Your credit reports contain a record of your borrowing and repayment history, including both positive and negative information. Negative entries (the kind that can hurt your scores) generally stay on your credit reports for seven years. By contrast, positive information (which can help build your credit) typically remains on your credit reports for at least 10 years, and can remain indefinitely.
Here’s a basic primer on what information goes on your credit reports, including how these entries affect your credit and how long they stay there.
Key Points
• Negative entries generally stay on credit reports for seven years; positive information can remain for at least 10 years.
• Credit scores range from 300 to 850, with higher scores indicating better credit health.
• Hard inquiries can affect credit scores and stay on reports for about 24 months; soft inquiries do not impact scores.
• Disputing errors and requesting goodwill deletions can help remove negative information from credit reports.
• The impact of negative entries diminishes over time, especially if you practice good financial habits.
What Is a Credit Score?
A credit score is a number designed to predict how likely a person is to repay a loan, based on their credit history. Credit scores generally range from 300 to 850, with higher scores indicating better credit health. Lenders and other creditors use your credit score to determine whether or not to approve your application for financing. Credit scores are also used to determine the interest rate and credit limit you receive.
You actually don’t have just one credit score, but several. The reason is that credit scores can be calculated using different credit reports (we each have three, one from each of the major consumer credit bureaus) and different scoring models. The two most commonly used scoring models are FICO® and VantageScore®.
Here’s a look at some of the main factors that affect your credit scores:
• Payment history: How consistently you pay your bills on time.
• Amounts owed: The total amount of debt you currently owe
• Credit utilization: How much of your available credit you’re using
• Length of credit history: How long you’ve had credit accounts open.
• New credit: How often you apply for new credit.
• Credit mix: The variety of credit types you have, such as credit cards, mortgages, and car loans.
• Negative events: Whether you have had a debt sent to collections, a foreclosure, or a bankruptcy, and how long ago.
💡 Quick Tip: Your credit score updates every 30-45 days. Free credit monitoring can help you learn about your score’s normal ups and downs — and when a dip is cause for concern.
What Is a Credit Report?
A credit report is a detailed record of your credit history compiled by one the three major credit bureaus — Equifax®, Experian® and TransUnion®. The bureaus collect and store financial information about you that is submitted to them by creditors (such as lenders and credit card companies). Creditors are not required to report to every credit bureau. As a result, your three credit reports may contain slightly different information. Your credit report updates when creditors send new information to the credit bureaus, which generally happens every month or so.
When you apply for credit, lenders will typically check one or more of your credit reports to determine your ability to repay loans. Negative information on your reports can signal higher risk and make it hard to secure credit or result in higher interest rates. You can access free copies of your credit reports by visiting AnnualCreditReport.com.
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How Long Does Positive Information Remain on Your Credit Report?
Positive information — such as timely payments and accounts in good standing — can remain on your credit report for up to 10 years. For example, an account that’s paid off in good standing (meaning there are no late or missed payments) will stay on your report for 10 years after the last payment was reported. This positive information can help maintain, or even build your credit, as it reflects your ability to handle credit responsibly.
Active accounts that are in good standing will continue to show up on your credit report indefinitely. Keeping these accounts open and in good standing can contribute positively to your credit history for as long as they are active.
How Long Does It Take for Information to Come off Your Credit Report?
Negative information doesn’t stay on your credit reports forever, but how long it remains depends on the type of negative entry:
• Late payments: Payments made 30 or more days late can remain on your credit reports for seven years from the date of the missed payment. Even if you bring the account current, the late payment entry remains.
• Collection accounts: When an unpaid debt is sent to a collection agency, a separate collections account will appear on your credit reports and stay there for seven years from the date of the original delinquency.
• Bankruptcies: Chapter 7 bankruptcies stay on your credit report for 10 years from the filing date, while Chapter 13 bankruptcies remain for seven years.
• Foreclosures: A foreclosure on your home can remain on your report for seven years.
💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.
Will a Lender Getting a Copy of My Credit Report Affect My Score?
Whether a lender checking your credit report can affect your credit score will depend on the type of credit check they do.
Hard inquiry:This occurs when a lender or creditor checks your credit report as part of a credit application process, and stays on your credit report for about 24 months. One hard inquiry won’t have much, if any, impact on your credit scores. Multiple hard inquiries within a short time frame, on the other hand, can have a more significant effect. Fortunately, if you’re rate-shopping for the same type of credit (e.g., a mortgage or auto loan), multiple inquiries within a short period are usually grouped together as a single inquiry for credit-scoring purposes. Soft inquiry:A soft credit check is what happens when you check your own credit or when a lender preapproves you for an offer without a formal application. Also when an employer, insurer, or utility checks your credit, it’s typically a soft credit check. While soft inquiries remain on your credit reports for two years, they don’t impact your credit score.
Recommended: How Long Does It Take to Build Credit From Nothing?
How to Remove Negative Information From Your Credit Report
While most negative information must remain on your credit reports for a set time period, there are certain steps you can take to remove negative entries:
• Dispute errors:If there’s inaccurate or outdated negative information on any of your credit reports, you can file a dispute with the appropriate credit bureau online or by mail. The credit bureaus have 30 days to investigate your claim, and if the information is incorrect, it will be removed. Filing a dispute won’t hurt your credit, and could potentially have a positive impact if you’re able to get negative information off your credit reports.
• Request a goodwill adjustment:If you have a history of on-time payments but made one late payment, you might consider requesting what’s known as a “goodwill deletion.” This involves sending a letter to your creditor, explaining why you were late with a payment, and asking them to remove the negative entry from your report as a gesture of goodwill. Success depends on the creditor, but it can be worth asking if it’s a long-standing account and you’ve generally been a responsible borrower.
• Wait for negative information to drop off: If the negative information is accurate, your only option may be to wait for it to age off your report. Most negative entries remain for seven years, with some exceptions like Chapter 7 bankruptcy. Over time, however, the impact of negative information diminishes, and practicing good credit habits, such as lowering your credit utilization, can help mitigate its effects.
The Takeaway
Your credit reports contain a detailed history of both positive and negative financial actions, and how long that information stays on your reports varies depending on the nature of the account or event. Positive information, such as timely payments and accounts in good standing, can remain on your reports for 10 years-plus; negative information, such as late payments and bankruptcies, typically stays for seven to 10 years. While negative entries can take a toll on your credit scores, they don’t remain on your credit reports forever. And even while they are there, their influence lessens over time. To minimize the impact of negative information, it’s important to monitor your credit reports, dispute any inaccuracies, and maintain good financial habits moving forward.
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FAQ
Is it true that after seven years your credit is clear?
It depends on the type of negative entries that are in your credit reports. Late payments, collections, Chapter 13 bankruptcies, and foreclosures typically fall off after seven years. Chapter 7 bankruptcy stays on your credit reports for 10 years.
Can you get negative marks removed from your credit report?
It’s possible to remove negative marks from your credit report, but only if they are inaccurate, outdated, or unverifiable. If you notice any inaccurate information on your credit reports, you can file a dispute with the credit bureaus, either online or by mail. They are required to investigate within 30 days. If they find the information is inaccurate, they will remove it. Legitimate negative information, however, will generally remain on your credit report until its expiration date.
How long before a debt is uncollectible?
The time after which a debt becomes uncollectible, known as the statute of limitations, varies by state but is generally three to six years. Once the statute of limitations on a debt has expired, creditors can no longer sue you to collect payment, though they can still attempt to collect it. Keep in mind that the debt can remain on your credit reports for up to seven years (and impact your credit scores), even after it becomes legally uncollectible.
Photo Credit: iStock/miniseries SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
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Considering moving to Louisiana? This lively state provides a unique culture, cuisine, and Southern charm, but like anywhere, it comes with its own set of challenges. From the deep cultural roots of New Orleans to the slower pace of rural parishes, life in Louisiana can be exciting, but it’s important to understand what living here is truly like. So, is Louisiana a good place to live? Let’s dive into the pros and cons of renting in Louisiana, and what you should expect.
