We’ve reached the midpoint of 2024. As you reflect on the first six months of the year, you may be wondering how you’re doing financially. Checking up on your credit health is a good starting point.
“People’s insurance rates, the fact that they can get approved for an apartment or even be employed by certain entities is being determined in part by credit scores and their credit reports,” says Michelle Smoley, an accredited financial counselor in Elma, Iowa. “It’s really, really important for people to keep on top of their credit report and their credit scores because they’re used for more than just consumer lending purposes.”
Here’s how to figure out where your credit stands and what you can do to protect it over the next six months.
Inspect your credit reports
Pull your credit reports from the three main credit bureaus: Equifax, Experian and TransUnion. You can use AnnualCreditReport.com to get free copies as often as once per week. Checking your reports yourself doesn’t directly affect your credit score, but it can help shed light on details that may be damaging your credit.
What should you look for? Make sure personal information, such as your name and address, is correct.
“Any errors or unusual information there might be a clue that somebody is trying to steal your identity,” says Bruce McClary, senior vice president of memberships and communications at the National Foundation for Credit Counseling. “It’s a tactic of identity thieves to apply for credit under P.O. boxes or addresses that are not really yours.”
Review the accounts and credit inquiries listed on your reports too. If negative items like bankruptcies or collections appear, make sure they aren’t outdated (most derogatory marks are supposed to fall off credit reports after seven years). Immediately file a dispute with the credit bureaus if you see anything inaccurate or unfamiliar. In many cases if the issue is corrected, “you’ll see a lift in your credit score,” McClary says.
Check your reports throughout the rest of the year — and beyond — for anything fishy. You can also protect yourself by freezing your credit, which blocks access to your reports.
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Check your credit score
If you’re planning a big purchase, such as a car or home, knowing your credit score and whether you could positively impact it beforehand can help you get approved for credit or for a more favorable interest rate, Smoley says.
You won’t see credit scores on your credit reports, but you can get them elsewhere for free.
“So many people have access to either their FICO score or their VantageScore through their financial institution or their credit card,” Smoley says.
Generally, a score of 690 or higher puts you in a good position. But even if your credit score is strong, it isn’t guaranteed to stay that way. Always be thinking about how to keep your score at that level or grow it so you can qualify for the best possible deal when it comes time to apply for a loan or a line of credit, McClary says.
Knowing the factors that influence credit scores may guide you. Actions like paying your bills on time or becoming an authorized user on a relative’s credit card to expand your credit history can bump up your score.
Make a plan for your debt
Carrying debt can wreak havoc on your credit score because more than half of your score is based on two factors: whether you make payments on time and how much of your credit limit you use.
If you’ve lost track of your debt — maybe it’s been a while since you’ve made a payment on an account or it’s been passed around several debt collection agencies — your credit report can tell you who is managing that account and how much you owe, McClary says.
Once you know what you’re dealing with, set due date reminders and try to make at least the minimum monthly payment on each account. Note that while medical debt may disappear from credit reports early next year, your obligation to pay it won’t.
Making extra payments on credit cards with high balances can help your score too. Keeping your credit utilization ratio below 30% is ideal.
Do your best to save up for purchases you’ll make in the often expensive second half of the year, and pay them off as soon as possible. Summer vacations, back-to-school spending and holiday shopping can put a strain on credit utilization.
If you shop for a mortgage or auto loan, limit applications to a 14-day period to avoid multiple hard pulls from lenders on your credit report, which hurt scores, Smoley says. Credit scoring models generally count all inquiries made within this time frame as a single hard pull.
Keep monitoring your credit health to avoid surprises at the end of the year. “If you don’t know where to start, you can talk to a nonprofit credit counseling agency,” McClary says. “A nonprofit credit counseling agency can work with you, first of all, to understand what you’re seeing on your credit report, and then understand your options for dealing with some of these things. So you don’t have to go through it alone.”
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“I believed it was revolutionary and unique in the space, and it’s definitely turning out to be that way,” Fisher said. “The next step in today’s market was coupling it with non-QM, and that’s exactly what Kind has done.” Best-in-class tech for non-QM ‘the next evolution’ Many brokers may have experienced working with a non-QM … [Read more…]
The home-buying process can be especially nerve-wracking if you’re worried about having less-than-ideal credit. Luckily, some lenders will consider applicants with bad credit — or no credit at all.
CNBC Select rounded up the top lenders that consider applicants with credit scores lower than the typical 620 requirement. We evaluated each based on the types of loans offered, customer support, the required minimum down payment amount, and other factors (see our methodology below).
Keep in mind that while you may be approved for a mortgage with a lower credit score, you’ll likely receive an interest rate on the higher end of the lender’s rate range.
Best mortgage lenders for bad credit
Best for flexible terms
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and jumbo loans
Terms
15- and 30-year conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
Credit needed
Typically requires a 620 credit score but will consider applicants with a 580 as long as other eligibility criteria are met.
Minimum down payment
3.5% if moving forward with an FHA loan
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Pros
Largest home lender in the U.S.
Offers 1% down conventional mortgage
High scores for customer satisfaction
Shorter-than-average closing time
Rebate of up to $10,000 for buying with Rocket Homes
Cons
No USDA mortgages, construction loans or HELOCs
Hard credit check required for customized rate
Higher origination fees than competition
No retail branches
Who’s this for? Rocket Mortgage stands out if you’re seeking flexibility. While most lenders tend to require a minimum credit score of 620, Rocket Mortgage accepts applicants with credit scores as low as 580.
Standout benefits: Rocket Mortgage offers a free program called Fresh Start to help potential applicants boost their credit scores before applying. Its proprietary low down payment option, the ONE+ mortgage, allows borrowers to put as little as 1% down.
