The massive inflation and double-digit mortgage rates of the 1970s and early 1980s seem to haunt the Federal Reserve, which wants to cool the economy and even provoke a job-loss recession to avoid that scenario.
But the latest Consumer Price Index inflation report shows how the fear of 1970s-style inflation is wildly overblown. Today’s numbers don’t look like the 1970s at all, when rent, wages, and oil shocks sent inflation running hotter than anything we have seen in recent modern-day history.
Shelter inflation
Shelter inflation had a mild lower print month to month in April. Since this data line is the most significant component of CPI — accounting for 44.4% of the index — the fact that this index is set to slow down over the next 12 months guarantees that we won’t see the boom in inflation that we saw in 1970s.
Rent inflation
We don’t need to worry about 1970s-style rent inflation. That kind of inflation couldn’t happen today because the shelter inflation growth rate has been cooling off already, and we have seen this in more real-time data.
Also, we have over 900,000 apartment units coming on line soon, and the best way to defeat inflation is with more supply. If you try to beat inflation by destroying demand, that is only a short-term fix. This is excellent news for mortgage rates, since falling rent inflation makes a better case for mortgage rates falling in the next year than rising.
In September on CNBC I talked about how the positive story for 2023 would be apparent by the start of the year: that the inflation growth rate was going to cool down, driven by shelter inflation. The inflation data lags, so I knew it would take time, but it happened.
Today, with massive rate hikes in the system and a banking crisis making credit tighter, the outlook for 1970s inflation is looking less and less. In reality, it never had a chance.
From the CPI report: The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in April on a seasonally adjusted basis after increasing 0.1 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index rose 4.9 percent before seasonal adjustment.
How did mortgage rates react?
After the report, what did the 10-year yield do? It fell just as it should have, but it has still, held the Gandalf line in the sand — the area between 3.37%-3.42%. The chart below shows the 10-year yield versus the headline year-over-year inflation growth rate. As you can see, we have had much lower yields with hotter inflation data.
However, the 10-year yield looks like it has peaked unless the economy gets another wind and starts expanding much faster. On Oct. 27, I made the case for lower mortgage rates and bond yields in 2023. I believe the mega-bearish housing camp was counting on the 10-year yield getting toward 5.25%, and with bad spreads, that would get mortgage rates to 8%-10%.
My 2023 forecast for the 10-year yield and mortgage rates had one clear view, the 10-year yield should be between 3.21%-4.25 as long as the economy stayed firm. Staying firm means the labor market doesn’t break and jobless claims, people filing for unemployment benefits, stays under 323,000 on a four-week moving average. I have been more focused on the labor market this year than the inflation growth rate because I believe the market knew inflation was falling.
Of course, the banking crisis has added a new variable to the economic picture this year. However, even with that, the labor market, while getting softer, hasn’t broken yet. Mortgage rates did fall Wednesday to 6.57%, and that’s still higher than they should be because spreads between the 10-year yield and the 30-year mortgage rates are still historically high. If we had regular spreads today, mortgage rates would be roughly around 5.25%
Can you all imagine the housing market if mortgage rates were at 5.25% today? The Fed, which has said it wants a housing reset, would completely lose it. Under that reset, it’s older Americans who can buy homes, not younger Americans looking to start their life. This is one reason you haven’t heard a whisper from the Fed about helping the housing market during this time.
Labor market cooling
The labor market has been cooling recently, as job openings have fallen nearly 2.5 million from the peak in 2022. The Fed doesn’t fear a job-loss recess, and in fact their unemployment rate forecast for 2023 calls for one. They think they have a cover until job openings fall a lot more.
It looks to me that they will be more comfortable with job openings getting back to 7million, which was where we were before COVID-19 hit us. I wrote about the recent jobs report and broke down a lot of labor data lines that matter to my 10-year yield mortgage rate forecast.
While the labor market is cooling, it hasn’t broken yet. If we had the 1970s inflation story, then the mortgage rates and bond yields could rise during a recession as they did back then. However, as we can see, the bond market never bit on the 1970’s inflation premise. Remember, these two loves have been slow dancing since 1971, and they never stop. Sometimes they’re closer to each other, and sometimes they’re farther apart. However, they are always together.
Overall, the CPI report didn’t have too many surprises, even though the headline number was lower than some anticipated. With the Federal Reserve, they’re looking at inflation without the shelter component because that data line lags and service inflation has been firm lately.
However, the story is set in stone: the Fed wants its recession because it will be a badge of honor for them when they pass off into the afterlife, as Paul Volcker has. They chose to hike rates more even though they knew credit was getting tighter and the banking crisis might help them hit their inflation target.
So, the reality is, what does the Fed do when the labor market breaks, with headline inflation looking like this? We are seeing the growth rate relax, and now the most significant variable in CPI will have a 12-month cooling-down tour.
This is why tracking weekly housing data will be more critical than ever this year. I don’t just track housing data, my primary job is to track economic cycles first and housing is a secondary data line. With all the drama we have going on in 2023, the rest of the year will get exciting week to week.
Save more, spend smarter, and make your money go further
It’s a question that many people have on their minds as they begin to seriously consider their finances: how do I raise my credit score, or how do I fix my credit? Though credit scores may seem shrouded in mystery – how they’re calculated, which ones are used – consumer credit scores tend to follow a few common principles.
In this post, we’re explaining some simple tricks to raise your credit score.
Raising your credit score can take time. After all, credit scores are a measure of how trustworthy of a borrower you’ve been over the years. The good news? You can get started on these credit tips today.
Let’s start with the basics of how to improve your credit score.
How to raise your credit score
Raising your credit score is important, but you might not have a solid idea of what exactly your credit score is. Don’t worry; it’s not as complicated as you might think.
Your credit score is basically a measure of how reliably you pay back money that you’ve borrowed.
There are two main models that credit reporting bureaus use to measure your credit:
FICO
VantageScore
The three bureaus that do the reporting are:
Experian
Equifax
Transunion
Each of these bureaus receives information from various financial institutions you’re involved with, and that information is what determines your credit score.
You’ll generally have a better score if you’ve:
Consistently paid off loans.
Kept your credit usage low.
Stayed on top of all your financial responsibilities.
Both metrics range from 300 to 850, with most scores above 700 considered good to great. If your score is below that — or significantly below that — it can be difficult obtaining a loan at a good rate, or even obtain a loan at all.
Here’s what you can do to boost your score if you do find yourself with a lower rating than you’d like.
1. Ask for (and receive) a credit limit increase
If you’ve been regularly making required payments on your credit card, you may want to try asking the credit card company for a credit limit increase.