Is Louisiana a good place to live?
Louisiana is well-known for its dynamic mix of French, African, and Spanish cultural influences, creating a rich atmosphere full of history, music, and food. Major cities like New Orleans and Baton Rouge offer bustling urban life, while smaller towns and bayou communities provide a quiet, scenic alternative. Whether you’re drawn to the state’s jazz festivals, its world-class cuisine, or its swampy natural beauty, Louisiana has a lot to offer. But with the perks come a few considerations—such as hurricane risks, humidity, and rural infrastructure—that could impact your decision.
Louisiana state overview
Population
4,657,757
Biggest cities in Louisiana
New Orleans, Baton Rouge, Shreveport
Average rent in New Orleans
$1,575
Average rent in Baton Rouge
$1,106
Average rent in Shreveport
$942
1. Pro: A hub for music and festivals
Few states can match Louisiana’s influence on the world of music. The birthplace of jazz, the state is famous for its vibrant music scene, especially in New Orleans, where live performances can be found nightly in clubs and on street corners alike. In addition, the state hosts a variety of music festivals throughout the year, such as the New Orleans Jazz & Heritage Festival and the Baton Rouge Blues Festival.
Insider tip: Head to Preservation Hall in New Orleans to catch traditional jazz performances in a historic setting, or check out the French Quarter Festival for a local favorite.
2. Con: Limited public transportation options
While cities like New Orleans offer streetcars and some bus services, public transportation across much of Louisiana is limited. If you live in a more rural area, you’ll likely need to rely on a personal vehicle for commuting and day-to-day errands, as public transit is sparse outside of the bigger urban centers.
3. Pro: A welcoming community vibe
Louisiana is known for its friendly, community-oriented atmosphere, especially in small towns. Southern hospitality is alive and well here, and many neighborhoods host regular events like crawfish boils, Mardi Gras celebrations, and farmers markets. This strong sense of community makes it easy to feel at home.
4. Con: High humidity and hurricane threats
While the warm weather is a draw for many, Louisiana’s tropical climate comes with high humidity that can be tough to handle, especially in the summer months. You’ll also need to be prepared for hurricane season, which lasts from June to November. Louisiana is often in the path of major storms, so it’s important to have a plan for weather-related emergencies.
Travel tip: If you’re visiting or moving to Louisiana during hurricane season, consider downloading an relevant apps, which provides real-time updates on storms, evacuation routes, and emergency shelters, helping you stay informed and safe.
5. Pro: Rich history and cultural landmarks
From the historic homes along the Mississippi River to the French Quarter’s iconic architecture, Louisiana is steeped in history. The state offers endless opportunities to explore its past, from Civil War sites to museums that celebrate its French Creole heritage. Additionally, New Orleans is famous for its ghost tours, and cities like Baton Rouge and Lafayette showcase the deep cultural history of the region.
Insider tip: Take a swamp tour near Lafayette to not only enjoy the natural beauty but also to learn about the region’s Acadian history.
6. Con: Infrastructure challenges in rural areas
Living in Louisiana’s more remote regions comes with certain drawbacks, particularly when it comes to infrastructure. Rural areas may struggle with reliable internet service and good road conditions, which can be a frustration if you rely on digital connectivity for work or leisure. In fact, about 21% of the state’s rural roads are rated in poor condition.
7. Pro: Nature and outdoor adventures
Louisiana’s swamps, bayous, and wetlands offer endless outdoor adventure. Whether it’s birdwatching, fishing, or kayaking through the Atchafalaya Basin, the state is full of ways to immerse yourself in nature. The many state parks, like Fontainebleau State Park and Kisatchie National Forest, are ideal for weekend getaways and camping.
Travel tip: For a unique outdoor experience, explore the Barataria Preserve, part of the Jean Lafitte National Historical Park, where you can hike along elevated boardwalks over swampy wetlands teeming with wildlife.
8. Con: A quieter nightlife outside major cities
If you’re a night owl, Louisiana’s smaller towns may feel a bit too sleepy. While New Orleans has a thriving nightlife scene with its famous Bourbon Street, many smaller communities don’t offer much in terms of bars, clubs, or late-night entertainment. The slower pace can be relaxing, but if you crave nightlife, you may need to stick to larger cities.
9. Pro: Low rent in major cities
Louisiana offers relatively low rent compared to many other states, making it an affordable option for those looking to save on housing costs. The average rent for a one-bedroom apartment in the state is around $1,304, with cities like Shreveport and Lake Charles offering even more affordable options, averaging $942 and $1,000 respectively. In contrast, New Orleans tends to have higher rent prices, with the average one-bedroom costing around $1,575. Whether you’re seeking budget-friendly living in smaller towns or more urban settings, Louisiana’s diverse range of rent prices can accommodate a variety of budgets.
10. Con: Pollution can be a concern
Pollution can be a significant concern in Louisiana, particularly due to its large industrial presence, including oil refineries and chemical plants along the Mississippi River, often referred to as “Cancer Alley.” Air quality in some areas can be affected by these industries, contributing to respiratory issues for residents. Additionally, water pollution from agricultural runoff and industrial waste poses challenges for both drinking water and wildlife.
Bilt Rewards, a loyalty program known for letting users earn rewards on rent and its co-branded credit card, keeps expanding its list of transfer partners. As of Oct. 10, 2024, Bilt has added two more transfer partners: TAP Air Portugal Miles&Go and Accor Live Limitless (ALL). You can now transfer Bilt Rewards points to TAP at a 1:1 ratio and Accor at 3:2 ratio.
These new partners give you more flexibility in how you use your Bilt points. TAP Air Portugal, a Star Alliance member, opens up opportunities for affordable flights to Europe and beyond. Meanwhile, Accor Live Limitless expands your hotel options, especially in Europe and luxury markets.
More options are usually a good thing, but in this case — unless you have a specific sweet-spot award in mind — these partners are mostly a wash compared to others already available through Bilt Rewards.
Before transferring, make sure to evaluate your travel plans and consider potential drawbacks, such as award availability and point-transfer ratios. These partners can be handy for European travel especially, but you should run the numbers to get the most out of your Bilt points.
TAP Miles&Go overview
TAP Miles&Go has a few competitive mileage redemptions for award flights between the U.S. and Europe, Europe and Africa and within Asia. You can book one-way business-class flights to Europe for relatively low point costs compared to other airlines on certain travel days. That’s a big advantage if your dates are flexible.
TAP is also a Star Alliance member, which means you can book award flights on over two dozen partner airlines. That sounds impressive, but Bilt Rewards members are spoiled for choice with other Star Alliance airlines. Bilt Rewards also transfer at a 1:1 ratio to:
TAP Miles&Go sweet spots
TAP Miles&Go redemption rates vary. If you’re flexible with dates, you can find some deals including:
One-way in business class between the U.S. and Europe for 100,000 miles with minimal taxes and fees.
One-way in economy between the U.S. and Europe for 29,000 miles.
One-way in business class between Europe and Africa for 66,000 miles.
TAP Miles&Go drawbacks
There are some major hurdles to using the TAP Miles&Go program. First, TAP’s website is notoriously buggy and can be difficult to use.
Once you are able to run searches, the award prices also may not be meaningfully cheaper than what you can find with other airlines. Award availability can be limited, especially for business-class seats. Some routes may include surcharges, which reduce the overall value of your points.
If you are flying TAP Air Portugal on miles, the route will almost always require you to connect in Portugal, which can be inconvenient for people flying to other destinations.
So while adding TAP Miles&Go as a Bilt transfer partner is a positive development for a few specific use cases, most Bilt Rewards members should also check other transfer options.
Complete list of Bilt transfer partners
Accor Live Limitless overview
Accor Live Limitless (ALL) is another niche, new transfer partner for Bilt. The Accor portfolio includes well-known brands like Fairmont, Sofitel and Ibis, offering options from budget-friendly to luxury stays. This makes ALL a potential option for European travel or high-end properties around the world.