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Best for veterans
Navy Federal Credit Union
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage
Terms
10 – 30 years
Credit needed
Not disclosed but lender is flexible
Minimum down payment
0%; 5% for conventional loan option
Terms apply.
Pros
0% downpayment for most loan options
flexible repayment terms ranging from 10 years to 30 years
Offers refinancing, second-home financing and loans for investment properties
No PMI required
Fast pre-approval
RealtyPlus program allows applicants to receive up to $9,000 cash back
Cons
Must be a Navy Federal Credit Union member to apply
Who’s this for? Navy Federal Credit Union is ideal for current or retired members of the Armed Forces with a Navy Federal Credit Union membership (immediate family members are also eligible). While this lender doesn’t disclose its required minimum credit score, it works with members to analyze their circumstances and find the right mortgage fit for them, making Navy Federal Credit Union a potentially more flexible lender if you have a lower credit score.
Standout benefits: You can use the RealtyPlus program to buy a home and receive up to $9,000 in cash back. Private mortgage insurance (PMI), is also not a requirement for a low down payment on a mortgage through this lender.
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Best for no PMI
CitiMortgage®
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
Terms apply.
Pros
Citi’s HomeRun Mortgage program allows for a downpayment as low as 3%
Citi’s Lender Assistance program gives eligible homebuyers a credit of up to $5,000 to use toward closing costs
Ability to choose between fixed-rate and adjustable-rate mortgages
New and existing Citi bank customers can qualify for closing cost discounts based on their account balance
HomeRun mortgage program allows for a downpayment of less than 20% without PMI
Provides homeownership education and counseling
Cons
No options for a 0% downpayment
Existing customers need high account balances to receive some of the highest interest rate discounts
Who’s this for? CitiMortgage is great if you want to put less than 20% down but avoid the monthly PMI bill. If you apply for a mortgage through Citi’s HomeRun program, you can make down payments as low as 3% without PMI. If you’ve already purchased your home, this program can also be used to refinance your mortgage.
Standout benefits: Existing Citi customers with an account balance between $1 and $49,999.99 can be eligible for a $500 closing credit. Those with higher balances can receive an interest rate discount. Qualified borrowers can use the Lender Paid Assistance program to get up to $7,500 in credits toward closing costs. Homeownership counseling and education are also available.
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Best for no credit score requirement
Guild Mortgage
Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
Types of loans
Conventional loans, construction loans, FHA loans, VA loans, USDA loans and Jumbo loans
Terms
15-year to 30-year
Credit needed
Some loans require a 620 credit score, some require a 540 credit score or no credit score at all.
Minimum down payment
0% if moving forward with a USDA loan; 0% if moving forward with an Arrive Home™ or Zero Down mortgage (a 3% to 5% down payment is financed through a second mortgage with these options) ; 1% on conventional loans for some qualifying borrowers
Pros
Offers several low down payment mortgage options available
Wide variety of loans
Accepts applicants with credit as low as 540 or no credit at all with some loans
Provides lots of information online about the homebuying process
Robust brick-and-mortar and online presence
Cons
Rates are not available to view on the website
Mortgages may not be available for every home type
Who’s this for? Guild Mortgage can provide options even if you don’t have a credit score or have a score as low as 540 — a lower threshold than the typical 620 credit score lenders usually require to even look at an applicant. Instead, Guild uses proof of on-time payments such as rent checks, utility bills and insurance payments to verify an applicant’s credit. It also boasts a variety of loans and down payment assistance programs if you want to make a small down payment.
Standout benefits: Guild Mortgage’s Zero Down allows borrowers with a credit score of 600 or greater to take out an FHA loan with 0% down — the lender will provide an additional repayable loan to the borrower as a second mortgage to supplement the FHA’s traditional 3.5% down payment requirement. Qualifying borrowers who make up to 160% of the area median income can also take out Guild Mortgage’s Arrive Home™ loan, which allows borrowers to put 0% down by taking out a repayable second mortgage with the company.
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Best for a quick closing
CrossCountry Mortgage
Annual Percentage Rate (APR)
Fixed-rate and adjustable-rate available, apply online for rates.
Types of loans
Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans
Terms
Apply online for terms
Credit needed
620 for conventional loans, 500 to 580 for some government-insured loans
Minimum down payment
Pros
Provides down payment grants
FastTrack Credit Approval program allows some borrowers to close on mortgage within 10 days
Website provides a variety of tools, including a mortgage calculator, homebuying guide, and refinancing guide
Available in all 50 states
Cons
Higher-than-average rates
Rates are not online
Who’s this for? CrossCountry Mortgage is great if you want a lender with faster-than-average closing times. It offers conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans. While most of its conventional loans require a 620 credit score, some federally insured options accept borrowers with a credit score as low as 500.
Standout benefits: CrossCountry Mortgage offers down payment grants for qualified buyers. With its FastTrack Credit Approval, CrossCountry says its borrowers have an edge in the home buying process with a reapproval process that allows borrowers to get the funds in as little as 10 days.
[ Jump to more details ]
More on our top lenders for those with bad credit
Rocket Mortgage
Rocket Mortgage — the largest home loan provider in the country — has a variety of loan options available — especially for those looking to make a small down payment. It accepts borrowers with credit scores as low as 580 and provides a large number of educational resources on its easy-to-use website. Rocket has consistently scored above average on customer satisfaction surveys.
Minimum credit score
580
Types of mortgage loans offered
Fixed-rate, adjustable-rate, FHA loans, VA loans, jumbo loans, HomeReady and Home Possible loans
Down payment minimum
1% with the ONE+; 3.5% with FHA loan
[ Return to summary ]
Navy Federal Credit Union
Navy Federal Credit Union is the largest provider of VA loans and provides many benefits to veterans, and their immediate families. With a VA loan, you have the option to pay 0% down and the seller can contribute up to 4% of the home’s value toward closing costs. Navy Federal also offers the Military Choice mortgage, which has similar guidelines to the VA loan, such as no PMI and a 0% minimum down payment, but allows sellers to contribute up to 6% of the home’s value toward closing costs.