What to consider before moving forward:
You wouldn’t necessarily want to do this to finance a purchase you otherwise wouldn’t have been able to make.
But if your monthly balance is relatively steady, you could decrease your utilization rate (a good thing) by increasing your credit limit.
For those who may not know, the credit utilization rate is the amount of credit available to you that you’re actually using. It’s basically your balance divided by your credit limit.So, if you increase your credit limit and keep the balance the same, the utilization rate will be lower. And that can translate into how to improve your credit score.
2. Pay your bills on time
One simple way to get started building solid credit is to start paying bills on time. Among the many different sources of data that major credit reporting bureaus use to assess your creditworthiness, whether you pay for regular expenses on time is pretty important.
It’s not hard to see why: if you have a good track record regularly making rent payments, that probably means it’s more likely that you’ll be able to make regular payments on a loan.
The trick, however, is that you may need to connect your bank account to one of the credit reporting agencies’ services. If you’re curious, call or visit the website for Experian, Transunion, or Equifax to see whether you can have your regular bill payments factored into each of these bureau’s tabulation of your score.
*Pro-tip: if you have a hard time managing your bills:
Make a central list where you itemize each bill you have — rent, water, gas, electric, internet — and what day each one is meant to be paid.
Or, even easier, just download the Mint app, which can remind you about upcoming bills and keep track of the money you spend on bills each month.
3. Show you can handle different kinds of debt
It’s probably not a good idea to run out and take on additional debt for the sake of it, but if you’re in need of a type of loan you haven’t used before (say, an auto loan for a new car, or a personal loan to consolidate credit card debt) consider taking it on and make regular payments on it; you may see a bump in your score.
Lenders want to see you can handle different types of debt, so adding another type of loan and paying it down could have a positive effect on your score.
Here’s an example. If you’ve been paying down student loans (generally, these fall into the “installment loan” category) but don’t yet have a credit card (generally, these fall into the “revolving credit” category), you could see a score increase just by opening that credit card account and paying off your balance regularly.
4. Open a new account and make on-time payments
If you need additional credit, opening a new account and handling it responsibly (making on-time payments on it, not borrowing more than you can afford) can have the effect of increasing your score.
Remember, though, that opening a new account you can’t handle (where you miss payments and/or take on more debt than you can afford) will likely have the opposite effect: a score decrease. So, it’s a good idea to proceed responsibly.
How to keep your credit score high
Once you’ve got your credit score near where you want it, it’s important to do your best to keep it in good standing. By keeping up the habits listed above, you can ensure that your credit stays relatively stable. However, it’s good to note that, in some cases, credit can fluctuate.
Don’t be surprised if you see your credit score dip, then raise up again from time to time.
For example, maybe one month, you use a higher amount of your credit utilization due to a few unforeseen expenses. This isn’t the end of the world, and with continued responsible debt management and credit usage, your score should recover.
In general, however, here’s what you can do to maintain a high credit score once you’ve got it.
1. Close accounts with care and caution
“I have too many credit cards” is something you may have heard someone say or even thought to yourself. And for many, that may be the truth. But having several credit cards, in and of itself, won’t necessarily lower your score.
Though closing credit card accounts or doing a balance transfer may seem like it would boost your credit score because it’s simplifying your life or making things more organized, it can sometimes have the opposite effect. That’s because when you close an account, two things happen:
You lose the entire line of credit you had, which may decrease your utilization rate (see the 1st tip above).
You’ll stop having that account continue factoring into the average age of your accounts.
Typically, scores want to see you’ve held several accounts open and in good standing for a long period of time.
Here’s a big caveat, though: there are still plenty of good reasons to close accounts, credit cards or otherwise:
Maybe you can’t afford the annual fee or the rewards just don’t make it worth it anymore.
Or maybe you’re struggling with credit card debt and want to consolidate it into a personal loan.
The important thing to remember is this: if there’s no good reason to close an account, it’s sometimes wiser to keep it open.
If you do want to close an account, however, don’t worry; the ding to your credit will likely be minor, and it’s likely to recover with time after continued responsible use of the other lines of credit you do still have open.
If you’re considering moving your balance, shop balance transfer credit card deals and personal loan offers from our partners.
2. Stay on top of your personal finances with Mint
Your credit score isjust one metric that helps you measure your personal finances.
You should also keep tabs on other important aspects of your financial well-being, including:
Healthy credit
Well-kept budget.
Solid debt-to-income ratio
Steadily growing savings
Mint allows you to do that. By aggregating your financial information — including everything from investments to upcoming bills — into one convenient dashboard, you can have a bird’s-eye view of your financial health.
Knowing when rent, bill payments, credit card payments, and loan payments are due each month can help you raise your credit score and stay on top of it while also knowing how much you have leftover to budget for other areas.
Remember, there’s no one magic bullet to build your credit score fast. The above credit tips are just some of the ways you might raise your credit score over time and keep it high. However, lasting, meaningful score increases come from showing consistently strong credit habits.
In other words, don’t forget the fundamentals: pay your bills on time, don’t take on more debt than you can afford and be careful about applying for too many accounts over a short period of time.
Save more, spend smarter, and make your money go further
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The September Refresh: New Numbers, New You
I first read about the envelope system back in college. I used it regularly, but after graduating and paying off my debt, I sort of abandoned it. I’d gotten a hold of my finances, and I figured I could budget safely without having to use this tactic. I could afford to give myself a break.
Then, last month, I realized just how much of a break I’ve given myself over the years, especially when it comes to food. Upon examining my expenses for the year, I complained to Brian:
“Hey, why am I always paying when we go out? I know it’s the 21st century, but come on!”
“What are you talking about?” he argued. “I always pay!”
“Then why did I spend upwards of $400 this month?” I asked.
“I don’t know, but so did I.”
“No,” I argued. “There’s no way we spent a grand on food in just four weeks.”
Turns out, we did. We’ve been spending a ridiculous amount on food and groceries. And while it hasn’t put us in the poor house, it’s still a waste. It’s a waste because there are things we want to save up for — a house, maybe. Who knows if that’s what we’ll want in a few years? But when we get there, it would be nice to know we have the option and didn’t squander it on burgers and beer.
“We’ve got to start using the envelope system,” I declared.
“What’s the envelope system?” Brian asked.
“We take a set amount of cash from our paychecks and stuff it an envelope,” I explained. “And that’s the only money we can use on groceries and dining out.”
“I don’t like it.”
Brian doesn’t enjoy frugality as much as I do. For him, it’s more of a means to an end. Still, he knew it was the right thing to do if we wanted to stop spending like maniacs.