ALL award stays
ALL doesn’t have any sweet spots. Instead, the rewards function more like a rebate program — and every 2,000 points is worth 40 euros (or about $44) toward the cash price of your stay.
If you transfer 3,000 Bilt Rewards, you’d get 2,000 ALL points. So 3,000 Bilt points would be worth around $44, or roughly 1.5 cents each. That’s not a bad redemption considering other hotel brands like Marriott are only worth about 0.9 cent each when redeemed for award stays — and that’s with a 1:1 transfer ratio with Bilt.
You could use ALL points for affordable hotel stays in Europe, especially at mid-range brands like Novotel and Ibis. Because the program doesn’t require you to pay for the entire booking in points, you could also use a combination of cash and points to offset the high cost of luxury hotels like Fairmont and Sofitel properties.
ALL drawbacks
Considering the value of ALL points is fixed, you may be able to realize higher value on an award stay with another hotel program.
Bilt Rewards also partners with Hilton Honors, IHG One Rewards, Marriott Bonvoy and World of Hyatt — all of which have comparatively large hotel collections. You have to be really committed to staying at an Accor hotel to redeem your Bilt points this way. The 3:2 transfer ratio could still reduce the value of your points compared to other 1:1 hotel transfer partners.
Accor has a limited footprint in the U.S., making it less appealing if most of your travel is domestic.
Effective August 1, 2024, CIRT 2024-H3 lets Fannie Mae retain risk for the first 185 basis points of loss on the $6.4 billion covered loan pool. Furthermore, 25 insurers and reinsurers will take on the next 250 basis points of loss if the $119 million retention layer is exhausted. Coverage for the transaction is based … [Read more…]
Milwaukee, the largest city in Wisconsin, is known by many as the Cream City for the cream-colored clay bricks that make up many of its historic buildings. Whether it’s the city’s history, deep-rooted beer culture, or gorgeous natural water sources that bring you here, this list of 11 unique things to do in Milwaukee is certain to make you want to stay in this Midwestern gem. If that’s the case, consider looking for an apartment in Milwaukee just around the corner from your favorite bar, a rental house near the river, or a home in the city to find the perfect place to fit your vibe and keep the adventure going.
1. Stop by the go-to tavern for local sports fans
Steny’s Tavern in Walker’s Point is more than just a sports bar. Its lively atmosphere, award-winning Bloody Marys, mouthwatering chicken wings, and wide craft beer selection all come together to make the perfect game-day experience. Want to head to the game instead? Grab a brew and jump on one of their free shuttles to local events.
2. Take in the scenery along Lincoln Memorial Drive
Another unique thing to do in Milwaukee is spending time at Lincoln Memorial drive. “I love to walk, bike, or run along Lincoln Memorial Drive, a three-mile stretch of scenic splendor on Milwaukee’s magnificent lakefront,” shares local author John Gurda. “More than half of our shoreline is in the public domain, and Lincoln Memorial gives everyone access to wooded bluffs, sandy beaches, paved trails, and even a lagoon that offers pedal-boat rentals.”
3. Find more than just a meal at Fred’s Frozen Custard & Grill
Tucked in the heart of Washington Heights, you’ll find Fred’s Frozen Custard & Grill. This neighborhood institution has been pleasing Milwaukee taste buds since 1967 with its creamy, made-to-order frozen custard and juicy smash burgers. Every visit to this hidden gem in Milwaukee serves up a scoop of the city’s heart with a smile.
4. Let your kids discover the magic of their imaginations
The Betty Brinn Children’s Museum brings learning to life with hands-on exhibits that spark curiosity and imagination. Kids can explore a wide range of real world activities in an engaging and playful way. From architects to veterinarians, there is a fun exhibit for every child to explore their unique dreams and their world.
5. Ski into the perfect combination of vibes
If you’re looking for more to add to your Milwaukee bucket list, check out Cathedral Square’s new après-ski themed bar: Experts Only MKE. Enjoy pool, darts, board games, and table-top s’mores while sipping fun specialty cocktails. Pair this unique hangout with their sister spot Barrel Burrito Co. right next door for funky, creative bites loaded with flavor.
6. Explore the Cream City with an ice cream in hand
Just south of downtown and the Third Ward, Walker’s Point is Milwaukee’s oldest neighborhood – and the best spot for food lovers. Purple Door Ice Cream is one of the many great restaurants and food producers you can find here. What better way to experience the iconic Cream City brick buildings than with an ice cream cone?
7. Break tradition with the Milwaukee Public Library
“The Milwaukee Public Library isn’t what it used to be – it’s so much more,” shares Antoine of the Milwaukee Public Library Foundation. “While we still offer access to books and research, today’s library is a dynamic space for innovation, creativity, and connection.” From high-tech maker spaces to community events, the library has transformed into a vibrant hub where people of all ages can learn, create, and thrive together.
8. Take a sip of history at Shaker’s Cigar Bar
Once a prohibition-era speakeasy owned by the Capone brothers, checking out Shaker’s Cigar Bar is one of the most unique things to do in Milwaukee. The rich atmosphere, rare whiskies, and stunning rooftop views over downtown Milwaukee are just the beginning. For an unforgettable experience, join their in-house Hangman Tours to explore the city’s hidden past.
9. Connect with the spirit of Milwaukee at Pabst Mansion
A tour of the historic Pabst Mansion is one thing you can’t miss if you’re trying to get to know Milwaukee, WI. History and local pride come alive in the beautifully restored rooms and stunning architecture. Discover a new appreciation for Milwaukee’s cultural roots and learn about its brewing legacy in this personalized and unforgettable experience.
10. Enjoy seasonal dishes in a cozy East Side restaurant
Tess has been a favorite of local residents since its opening in 2002. This East Side Milwaukee staple specializes in seasonal dishes highlighting local meats and produce alongside a first-class wine and beer selection. Enjoy a relaxed and intimate dining experience in their cozy indoor setting or on the inviting garden patio if you’re looking for a unique thing to do in Milwaukee.
Image courtesy of La Piña.
11. Kick it up a notch with a taste of tequila
With over 100 varieties of tequila to choose from, La Piña is a standout bar in the emerging Harbor District just south of downtown Milwaukee. Specializing in Tequila and Agave spirits, this unique spot features expert bartenders eager to craft the perfect cocktail for your vibe, or introduce you to a new favorite.
Unique things to do in Milwaukee, WI: Listen to the local experts
With these recommendations from local experts, you’re certain to become one yourself in no time. These 11 unique things to do in Milwaukee are rooted in the city’s history and culture. You’ll gain a full understanding of what it’s like to live in Milwaukee, WI, and fall in love with the vibrant neighborhoods, river walks, and more that make Cream City a true gem of the Midwest.
Agreeing to cosign a loan for someone is a generous thing to do, and risky. Such a noble deed will show up on your credit report, but the impact won’t always be positive. On the one hand, your credit score might improve if the primary borrower executes timely payments. On the other hand, if the primary borrower reneges on their financial responsibility, your credit score could take a huge hit.
But there’s more to it than that, so let’s examine what you should consider before cosigning a loan, whether for a friend, family member, or business associate.
What Does It Mean to Cosign a Loan for Someone?
Cosigning a loan means that you agree to be responsible for the debt if the borrower does not or cannot repay the loan. You are not the primary borrower, but you could become the primary payer. You can cosign any type of loan — a personal loan, auto loan, mortgage, home improvement loan, or student loan. You can also cosign a lease or make someone an authorized user of your own credit card, which may have a similar effect on your own financial situation.
Why Would a Loan Need a Cosigner?
Typically, a loan requires a cosigner if the primary borrower cannot qualify to borrow the funds on their own. The reason could be that their credit score is too low, they haven’t built up a credit history, or they don’t have a sufficient or steady income. If any of these apply, a lender will consider them to be at high risk of default and choose not to qualify them for a loan.