Minimum credit score
Not disclosed.
Types of mortgage loans offered
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans
Down payment minimum
0%; 5% with conventional loans
[ Return to summary ]
CitiMortgage
CitiMortgage allows homebuyers to make a small down payment without worrying about PMI. Citi offers qualifying existing customers closing cost aid or interest rate discounts.
Minimum credit score
580 if taking out an FHA loan.
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans and jumbo loans
Down payment minimum
3%
[ Return to summary ]
Guild Mortgage
Guild Mortgage provides many loan types for borrowers with much lower credit than lenders usually require. In some cases, a credit score is not even needed. Guild also provides several low down payment options.
Minimum credit score
540 for some mortgages; no credit needed for some mortgages
Types of mortgage loans offered
Conventional loans, construction loans, FHA loans, VA loans, USDA loans and Jumbo loans
Down payment minimum
0% with a down payment assistance loan as a second mortgage.
[ Return to summary ]
CrossCountry Mortgage
CrossCountry Mortgage offers a wide variety of loans and says it can give its borrowers a leg up in the homebuying process through its FastTrack Credit Approval which allows borrowers to close on a loan in as little as 10 days.
Minimum credit score
580 or 500 for some government-insured loans.
Types of mortgage loans offered
Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans
Down payment minimum
3%
[ Return to summary ]
FAQs
What is pre-approval and how does it work?
Pre-approval is a statement or letter from a lender indicating how much money you qualify to borrow to purchase a home and your potential interest rate. You’ll likely have to provide bank statements, pay stubs, tax forms and employment verification, among other requirements, and once pre-approved, you’ll receive a mortgage pre-approval letter, which you can use to begin viewing homes and making offers. It’s best to get pre-approved at the start of your homebuying journey before you start looking at homes.
How do mortgages work?
A mortgage is a loan you can use to purchase a home. It’s also an agreement between you and the lender that essentially says you can purchase a home without paying for it in full and upfront — you’ll just need to put some of the money down — usually between 3% and 20% of the home price — and pay smaller, fixed monthly payments over a certain number of years, plus interest.
How is my mortgage rate decided?
Mortgage rates change almost daily and can depend on market forces such as inflation and the overall economy. While the Federal Reserve doesn’t set mortgage rates, they do tend to move in reaction to actions taken by the Federal Reserve on its interest rates.
While market forces may influence the general range of mortgage rates, your specific rate will depend on your location, credit report and credit score. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate.
What is a conventional loan?
A conventional loan is a loan that’s funded by private lenders and sold to government enterprises such as Fannie Mae and Freddie Mac. It’s the most common type of loan and some lenders may require a down payment as low as 3% or 5%.
What is an FHA loan?
A Federal Housing Administration loan, or FHA loan, typically allows you to purchase a home with looser requirements — for example, you may get approved with a lower credit score or be able to get away with having a higher debt-to-income ratio. You’ll typically only need to make a 3.5% down payment.
What is a USDA loan?
A USDA loan is offered through the United States Department of Agriculture and is aimed at individuals who want to purchase a home in a rural area. Best of all, USDA loans require a minimum down payment of 0% — in other words, you can use it to buy a rural home without a down payment.
What is a VA loan?
VA mortgage loans are provided through the U.S. Department of Veterans Affairs, meant for service members, veterans and their spouses and require a 0% down payment with no mortgage insurance.
What is a jumbo loan?
Borrowers who need a mortgage for more than $766,550 to purchase a single-family home (in most areas) will need to take out a jumbo loan. Note that these types of loans typically have stricter credit score and debt-to-income ratio requirements in part because they do not meet the Federal Housing Finance Agency’s (FHFA) conforming guidelines.
What is the difference between a 15- and 30-year term?
A 15-year mortgage gives homeowners 15 years to pay it off in fixed, equal amounts plus interest, while a 30-year mortgage gives 30 years to pay it off. With a 30-year mortgage, your monthly payments will be lower since you’ll have a longer period to pay off the loan, however, you’ll wind up paying more in interest over the life of the loan since it is charged every month. A 15-year mortgage, on the other hand, lets you save on interest but you’ll likely have to make a higher monthly payment.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best bad credit mortgages.
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Our methodology
To determine which mortgage lenders are the best for bad credit, CNBC Select analyzed dozens of U.S. mortgages offered by online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list can offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances in which a particular lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate per the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee the interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
There’s nothing better than coming home from a long and busy day to a warm and cozy home that makes you feel instantly calmer and more relaxed. If you’re looking to make your home feel as cozy as possible, Amazon’s Down to Earth hub is a treasure trove of possibility. The curated collection of home decor finds contains everything you need to make your space feel peaceful. Whether you’re looking for ultra-soft textures or soothing colors, Amazon’s Down to Earth hub has got you covered.
While refreshing your home decor can be expensive, it definitely doesn’t have to be, especially when you’re shopping on Amazon. So, we’ve rounded up 14 of our favorite home decor items from Amazon’s Down to Earth hub under $50 that can breathe new life into your space without breaking the bank.