It’s been almost a month since I’ve returned to the envelope system. Here’s what I’ve learned (and re-learned).
I Overestimated My Frugality
I forgot how much power tangibility has. I stopped using the envelope system years ago because, as I mentioned, I was earning more and was financially independent. My debts are paid, I have an emergency fund and, each month, I auto-deposit into my retirement and savings accounts. All of this convinced me that I was on top of my finances; I didn’t really question my thrift. And maybe I had a good hold on my finances, but I also spent $400+ on food in one month. In fact, in one week, I’d spent $90 on groceries and another $80 on restaurants.
And hey, sometimes in life, things happen and maybe you do spend crazy money like that. Or maybe you really love food, and you earn enough to spend money on what you love. But the thing is, I didn’t even think twice about it. Oh, sure, I noticed I was blowing my budget a little every now and then. Life happens. A friend comes into town one month; I throw a party the next. But I was blowing my budget by the hundreds on a regular basis, and maybe I was in denial, but I failed to admit that.
Being restricted by cash helped me understand how liberal I was being with my debit card.
Expect the Unexpected
This week, we had a couple of friends unexpectedly come into town. They wanted to go out and enjoy the city, and we wanted to show them around. Of course, dinner was involved, because you can’t come to Los Angeles without eating Umami Burger.
“We just won’t go out this weekend,” I told Brian. He argued that their visit shouldn’t come out of the envelope money, as it was unexpected. We talked about it for a while and eventually realized that most of our overspending is usually due to the unexpected: A friend comes into town. It’s someone’s birthday. We have to bring a pie to an impromptu potluck. The things that don’t happen every month keep happening every month. Thus, when we calculate our food budget, we should expect the unexpected.
Planned Splurges Are More Enjoyable
A couple of Saturdays ago, we headed downtown with some good friends. These friends know where all the best spots are to eat, drink and play. We knew we were going to spend money, so before we left, we talked about how much cash we should bring. We decided on $60. Taking out $150 every Friday, this would give us $90 for the week, which should be plenty.
Going out that day, we were conservative with our money. We still enjoyed each spot we visited, but we didn’t spend carelessly, as we knew the $60 would have to last us the entire day. We were more conscious of what we wanted to spend money on. This kept me from ordering cheese fries when I wasn’t even that hungry to begin with. Under the old system, I would’ve ordered the fries without thinking about my budget. Under the old system, my budget was something I dealt with later — I already spent $240? Okay, then I’ll try to only spend $10 for the rest of the month. But using cash made the budget something I had to consider as I was spending. This made budgeting much more effective. No kidding, right?
That day, we held back enough to enjoy the most delicious bowl of ramen later that night. I’d been looking forward to that Ramen all day. Knowing that we planned for this splurge made it all the more tasty.
Leftover Money Feels Awesome
This week, we’ll actually have $12 left over. It’s just $12, but the fact that we stayed within our budget feels great — because it wasn’t hard. We didn’t go out as much, and when we did go out, I ordered less food. I only paid money for things I really wanted. And I don’t feel any different; I don’t feel as if I missed out on anything.
I thought it would be painful to return to the envelope system. It’s a little surprising that spending less has been so easy.
Another thing I learned: it’s important to make a regular habit of looking at the big picture when it comes to my finances. I assumed I was being a good little saver who just had a few occasional unexpected expenses. I didn’t take a step back and consider that I was being haphazard about my spending.
These days, I’m in a much better financial position compared to my college days. The ramen I eat now is a little more sophisticated, a little more expensive. My lifestyle and savings goals now are different than they were in college, but the envelope system works just as well now as it did back then.
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What does it mean when your right hand itches?
It’s just a little scratchy, but it hurts to touch. That probably sounds familiar if you’ve ever had an allergy or hives on your skin.
But what does it mean when the right hand starts itching? And why do some people think that scratching for more than 20 minutes helps relieve the itchiness?
Right hand itching questions stem from the same reason people ask about left hand itching.
Did you know…Itchy right hands are a common superstition that is thought to bring good luck.
There are many different explanations for why this might be the case, but most people believe it has something to do with the fact that an itchy right hand is usually a sign that good things are coming.
If you’ve ever wondered what the top 13 most popular superstitions related to right hand itching and money are, this list is here to answer your question.
What is the superstition about a right hand itching money?
The superstition of an itchy right hand has many different interpretations.
One interpretation is that it means you will receive money soon. Another interpretation is that it means someone is talking about you behind your back. Overall, the belief is wealth is in your future.
Right Hand Itching Meaning
Right hand itching is an unexplained itch on the right side of the hand. It’s often believed to be one of the medical diagnoses of itchiness.
Most people experience right hand itching at some point in their lives, and it can be a sign of something more serious.
There are many possible causes for right hand itching, including dry skin and allergies. But most cases don’t have a clear cause or solution.
That is why so many people there must be luck with right hand itching and money – or even the lottery!
Origins of the Right Hand Itching Superstition
The right hand itching superstition is a belief that the hand that writes or types with the left hand becomes itchy. It likely originated from an ancient practice of scratching one’s head to relieve an itch on the opposite side of the head.
There is no evidence to support this superstition, and it likely originated from an ancient practice of scratching one’s head to relieve an itch on the opposite side of the head.
The superstition may have been passed down through oral tradition and then written down.
Possible Meaning of Right Palm Itching
Right palm itching is a common phenomenon that has been etched into history and folklore. Many people attribute this itch to an ancestor or someone in their family who passed away.
What does it mean when your right palm itches?
Right palm itching is a common phenomenon that has been etched into history and folklore. Many people attribute this itch to an ancestor or someone in their family who passed away.
1 – True Medical Cause
First of all, I’m not a doctor, so you much have any serious itching checked out by a medical professional (they are good at their jobs).
If you are finding that your right hand is itchy and uncomfortable, there are a few things to consider and take medical action.
Here are some thoughts:
If the itchiness persists for more than 24 hours, then this could be a sign of an infection.
If the discomfort is caused by a skin allergy, then you may be experiencing symptoms of an allergic reaction such as swelling or hives.
Hint…this is why going to the doctor can be helpful to help you figure it a true diagnosis.
2- Something Causing you Stress
When you have right palm itching, it can mean that you’re feeling overwhelmed or stressed.
It could also be a sign that you’re not taking care of yourself properly.
When you have right palm itching, you need to uncover what is causing the stress in your life. This might be because of work pressures, relationship problems, or some other issue.
