near 7% average for at least another month,” Yun said in a statement.
Danielle Hale, chief economist at Realtor.com, said this month’s uptick in job creation was “smaller than previous hiring sprees in March 2024 and December 2023.” Overall, the job market “has slowed from previous highs, but appears to be normalizing in a healthy way and should help bolster confidence that monetary policy is having its intended effect.”
But inflation data is needed to understand the Fed’s next step.
“Bond traders are anticipating slower growth and lower inflation, which has caused 10-year yields to slide in the last week to lows not seen since late March,” Hale wrote. “If this perspective is confirmed in next week’s data, we could see mortgage rates remain below 7%, a threshold they’ve hovered above and below for the past four weeks, but if the data deviate from this trend, mortgage rates are likely to climb.”
In an interview with HousingWire earlier this week, Fannie Mae chief economist Doug Duncan said that his team expected new payroll jobs in May to be aligned with April. But he noted that if the figure exceeded 200,000 jobs, “it’s going to take longer for the Fed to act.”
“We have in our forecast [the Fed] cutting 25 basis points for each of the September and December meetings. But if they don’t get three strong months trending the major data in the direction they want, we will take the September number out. The risks, right at the moment, are balanced toward less cuts.”
Average mortgage rates ebbed this week — a welcome change, but not enough to give home buyers much relief.
The average rate on the 30-year fixed-rate mortgage fell to 6.89% in the week ending June 6, according to rates provided to NerdWallet by Zillow. It was a decrease of 13 basis points from the previous week. (A basis point is one one-hundredth of a percentage point.)
The drop brings the 30-year fixed rate to about where it was two weeks ago and slightly under May’s monthly average of 7.01%.
Home prices may cool off
National home sale prices rose 5.3% year over year in April and were up 1.1% from the prior month, CoreLogic, a global property analytics company, reported this week.
Any price increase is tough on home buyers, but the recent gains are softer than the year-over-year price jumps in the last few years. CoreLogic projects home price growth to slow to 3.4% by next spring.
The price softening reflects buyers’ response to high mortgage rates and anticipation that rates may eventually fall, CoreLogic chief economist Selma Hepp said in a June 4 press release.
“Also, the price cooling is more pronounced in markets where there has been an influx of inventory and/or new construction, as well as those where additional homeownership costs (such as insurance, taxes and HOA fees) have risen relatively faster,” she said.
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About 605,000 single-family homes are on the market — 39% more than last year at this time, Mike Simonsen, founder and president of Altos Research, a real estate analytics firm, said in a June 3 video.
“Most of the country has over 30% more homes on the market now,” he said. “But a few states — Texas, California, Florida, Georgia, Arizona — are driving the bulk of the inventory increase for the country. So inventory is up everywhere, just some places more than others.”
Simonsen predicts that rising inventory will continue as long as rates stay high. Inventory will fall if rates go down and more buyers enter the market.
Fed rate cut unlikely next week
Lower inflation could lead to lower interest rates. The two big things to watch for next week are the releases of the U.S. Bureau of Labor Statistics’ consumer price index, which measures inflation, and the Federal Reserve’s Federal Open Market Committee’s monetary policy statement. Both will happen on June 12.
The Fed does not plan to cut the federal funds rate — a rate that influences mortgage rates — until inflation is “moving sustainably toward 2%.”
Market watchers don’t expect a rate cut next week. As of June 6, the chance of the Fed keeping the federal funds rate unchanged was more than 99%, according to the CME FedWatch Tool.
Explore mortgages today and get started on your homeownership goals
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A newly listed property in Sonoma, CA is turning heads with its blend of eco-conscious features, luxurious amenities, and standout interiors.
Crafted by San Francisco-based Sutro Architects, the 4-bedroom, 4-bathroom home is a true embodiment of sustainable living, boasting cutting-edge technologies without compromising on design or comfort.
At the heart of this sustainable sanctuary lies a robust solar power system, harnessing the golden rays of the Californian sun to power the estate.
But that’s just the beginning. Complementing the solar power is a state-of-the-art Tesla battery system, ensuring that every watt of energy is stored and utilized with utmost efficiency, as well as a high-yield well, and an innovative water recycling system.
By the numbers
Listed for $8,850,000 with Blakely Hull of Avenue 8, the 2022-built house spans 4,534 square feet and has 4 bedrooms, and 4.5 baths.
Inside, the floor plan combines intimacy with grandeur, offering private spaces like a 3-bedroom Northern wing with a media/game room as well as communal, open floor spaces for family members and friends to connect and entertain.
Location and design
Nestled on a generous 4-acre lot set just a few minutes from the historic Sonoma Plaza, this eco-friendly abode was designed by the acclaimed Sutro Architects, the San Francisco-based architecture team led by Stephen Sutro.