Best Decor Finds in Amazon’s Down to Earth Hub Under $50
Kiampon Gold Industrial Table Lamp with USB Ports, $30 (was $39)
Kasantex Three-Piece Coverlet Set, $50
Calyan Wax Co. Scented Candle, $29
Maison d’Hermine Decorative Pillow Cover, $17 with coupon (was $19)
Briful Artificial Monstera Plant, $19
Joyreap Three-Piece Reversible Quilt Set, $35
Danjor Linens Six-Piece Sheet Set, $25 with coupon (was $29)
Mellanni Four-Piece Sheet Set
Your bed should be the most calming, comfortable place in your home, and this microfiber Four-Piece Sheet Set from Mellanni is the perfect place to start. It comes in dozens of colors, including soothing earthy hues and versatile neutrals as well as a handful of classic patterns. The sheets are available in seven sizes, ranging from twin to split king, and they have deep pockets, so you can rest assured they will fit snugly and stay in place throughout the night. Mellanni’s microfiber sheets are breathable and soft, described by one reviewer as feeling. “Just like heaven.” Best of all, they are easy to wash, quick-drying, and resistant to wrinkles and pilling.
Monday Moose Decorative Throw Pillow Covers (Set of Four)
These Monday Moose Decorative Throw Pillow Covers are made from 100 percent polyester velvet and each set comes in a cohesive color scheme. Each pillow cover is double-sided with contrasting colors, and one shopper said they are, “perfect for adding a lot of color without a lot of pattern,” to your space. These pillow covers are ideal for your living room or for the finishing touch on your bed, and they come in seven sizes to match any pillow inserts you may already have. With 12 different color options, there’s bound to be a perfect fit for every decor style and color palette.
Bedsure Boho Three-Piece Duvet Cover Set
Changing up your duvet cover can instantly transform the look and feel of your bedroom, and this Boho Three-Piece Duvet Cover Set from Bedsure will infuse your space with whimsical, boho style. Available in six sizes, the bedding has a simple, geometric pattern made up of textured embroidery, and as one shopper pointed out, it is, “very soft and easily washable.” The comforter set includes a duvet cover and two pillow shams, and it comes in more than 25 different colors, ranging from soft, neutral tones to bold and vibrant colors. The pieces are made from polyester microfiber fabric, making it resistant to shrinking and fading over time. Thoughtfully designed, the duvet cover has eight corner ties inside so your comforter stays in place and doesn’t bunch throughout the night.
Binoster Marble Ceramic Jewelry Tray
This Binoster Marble Ceramic Jewelry Tray is a sophisticated catch-all for jewelry, coins, keys and other small trinkets. It comes in gray or pink marble patterns, both of which have an elegant gold rim. The jewelry tray is made from premium high-fired ceramic, and it comes in two different sizes: 5.3 inches and 8.4 inches. Style it on your dresser, end table, entry table, or console or use it in the kitchen as a small serving tray. Lightweight and compact, this adorable tray also makes a great gift.
A cozy throw is a must-have for every living room, and this Bourina Decorative Herringbone Faux Cashmere Throw Blanket is as soft and comfortable as it is elegant. The herringbone pattern is timeless and effortlessly chic, and it comes in eight colors that can add a touch of fun to your space. The blanket’s faux cashmere is smooth to the touch: “very soft, and feels like cashmere,” says one shopper. It’s also much easier to clean than genuine cashmere, which is not machine washable. Even though it’s lightweight, it’s still cozy and warm, and the rolled finger edges are a subtle, but refined finish. Toss it over the arm of your couch, arrange it in a basket in your living room, or hang it on a blanket ladder to make it a focal point of your decor.
While the world is a busy and sometimes chaotic place, your space should be inviting and help you instantly relax the moment you walk through the door. Home decor changes big and small can transform your home into a soothing, peaceful sanctuary, even if you’re on a budget. You can find more of our favorites from Amazon’s Down to Earth hub below, all under $50.
Hartford is a city full of history and hard working people. It’s known for its beautiful architecture, top-tier educational institutions, and stellar arts scene. This all means finding a home in Hartford is a great idea.
Whether you’re a lifetime resident or a transplant on the hunt for the perfect Hartford apartment, there’s always something fascinating to explore. From the impressive Connecticut State Capitol to the scenic Connecticut River, each spot featured below has its own charm. Let’s dive into some of the top things Hartford is known for to get to know the city a bit better.
1. Connecticut State Capitol
The Connecticut State Capitol stands as a stunning architectural marvel in Hartford. Completed in 1878, this building showcases Gothic Revival style. Its gold dome and intricate detailing make it a feast for the eyes. Inside, you’ll find historical exhibits and the Connecticut Hall of Fame, making it so much more than just a government building.
2. Mark Twain House
The Mark Twain House is a must-visit for avid readers. This historic house was home to Samuel Clemens, better known as Mark Twain. The author wrote some of his most famous works here, including “The Adventures of Tom Sawyer.” The guided tours offer insights into Twain’s life and his literary genius. The house itself is a beautiful example of Victorian architecture.
3. Connecticut River
The Connecticut River adds natural beauty to Hartford. It’s the longest river in New England, flowing through the city and providing scenic views. Along the riverbanks, you’ll find parks and trails perfect for walking, biking, or picnicking. Riverfront Recapture offers events and activities like boat rides and concerts. The river is a key part of Hartford’s identity.
4. Hartford Stage
Hartford Stage is one of the city’s premier artistic institutions. Known for its high-quality productions, this theater offers a range of performances, from classic plays to contemporary works. It has received numerous awards, including a Tony Award for Outstanding Regional Theater. The intimate setting ensures that every seat has a great view. Attending a show here is a memorable experience.
5. Connecticut Science Center
The Connecticut Science Center is a fantastic destination for families and curious minds. This state-of-the-art facility features interactive exhibits on topics like space, biology, and physics. There’s also a 3D theater and live demonstrations that make learning more fun than it is in a traditional classroom. The center aims to inspire a love for science in visitors of all ages.