You might feel overwhelmed and stressed if this continues unchecked. Taking care of yourself by getting enough rest and exercise can help to relieve the itchiness.
3 – Belief in the Possibilities of Money Coming to You
Right hand itching has been a sign of wealth, good luck, and the arrival of visitors since ancient times.
If you are experiencing itchy hands, rubbing your left one on your right is said to bring more wealth and fortune into your life.
Just like with positive money affirmations, there is truth to believing in the power of the mind to overcome your realities.
Right Hand Itching and Lottery
Right hand itching is a term used to describe an annoying and persistent sensation in the right hand. It’s often referred to as a “lottery” because it can be difficult to determine what’s causing the itch.
Nevertheless, some people believe that there is a connection between an itchy right hand and the winning lottery numbers.
There are several news stories of people who won the lottery shortly after having an itchy right hand. However, there is no scientific evidence to support this claim.
What are some of the 13 popular superstitions?
Superstitions are common beliefs that help people make sense of the world.
When it comes to money and wealth, naturally people want to gravitate to anything that will help their situations.
Here are some of the most common superstitions and their associated explanations.
Friday the 13th
Friday the 13th is considered an unlucky day by many people.
This superstition may have arisen from a number of different things, such as the number thirteen being associated with bad luck.
For example, some people avoid traveling on this day, but others believe that traveling is a great way to avoid any bad luck. Additionally, some people believe that it’s bad luck to buy a lottery ticket on Friday the 13th, while others think that this could bring them good luck.
Whatever the reason, many people believe that Friday the 13th is an unlucky day. However, many believe that if you take action and are proactive about your day, you will receive good luck or fortune.
Breaking a mirror will give you seven years of bad luck
This superstition is based on the belief that breaking a mirror will release the bad luck that has been trapped within it. The story goes that if a woman breaks her mirror, she’ll have bad luck for the next seven years. If a man breaks his mirror, he’ll have bad luck for the next seven years and also be unable to see himself in mirrors.
This superstition may originate from ancient beliefs about witches and their ability to cast spells by using objects such as mirrors. It’s possible that people believed that breaking a mirror would release all of the negative energy associated with the witch’s spell.
Today, this superstition is still popular and often used as an excuse to break mirrors without really understanding why!
Unlucky to walk under a ladder
There are many superstitions surrounding walking under ladders, but the most common one is that it’s unlucky. This superstition is based on the idea that a ladder is a sign of bad luck.
The belief is if you walk under a ladder, you’ll be cursed and will have problems throughout your life.
There isn’t much evidence to support this superstition, but it’s still widely accepted.
Many people believe it because they’ve heard it from their parents or grandparents and don’t want to risk offending anyone. If you’re worried about crossing under a ladder and causing bad luck, simply avoid doing so!
Alternatively, you could try saying “good luck” as you walk underneath it to ward off ill fortune.
Knocking on wood will keep you safe
The idea is that the sound of the knock will send a message to the gods or spirits who live in the wood, asking them to keep
There’s no scientific evidence to support this superstition, but many people continue to do it anyway because it makes them feel good. For many right hand has a spiritual meaning.
So, whether you believe in it or not, there’s probably some truth to the saying “knocking on wood.”
Horseshoes are lucky charms
There are many superstitions surrounding horseshoes, but the most popular belief is that they are a lucky charm. People believe that throwing horseshoes will bring good luck to the person who catches them.
Horseshoe tossing is a centuries-old tradition in many countries and has been linked to both physical and spiritual health benefits. Playing a game of horseshoes is easy on the body and provides benefits with social interaction.
Another theory suggests that hanging horseshoes in the “U” position will keep out evil from the house where it is hung. By decorating your door with a horseshoe in the U position, you are keeping your home free from negative energy which can have a positive impact on their lives and attract good luck to the house.
Wearing a white ribbon around your neck
People in the United States and other countries wear a white ribbon around their necks to protect themselves from illness and danger.
The ribbon is a symbol of peace and purity.
A penny found on the ground is good luck
Some people believe that if you find a penny on the ground, it means good luck for the day.
This superstition is based on the belief that money is associated with both happiness and good fortune.
In fact, one gentleman collected all the pennies he found for 45 years and ended up saving over $5000! (source)
Throw salt over your left shoulder and on the floor
It is said that throwing salt over your left shoulder will protect you from bad luck.
The superstition is said to originate from the ancient Egyptians who believed that the left side of the body was associated with the dark side of the moon. To avoid bad luck, they would throw salt over their left shoulder with their right hand to cleanse themselves.
Bad luck to open an umbrella indoors
Opening an umbrella inside is considered bad luck because it can bring rain indoors.
This superstition likely originated from the belief that opening an umbrella will cause the wind to change, which in turn will cause rain.
Crossing your fingers when you make a wish.
The superstition of crossing your fingers when you make a wish is a result of the Latin word meaning “to shut the hand.”
In ancient Roman times, it was believed that making a wish with your open hand would allow the bad luck you were wishing for to enter your house. So instead, you crossed your fingers.
The custom has become so popular that it’s even found its way into our society.
Putting money in an egg carton to bring money in the future.
They say that the egg carton is like a time machine and that when you break the egg and the money falls out, you are telling the universe that you want to receive that money.
Others believe that putting money in an egg carton will bring you good luck.
This is a very simple thing for people to do.
Sneezing Means Death
When someone sneezes with their right hand, it is thought that the devil will enter their body through their nose and they will die soon. There are many superstitions surrounding sneezing and they vary by culture.
Another thought people believe that if you sneeze, it means someone is talking about you. It is said that a sneeze is a “passing of the wind” and that the wind carries the words “bad news” to the person who is sneezing.
Right hand itching is one of the 13 popular superstitions. There are many beliefs on what it means when your right hand itches, but the most popular belief is that it means good luck is coming your way. To ensure a good night’s sleep, some people say “Blessed are the meek” before bedtime.
Saying “Blessed are the meek” before bed
Some superstitions include saying “Blessed are the meek” before bed to ensure a good night’s sleep.
This is because people who are meek often have less stress in their lives and are less likely to have anxiety or depression. Saying this before bed will help you get a good night’s sleep, which will help you have a better day.
Just like starting with a billionaire morning routine, this is something simple to do to ensure a great day!
What is the superstition about an itchy palm?
There are a few different superstitions about an itchy palm.
One is that it means you will receive money soon. Another is that you will be going on a journey.
And finally, some believe that an itchy palm means that someone is talking about you.
Right Hand Itching and [Bad Luck]
Some people believe that right hand itching is caused by bad luck or misfortune, so they try to avoid situations that might trigger it (like trying to play the lotteries).