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How Does Being a Cosigner Affect My Credit Score?
Although you are not the primary borrower when you cosign a loan, your credit score could be impacted. Depending on how good a job the primary borrower does at tracking their money, budgeting, and making payments, cosigning a loan could either boost your score or damage it. Therefore, it’s important to understand how cosigning will affect it.
Risks of Cosigning a Loan
There are serious financial and personal consequences to cosigning on a loan. The biggest risk: Cosigners assume legal responsibility for the debt. If the primary borrower defaults, the cosigner may have to pay the full amount of what’s owed.
If you cosign a loan, it will impact your debt-to-income (DTI) ratio, which is an important factor lenders consider if you apply for a loan. Your ratio may go up if you cosign a loan, making you appear more risky as a borrower, and limiting your ability to obtain credit in the future. Cosigning may also impact your credit utilization ratio (how much of an allowed line of credit you have used), which is an important factor in computing your credit score.
But there are other potential impacts:
• If a lender conducts a hard inquiry (a type of credit check) on your credit report as part of the loan application process, this may cause a temporary drop in your score, particularly if you apply for other loans or credit cards within a short period.
• If a payment is over 30 days past due, the creditor might report the late payment to the credit bureaus, lowering your credit score.
• If a cosigned vehicle is repossessed, your credit may suffer even if you do not use the vehicle.
• If the account is sent to collections, your credit score will drop. The relationship you have with the primary borrower also could be damaged if they fail to meet their end of the deal.
The relationship you have with the primary borrower also could be damaged if they fail to meet their end of the deal.
When Cosigning May Improve Your Credit
Your payment history, credit utilization ratio, and credit mix are three factors used to calculate your credit score, and these could all be impacted when you cosign a loan. Cosigning can positively affect your credit score when a primary borrower makes timely payments and pays back the loan according to the terms.
• On-time payments by the primary borrower can have a positive impact on your credit score because they add to your payment history.
• If the loan is paid off according to the terms, this can show that you use credit responsibly.
• The new debt may add to your credit mix. Successfully managing a mix of debt, such as credit cards and installment loans, can boost your credit score. Maybe you don’t have an installment loan. If you cosign on a well-managed installment loan, such as an auto loan, it indicates to lenders that you are a responsible borrower.
Recommended: Why Did My Credit Score Drop After a Dispute?
Pros and Cons of Cosigning a Loan
The pros and cons of cosigning a loan depend on the situation.
thumb_upPros of Cosigning a Loan:
• You are helping someone achieve their financial goals by providing access to credit.
• Your credit score may improve if the primary borrower manages the loan responsibly.
• You are diversifying your credit mix, which might boost your credit score.
thumb_downCons of Cosigning a Loan:
• You may max out your debt-to-income ratio, which might limit your own borrowing capacity.
• Your credit score may suffer if the primary borrower makes late payments or misses payments.
• You could lose any assets that you put up as collateral if the primary borrower defaults on the loan.
When Should I Become a Cosigner on a Loan?
The decision to become a cosigner on a loan is a personal one, and it depends on the circumstances of everyone involved. You might want to cosign a loan to help someone achieve their financial goals. Perhaps your son or daughter needs you to cosign on a loan for a car, or someone you want to help needs you to cosign on a personal loan to start a business. It’s up to you to understand the risks involved and to assess the borrower’s ability to honor the payments.
Does being a cosigner show up on your credit report? Yes. So it is not a decision to be taken lightly. Before you agree to cosign on someone else’s loan, it would be wise to check your own credit score to make sure it is healthy. If you decide to cosign, implementing a free credit score monitoring app can help you track the impact on your score.
What Are the Responsibilities of a Cosigner?
The cosigner on a loan is legally bound to pay the debt if the primary borrower defaults. The cosigner is just as responsible for the loan as the primary borrower, even though they may not directly benefit from the loan. This is the case even if the primary borrower files for bankruptcy. If you used assets as collateral to help the primary borrower secure the loan, the lender can sell them to recoup the debt.
It is the cosigner’s responsibility to discuss with the primary borrower their ability to manage their budgeting and spending, pay back the loan in a timely manner, and plan what to do if they find themselves unable to meet their financial obligations.
The Difference Between an Authorized User and a Cosigner
Authorized user is a designation used for credit cards. Cosigners aren’t typically accepted for credit cards. Instead, a person can be designated as an authorized user of another person’s credit card. The credit card owner is the person responsible for the debt, and they give permission for the authorized user to also receive a card and use the account.
Here are the main differences between a cosigner and a credit card-authorized user.
Cosigner
Authorized User
Typically used for loans, such as personal loans, auto loans, mortgages
Typically used for credit cards
Only the primary borrower accesses the funds
Both the primary credit card owner and the authorized user access the funds
What to Consider Before Cosigning a Loan
You will have your own reasons for cosigning a loan. However, here are some things you might want to consider before you take on the risk of another person’s debt.
The Consequences for You
Consider the consequences for your credit score and ability to borrow in the future. If your debt-to-income ratio goes up, your ability to get financing may be reduced.
If you have to assume the payments, creditors can sue you and garnish your wages or bank accounts to collect the outstanding debt. Your credit score updates periodically but the negative impact can persist for up to seven years.
Your Relationship with the Primary Borrower
If the primary borrower benefiting from your generosity manages the payments responsibly, it could strengthen your relationship with that person, However, the opposite could happen if they do not manage the debt well.
How to Monitor the Loan
If you do go ahead and cosign the loan, it’s a good idea to monitor whether the primary borrow is making the payments on time. You might be able to intervene if a problem occurs before the debt is sent to a collection agency. The Federal Trade Commission (FTC) recommends asking the lender or creditor to notify you if the borrower falls behind on their debt. You’ll also want to add the loan to your own personal debt summary so you remember to keep track of it as time passes.
Recommended: How to Check Your Credit Score Without Paying
The Takeaway
Cosigning on a loan can be a way to help another person access credit. However, cosigning a loan can also ruin a relationship and your finances if the primary borrower fails to hold up their end of the bargain.
Before cosigning on a loan, understand what the consequences could be for your credit standing, financial situation, and your relationship. If you decide to go ahead, be clear about the expectations and get an agreement in writing. An agreement won’t absolve you of the responsibility to pay the debt, but it might help in getting the primary borrower to pay you back at a later date when they may be in a better financial situation.
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FAQ
Will my credit score go up if I have a cosigner?
Your credit score could go up if you have a cosigner, because if you are approved for a loan with a cosigner and you make timely payments, it will add positively to your credit history, which will also favorably impact your credit score. Having that cosigned loan could also improve your credit mix, another plus where your credit score is concerned.
Is cosigning bad for your credit?
It can be. If the primary borrower does not make payments on time or if they default on the loan, it will negatively affect your credit. It could also be bad for your credit if your credit utilization ratio increases. However, cosigning for a loan could also be good for your credit if payments are made on time and/or your credit mix improves.
Who gets the credit on a cosigned loan?
Both the primary borrower and cosigner are impacted by the cosigned loan. A cosigned loan typically appears on both credit reports, and the cosigner is responsible for paying back the loan if the primary borrower fails to do so.
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Known for its charming towns, tax-free shopping, and beautiful coastal landscapes, Delaware provides residents with plenty of things to do. However, like any state, it comes with both advantages and drawbacks. From the urban buzz of Wilmington to the slower pace of beach towns like Lewes, life in Delaware can be highly rewarding yet challenging depending on what you’re looking for. Here’s a breakdown of the pros and cons of living in Delaware to help you decide if Delaware is a good place to live.
Is Delaware a good place to live?