The house is strategically located out of the fire zone and set back from the street, offering both safety and privacy.
Comfort and privacy
The property is divided into two wings for optimal comfort and privacy. The three-bedroom Northern wing includes a media/game room, while the Southern wing offers a primary suite with panoramic views, an office, and a gym.
Indoor-outdoor living
The great room, a central feature of the home, opens through retractable patio doors to a 82-foot heated pool, spa, fire pit, and lush gardens. This seamless indoor-outdoor transition creates a perfect setting for relaxation and entertainment.
Amenities include a pickleball court
For those with an active lifestyle, a regulation Pickleball court promises endless hours of friendly competition and fun.
See also: Robert Redford Says Goodbye to Secluded Napa Estate; Sells the Home for $7 Million
And more outdoor features
Beyond the pickleball court, the property includes an electric gate for added security, a burgeoning orchard of fruit trees, and a custom pond, creating a serene and peaceful environment.
Sustainable technologies
This home is equipped with advanced sustainable technologies, ensuring minimal utility costs and low insurance premiums. The robust solar power system, Tesla batteries, high-yield well, and innovative water recycling system work together to make this property a model of eco-friendly living.
Solar power and Tesla batteries
The property features a robust solar power system paired with Tesla batteries, ensuring that the house can operate independently of the grid. This setup not only reduces electricity costs but also provides a reliable power source during outages, emphasizing the home’s commitment to sustainability and self-sufficiency.
Innovative water recycling system
Another standout feature is the innovative water recycling system, which plays a crucial role in maintaining the lush, expansive lawns and gardens. This system recycles greywater for irrigation, significantly reducing water consumption and supporting the property’s eco-friendly ethos.
Proximity to Sonoma Plaza
This newly built home is ideally located just minutes from the historic Sonoma Plaza, the largest of its kind in all of California.
Known for its charming shops, gourmet restaurants, and vibrant community events, the plaza is the heart of Sonoma. Residents can enjoy the convenience of being close to this cultural hub while living in their serene, private property.
Listing details
Price: $8,850,000
Listing Agent: Blakely Hull, Avenue 8
Location: 20600 Broadway Avenue, Sonoma, CA 95476, USA
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San Francisco, meanwhile, saw prices spike by 31% between February 2020 and April 2022, meaning the subsequent 5.9% drop has provided scant relief for prospective buyers in that market. There may be a sliver of good news in the likelihood of borrowing costs beginning to fall at some point this year, although any decrease will … [Read more…]
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today launched a public inquiry into junk fees that are increasing mortgage closing costs. The CFPB wants to understand why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered. According to a CFPB analysis, the closing costs borrowers pay in connection with a mortgage have risen steeply in recent years. From 2021 to 2023, median total loan costs for home mortgages increased by over 36%. The unavoidable fees borrowers must pay at closing can strain household budgets and families’ ability to afford a down payment. The fees may also limit the ability of lenders to offer competitive mortgages because they have to absorb the higher costs or pass them on to borrowers.
“Junk fees and excessive closing costs can drain down payments and push up monthly mortgage costs,” said CFPB Director Rohit Chopra. “The CFPB is looking for ways to reduce anticompetitive fees that harm both homebuyers and lenders.”
People rely on mortgage loans to buy their homes and to access home equity. When people purchase a home with a mortgage, they pay a number of fees, such as charges for credit reporting and title insurance. Even if disclosed, borrowers are compelled to pay the fees and may have no control over cost. In 2022, median closing costs were $6,000, and these fees can quickly erode home equity and undercut homeownership.
Mortgage lenders also pay a price when it comes to junk fees and excessive closing costs. For example, in recent years the cost of a credit report has risen substantially. Rising costs can prevent lenders from competing for every potential mortgage because these fees drive up the cost of considering an applicant.
Title insurance is another major fee paid at closing. Most commonly, lender’s title insurance is paid by the borrower to protect the lender against problems with the property. Consumers typically have limited options to shop around for title insurance.
The CFPB’s request for information seeks input from the public, including borrowers and lenders, about how mortgage closing costs may be inflated and constraining the mortgage lending market. Specifically, the CFPB asks for information about:
Which fees are subject to competition: The CFPB is interested in the extent to which consumers or lenders currently apply competitive pressure on third-party closing costs. The CFPB also wants to learn about market barriers that limit competition.
How fees are set and who profits from them: The CFPB wants to learn about who benefits from required services and whether lenders have oversight or leverage over third-party costs that are passed onto consumers.
How fees are changing and how they affect consumers: The CFPB wants information about which costs have increased most in recent years and the reasons for such increases, including the rise in cost for credit reports and credit scores. The CFPB is also interested in data on the impact of closing costs on housing affordability, access to homeownership, or home equity.