Others think that scratching the itch will make it go away, but this isn’t always true. In fact, scratching can sometimes make the itch worse.
What are the different interpretations of this superstition?
There are a few different interpretations of this superstition.
One is that it means you will receive money soon.
Another is that it means someone is talking about you behind your back.
And finally, some believe that an itchy right hand means you should be on the lookout for danger.
How to improve the luck further?
There are many ways to improve your luck further, and some of these include doing things that have been traditionally associated with luck.
Here are specific things to try:
Avoid unlucky days and times.
Keep a positive attitude throughout the day.
Wear prosperity bracelets.
Carry a good luck charm with you.
Dress in lucky symbols.
Follow the same routine when you found success.
Pick up pennies that are head-side up.
Don’t let negatively affect you
There are also a number of simple tips you can follow to increase your chance of success, such as staying organized and disciplined in your work, avoiding distractions, and setting realistic goals.
Is it a Fortune, Lottery Number, or just a Symptom of Itching Palms?
The best way to deal with right hand itching is to identify its cause and treat it accordingly. If you cannot identify its source, you may want to consult a doctor for further testing or treatment options like prescription medications.
If the doctor cannot find a medical cause of your right hand itchiness, then start tracking when and where your itchiness occurs.
Then, you can easily prove your right hand itchiness wasn’t from blisters, nerve disorders, or something else crazy.
Your truth will be the decision on whether your right hand itching was from money coming your way or a medical disorder.
If you are looking for believable excuses to miss work, then scratch your right hand to your left to come into instant cash.
Know someone else that needs this, too? Then, please share!!
Formal enforcement action was taken against eight large bank mortgage servicers and two third-party service providers today by the Office of the Comptroller of the Currency.
The banks, which include Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife Bank, PNC, U.S. Bank, and Wells Fargo, along with Lender Processing Services and MERS, were found to be involved in “unsafe and unsound practices” related to loan servicing and foreclosure processing.
However, the OCC noted most of the homeowners who were foreclosed on were in seriously delinquent status, and that the banks/mortgage lenders held the notes and documents required to foreclose.
Still, these loan servicers will be required to clean up their act as a result of the investigation, which took place in the fourth quarter of 2010 after allegations of robosigning surfaced.
Each servicer must:
– Hire an independent firm to conduct a multi-faceted review of foreclosure actions between January 1, 2009 and December 31, 2010. – Ensure foreclosures are not pursued once a borrower has been approved for a loan modification. – Establish a single point of contact for borrowers throughout the loan modification/foreclosure process. – Establish “robust oversight and controls” of their third-party vendors, including outside legal counsel that provide default management or foreclosure services. – Establish a process for borrowers who believe they have been financially harmed by such deficiencies to make submissions to be considered for remediation. – Submit a plan to remediate all financial injury to borrowers caused by any errors, misrepresentations, or other deficiencies identified in the independent consultant’s findings.
Hopefully this will make a meaningful difference, though as the OCC noted, most affected borrowers seemed to be past the point of no return anyways…
The companies involved also face possible civil money penalties.
The two worst years of my financial life were 2007 to 2009. Before 2007, our income was low, but our expenses were low, too. We didn’t save much, but we didn’t spend more than we earned, either.
Then we saw our dream house. And we bought it while we still owned our first house. For two years, we had two mortgages. Suddenly, even though our income was slowly increasing, our expenses had skyrocketed. We cut our expenses as much as we could, but you can only cut them so much when you bought a fixer-upper with squirrel holes in the siding, leaking toilets that threatened to fall through the rotten bathroom floors, and desperately needing a new roof. (I guess we have low standards for our dream house!) As if that weren’t painful enough, I was also trying to finish grad school. It was an ugly time, and I was desperate.
Along with our finances, my desperation also manifested itself physically: I gained about 25 pounds, and developed heartburn and other GI difficulties, along with some self-diagnosed depression. I was so tired all the time.
That desperation bled into other areas of my life, too. My relationships suffered. I didn’t love myself, so how could I love others? And, seemingly unrelated, my house was always messy. Not really bad, but definitely substandard compared with the rest of my friends and family.
Sounds terrible, doesn’t it? It was. I remember sitting at my kitchen table one night, thinking that my life was in shambles, and I wasn’t sure it would ever get better.
If your life feels the same right now, I want to share four things that changed our lives — for the better.
1. I repaired my relationships. While I needed to improve my relationships with my friends and family, my marriage had been suffering the most. My husband and I were so stressed that we weren’t taking time to communicate. Even though we both had the same goals, we were on parallel paths, each of us working so hard to get ahead financially. But we weren’t tapping into the synergy of two people who work together.
One December night, when things blew up, we looked at each other and realized we didn’t like what was happening to us. That night, we prioritized our marriage over our finances. Strangely enough, our finances improved, too.
2. I decluttered my life. I had been keeping things because “we will use them some time” and what’s the problem with storing them? When we decided our life had to be as simple as possible while things were so stressful, it was time to say goodbye to the things we weren’t using. Most of the items were actually given away, so while I sold some things, the biggest benefit wasn’t financial…at least, not directly.
But it was more than our possessions. We also evaluated our activities (volunteer, church, community, etc.) and decided, with so much stress and so little time, we had to eliminate some.
I struggle to understand why decluttering made such a difference to us financially. But I think since I had less to clean around and more empty space, it made me less stressed, less overwhelmed, and more likely to have the energy to tackle our challenges. And having a lighter schedule allowed us more time to concentrate on our relationship and getting ourselves out of the financial hole.
It was one step that didn’t cost us much, but made such a huge improvement.
3. I set up a personal escrow account. I had tried budgeting in many ways, but I just didn’t stick with it. As stressed as I felt, it had to be easy. And all the methods I tried weren’t easy enough.
I evaluated our bills and found that we had the most difficulty paying bills that weren’t monthly, bills like our property taxes, house insurance, car insurance, and so on. For instance, our property taxes were always due in July and September, and I knew that. But whenever I got the bill, I would be surprised and wonder where we would get the money to pay for it. And life would be even more stressful while we worked overtime and cut our expenses to try to make the big tax payments.
Thing is, this happened all the time. I would be surprised by our house insurance bill one month. The next month, by our car insurance bill. I’ve never claimed to be the sharpest knife in the drawer, but this was ridiculous. It also wasn’t fun.