6. Bushnell Park
Bushnell Park is the oldest publicly funded park in the United States. Designed by Frederick Law Olmsted, it comprises 50 acres of green space in downtown Hartford. The park features a stunning carousel, paths, and beautiful sculptures. It’s a popular spot for locals to relax and enjoy nature.
7. Trinity College
Trinity College is a prestigious liberal arts college in Hartford. Founded in 1823, it boasts a beautiful campus with historic buildings and modern facilities. The college is known for its rigorous academic programs and strong community spirit. Its chapel and library are particularly noteworthy for their architecture. Trinity plays a significant role in Hartford’s status as a stellar Connecticut college town.
8. Wadsworth Atheneum Museum of Art
The Wadsworth Atheneum Museum of Art is the oldest continually operating public art museum in the country. It houses an impressive collection of European, American, and contemporary art. The museum’s Gothic Revival building is a landmark in itself. Needless to say, artsy types will find plenty to admire here.
9. Elizabeth Park
Elizabeth Park is known for its stunning rose garden, the first municipal rose garden in the United States. The park spans over 100 acres and offers beautiful walking paths, greenhouses, and ponds. It’s a perfect place to center yourself. The rose garden, with over 15,000 bushes, is a highlight, especially in bloom. Elizabeth Park is a welcome tranquil escape within the city.
If you don’t pay your credit card, it can lead to late fees, increased interest rates, being sent to collections, and damage to your credit. It could also result in legal action being taken against you.
Credit cards offer several advantages over debit cards. For example, when you use a debit card, you can only spend as much money as you have in your bank account. With a credit card, you gain access to a line of credit, increasing your purchasing power. A credit card also gives you extra fraud protection. If someone gains access to your account, your personal funds aren’t at risk.
However, if you use your credit card, you also have to make a minimum payment every month. Find out what happens if you don’t pay your credit card on time.
How Credit Cards Work
A credit card is a type of revolving debt, which means your balance and minimum monthly payment change based on your spending habits. For example, if you pay your full balance before the end of your billing cycle, you won’t have a minimum payment due the following month.
Credit card companies usually calculate minimum payments based on your current balance plus a little extra to account for interest. If you have a balance of $3,000 during a 0% interest promotion, your minimum payment may be anywhere from $30 to $90. This assumes your credit card company charges between 1% and 3% of your balance.
Your minimum payment is the lowest amount due during a billing cycle. If you have a large balance, try to pay more than the minimum. Otherwise, interest charges will keep accumulating, making it difficult to pay your debt in full and causing your debt to become more and more expensive.
What Happens If I Don’t Pay My Credit Card on Time?
Failing to make your minimum payment on or before the due date can have some potentially serious consequences. Here’s what happens if you don’t pay a credit card on time.
1. Late Fees
Many credit card companies charge a fee for late payments. As of 2024, the average late fee is $32. In March 2024, the Consumer Financial Protection Bureau finalized a rule that would reduce the typical late fee to $8, but a federal judge has issued an injunction preventing the new rule from going into effect for now.
If you’ve never made a late payment before, you may be able to get your credit card company to remove the fee as a courtesy. Simply call the number on the back of your card and explain what happened. If you’re polite and let the agent know the late payment was a one-time mistake, they may remove it for you.
Although late fees can put a dent in your budget, late payments don’t affect your credit scores until you’re 30 days past due. This is when the consequences of a late payment can really start to hurt you.
2. Delinquency
Once you hit the 30-day mark, your account becomes delinquent. Credit card companies report delinquencies to the credit bureaus, causing your credit to decrease significantly. If you miss multiple payments, your scores will drop even more. Credit.com has a free credit score simulator to help you understand the effects of delinquency on your credit profile.
3. Charge-Off
Eventually, your credit card company stops waiting for you to make a payment. This prompts a charge-off, where a creditor closes your account and writes off your debt as a loss. If you have a charge-off on your credit report, you may find it extremely difficult to get approved for new accounts.
Your credit card company may even issue a 1099-C form for your canceled debt. Depending on your financial situation, you may have to pay income tax on the canceled amount.
4. Collections
A charge-off doesn’t make your debt magically disappear. You still owe what you borrowed, so your credit card company may send your account to collections. Once a collection account appears on your credit report, other lenders can see it. This may make it difficult to qualify for an auto loan, a mortgage, or another credit card.
Collection agencies may contact you frequently, but you have certain legal rights related to debt collection. For example, you can tell a debt collector not to call you at work. If a collection agency violates any state or federal laws, you also have the right to consult with an attorney.
5. Lawsuit
Some creditors are especially aggressive about getting paid what they’re owed. If your credit card company is one of them, you may find yourself on the receiving end of a lawsuit. When a creditor sues you, it’s important to appear in court. Otherwise, the creditor may get a default judgment against you before you even have a chance to tell the judge your side of the story. Then, you’ll have to repay the judgment, which may include interest and fees.
How to Recover From Late Credit Card Payments
Now that you know what happens if you don’t pay your credit card on time, it’s important to avoid additional negative marks on your credit record. Here are four things you can do to improve your financial situation.
Commit to On-Time Payments
Everyone makes mistakes. The important thing is you learn from your mistakes instead of repeating them. If you miss a payment, commit to on-time payments going forward. It may take some time for your credit to recover, but at least you won’t take an additional hit.
Open a Secured Credit Card
If you have several late payments on your record, you may find it difficult to open new lines of credit. Get things back on track by opening a secured credit card. With a secured card, you establish a credit line by making a small cash deposit. For example, if you deposit $500, the issuer may give you a credit line of $500.
A secured card works just like a regular credit card, so you can use it to make purchases at your favorite stores and e-commerce websites. If you don’t make payments as agreed, the credit card company can close your account and keep your deposit.