The CFPB encourages comments and data from the public and all interested stakeholders. Comments must be received within 60 days of the request for information being published in the Federal Register.
The CFPB administers many laws and regulations related to mortgage lending and real estate settlement, including the Truth in Lending Act, the Fair Credit Reporting Act, and the Real Estate Settlement Procedures Act. The findings from this inquiry will help inform rulemaking, guidance, and other policy initiatives.
Read today’s Request for Information Regarding Fees Imposed in Residential Mortgage Transactions.
Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov.
Traditionally, art has resided in museums and galleries, confined to walls and pedestals. Functional art disrupts this notion. It asserts that art can, and should, be integrated into everyday life. A chair, a painted lampshade – these are not just utilitarian objects, they elevate the mundane to the aesthetic. They transform the act of using these everyday items into an experience imbued with artistic appreciation.
In a world saturated with mass-produced, disposable items, functional art offers a powerful counterpoint. Each piece is carefully created, often from discarded materials. This imbues them with a unique story, a sense of history, and a deeper connection to the artist’s vision.
‘Upcycld Art’, the brainchild of eco-artist Molly, elevates the concept of functional art with a focus on sustainability. By using scrap wood, they make a powerful statement about responsible consumption and resourcefulness, challenge the notion of ‘disposability’, and demonstrating the inherent beauty that can be found in what others consider waste.
Have you ever wondered if you can get paid to stuff envelopes at home? It sounds like an easy way to make extra income, right? Envelope stuffing jobs have been around for a long time and often come up as a way to make extra money from home. These jobs involve placing papers or flyers…
Have you ever wondered if you can get paid to stuff envelopes at home? It sounds like an easy way to make extra income, right?
Envelope stuffing jobs have been around for a long time and often come up as a way to make extra money from home. These jobs involve placing papers or flyers into envelopes, which are then sent out to a mailing list.
But, before you jump in, there are a few things you should know about envelope stuffing jobs.
First, be cautious of envelope stuffing jobs that ask for upfront fees – they’re almost always scams. Second, real envelope stuffing jobs are rare and don’t pay much.
If you’re thinking about envelope stuffing, it’s worth looking into alternative jobs that may have more stability and better income.
What Is Envelope Stuffing?
Envelope stuffing is a simple job where you put things inside envelopes.
You might stuff letters, flyers, or promotional materials using postage stamps.
Once everything is inside, you seal the envelope and add stamps or labels.
Sometimes, you might use machines to help with the job. Machines can quickly fold and insert papers into the envelopes.
There are also jobs where you handle everything by hand. This includes folding the papers, putting them into the envelopes, sealing them, and adding the postage.
While it might sound easy and convenient, especially as a work-from-home option, be cautious. Many job listings for envelope stuffing jobs turn out to be scams. People might ask you to pay for information or materials that lead nowhere.
Legitimate envelope stuffing jobs exist but are often found in mailrooms or offices. These jobs may require some clerical skills and attention to detail.
For me, I had an office job where for around one week out of the whole year I stuffed envelopes, but that was it (I worked for a small company).
Just remember, if something sounds too good to be true, it probably is. Stuffing envelopes scams are everywhere and they are a waste of your time.
Recommended reading: 31 Best Stay At Home Jobs (#1 Is My Full Time Job!)
How To Spot Envelope Stuffing Job Scams
Envelope stuffing scams tend to make promises of easy money for little work. To avoid falling for these scams, watch out for the following red flags:
Upfront fee to get started
When looking for envelope stuffing jobs, be cautious if you are asked to pay a start-up fee. Legitimate jobs never require you to pay to work.
For example, scammers may ask for money to provide you with a “starter kit” or “materials.”
If the job offer is real, the employer will not ask you to cover costs for materials or a starter kit.
Pay attention to the details provided by the company. If they are unclear or vague about what the upfront fee covers, it’s a red flag. A real company will clearly explain all costs and fees.
So, there are ways to get paid to stuff envelopes from home for free, they are just hard to find.
Promises of high earnings for little work
When you see ads claiming you can earn big money with little effort by stuffing envelopes, be careful.
These ads may promise hundreds or even thousands of dollars per week. It’s worth noting that such offers are often too good to be true, because who would pay $1,000+ a week to stuff envelopes?
Scammers know that the idea of easy money is attractive. They lure you in with lots of money, but the reality is very different.
Actual pay for envelope stuffing jobs is usually much lower. You might earn only 5 to 20 cents per envelope. This means you need to stuff hundreds of envelopes just to make a little money. The average hourly rate is quite low.
Some advertisements also suggest you can get rich quickly. This is always a red flag.