So finally I had an idea. I totaled up all our non-monthly bills and divided by 12. The only budgeting I was going to do was save that much per month in a targeted savings account that I will talk about in a minute. When a bill came, I would go to our “yearly expenses” savings account, transfer the money to our checking account, and pay the bill. Proactive, not reactive. It has made my life so much easier with so little effort.
4. I set up targeted savings accounts. Speaking of those targeted savings accounts, I opened up a few savings accounts in July 2009. One of them is our yearly expenses savings account. Others include two vehicle replacement savings, an emergency fund, and our charity account. I didn’t think we could afford to save very much and, at the beginning, I was right. But as things began to improve, I kept bumping up our automatic savings contributions.
An advantage of saving in this way is that it’s been easier to stay motivated. And you know I need help with that. When I see our “New Car Fund” savings account, saving money has a name and a purpose.
The results
These steps had a domino effect on the rest of my life. Today, I am 25 pounds lighter and much less stressed about finances and life, in general. My relationships are healthy, and my life is not in shambles. I am a different person from the desperate gal who sat at my kitchen table a few years ago.
I can’t explain why all four steps made such a difference, but they did. And of course, there were other things that had a huge impact on our improvement as well, like selling the first house, finishing grad school, getting raises, and earning side income.
But the improvement began with four small steps. And I believe these four steps can improve the financial state of anyone, despite their income level.
A new study from the Center for Responsible Lending, “Fix or Evict? Loan Modifications Return More Value than Foreclosure,” found that families facing eviction outnumber those who received a loan modification by 12 to 1.
And argues that banks and loan servicers often foreclose on homeowners, despite the fact that investors (and clearly homeowners) have more to gain from a loan modification.
This goes against recent popular belief, which points the blame for a lack of loan modifications on the fact that many of these mortgages are in securitized bundles, making them difficult to modify.
The CRL found that even with a hypothetical re-default rate as high as 79 percent, which is significantly higher than actual rates, reducing a homeowner’s monthly mortgage payment by 20 percent is better for investors than foreclosure.
“It’s well documented how mortgage servicers’ unfair, shoddy practices have hurt homeowners,” said Mike Calhoun, president of the CRL, in a release.
“This research shows that servicers also routinely give the investment community a raw deal.”
And banks’ interests are often misaligned with the best interests of investors, according to Bill Frey, President of Greenwich Financial Services, and longtime investor advocate.
“It pays for banks to keep mortgages in a state of suspended animation, because they can collect late fees while also protecting second mortgages that are in the bank’s portfolio,” he said in the release.
Finally, the report contends that the poor track record of loan modifications can’t be blamed on homeowners who re-default, but rather on the use of proprietary programs that fail to adequately help homeowners.
“Servicers have been allowed to follow their own voluntary loan modification program, and the result has gone against the best interests of everyone but the servicers themselves,” said Calhoun.
“We need mandatory reforms that ensure servicers follow the law and act in the best interests of their clients—that would end up benefiting everyone.”
Unfortunately, most of these foreclosure prevention programs are coming to an end, with HAMP already under fire from House republicans, and expected to prevent just 700,000 foreclosures when all is said and done.
The initial HAMP re-default rate was seen at about 20 percent, well below the re-default rate for proprietary loan mods.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Do you want to make $10,000 a month?
I was struggling with this question for days. I wanted more money now and the thought of making $10,000 seemed like a dream spurred on by advertisements in magazines promising “easy” earnings opportunities.
But then again, it may have been too good to be true. And that’s why I’m writing this article: because so many people are looking for these quick ways to earn big bucks online without a lot of work – and I’m here to deliver.
I’ve been browsing the internet for years and have found a few ways to make $10,000!
There are a lot of ideas out there, you just have to decide what works well for you. So don’t get too excited just yet.
When you follow these easy-to-follow steps, you’ll be on your way to earning yourself some greenbacks that will take care of all those bills and more than pay off your student loans (or at least buy you a new car).
I have provided links to each of the sources I used for this article, so you can check them out for yourself and decide if they’re worth your time.
So without further ado, let’s get started.
What is the quickest way to make $10,000 a month?
Getting started on a side hustle has never been easier. But how do you know where to start?
Check out these six ideas that can be done in hours and make money like crazy!
Become a freelance writer
Start an Etsy shop
Create and sell digital courses
Drive for Uber or Lyft
Become a virtual assistant
Learn how to day trade
Three Ways to make $10000 a month
Everyone wants to make money and get rich quickly, but the truth is that it takes time.
There are many ways of making a living today; you can choose the traditional route, make money online, or look at passive income.
Option #1 – Make $10,000 a month by earning a high income
There are a few ways to make a high income. You can work in a high-paying profession, like a lawyer or doctor.
Working in a high-paying profession is the most common way to make a high income. If you want to earn a six-figure salary, you’ll need to choose a career that pays well. Some of the highest-paying jobs include doctors, lawyers, investment bankers, and CEOs.
Starting your own business is another great way to make a high income. If you can build a successful company, you’ll be able to earn an impressive salary. Of course, starting a business is risky and it takes hard work to be successful.
Option #2 – Make $10,000 a month by working online
There are many different types of work that you can do online in order to make $10,000 a month. Some examples include writing articles or blog posts, designing websites, freelancing, selling products or services, and much more.
How much you can expect to make depends on a number of factors including the type of work you do, how much experience you have, and the amount of time and effort you put into it. However, if you are willing to put in the time and effort, it is possible to make $10,000 a month by working online.
For many people, however, the quickest way is by starting an online business. The good news is that most of these businesses are easy and sustainable because they don’t require a lot of startup capital.
Learn how to make money online for beginners.
Option #3 – Make $10,000 a month with Passive Income
Investing money in assets that generate passive income is another option for making a high income.
With this approach, you will use your capital to purchase assets such as rental properties or dividend stocks. These investments will provide you with regular income, which can help you reach your goal of making $10,000 per month.
Best Ways to Make 10k a Month
The internet is a great place to make money if you know how. The best part is that there are no huge upfront costs like starting a brick-and-mortar store or subscription business, so the sky is the limit on how much you can make.
That is why you will see many of the best ways to make 10k a month are online, and I’ve listed some of my favorites below. They all work in different ways, but they all have one thing in common: you can get started with no upfront costs.
Want to make money online but don’t know what to do? This guide will show you the quickest and easiest ways possible.
Invest in Stock Market with Mutal Funds or ETFs
There are a few things to consider before investing in stocks.
First, you need to have a clear understanding of what stocks are and how they work. It’s also important to understand the different types of stocks, such as blue chip stocks, growth stocks, value stocks, small cap stocks, and penny stocks. This will help you decide which mutual funds or ETFs, you want to invest in.