Delaware offers a relaxed yet convenient lifestyle with access to both nature and metropolitan areas. Its education system is robust, with schools like the University of Delaware providing a range of academic programs. Major employers in the state include financial services firms like JPMorgan Chase, chemical companies such as DuPont, and healthcare providers like ChristianaCare. Wilmington, the state’s largest city, is home to a thriving financial sector, while Dover offers a more laid-back atmosphere.
In terms of weather, Delaware experiences all four seasons, with mild winters compared to more northern states. However, coastal areas can be prone to occasional flooding. If you enjoy moderate climates and easy access to both beaches and cities, Delaware’s lifestyle might be a perfect fit.
Delaware state overview
Population
989,948
Biggest cities in Delaware
Wilmington, Dover, Newark
Average rent in Wilmington
$1,817
Average rent in Dover
$1,390
Average rent in Newark
$1,447
1. Pro: No sales tax
One of the biggest pros of living in Delaware is the lack of sales tax. Whether you’re shopping for clothes, electronics, or household goods, you won’t pay any extra at the register, making Delaware an attractive destination for both residents and visitors.
2. Con: Public transportation is limited throughout the state
While Delaware has well-connected highways and major roads, public transportation options are somewhat limited outside of cities like Wilmington and Newark. For those living in suburban or rural areas, owning a car is essential. This can make commuting expensive and time-consuming for some residents, especially those who work in neighboring states. If you’re moving to Delaware, you’ll want to consider the transit score of your desired city.
3. Pro: Beaches and coastal living
Delaware’s coast is famous for its beautiful beaches, with Rehoboth Beach and Bethany Beach being popular destinations. Whether you’re looking to relax by the water, stroll along the boardwalks, or enjoy coastal recreation like boating and fishing, Delaware’s shoreline provides a fantastic escape during the warmer months. Coastal living in Delaware offers a laid-back, beach-town vibe, with easy access to seafood restaurants, boutique shops, and scenic ocean views. Many residents in these areas enjoy a slower pace of life, especially in communities that maintain a small-town charm while still attracting seasonal tourists.
Insider scoop: Check out Cape Henlopen State Park for hiking, fishing, and beach activities. It’s a quieter alternative to some of the busier beach spots, offering scenic views and less crowded shores.
4. Con: Traffic congestion during tourist seasons
While Delaware’s beaches are a major attraction, they can also bring congestion, particularly in the summer. Areas like Rehoboth Beach become tourist hotspots, leading to heavy traffic and crowded roads. For residents, this seasonal influx of visitors can make daily commutes more difficult and time-consuming.
Local tip: If you live near the coast, plan errands early in the morning during peak tourist season, and familiarize yourself with alternative routes to avoid the main highways.
5. Pro: Rich cultural sites
Delaware is rich in history, being the first state to ratify the U.S. Constitution. Cities like New Castle and Dover are filled with historic landmarks, museums, and cultural experiences. Whether you’re a history buff or just enjoy exploring the past, Delaware offers plenty of educational and inspiring opportunities.
Insider scoop: Visit the First State National Historical Park or tour the historic Old New Castle district to get a taste of colonial Delaware.
6. Con: Lack of major sports teams
Sports fans may be disappointed by Delaware’s lack of major professional sports teams. While the state is close enough to Philadelphia and Baltimore for fans to attend games, Delaware doesn’t have its own NFL, MLB, or NBA team. This can be a downside for those who enjoy the thrill of having a local team to root for.
7. Pro: Central location and easy access to major cities
Delaware’s prime location along the East Coast makes it easy to reach major cities like Philadelphia, Baltimore, and Washington, D.C. in just a few hours. Whether you’re traveling for work or leisure, Delaware offers a convenient hub for accessing many of the country’s most important urban centers.
Insider scoop: Amtrak services from Wilmington Station offer quick and easy train travel to New York, Philadelphia, and beyond, perfect for weekend getaways or business trips.
8. Con: The summers are humid
While Delaware’s summers can be beautiful, they can also get quite humid. With temperatures reaching into the 80s and 90s, the humidity can make it feel hotter, especially inland. For those sensitive to heat and humidity, this can make the summer months feel uncomfortable at times.
Local tip: Make use of Delaware’s beaches to cool off during the hottest days, or visit state parks with shaded trails to escape the heat.
9. Pro: Relatively lower cost of livng
Delaware has a relatively low cost of living compared to many neighboring East Coast states, particularly when it comes to housing. For example, Wilmington has an average rent of around $1,817 for a one-bedroom apartment, while Dover, the capital, offers more affordable options with rents averaging $1,390. Newark, home to the University of Delaware, falls in between with an average rent of $1,447, making it a more affordable college town. Overall, Delaware’s housing market provides more budget-friendly options compared to nearby states like New Jersey or Pennsylvania, making it an attractive choice for those looking to save on living expenses without sacrificing access to major cities.
10. Con: Pollution can be bad
Pollution in Delaware, particularly in industrial areas like Wilmington, can pose significant environmental and health concerns. Air quality is often impacted by emissions from nearby power plants and chemical manufacturing facilities, contributing to respiratory issues and smog, especially during the summer months. Additionally, the state’s proximity to major urban centers and traffic congestion on highways increases vehicle emissions, exacerbating air pollution in both rural and urban areas.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how presidential policies on tariffs, immigration, and prices can impact your everyday expenses like groceries and gas.
What can a president actually do to lower prices and fight inflation? Can campaign promises really impact your wallet, or are they just political hot air? Hosts Sean Pyles and Anna Helhoski discuss presidential policies and how they affect everything from the cost of gas to your grocery bill to help you understand the real impact of political decisions on your finances. They begin with a discussion of inflation, with tips and tricks on understanding how inflation is measured, what drives price hikes, and what role the president plays in influencing it.
Then, Anna talks to Derek Stimel, an associate professor of teaching economics at UC Davis, about the economic implications of tariffs and immigration policies. They discuss how tariffs raise the price of imported goods, how immigration impacts labor costs and wages, and what these political policies mean for your everyday purchases.
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Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
What’s the first thing you do when you go to the grocery store? Do you run to the produce aisle and look for the freshest broccoli, maybe? Or conversely, are you heading for the candy section? I don’t judge. But pretty soon after that, you’re probably starting to look at prices, right? The price of, well, everything is a daily question in our lives. So it’s not surprising that prices are playing a part in this year’s presidential election.
Derek Stimel:
I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces basically. But both of them have focused on those as their avenues to bringing inflation down.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Anna Helhoski:
And I’m Anna Helhoski.
Sean Pyles:
And this is episode two of our Nerdy deep dive into presidential policy and personal finances. Hey Anna, I don’t know if you’ve noticed, but we’ve got a presidential campaign underway.
Anna Helhoski:
Hard to miss it. Talk about drama. And every great drama has a storyline. One big part of this year’s storyline in the campaign has been prices, specifically inflation and what it’s done to our bottom lines.
Sean Pyles:
Yeah. Inflation hit a high of 9.1% back in 2022, and we’ve been paying a whole lot more for a lot of things over the last few years. And it’s not subtle, it’s very noticeable. Anna, is there anything specific that has popped up on your radar as more expensive than just a couple of years ago? Something where you said whoa, that is way more than I used to pay.
Anna Helhoski:
Yeah. So I have a bread place near me and a few years ago the prices were pretty reasonable for a big loaf of fresh bread, like $6 a loaf.
Sean Pyles:
Yeah, that’s like New York reasonable, I’ll say.
Anna Helhoski:
Yeah, exactly. No, that’s how I gauge everything. But then flour prices spiked and suddenly the price went up to nearly $10, which is way more than I’m willing to pay. What about you, Sean? Did gecko food get more expensive along with anything else?
Sean Pyles:
Since you mentioned it, crickets for my gecko Ozzy did go up about 12%. I now spend a whopping $2.25 a week for those creepy bugs for the old guy. Of course, it’s not just these one-off items, these are just the things that the two of us noticed in spades. Houses are more expensive, cars are more expensive, credit cards are more expensive. It just takes more out of your budget to buy stuff.