If it sounds too easy and too profitable, it’s likely not true. Most real envelope stuffing jobs are time-consuming and don’t pay well.
Lack of contact information
When looking for legitimate envelope stuffing jobs, one big thing to check is contact info.
A real company should have a physical address. If you can’t find an address anywhere, that’s a red flag. This might mean the company is not real or trustworthy.
You should also watch out for emails filled with mistakes. Poor grammar and sloppy writing can be signs of a scam. A real company should communicate clearly and professionally.
Here’s what to do if you’re not sure if the envelope stuffing job is real or not:
Always search for the company’s contact details.
Check their website for an address and phone number.
Try to contact them directly to see if their response is professional.
I always recommend that you verify the company’s information before sending any personal information.
Pressure to act quickly
When looking for envelope stuffing jobs, you might find that some companies push you to act fast. They might tell you that you need to sign up immediately, or you’ll miss out on the job. This type of pressure is a big warning sign and it’s typically a scam.
Here’s why acting quickly can be risky:
Not enough time to research – You might not get a chance to look into the company. This can lead to falling for scams.
Impulsive decisions – Quick decisions might make you agree to conditions that aren’t good for you.
Losing money – You might have to pay upfront fees, thinking it’s normal. Real jobs usually don’t ask for this.
Remember: Scammers like to use urgency to trick people.
Is envelope stuffing legit?
Envelope stuffing jobs can be tricky. Most ads promising high pay for stuffing envelopes at home are scams. When a job offer sounds too easy or too good to be true, it’s usually worth questioning.
Here’s what you can do:
Check reviews and complaints – Look for the company online. Visit forums, review sites, Glassdoor, the Federal Trade Commission (FTC), and the Better Business Bureau (BBB) to see if others had bad experiences. You could even contact your state attorney general’s office to see what they think.
Ask questions – Contact the company directly. Ask for details about the job. Legitimate companies will give you clear answers.
Protect yourself – Never give out personal or financial information without verifying the company’s legitimacy.
Trust your instincts – If something feels off, it likely is. Trust your gut and research before making any decisions.
Instead of trusting random ads, use trusted job boards like Indeed, LinkedIn, or FlexJobs. These sites can help you find legitimate work-from-home jobs, though true envelope stuffing jobs are rare. Sometimes, jobs involving clerical tasks might require some envelope stuffing, but they will include other duties too.
8 Alternatives to Envelope Stuffing Jobs
Looking for a job that you can do from home? Check out these options like proofreading, bookkeeping, and virtual assistant work. These jobs can pay a good income and may even allow for flexibility in your schedule.
1. Proofreader
Proofreaders check written content for errors. They look for grammar, spelling, and punctuation mistakes. This job is perfect if you enjoy reading and have strong language skills.
I have a proofreader for my blog. Even though I write a lot, I know it’s very important to have someone check my work.
If you want to become a proofreader, I recommend joining this free 76-minute workshop focused on proofreading. In this workshop, you’ll learn how to start your own freelance proofreading business.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
2. Bookkeeper
A bookkeeper manages financial records for businesses. This includes tracking income and expenses, creating invoices, and preparing financial reports.
This job lets you work on your own and earn around $40,000 or more each year. You don’t need a college degree to be a bookkeeper either.
You can join the free workshop about finding virtual bookkeeping jobs and starting your own freelance bookkeeping business by signing up for free here.
Recommended reading: How To Find Online Bookkeeping Jobs
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
3. Transcriptionist
Transcriptionists listen to audio recordings and type what they hear. This job requires good listening and typing skills.
You might transcribe interviews, meetings, or medical records. Online transcriptionists usually make between $15 and $30 per hour. New transcribers usually start at the lower end of that range.
A free training I recommend learning from is Free Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
4. Virtual assistant
One of my first side jobs was working as a virtual assistant. It was fun and flexible, and I earned a good income doing it.
Virtual assistants help businesses with tasks like scheduling meetings, managing emails, and social media.
As a virtual assistant, you sometimes may get paid by the person you are working for to stuff envelopes. But, it most likely won’t be your entire job, just a very small fragment of it. After all, someone needs to mail things for a company or a person.
In fact, when I worked for a small company when I was younger, one of my job duties was to put together around 1,000 envelopes to our clients around the holidays. I did this every year. But, this was on top of all of my other work responsibilities, so I was not only an envelope stuffer. So, you may be able to find a job where this is a part of your tasks but typically not what you do 24/7 at work.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
5. Blogger
I started my blog, Making Sense of Cents, without much planning. I just wanted to share my experiences with money. Surprisingly, since I started, I’ve made over $5,000,000 from it. Now, blogging is my main job!