With this buy-and-hold approach, you are looking to make returns in the long run and are not worried about the up-and-down movement of your portfolio.
You need a 1.5 million portfolio to make $10k a month passively (source). This is the intrigue of how to FI and why many people pursue it.
Make Income in Trading Individual Stocks
There are a few things to consider before actively trading in stocks. You need to understand what stocks are and how they work. You also need to know the risks involved in investing in stocks as an active day trader or swing trader.
Stocks are shares of ownership in a company. When you buy a stock, you become a part-owner of the company. The value of your stock will go up or down depending on how well the company does. Once you have a basic understanding of the stock market, you can begin researching specific companies that interest you.
Stocks are bought and sold on the stock market. The price of a stock is determined by supply and demand. When more people want to buy a stock than sell it, the price goes up. When more people want to sell a stock than buy it, the price goes down.
It is possible to make money fast with stocks.
Create a blog
Blogging is a great way to make money because it gives you the opportunity to share your knowledge and expertise with a wide audience. If you have a knack for writing and are passionate about a particular topic, then starting a blog is definitely a good way to make money.
There are several ways to make money from blogging, such as selling advertising space, affiliate marketing, or selling products and services. However, the most important thing is to build up a large enough audience so that you can monetize your blog effectively.
Become a Virtual Assistant
A virtual assistant is an online personal assistant who can help with a variety of tasks, including administrative tasks, social media tasks, and even customer service.
A virtual assistant can help with a variety of tasks that business owners and entrepreneurs need assistance with. You are able to have a non phone work from home job and work during the hours you want. This is why so many people find becoming a VA so appealing.
Use Your Expertise as a Virtual bookkeeper
A virtual bookkeeper is an individual who provides bookkeeping services to clients from a remote location.
To become a virtual bookkeeper, you will need experience in bookkeeping and accounting, as well as strong organizational and communication skills. You will also need to be proficient in using accounting software, such as QuickBooks or FreshBooks.
Create a Course on Teachable and earn $10k a month online
Teachable is an online course platform that allows you to create and sell your own courses. You can use Teachable to earn extra income or even make a full-time living from your courses.
In fact, Teri Ijeoma is one of Teachable’s top course creators and easily surpasses this threshold.
Etsy shop in just a few minutes. This is a great way to use your graphic design skills and easily make money from $1-3 printables.
Write Articles with a Freelance Writing Business
Freelance writing is a great way to make a comfortable living from your writing. Whether you have a passion for writing or you simply enjoy writing for fun, freelance writing can be a great way to make a living from your work.
Copywriting is a type of freelance writing that requires more specialized skills and offers higher ROI for clients. This is because copywriters are responsible for creating compelling and persuasive content that can drive conversions.
Build a Coaching Business with Clients
An online coach is a professional who provides guidance and support to clients through online communication tools such as email, chat, video conferencing, and social media.
Engage in a social media management
A social media manager is a professional who helps businesses grow and interact with their customers through social media.
Social media managers typically create and post content, monitor and respond to comments and messages, run ads, and analyze data to track results.
Drop Shipping
Drop shipping is a business model where you don’t keep any inventory and instead outsource the production of products to a third party. When someone orders a product from your store, you simply contact the supplier and have them ship the product directly to your customer.
This is a great way to earn passive income, as you don’t need to do any of the work yourself. You can also hire freelancers to do all of the low-value tasks for you, such as customer service, order fulfillment, and marketing.
Amazon FBA
Amazon FBA is a service that allows you to sell products on Amazon.com and fulfill orders through the Amazon fulfillment center.
For example, Amazon FBA is an online store that Amazon handles a lot of the stuff that causes headaches for most e-commerce store owners, such as shipping and customer service. This means that store owners can focus on more important aspects of their business while still benefitting from Amazon’s massive user base.
Customers are more likely to buy from you if they see that your product is eligible for Prime shipping.
Affiliate Marketing
Affiliate marketing is when you promote other people’s products and services to make a commission. The easiest way to get started with affiliate marketing is through Amazon.
You can sign up as an Amazon Associate for free and then use the Amazon Associates link generator to create links for the products you want to promote. Amazon will pay you a commission on anything that is purchased through one of your links, even if it isn’t something that you promoted.
Make a Salary Off Flea Markets
There are many ways to make a salary off flea markets and search through other people’s junk. It is completely possible to make an income from selling items online.
You can start by finding a market that you are interested in and looking for items that are in high demand. Then, you need to know what to look for when you are shopping. When you are ready to start selling, you will need to find a place to sell and know your profit margins.
Invest Your Money to Make More
Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.
The first step is to understand what you want to achieve with your investment.
Once you know your goals, you can start researching different investment options and choosing the one that best suits your needs. It’s important to remember that there are risks involved with any type of investment, so be sure to do your homework before making any decisions.
Learn all the best ways how to invest 10k.
How hard is it to make $10k a Month?
There is no one-size-fits-all answer to this question, as the amount of work required to make $10,000 a month varies depending on the individual’s circumstances and career path.
However, in general, making $10,000 a month requires a significant amount of hard work and dedication.
For example, someone who is self-employed may need to put in long hours to build up their business before they start seeing a return on their investment. Similarly, someone who is employed by someone else may need to put in extra effort to stand out from the crowd and get promoted.
How much money is required:
Again, there is no definitive answer as the amount of money required varies depending on the individual’s circumstances. However, in general, making $10k a month usually requires having a good income from employment or from other sources such as investments as you build your side hustle. It’s also worth noting that saving up enough money to live on while you’re working towards your goal can also be helpful.
Also, spending money on online courses to jumpstart your process is helpful!
How long does it take:
The time it takes to make $10k a month also varies depending on the individual’s circumstances. For example, someone who already has a well-paid job may only need to save up for a few months before reaching their goal, whereas someone who is starting their own business may need to work for several years before seeing a return on their investment.
How to make $10k a month FAQs
Many people are interested in earning a high income, but they don’t know how to get started. In this section, we go over many of the frequently asked questions.
There are many ways to make money without a job. You can start your own business, work as a freelancer, or find odd jobs.
How much you can make depends on how much time and effort you put into it. You could potentially make thousands of dollars a month if you’re willing to work hard.
If you have the right skills and connections, you can make a lot of money in a short period of time.
To earn 10k a month, you need to average making $333.33 per day (assuming a 30 day month).
If you plan to work a normal 9-to-5 schedule, you must earn $500 a day.
There are many jobs that pay $10,000 a month. Some of these jobs include:
CEOs or any C-level executive
Investment bankers
Lawyers
Doctors
Different jobs require different skill sets. For example, CEOs need to be good at managing people and finances, while lawyers need to be good at research and writing.