Anna Helhoski:
So what can a president do about it? As we heard in last week’s episode, the answer is not a lot by themselves. They often need Congress or the Fed or both, and sometimes a lot of luck to have an impact on the economy and specifically on prices. But that doesn’t stop them from making all kinds of promises about the changes they’d make if we sent them to or back to the White House. Let’s talk about what they can do in reality.
Sean Pyles:
And as we noted in the last episode, we’re not here to take sides or fan the flames of an already contentious political season. Our goal here is the same one we always have at NerdWallet, to help you, our listeners, make smart informed decisions about the stuff that impacts your finances. Sometimes that means choosing a new high-yield savings account. Other times that means voting for the candidate who you believe will help you achieve your life and financial goals.
All right, well, we want to hear what you think too, listeners. To share your thoughts around the election and your personal finances, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D. Or email a voice memo to [email protected]. So Anna, who are we hearing from today?
Anna Helhoski:
We’re talking with Derek Stimel. He’s an associate professor of teaching economics at the University of California, Davis. So not only is he an expert in macroeconomics, but he’s an expert in teaching it. He’ll help us parse what presidents can and can’t do to affect the price of all sorts of goods that we all buy. Derek Stimel, welcome to the show.
Derek Stimel:
Thanks for having me.
Anna Helhoski:
Presidential administrations tend to take the credit or get the blame for things that happen, at least when it comes to public perception. That means that the Biden-Harris administration has taken a lot of flak from the Republican Party and from many Americans for elevated prices that we’re seeing in the wake of the pandemic. And since we are just a few months away from a new administration, can you talk a little bit about how much influence presidents actually have on inflation and prices?
Derek Stimel:
Normally we don’t think of them as the major driver of inflation in the economy. Usually, it’s things like monetary policy, so interest rates, and the supply of money. Sometimes it can also be things outside of the economy, shocks as we sometimes say in economics. So things that happen globally, for example. Having said that, it’s not to say that there can’t be some causes that are driven by policy of the government. For example, in the current situation, some people do point to some government spending that took place in the aftermath of COVID and the policies surrounding that. That might’ve been some fuel for inflation. But it’s not usually the first thing we think of. In this particular situation of our recent inflation, I suspect it’s not the first number one thing causing the inflation.
Anna Helhoski:
Let’s get into some of the campaign promises that each candidate has made. Some of the promises might just be politicking, but some of it could become a reality. Start off with former President Donald Trump’s proposals. Thus far, there have been multiple reports and assessments from economists who say that his proposals, if enacted, would be inflationary. And one of the main drivers of that projected inflation is Trump’s promise to levy 10% across-the-board tariffs on all foreign goods. Can you explain how tariffs and prices interact?
Derek Stimel:
Tariffs are basically a tax on imported goods. For any tax, it’s going to have the following effects on the market, which is, the tax gets levied, let’s just say it’s the 10% just to have a number. And then the businesses basically have to, in a sense, make a decision about do we absorb this tax ourselves, do we pass it on to the customers, and if so, in what proportion? They may not pass on the full 10%, it’s unlikely they’re going to absorb the full 10% themselves. So there’s going to be a split. So in some loose setting, maybe they raise prices by 5% and they absorb 5% of it to get up to the 10, or maybe it’s 8 and 2, or 3 and 7, or what may be. But the point is that basically, it’s going to lead to higher prices on those products.
So in this particular situation, we’re talking about higher prices for imported goods. And I think as we’re all generally aware from our day-to-day shopping and if we ever look at the label of anything, we buy a lot of imported goods in the United States. So it’s not unreasonable to think that raising taxes essentially on imported goods would ultimately boost the prices of those imported goods and then on average raise our cost of living at least somewhat.
Anna Helhoski:
Now, Trump claims that his tariffs would spur American manufacturing and domestic competition for production. Is that something that does happen or would likely happen as a result of tariffs?
Derek Stimel:
So it definitely can happen that there could be some… you know, businesses have to make the best decisions based on the rules of the game as they are. Raising tariffs would definitely change the rules and businesses would likely respond to that. And so to the extent that they could and that the U.S. was a major market to them, at least some businesses would try to reallocate or relocate back into the U.S. in order to avoid this tariff, basically. But I think the question is: Would that be enough to counterbalance the effect of this higher tax across the board? I don’t have hard data on it, but the likely answer is it wouldn’t be enough. So we would still see higher prices as a result, and so we would have to deal with the consequences. But there could be some reallocation or relocation of businesses for sure.
Anna Helhoski:
Another promise Trump has made is to lower gas prices. Under his first administration, he increased oil production and then Biden went further still. So how much can a president impact gas prices?
Derek Stimel:
The gas market or the market for energy more broadly defined is very much a global market, but the U.S. is in a way in a unique position of being the center of that global market. You hear a lot about that the U.S. dollar is this global reserve currency. Oil for example is usually traded in dollars and that sort of thing. So we do have a little bit more power than some other countries. The answer would be maybe a bit different if it was us talking about Canada doing something or whatever. It is also probably true that gas prices or prices of energy in general are really often driven by these global shocks. So in this particular case, the disruptions that took place due to Russia’s invasion of Ukraine are really the prime mover probably of energy prices in the recent years. And it’s not clear that any president would be able to have done something about that directly. Obviously, it’s more of a geopolitical thing than an economic policy thing.
Anna Helhoski:
Switching gears again, I’m hoping you can talk a little about the connection between immigration and the prices that consumers pay for certain everyday goods and services. And note for listeners, as you may know, Trump has promised to use law enforcement and the National Guard to deport many millions of undocumented immigrants. Beyond the humanitarian implications and the logistical questions raised by this proposal, what are some of the economic implications?
Derek Stimel:
Kind of a classic way of thinking about it economically, especially when we’re talking about things like inflation, is that we think that business costs basically would drive a lot of inflation, or at least it could be a prime driver of inflation. And inside those business costs, labor costs are often a large portion of those costs. And of course, that has to do a lot with the supply of labor that’s available relative to the demand for that labor. And so we live in an aging society, the baby boomers are basically retiring. And of course, this is reducing our labor supply or at least likely to reduce our labor supply in the coming years. So what that would mean economically is that would tend to push up wages all else the same, which of course then could also push up prices. Businesses, when they face these increased labor costs, have to make a choice about how much to pass on to customers in terms of higher prices.
So with that all in mind, if you also cut off the amount of immigration into the economy, you would think that that’s likely to put further pressure on wages in the economy. It’s going to further, in a sense, reduce or at least not provide any extra slack for the supply of labor, and so that’s going to further push up wages and further push up prices overall. That’s not to say we shouldn’t think about reforming immigration in some way, shape, or form, but that’s just to say economically that if you reduce the supply of labor, the price of that labor, the wages, and all the other forms of compensation that come with it is going to go up and businesses are going to pass at least some of that on to customers in the form of higher prices.
Anna Helhoski:
And are there any specific areas of the economy that could be altered if you deport millions of people who were already in the workforce?
Derek Stimel:
There’s the initial disruption, uncertainty that would surround it, which could shake out in all sorts of ways, many of which are probably not positive. Imagine the local restaurant down the street suddenly loses half its staff. And what are they going to do? So we would expect a lot of service sector jobs to maybe be impacted by these sorts of things, a lot of things that we interact with daily. And then there’s also this issue about if you create shortages in one area, let’s say you create a shortage in one service sector, it could spill over to other unrelated service sectors as well. Maybe now the one sector has to basically go poach employees from the other one. And so maybe it starts to spill over into other areas where you wouldn’t think of, say, quote, unquote, “illegal immigrants” basically playing a role, but it actually could have this cascade to other markets.