There are many positives! I can work alone, make my own schedule, be my own boss, choose the work I want to do, and work from home. I have an amazing work-life balance, and I wouldn’t trade this job for anything else.
If you are looking for something that you can do from home, then this can be a good option to look into.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
6. Data entry clerk
Data entry clerks input information into digital systems, such as spreadsheets. Work-from-home data entry jobs are straightforward and require accuracy.
Many businesses need data entry clerks for tasks like updating databases and entering customer information.
Data entry jobs usually pay between $15 to $20 per hour.
Recommended reading: 15 Places To Find Data Entry Jobs From Home
7. Customer service representative
Customer service representatives help customers with their questions and issues. This role can involve phone, email, or chat support.
On average, customer service representatives make about $35,868 a year. This can vary depending on where you work and how much experience you have.
Big companies like Apple, Progressive, U.S. Bank, American Express, and U-Haul hire customer service representatives who can work from home. This means you can do the job from the comfort of your own house.
8. Paid online surveys
Completing paid online surveys is an easy way to make extra cash. Companies pay for your opinion on products and services.
While you won’t make a full-time income, it’s an easy way to earn money in your spare time.
The survey companies I recommend signing up for and the best-paying survey sites include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
User Interviews
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Swagbucks is a site where you can earn points for surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.
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Once you complete five surveys, you’ve earned $5, which you can cash out using the payout options offered by the site (such as PayPal cash and free Amazon gift cards).
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Prime Opinion is a survey website that helps people to earn extra money by sharing their opinions at home. It’s a simple survey site to use: you share your thoughts, and they pay you for them.
Frequently Asked Questions
Envelope stuffing jobs are a popular option for many who want a flexible side hustle. Below, you’ll find answers to some common questions about these types of jobs.
Are there any real envelope stuffing jobs?
Yes, some legitimate companies do hire people to stuff envelopes. These jobs are often found in industries like marketing, where you pack items such as flyers and advertisements into envelopes. But, real envelope stuffing jobs typically do not pay well, and the work is very tedious (I know this because I have personally stuffed envelopes!).
How can someone tell if an envelope stuffing job is legit?
To tell if an envelope stuffing job is real, watch out for a few red flags. Be cautious of companies that ask for upfront fees, promise high pay rates, or have unclear contact information.
Is the Amazon envelope stuffer job real?
No, any job offer for an Amazon envelope stuffer is a scam. Fraudulent companies use big brand names to trick people. If you see an ad for an Amazon envelope stuffer job, stay away.
Are there any real companies offering jobs for stuffing envelopes?
Yes, there are real companies that hire for these types of jobs. However, they are not very common and usually pay low wages. So, I always recommend that you check the company’s background and read reviews before applying.
Can you get paid for envelope stuffing by the government?
No, the government does not pay you to stuff envelopes. Nearly everything is automated now.
How much does stuffing envelopes pay?
The pay for stuffing envelopes varies. Some jobs may pay per envelope, for example, around $0.15 per envelope. Others may offer hourly rates, which could be up to $20 per hour, but those are rare. Most legitimate jobs pay close to minimum wage for part-time envelope stuffing jobs.
Can you make money mailing letters?
Yes, you can make money mailing letters, but don’t expect to get rich. The pay is usually low, and it won’t be enough to replace a full-time job. It can be a way to earn some extra income, though.
Is envelope writing a real job?
Yes, envelope writing is a real job. Some companies hire workers to write addresses on envelopes by hand. This job is often part of direct mail campaigns and can be a fun and easy way to make a little extra money.
Envelope Stuffing Jobs – Summary
I hope you enjoyed this article on how to get paid to stuff envelopes.
You may have come across envelope stuffing on local bulletin boards, on social media, or during an online job search. I see them all the time, in fact.
Lots of people are interested in envelope stuffing jobs because they seem like an easy way to make money. But it’s important to know how to recognize scams and understand the truth about these opportunities. Some job offers ask for money up front, which is a big warning sign. Knowing how to avoid these scams is important if you’re searching for legitimate work-from-home options.
Before you commit to an envelope stuffing job, check forums, review sites, the Federal Trade Commission, and the Better Business Bureau to see if others had bad experiences or if anyone experienced any fraud.
If you are the victim of fraud, I recommend calling the FTC at 1-877-FTC-HELP as well as the U.S. Postal Inspection Service to report it to officials. Unfortunately, you may not be able to dispute what you paid to the scammer for a refund, but it may not hurt to try if you paid via credit card.
If you’re looking for a work-from-home or remote job, there are many alternatives to envelope stuffing jobs as you learned above. Personally, I think any of the alternatives are better than falling for a work-from-home scam as a paid envelope stuffer.