Pay Down Your Debt
Once you have a late payment on your record, it takes time to rebuild your credit profile. If a creditor won’t remove the late payment from your reports, there are other things you can do to help your credit. For example, try to make all of your future payments on time and in full. It won’t erase the negative impact of the late payment, but it can help your credit while you wait for the late payment to fall off your record.
Negotiate With Creditors
If you’ve never missed a payment before, try negotiating with your credit card company. A creditor isn’t obligated to remove negative information from your credit report, but if you ask nicely, they may be willing to cut you a break. This works best when you have a solid payment history.
The company representative may be more willing to help you if you have a good reason for missing a payment. For example, if a close family member passed away, it’s quite possible you forgot your due date because you were grieving your loss.
To learn more about managing your credit and credit cards responsibly, explore Credit.com’s credit card guide, and get your free credit report card now.
A prime credit score typically refers to a high credit score, usually above 720. It shows lenders that you have a history of responsibly managing credit and can qualify you for better loan terms and lower interest rates.
Few numbers are as important as your credit scores. Lenders use them to determine if you qualify for auto loans, home loans, credit cards and other products. In some states, insurance companies use credit scores to calculate your premiums. You may even have to undergo a credit check to qualify for some jobs.
Whether you just got your first credit card or have more than a decade of experience managing credit, it’s important to understand the score ranges and how they’re used. Keep reading to learn more about prime credit scores in particular.
What Is a Prime Credit Score?
A prime credit score is any score that falls into the “prime” category, and according to the Consumer Financial Protection Bureau, prime scores range from 660 to 719. Some lenders may have slightly different ideas of what is classified as a prime score. Although a prime score isn’t the highest credit score you can have—credit scores generally range from 300 to 850—it’s high enough to help you qualify for many loans and credit cards.
Additional Score Categories
Prime is just one of the five categories used to classify consumer credit scores in the context of lending. The others are deep subprime, subprime, near-prime, and super-prime. Here’s what they mean:
Deep subprime (579 or lower): If you have a deep subprime score, banks view you as highly likely to default on your financial obligations. In other words, there’s a good chance you won’t repay loans and credit cards as agreed. With scores in the subprime category, you’ll find it difficult to qualify for credit. Even if you do qualify, you’ll pay the highest interest rates, making it more expensive to borrow money.
Subprime (580 to 619): Subprime scores are a little better than deep subprime scores, but you’ll still find it tough to qualify for loans and credit cards. People with subprime scores also pay higher interest rates than people with scores in the prime and super-prime categories.
Near-prime (620 to 659): If you have a near-prime score, you’re getting closer to qualifying for the lowest interest rates. With a little effort, you can make the leap from near-prime to prime, making it easier to reach your financial goals.
Super-prime (720+): If you have a score of 720 or higher, you pose the lowest amount of risk to lenders. As a result, super-prime borrowers qualify for the most favorable interest rates and loan terms.
Note that these score ranges are slightly different from the official FICO® score ranges:
Poor: 579 or less
Fair: 580 – 669
Good: 670 – 739
Very good: 740 – 799
Exceptional: 800+
Factors Used to Calculate Your Credit Scores
FICO scoring models use the following factors to calculate your scores.
Payment History
One of the best ways to boost your score is to make on-time payments, as payment history accounts for a whopping 35% of your FICO scores. If you borrow money, the lender expects to be repaid as agreed. A history of on-time payments shows that you follow through on your financial commitments.
Amounts Owed
Another major factor, accounting for 30% of your credit score, is the amount of available credit you are using on a regular basis. To maintain a prime credit score or super-prime credit score, avoid using a high percentage of your available credit. Maxing out your credit cards affects your utilization rate, which is a comparison of how much credit you have available versus how much you’re using.
For example, if you have balances totaling $5,000 against credit limits totaling $10,000, you have a 50% utilization rate. Lenders typically like to see utilization rates below 30%, so paying down debt and requesting credit limit increases can help you optimize your scores.
Length of Credit History
FICO’s models also consider your average age of accounts, along with the age of your oldest and newest accounts, when determining your scores. You don’t need a long history to achieve a high credit score, but it can help. This determines 15% of your credit score.
Credit Mix
The term credit mix refers to how many types of credit accounts you have. Some people have one or two credit cards, while others have a full portfolio of credit cards, personal loans, and auto loans. Credit mix doesn’t make up a huge percentage of your score (10%), but it’s one of the factors used to assess your creditworthiness.
New Credit
Every time you apply for a loan or a credit card, the lender checks your credit report. This is known as a “hard inquiry” on your report. There’s nothing wrong with an inquiry or two, but applying for multiple lines of credit in a short amount of time is a red flag for lenders. If a lender sees four or five inquiries in a matter of weeks, they may wonder if you’re running out of money and relying on credit to pay your bills. New credit accounts for 10% of your FICO credit score.
Benefits of Having Good Credit
Having a prime credit score opens many doors for borrowers. For example, you’re likely to qualify for the best interest rates, reducing the total cost of borrowing money. Lenders may also be willing to offer more favorable loan terms, such as more time to pay or reduced fees.
Good credit also gives you more freedom. If your car breaks down, a prime credit score makes it easier to qualify for a vehicle loan. Without a good score, you might have to rely on an unsafe vehicle or take out a loan with an extremely high interest rate. Prime credit scores may even help you secure lower rates on your auto insurance, homeowners insurance or renters insurance coverage.
Maintaining a Prime Credit Score
Once you have a prime credit score, it’s important to maintain it. You can maintain good scores by making on-time payments, keeping your credit utilization rate as low as possible and applying for credit only when you truly need it. Over time, these good financial habits may help you jump from a lower credit to higher credit.