Anna Helhoski:
More of our interview in a moment. Stay with us. I want to talk about Donald Trump’s proposal to weaken the power of the Federal Reserve by bringing the central bank under more direct control of the president. And listeners, we’ve said it before, but the Federal Reserve is nonpartisan and operates independently. That means that the president doesn’t tell the Fed what to do and the Fed doesn’t make its decisions based on politics. Derek, it seems like the separation is pretty crucial to ensuring public trust in the central bank’s ability to make decisions. But if Trump was successful in his plans to more directly influence the Fed’s activities, what are some of those economic implications?
Derek Stimel:
Stepping back for a second, we generally think that the Fed’s main role is to keep inflation, especially over the longer term, relatively low and stable. And one element that tends to be critical to that is their basically credibility to commit to that policy of keeping inflation low and doing what it takes. None of us liked in the recent years the interest rates going up, but it’s seen as this necessary thing to do to bring inflation back down to that longer-term goal. And so the concern basically is that a lot of that comes from the fact that the Fed is independent to some degree from the rest of the government. It’s important to understand that they’re not completely independent. The president plays a role in nominating people to serve in the Fed. Congress obviously has to approve these things. But this general separation of like, oh, you can’t tell us when to change interest rates or you can’t tell us we can’t do this policy and we have to do some other policy or whatever, that tends to be important as this inflation fighter credibility that the Fed has.
If that gets eroded, I think the concern would be basically that people in the economy start to not believe in the Fed as much as an inflation fighter. That lack of credibility starts to make people think, “Well, they say they want 2% inflation, but given that they’re tied to the rest of the government, I think it’s maybe going to be more like two and a half, 3%.” So expectations start to tick up on inflation. And one thing about inflation is that expectations really play an important role and they tend to be self-fulfilling. We all expect five, we’ll get five. And so basically the Fed’s independence is one of… There’s some others of course, but it’s one of the main things that’s tying down those expectations because it’s helping the Fed maintain its credibility to be there when we need them to fight inflation.
Anna Helhoski:
Well, those are the main things I want to talk about in terms of Donald Trump, but I want to switch gears and talk about Vice President Kamala Harris’s plans to battle inflation. She recently unveiled a plan to ban price gouging. So first off, what is price gouging and how have we seen it happen?
Derek Stimel:
So in economics, price gouging doesn’t really have a specific definition, to be honest with you, but the loose idea is that it’s taking, quote, unquote, for lack of a better term, “unfair advantage of a situation in order to raise prices.” Sometimes these situations are obvious, which are… There’s an earthquake that happens, let’s say, so suddenly the price of gas and water in the surrounding area is going to skyrocket. That kind of idea of taking advantage of other people’s misery and something that was really out of their control, a natural disaster, that’s really what we see as price gouging. So in this particular context, what we’re talking about with Vice President Harris is this view where, say, for example, grocery stores taking advantage of the circumstances to basically raise prices on their products in an unfair way. But it’s a bit nebulous once you start to get away from things that I think we all would agree are clearly things out of our control, like natural disasters.
Anna Helhoski:
And is there anything already in place to prevent price gouging?
Derek Stimel:
So states generally have laws that prevent price gouging in the situations we’re talking about like natural disasters, so hurricanes and floods and earthquakes, and so forth. What Vice President Harris is really talking about is basically a federal ban across the board on all forms of price gouging. At least that’s what I understand it to be. And we don’t have that. It’s not really clear what the criteria would be for that as well. So for example, if a company raises prices on its products by 5%, how do we decide if that’s just normal market forces or is it price gouging in some ways? In other words, how do we decide the fairness of it all? Generally speaking, in our economy, we let the markets work that out, and then everybody individually makes a decision about, nope, that’s too expensive, I’m not going to buy it, or I guess I’m willing to pay that price, that kind of thing.
Anna Helhoski:
So some critics of Harris’s proposal, including Donald Trump have said that this is a price control. So what is a price control? Why don’t economists like price controls and would Harris’s proposal to ban price gouging actually be a price control?
Derek Stimel:
Basically, a price control is essentially the government setting a maximum price in a marketplace. So sort of saying, “Hey, you can charge no more than X for this product.” And of course, we have price controls in the economy. The ones that people typically talk about classically are certain cities that have rent control. What people are basically saying is that this price gouging idea would in a way limit how much businesses can raise prices. And that would in a way be similar to what happens in a price control situation where the government often does cap how much a business can raise prices.
The good and bad of economics a lot of times is that there’s tradeoffs for everything. Concern would be basically that maybe grocery stores, because that’s the one that’s been central to all this argument, has really been the price of food, is that basically, maybe you wouldn’t see as many new grocery stores opening up, or at least in a lower frequency. Maybe you would start to see the quality of what’s on the shelves in the grocery stores start to decline a little bit. So on the one hand, you get the prices of the things you buy don’t go up as much maybe, but on the other hand, there’s less of them available and at least for some of them, maybe the quality of those products might go down a little bit.
Anna Helhoski:
So beyond preventing price gouging, Harris has also vowed to lower prescription drug prices and she wants to do this with price caps by allowing Medicare to negotiate prices, speeding up delivery of generic drugs, and cracking down on big pharma. So how impactful could some of these efforts be in terms of making prescription drug prices more affordable?
Derek Stimel:
Oh, it could. Not surprisingly, the federal government via Medicare is a huge consumer in this marketplace, which basically means they have a lot of power, market power we would call. In this particular case, the technical term is monopsony power. But basically, yeah, they would have a lot of power potentially to negotiate and there would be spillover effects for people who don’t have Medicare. In terms of being able to lower, say, prescription drug prices by allowing Medicare to do this giant negotiation basically with the big pharma companies, that honestly could have a big impact on those prices for sure, because Medicare is so huge.
Anna Helhoski:
Right. And you touched on housing earlier, but let’s talk a little bit about Harris’s big proposals with her plans to make housing more affordable. One that really stuck out to me is a plan to prevent corporate landlords from using price-fixing algorithms.
Derek Stimel:
This is a brave new world that we’re in, and there’s a lot of times where regulation is behind the technology, where basically a lot of these businesses… And it’s of course not just in real estate, it’s in a lot of other areas as well, in finance in particular, where they basically use these computerized algorithms to essentially search for the deals that they want to transact. Is it price-fixing or is it the fact that all of these algorithms basically tend to point in the same direction because they often use the same data in order to churn through all their calculations? It’s not clear to me, I guess, how that might be enacted and then also what the implications would be.
Anna Helhoski:
And Harris said she would support construction of 3 million new housing units in the next four years, among other plans. And fundamentally, in order to lower housing prices or rent or the supply of homes for purchase, we just need more housing. So could Harris’s proposals spur more construction? And also what can a president do to facilitate housing growth?
Derek Stimel:
So much of this is local. I mean, so much of this is red tape based on local housing boards and all these other types of things, the “not in my backyard” kind of stuff. And so it’s not really clear what anybody at a national level could really do about that kind of stuff because so much of it is all of the local political machines and so forth that basically drive all these policies. As a general idea, I think the basic point that, yes, the way you have to basically lower housing prices or at least keep them from going up as much is to supply more housing, is definitely the answer. Because the housing market in a sense is unique compared to other markets, in that the supply is basically fixed by the number of units and very, what we would say in economics, inelastic. You’re not going to really get around that unless you just simply build more.
Anna Helhoski:
Derek, are there any other proposals from either of the candidates that we’re overlooking that could contribute to lowering prices or to increasing inflation?
Derek Stimel:
I think the last thing I would mention, I guess. I know President Trump wants to increase the domestic production of natural gas and coal and all that sort of thing. And I do find it interesting that both Vice President Harris and President Trump have focused on these areas of inflation. In the case of former President Trump, it’s energy costs, and in the case of Vice President Harris, it’s basically food costs. And these are the things that are specifically excluded by the Fed when they’re looking at the longer-term measures of inflation. So I just find it interesting that both presidential candidates have focused on these highly volatile markets, which we often think they really can’t do that much about, and that are often driven by these global forces, basically. But both of them have focused on those as their avenues to bringing inflation down.