In an industry in which one mantra has been “survive until ’25,” mortgage originators are likely to have to struggle through not only year but the following one as well, iEmergent said in its latest production forecast.
The same trends that affected 2023 — inflation, real gross domestic product growth, a strong labor market and tight Federal Reserve monetary policy — will hold the housing market back through the end of 2026, said Mark Watson, chief of forecasting at iEmergent, in a press release.
Watson’s update also no longer sees the U.S. going into recession in 2024, bringing him in line with other industry forecasts.
Last August, iEmergent, a mortgage business intelligence firm, predicted between $1.62 trillion and $1.71 trillion for 2023 production. After looking at recent Home Mortgage Disclosure Act data, it pushed that number down to $1.44 trillion.
At that time, it also forecast between $1.69 trillion and $1.79 trillion for this year. The update puts the low point at $1.57 trillion and the high end at $1.62 trillion.
In comparison, the May forecast from the Mortgage Bankers Association found 2023 volume to be $1.64 trillion and the group is now expecting $1.81 trillion to be produced in 2024. At the MBA’s Secondary and Capital Markets Conference, Jeana Curro, managing director at Bank of America said her organization now calls for $1.6 trillion in originations this year, up from $1.38 trillion in 2023.
Fannie Mae’s most recent estimate for last year was $1.47 trillion of volume, in line with iEmergent’s, but it forecasts $1.73 trillion for 2024 volume.
“As economic growth slows over the next couple of years, we could finally see some improvement, provided inventory scarcity is addressed,” iEmergent CEO Laird Nossuli said in the press release. “As markets recover, origination opportunities will be unevenly distributed.”
In its new forecast, iEmergent doesn’t see originations getting back above $1.7 trillion until 2025 and barely topping $2 trillion the following year.
The MBA believes the industry will be above $2 trillion in 2025 (at around $2.1 trillion) and at $2.28 trillion in 2026.
Fannie Mae has only publicly forecast out to next year and it foresees production at just under $2.1 trillion as well.
This year’s gain in dollar volume will be due to higher home sales prices, as iEmergent only thinks units produced will increase by just 400,000 to 4.51 million.
Next year, loans originated will increase to 4.95 million and in 2026, to 5.61 million. The 2026 increase will be on the strength of the refinance market, as the year-over-year gain is estimated to be 500,000 units of loans for that purpose.
Inside: Learn what 19 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $19 a year, how much do I truly make? What will that add up to over the course of the year?
Is $19 a living wage?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?
In this post, we’re going to detail exactly what $19 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$19 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $19 per hour as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $19 = $39,520
$39,520 is the gross annual salary with a $19 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
breakdown of 19 dollars an hour is how much a year
This is how that number is calculated.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $19 times 2,080 working hours, and the result is $39,520.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Just under $40,000 a year.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $19 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $19 times 1,040 working hours, and the result is $19,760.
How Much is $19 Per Month?
On average, the monthly amount would average $3,293.
Annual Amount of $39,520 ÷ 12 months = $3,293 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Plus by increasing your wage from $12 an hour, you average an extra $1200 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,647.
How Much is $19 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $19 = $760 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $380.
How Much is $19 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $760 and double it.
$760 per week x 2 = $1,520
Also, the other way to calculate this is:
40 hours x 2 weeks x $19 an hour = $1,520.
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $760.
How Much is $19 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $19 per hour = $152 per day.
If you work 10 hours a day for four days, then you would make $190 per day. (10 hours x $19 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $76.
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$19 Per Hour is…
$19 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$39,520
Yearly Wage (50 weeks)
$38,000
Monthly Wage(173 hours)
$3,293
Weekly Wage (40 Hours)
$760
Bi-Weekly Wage (80 Hours)
$1,520
Daily Wage (8 Hours)
$152
Net Estimated Monthly Income
$2,514
**These are assumptions based on simple scenarios.
Paid Time Off Earning 19 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $39,520 per year.
This is the same as the example above for an annual salary making $19 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $19 times 2,000 working hours, and the result is $38,000.
40 hours x 50 weeks x $19 = $38,000
You would average $152 per working day and nothing when you don’t work.
$19 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $39,520
Federal Taxes of 12%: $4,742
State Taxes of 4%: $1,581
Social Security and Medicare of 7.65%: $3,023
$19 an Hour per Year after Taxes: $30,174
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$30,174 ÷ 2,080 hours = $14.51 per hour
After estimated taxes and FICA, you are netting $14.51 an hour. That is $4.49 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $14 an hour wage is much different.
$19 an Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $19.01-19.99.
This is super helpful if you make $19.10 or $19.23.
You are probably wondering can I live on my own making 19 dollars an hour? How much rent can you afford at 19 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $19 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated $19 an hour was $14.51 after taxes. That would average $2,514 per month.