Get your free credit score from Credit.com today to see where your credit currently lies and determine what you can do to maintain or improve it.
Some of the best budgeting methods include proportional budgeting, zero-based budgeting, and reverse budgeting.
This article was originally published on Arrest Your Debt and has been republished here with permission.
A budget method sets out how an individual, company, or organization plans to spend money over time. Budgeting for beginners can be an extensive process, but a failure to budget is a quick path to long-lasting debt problems.
Multiple budgeting methods address different needs—some people might only need to set a budget for a specific purchase, while others might be looking for long-term financial strategies. Here, we’ll explore several different budgeting methods and valuable personal finance resources to help you address future financial questions.
The Traditional Budgeting Method
The traditional way to budget is rooted in the business and corporate world. Those who are willing to invest the time can use this method to handle their personal finances.
With this method, you study the income and expense figures from a previous month or year to help you plan out an upcoming period. You subtract the expenses from your take-home income, the funds in your checking account, or cash in your savings account. With this method, you’ll also need to account for inflation and any significant changes to your income.
Track Your Expenses
Check with your bank for options to get spending reports, and use banking apps to help streamline this process. You can then update your expenses daily or weekly for the most accurate results.
This type of accounting helps you understand what you’ve brought in, what you’ve spent, and what you have left each period. You can then decide where you may need to trim spending—especially if you find that your funds are running low each month. For example, you might see opportunities to lower food expenses by:
Using store-label or generic brand groceries rather than national name brands
Cooking more and eating out less
Opting for water instead of sodas at the restaurant
Change Your Shopping Habits
Switching up your shopping habits based on sales and price hikes is an excellent way to save money. Some common habits to target include:
Driving less can help lower your monthly gas or EV charging expenses.
Ordering online, especially if you can avoid shipping and handling charges.
Purchase foods that can serve multiple meals to reduce the time and money spent at grocery stores.
Wait to grab extra supplies until you’re already commuting from work or running errands.
Zero-Based Budgeting Method: AKA Zero-Sum Budget
In this approach, you give a task to every dollar you bring home. Since you account for every dollar of income, you should not have any money left over in your budget at the end of the month.
Here, you don’t simply rely upon expense categories. However, you would identify specific categories for food spending and then set funds aside for that distinct purpose.
Below is an example of a zero-based budgeting system for a particular month:
Total Monthly Income: $3,000.00
(-) Expenses:
Rent – $700.00
Electrical – $100.00
Water – $50.00
Cable and Internet – $175.00
Wireless/Cell Phone – $200.00
Grocery Shopping – $400.00
Dine out – $75.00
Car Payment – $200.00
Gasoline – $200.00
Car Insurance – $150.00
Credit Card 1 – $75.00
Credit Card 2 – $100.00
Doctor’s Visit – $25.00
Church Offering – $100.00
Deposit to Savings Account – $450.00
(=) $0 leftover after paying all expenses
You have all of your $3,000 in take-home pay allocated to various expenses and items in this example.
The zero-based method might not involve as much detail and time as you think. Remember that you have many fixed expenses such as mortgage or rent, car payments, and phone or cable bills. If one-time expenses crop up that are high priority, you can briefly pull funds from non-essential items.
Proportional Budgeting Systems
In a proportional budget, you devote a certain amount of your monthly income to specific categories. Unlike the zero-based method, you focus less on specific items. Instead, general areas of expenses guide the budgeting process.
The 50/30/20 Budget Method
The 50/20/30 method calls for you to reserve 50% of your funds for fixed expenses (i.e. rent & car notes), 20% for emergencies, long-term savings goals, and paying extra on your debts. The remaining 30% can then go to your wants.
Suppose you have a monthly after-tax income of $3,000. In the 50/20/30 budget, you distribute your money as follows:
(50%) Essentials: $1,500
(20%) Savings, Retirement, Emergency-Fund: $600
(30%) Discretionary: $900
The 50/30/20 helps you keep long-term savings in mind, but it might not be effective if your income is low and inflation is high. When the cost of living increases, it’s easy for the essential budget to exceed 50% of your monthly income.
The 60/40 Budgeting Style
The one-time MSN Money Editor-in-Chief Richard Jenkins developed another proportional budget. In the 60/40 approach, you spend 60% of your net income on committed expenses. This categorization of spending includes mandatory expenses and non-essentials to which you commit.
You then dedicate savings and money that might not have any utility beyond “fun” to the remaining 40%. Ideally, you can distribute these funds in 10% increments across three 401(k) or retirement plans, including a tax-free account. In developing his budgeting plan, Jenkins expressed a strong preference for saving well above the recommended 5% of income.
With enough income and the ability to shave expenses from your committed expenses, you might reach significant savings goals and future spending power in a few years.
Proportional Budgets for Would-Be Homeowners
If you plan to buy a home, your monthly debt payments should not exceed 43% of gross (pretax) monthly income. In calculating this debt-to-income ratio, you include car loans, student loans, credit card debt, and the anticipated monthly mortgage payment in debt. For example, your debt payments should stay at or below $2,580 per month on a monthly gross income of $6,000.
Also, consider the cost of maintaining your home. Some financial or home experts suggest budgeting 1% of your home’s price for maintenance. Other advisors include maintenance costs with mortgage payments and suggest that your housing costs do not exceed one-fourth of your income.
Reverse Budgeting: AKA Pay Yourself First Budget
Reverse budgeting makes saving the top priority. Most budgets have you start with mandatory expenses such as debt payments, food, and utilities. When you put the budget in reverse, you first decide how much to save and then set funds aside for your other expenses.
Reverse budgets should include a mixture of short-term and long-term savings goals. If you’re planning to buy a home or car or save a certain amount for college or retirement, start the process by estimating the cost of the particular benchmark.