I think the very last thing I might add in, which is probably too big to really get into, is the extent that the deficit and the national debt might play in terms of inflation in other parts of the economy, especially going forward as it’s ballooned a lot. There are some theories out there, for example, that it does play a role in inflation and to the extent that the policies of the two candidates might add to the deficit, and of course, then by extension add to the debt. That could be in a way a hidden inflation factor that we tend to not focus so much on.
Anna Helhoski:
And one we’ll probably pay for in the future.
Derek Stimel:
Yeah, somebody will eventually.
Anna Helhoski:
Derek Stimel, thank you so much for joining us today.
Derek Stimel:
Yeah, absolutely. Thank you so much for having me.
Anna Helhoski:
Sean, there’s something else I want to point out that I didn’t get to in my conversation with Derek, but came from researching an article on this topic, and that’s price tolerance. Right now, people are still pretty price intolerant because so much is elevated from where we remember it being. But if prices actually did drop across the board, it would be a big problem. Economy-wide price drops really only happen when there’s a big recession. And I think Trump and Harris’s campaigns both know this. They can’t bring back pre-pandemic prices, so what they can do strategically is make promises that are most relevant to people.
Sean Pyles:
Right. And last week we talked about how one individual president can’t really transform the economy on their own. But your conversation with Derek Stimel illustrates how a president’s priorities can make a bigger impact on an issue-by-issue basis. Former President Trump is focused on lowering the price of gas. Vice President Harris wants to make housing more affordable. And we saw how President Biden was able to push for lower prices on certain drugs like insulin. Although we should note, of course, that Biden wasn’t able to do that without the help of Congress.
Anna Helhoski:
So Sean, one other thing. Maybe it’s obvious but it’s worth saying, is that while we have pointed to a lot of ways in which a president cannot really control things like pricing, the president is also the leader of his or her respective political party, and that often means that the party and its political leaders will coalesce around these policies, making them more viable.
Sean Pyles:
Yep. We’ve mentioned that the president often has to work with Congress to get bills passed that can fulfill their promises. And members of their party, while they don’t necessarily march in lockstep, they will frequently work with that president to pursue his or her economic agenda. So no, the president can’t wave a magic wand, but if their party also has control in Congress, that makes a world of difference in the ability to make those goals happen.
Anna Helhoski:
And that’s a case for making sure you’re paying attention to what candidates are saying up and down the ballot. The presidential candidates aren’t the only ones to make a difference. Do some research on your congressional candidates, and for that matter, city council and school district, because they all touch public money and that’s your money. It always helps to educate yourself on how they plan to spend it. You can find the latest money news updates in NerdWallet’s financial news hub, which we’ll link to in the show notes, or just search online for NerdWallet financial news.
Sean Pyles:
So Anna, tell us what’s coming up in episode three of the series.
Anna Helhoski:
Well, Sean, next time we’re using a word nobody likes but matters a lot to your finances: taxes. We’ll hear what the current candidates for the highest office in the land want to do with the money that comes out of your paycheck.
Amy Hanauer:
Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans. So to the richest 20% of Americans. So just for a sense of what that will cost, in 2026 alone, that will cost more than $280 billion.
Anna Helhoski:
For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at 901-730-6373. That’s 901-730-N-E-R-D. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
Sean Pyles:
This episode was produced by Tess Vigeland and Anna. I helped with editing. Rick VanderKnyff and Amanda Derengowski helped with fact-checking. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Anna Helhoski:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Mountain living takes an elevated form in this newly built family retreat near Wilson, Wyoming.
Built as a creative retreat for a California-based couple, the three-building compound sits on a vibrant 35-acre property at the base of the Tetons. The property blends different landscapes — from old-growth forests to young pines and aspens, eventually opening up to rolling meadows — creating the ultimate mountain getaway.
At the heart of this picturesque landscape sit the three buildings: the main house, guest house, and writer’s studio, which take the form of undulating tectonic structures set against an aspen grove for a striking effect.
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Built for a creative California couple to serve as a nature-oriented outpost in Wyoming
Photo credit: Matthew Millman
The homeowners, both authors who also own and manage an independent record label in California, were looking for a nature-oriented outpost in Wyoming for their writing practice.
So they commissioned CLB Architects to design their mountain hideaway, which they later named ShineMaker.
The compound consists of three contemporary buildings that complement their natural surroundings
Photo credit: Matthew Millman
The home consists of simple, box-like structures, each thoughtfully designed for its spot on the property.
Joining the 6,000-square-foot main house are an equally charming 1,577-square-foot guest house and a 580-square-foot writer’s studio, both nestled more intimately in the wooded area. The owners plan to add a fourth structure to the south of the property.
Anchored by a spectacular 6,000 square-foot main house
Photo credit: Matthew Millman
At the heart of the 35-acre property sits the 6,000-square-foot main house, “conceived as a geologic remnant in the landscape, located on the edge between field and forest”.
Rectilinear in plan, the main house seemingly “grabs” the surrounding trees as anchors, sinking in the center, and pulling upward toward the sky at the corners. The wood exterior wraps into the interior as light Atlantic cedar, which then transitions into subtle plaster and floor-to-ceiling glass.
Each window frames a view of the prairie and Teton range beyond
Photo credit: Matthew Millman
The main house has been envisioned in such a way that each window frames a view of the prairie and Teton range beyond. An east-facing fireplace provides a counterpoint to the views, and an intimate courtyard allows southern light to flood the center of the home with natural light.
In addition to the common kitchen, living, and dining spaces, the home includes three bedrooms, four bathrooms, a laundry room, and an expansive mudroom for the client’s Irish wolfhounds.
Richly appointed with the finest materials
Photo credit: Douglas Friedman
The elegant interiors bear the signature of lauded designer Holly Hollenbeck of HSH Interiors, and feature the finest materials, including steel, bronze, wood, custom-cast white concrete, bleached cedar, and oversized slabs of travertine and onyx.
Highlights also include Italian limestone for the floors of the primary bath, and for the custom-made bathtub, which was water jet-cut from a single block of limestone to create a striking monolithic and sculptural design element.
The interiors were inspired by the owners’ love for music, literature, and the great outdoors
Photo credit: Matthew Millman
The interior designer, who first collaborated with the California couple when designing their main home in Mill Valley, let her clients’ interests and inclinations dictate the overall aesthetics.
The home’s design was inspired by the couple’s bohemian lifestyle and love of music, literature, and the great outdoors. They love comfort, layers and texture, and vintage pieces, all elements designer Holly Hollenbeck took into account when designing their elegant yet inviting Wyoming home.
An earth-toned palette enhanced by vibrant elements & vintage finds
Photo credit: Matthew Millman
The interiors have been elevated with artisan details like the custom-designed, tattoo-inspired bas-relief concrete on the fireplace surround, hand-painted custom wallpaper murals, and the geometric motifs carried throughout the design.
The earth-toned palette — with pops of mustard, blush, and deep Burgundy — is punctuated by collectible pieces, vintage finds, and contemporary art.
The guest house acts as an extension of the main home
Photo credit: Matthew Millman
The three-bedroom, 1,577-square-foot guest house is located steps away from the main house and features a similar carved-away entry and rectilinear form.
See also: Western Star Ranch, an 8-acre equestrian compound in Jackson Hole, Wyoming is a ‘Yellowstone’-worthy horse lover’s paradise
The writer’s studio sits amidst the trees
Photo credit: Matthew Millman
The writer’s studio is positioned just beyond and offers a formal contrast to the other structures. A two-story sentinel surrounded by fledgling aspens, the structure includes a first-floor living space and a second-floor studio where the owners can get their creative juices flowing among the tree canopies.
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Fannie Mae has announced the initiation of its latest sale of reperforming loans, marking a significant step in the organization’s strategy to streamline its retained mortgage portfolio. A news release noted the offering includes approximately 8,721 loans with an unpaid principal balance of around $1.429 billion, now available for qualified bidders. The sale, managed in … [Read more…]