According to the Cents Plan Formula, here is the high-level view of a $19 per hour budget:
Basic Expenses of 50% = $1,257.23
Save Money of 20% = $502.89
Give Money of 10% = $251.45
Fun Spending of 20% = $502.89
Debt of 0% = $0
Obviously, that is not doable for everyone when living above the poverty line. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $19 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $19 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$199
Savings
15-25%
$527
Housing
20-30%
$856
Utilities
4-7%
$165
Groceries
5-12%
$263
Clothing
1-4%
$33
Transportation
4-10%
$132
Medical
5-12%
$165
Life Insurance
1%
$10
Education
1-4%
$16
Personal
2-7%
$49
Recreation / Entertainment
3-8%
$99
Debts
0% – Goal
$0
Government Tax (including Income Tax, Social Security & Medicare)
15-25%
$779
Total Gross Income
$3,293
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Can I Live off $19 Per Hour?
Even living above the minimum wage by $5-6 can be a very difficult situation.
Is it doable? Absolutely.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. Feel like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 19 dollars per hour. No going into debt for me.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $19 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $19 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $19.50 will add up over the year. Even better $20 an hour is a win!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $19 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
Maybe a non phone work from home job is perfect for you!
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
Check out one of these early morning jobs.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $19 an Hour
In this last section, grasp these tips on how to live on $19 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $19 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $19 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $19 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
Learn how to live below your means.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Pick out our saving money charts to guide your savings journey.
It could be participating in a no spend challenge for the month.
Try the 30 day money challenge.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Here are resources now for you to pay off your debt:
Jobs that Pay $19 an Hour
You can find jobs that pay $19 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Administrative assistant
Customer service representatives
Housecleaning specialist
Delivery drivers
Warehouse workers
Trash Collector
Fast Food Restaurant Manager
Maintenance worker
School Bus drivers
Manufacturing Assemblers
Elder Care
Companies that pay more than $19 per hour:
Coors Brewery
Target
Amazon
Best Buy
DoorDash
Charter Communications
Wells Fargo
Bank of America
JP Morgan
Plus many companies pay a higher hourly rate in HCOL areas as well.
$19 Per Hour Annual Salary
In this post, we detailed 19 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 19 dollars an hour annually…
$39,520
This is right between $39000 per year and $43k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
A joint credit card account is a way for you and a spouse, partner, family member, or trusted friend to co-own a line of credit. A joint credit card is in both of your names, meaning both parties are equally responsible for the debt that the card accrues.
Joint credit cards can make sharing finances with a domestic partner easier, but if you’re not on the same page about using the card and paying off debt, it could mean trouble for your credit score and your relationship. Here, learn the full story on joint credit cards and their pros and cons.
What Is a Joint Credit Card Account?
A joint credit card allows two people to fully share in the responsibility of spending with a credit card and paying it off. Each cardholder receives a physical card to use, and each also has full access to credit card statements and payments.
Otherwise, a joint credit card operates just like a traditional credit card — with a credit limit and interest rate on borrowed funds. If you carry over a balance month to month, that balance will accrue interest, and both joint account owners are equally on the hook for paying it back, even if one person is doing most of the spending.
Because a joint credit card is in both owners’ names, it impacts both users’ credit scores. Making regular monthly payments in full and maintaining a low credit utilization could build both cardholders’ scores. On the other hand, late payments and accumulated debt might bring credit scores down.
Recommended: When Are Credit Card Payments Due?
Ways You Can Share a Credit Card
Joint credit card accounts are just one type of shared credit card. Before deciding to apply for a joint credit card, consider whether adding someone as an authorized user on a credit card might be a better option for your situation.
Authorized User
Instead of applying for a credit card with a co-owner, you can make someone an authorized user on an existing credit card. Unlike with a joint account credit card, only one person serves as the cardholder and bears the full responsibility of the card.
The authorized user, on the other hand, can get their own physical card and use it as they see fit. However, the authorized user cannot make larger changes to the card, like requesting an increase in credit limit.
Some, though not all, credit card issuers report authorized users’ activity to the three major credit bureaus. Assuming the main cardholder uses the card responsibly (meaning they make on-time payments and keep credit utilization low), this can reflect well on the authorized user and potentially improve their credit score.
Adding an authorized user can be a good solution for spouses or domestic partners with shared expenses. If one partner has a strong credit score but the other is struggling, the struggling partner might benefit from becoming an authorized user on the other’s card. Additionally, parents who want their children to learn about using a credit card or find comfort knowing their teenage kids have a spending option in emergencies might also benefit from a card with an authorized user.