Envelope Budget AKA Cash Envelope Method
Many budgeting techniques focus on determining how much to spend on particular categories depending on your financial goals. With the cash envelope system, you’re mentally forcing yourself into a planned spending limit.
Specifically, you label envelopes according to spending categories. Your take-home pay goes into particular envelopes based on your budget for each category. To that end, you might use some of the methods we’ve discussed, especially a proportional budget method, to decide how to allocate the money.
As you want or need to pay for something, you take money out of the envelope for that category and pay for the items with cash. Once you have emptied the envelope, you no longer spend on that category. With discipline and commitment, you resist the urge to borrow from another category.
Calendar Budgeting
Calendar budgeting encourages you to base your spending on your paydays and your monthly due dates. For example, if you get paid on the first and the fifteenth of each month, you would mark down those days on your budget along with the amount you expect to receive.
Next, you can mark down each fixed payment that will be due during your payment periods. If you receive $1,500 on the first and you have an $80 smartphone payment due on the 10th, you’ll want to jot down $1,500-$80 on your budget. Knowing how to read your paycheck stub is vital to effectively using this method.
Value Proposition Budgeting
Value proposition budgeting, also called “priority-based budgeting,” prompts people to measure the importance of every item they spend money on. The more integral an expense is, the more it’s justifiable if a large percentage of your budget is spent on it.
Businesses and entrepreneurs might favor this method, as it illustrates which expenses are worth their weight in revenue and which you can trim down. Using this method before applying for small business loans can also help you stay within your limit.
Budgeting Methods FAQ
A lot of questions can surface when you’re building out a budget. Here are some of the most common questions we’ve encountered.
What is the best budgeting model?
Budgeting isn’t a one-size-fits-all process, so there isn’t one model that beats the rest. It helps to learn about as many different budgeting strategies as possible to help you construct a plan that suits your specific needs.
The following information will highlight some of the most prominent budgeting methods people use. However, incorporating ideas and budgeting categories from multiple different methods is also a fantastic strategy.
What Things Do I Need to Include in My Budget?
Excel spreadsheets, Google Sheets, a printable monthly budget template, or a budgeting app can all help you account for your income and expenses. Start by listing your take-home pay and other income you received in a given period. If you’re basing the budget on a year, find your W-2 form and subtract all of the taxes withheld from the gross income. As an easier approach, use your final pay stub for the calendar year or total the paystubs in the particular previous month.
Next, list your common expenses for each month. You might have debt payments such as mortgage, car, student loan debt, and credit cards. Other categories of expenses include transportation, food, clothing, utilities, entertainment, television, and other media and insurance.
Build a Better Budget with Credit.com
The budgeting method that works best for you is a personal preference and depends on your financial situation, goals, and ability to be detail-oriented. Whatever you use to create your budget, budgeting should enhance your financial literacy, help you find approaches to debt repayment and other financial goals, and afford you discipline and structure in your spending habits.
A successful budget involves total buy-in and a belief that you can achieve financial independence and finally fix your debt payoff problems. Choose one of these simple budgeting methods to take control of your financial future and reduce your overall money stress.
Check out Credit.com’s guide for managing debt if you need help recovering from a financial setback. When you’ve got the funds, our investing guide can help you learn more ways to strategically increase your income.
Last night’s presidential debate disappointed some trade groups by only briefly touching on how the two contenders will address housing affordability, even though other indicators suggest there could be stark differences in their approaches.
Upon being asked about the strain of rising home prices, President Biden said actions he’s taking in line with that aim include his efforts to lower broader inflation, something former President Trump also said he’d tackle.
In addition to fighting inflation, Biden said he plans to increase housing supply by “making sure we build 2 million new units” and capping rents.
The candidates also faced a question about the still-wide homeownership divide between Black voters and white households, with both candidates calling the concern a product of inflation and Biden saying he’ll continue taking steps to narrow the gap.
“For example, I provided the idea that any Black family first-time homebuyer should get a $10,000 tax credit,” Biden said, also pointing to broad efforts he’s made to prevent discrimination. President Trump, in contrast, rolled back fair lending rules during his term.
Although Realtor.com reported that the scant mention of housing wasn’t entirely surprising as it was in line with past debates between the two candidates, the omission was out of line with voter interest.
A recent poll from online real estate brokerage Redfin found that 53.2% of households said their election decision will be influenced by housing affordability. The candidates did face some questions about it, but only President Biden addressed the topic directly.
Also, a national survey from the University of Michigan and the Financial Times found that Americans’ financial ability to afford a home ranked as a top concern by a nearly equal 70% share of Democrats, Republicans and independent voters alike.
In light of that, Ralph McLaughlin, a Realtor.com economist, said he had hoped for, “more discussion about your house, and less about the White House.”
Similarly, Carl Harris, chairman of the National Association of Home Builders, issued a comment following the debate stressing a need for the presidential candidates to address the housing supply shortage and implement solutions.
“The housing affordability crisis is a top national concern and Americans will take notice why the presidential candidates said very little on how to make homeownership and renting more affordable,” Harris said in a press release.
Builders are looking for efforts that would increase inventory, Harris said.
“With a nationwide shortage of roughly 1.5 million housing units, the only way to bring down rising housing costs is to put in place policies that will allow builders to increase the housing supply,” he added.
Harris also suggested some other strategies the presidential candidates should work with lawmakers on to alleviate stresses on housing construction and affordability challenges for consumers.
“The administration and Congress must address excessive regulations, support trades education to alleviate a severe labor shortage in the construction industry that is delaying home building projects, and oppose restrictive, mandatory building codes that significantly raise housing costs and provide little energy savings to consumers,” he said, referring to some items in a set of recommendations the NAHB has.