A caveat: If the main credit cardholder mismanages their credit card and the card issuer reports authorized users to the credit bureaus, this could potentially lower the authorized user’s score rather than helping to build it.
Joint Cardholder
As previously mentioned, joint cardholders share equal responsibility for how the card is used and paid off. Just as there are pros and cons of joint bank accounts, this arrangement can have benefits and drawbacks. A joint credit card enables spouses and domestic partners to approach their finances on equal footing, but a poorly managed card can have major negative impacts on the other.
Sharing a joint credit card requires implicit trust between the co-owners. Partners who disagree about managing finances might not find a joint credit card a good option.
Differences Between Authorized Users and Joint Accounts
Here’s a closer look at the differences between authorized users and joint accounts.
Privileges
Joint cardholders share the same level of privileges on a credit card. Authorized users, however, cannot increase the credit limit or add additional authorized users. On top of that, primary cardholders can sometimes impose spending limits on authorized users.
Number of Users
Two co-owners share a joint credit card account. With an authorized credit card, there is a single primary cardholder and one or more authorized users. The max number of permissible authorized users varies by card issuer. Some may let you add up to five.
Responsibility
Both co-owners share equal responsibility for a joint credit card account. Authorized users are not responsible for payments, but how the credit card is managed can impact the authorized user’s credit score.
Impact on Credit Score
Both joint credit cards and cards with authorized users can impact credit scores of everyone attached to the card. Authorized users just have less control over how the card is managed, so they must put their faith in the hands of the primary cardholder.
Recommended: How to Avoid Interest On a Credit Card
Pros of a Joint Credit Card Account
What are the benefits of a joint credit card? Here are some potential perks of this setup:
• Equal control: Spouses and domestic partners who want equal control of their finances can benefit from a joint credit card, which affords them equal access to spending, statements, and payments.
• Convenience of one shared card: If you share finances with a partner, having one credit card with one payment date might be easier than juggling multiple cards and due dates.
• Potential to boost credit score or get a better rate: If one co-owner lacks a credit history or has a lower credit score, being a co-owner on a well-managed joint credit card could build their score. The person with the lower score might even qualify for a card with a better rate by applying with a joint cardholder.
Cons of a Joint Credit Card Account
There are some drawbacks to joint credit cards, however:
• Shared repercussions for mismanagement: If one co-owner maxes out the card or misses a payment they said they would make, both cardholders share the burden, which can include late fees, a credit score impact, or growing interest. And if your partner decides not to do anything about the growing credit card debt, you could be on your own in paying off their shopping spree.
• Difficulty of removing someone: Removing someone from a joint credit card can be challenging. Your only option for getting out of a bad situation might be paying off and closing the card.
• Possibility of damage to the relationship: If you and a partner do not share the same financial philosophy, entangling your debts might do more harm than good. Couples who already fight about making financial decisions may find that sharing a joint credit card is detrimental to their relationship.
Applying for a Joint Credit Card
Does a joint account sound right for your situation? Here’s how to apply for a joint credit card:
1. Find a credit card issuer with a joint credit card option: Not every credit card issuer offers joint cards. Understand that your options will be more limited than if you applied for a credit card by yourself. Just as you would if you were choosing a joint bank account, take the time to compare a few options and find a joint credit card you’re both happy with.
2. Understand the qualification requirements: Read the fine print to make sure you and your co-owner can qualify. It’s not just your own credit score and credit history you have to consider; credit card issuers will be reviewing both applicants to determine if you can get a joint credit card.
3. Fill out the application: Have all of the necessary information for both applicants handy. It’s a good idea to apply together at a computer, if possible.
4. Set the ground rules: Make sure both of you are on the same page about how you will use the card and who is responsible for making on-time payments. If you’re not sure where to start, check out these basic credit card rules, which can promote healthy card usage.
The Takeaway
Joint credit cards give both co-owners equal responsibility for credit card usage and payments. Using a joint credit card can be a good way to combine finances and help boost a partner’s credit score. However, applicants might benefit from going the authorized user route instead. Understanding the risks of both options is important before completing a joint credit card application or making someone an authorized user on an existing card.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
Do joint credit cards affect both credit scores?
Joint credit cards affect both users’ credit scores equally. A well-managed card that is paid off in full each month might build both users’ scores. On the other hand, regularly late payments and a high credit utilization could bring both scores down.
Can I add someone to my credit card as a joint account holder?
Not every credit card issuer offers joint account credit cards. However, most allow you to add authorized users to existing credit cards. Contact your credit card issuer to learn more.
What requirements are needed to get a joint credit card account?
Requirements for getting a joint credit card account will vary by credit card issuer. Credit card companies typically consider factors like age, credit score, and income to determine whether you can get a joint credit card.
Photo credit: iStock/gorodenkoff
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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