The cost of living varies widely depending on where you live – yes the debate of HCOL vs LCOL. But $10,000 a month is generally enough to cover basic expenses and leave some room for savings.
Of course, if you have a family or other financial obligations, your expenses will be higher and you may not be able to save as much.
How to make $10000 a month from home?
There are many ways to make money from home. You can start a blog and sell advertising, write eBooks and sell them online, or even start a YouTube channel and sell products through affiliate marketing.
The amount of money you can make from home will vary depending on the method you choose. For example, if you start a blog and sell advertising, you could make a few hundred dollars per month starting out. However, as you grow and expand into other niches like affiliate marketing, you could easily make over $10,000 per month.
Tips for success:
No matter which method you choose to make money from home, there are some tips that will help you succeed.
First, be sure to choose a niche that you are passionate about so that writing or creating content is not a chore.
Second, be consistent with how you plan on making money from home.
Finally, invest in online courses to jumpstart your learning.
What are some tips for making $10,000 a month?
In the past few years, there has been a shift in how people get rich.
People are now making money six-figure salaries by doing what they love and starting their own businesses or becoming influencers.
Here are the best tips to make sure you have success in how to make 10k a month.
Tip #1 – Set a Goal
Setting a goal is important because it gives you something to work towards. It can also help motivate you to take action and stay on track.
When setting a goal, it is important to be specific and realistic. You should also make sure that your goal is measurable so that you can track your progress.
Example goals:
Enroll in online course to expand your earning potential
Earn an extra $500 per month from side hustles
Have your side gig income to take over your 9-to-5 income
Be able to retire and enjoy time freedom
Tip #2 – Make a Plan
As James Clear, the author of Atomic Habits says, “Many people think they lack motivation when what they really lack is clarity.”
You have to start by making a plan. You can daydream all you want about making $10000 in a month.
Here are a few steps to get you started:
Brainstorm ideas for a side hustle
Research the market and start small
Figure out which online courses to take to jumpstart your learning
Study. Study. And study.
Stay consistent with your plan.
However, the best way to find out if a side hustle will work is to start small. You can always build up your business and make more money later on.
Tip #3 – Be Patient
You need to be patient if you want to make $10,000 a month. It takes time and effort to make this much money.
Don’t think you can walk away after a few hours and make $10k each month.
It takes time to be consistent in making $10k month after month.
However, if you put in the work, you can make $10,000 a month.
Tip #4 – Take Action
In order to make $10,000 a month, it is important to take action.
Each and every day, you should be working on something that will help you reach your financial goals.
Whether it is watching a Youtube video, listening to a podcast, or actually putting reach work in.
Taking action will help you reach your goals quickly.
How to make 10k a week
Making 10k a week is definitely possible, but it’ll take work and dedication to see results.
You’ll need to have the right money-making idea and put in the time and effort to make it successful. Additionally, having multiple streams of income can help you reach your goal faster.
Which Income Stream will you choose to Start with?
So there you have it! A few different ways that you can start earning an extra $10,000 a month.
Which one will you choose to start with?
There are many ways to make money quickly and easily, but not all of them are created equal. In this guide, we’ve outlined some of the quickest and most effective ways to make $10k a month.
Choose the option that best suits your skills and interests, and get started today!
Let us know in the comments below.
Know someone else that needs this, too? Then, please share!!
It feels a little like 2006, but it’s entirely different, or so they say.
A lender by the name of Quontic Bank based out of Astoria, New York (Queens) has been offering its so-called “Lite Doc” loan to homeowners who can’t typically qualify for a mortgage.
The problem comes down to income, which can be a roadblock for many would-be homeowners, even if they have plenty of assets and great credit.
The beauty of Quontic Bank is that it’s designated as a Community Development Financial institution, or CDFI, meaning it is exempt from the Ability-to-Repay rule that generally applies to all home mortgages.
The ATR means underwriters must verify a borrower’s income, assets, job status, and their DTI ratio, among other things.
Because Quontic is a CDFI, which is supposed to generate “economic growth and opportunity” in the “most distressed communities,” it can bypass those stringent rules and make mortgages based on its own risk appetite.
Before you get in a tizzy, note that this new seemingly high-risk loan has some pretty strict underwriting criteria.
What Exactly Is Lite Doc?
Perhaps most important, the Lite Doc loan from Quontic Bank reportedly requires a 40% down payment. Yes, you read that right. A whopping 40%. I don’t know if any mortgage would ever be delinquent if it required a 40% down payment.
Today, home buyers are much more likely to put down 3% than they are 40%…and you know which ones will probably default first.
That removes a ton of the risk, but the Lite Doc loan doesn’t require income documentation if the borrower isn’t self-employed, which might be somewhat worrying.
Instead, they simply need to provide two months bank statements and verification of employment. This compares to standard underwriting protocol that calls for two years of tax returns, recent pay stubs, and so on.
But to lessen the risk even further, the Lite Doc loan also has a minimum FICO score of 700, as opposed to say the 580 minimum score needed to put just 3.5% down with an FHA loan.
That’s not all! The Lite Doc borrower also needs to show 12 months of reserves in the bank, that is, a full year of housing payments on the proposed loan including principal, interest, taxes, and insurance.
So to get this straight, the Lite Doc loan requires a 40% down payment, 700 credit score, 12 months reserves. Oh, and the property has to be your primary residence.
In other words, these loans probably won’t default anytime soon. The only weird part about the program is the fact that the Lite Doc loan is a five-year adjustable-rate mortgage.
That seemingly makes the loans riskier because they could adjust higher after just five years and if this program (or one like it) isn’t around then, these borrowers may be forced to sell if they can’t afford payments or refinance.
So far, just a small handful of these loans have been extended to borrowers in places like Miami and New York, apparently to immigrants who have the dough but not the steady job history required to get a traditional mortgage.
Could This Loan Be Better Than the Ones Major Banks Offer?
This whole thing made me think – are these loans that require less documentation better than the standard QM-compliant offerings being pitched by the likes of Bank of America, Chase, and Wells Fargo?
Just look at the yourFirst Mortgage or the Affordable Loan Solution, both of which require just 3% down payment and a 620 credit score.
That doesn’t sound like a recipe for a quality mortgage, especially if originated at a time when home prices are seen as lofty.
Sure, these borrowers might be able to qualify using full documentation, and the loans feature fixed interest rates, but what if the homeowner loses their job, or takes a pay cut?
The borrower who puts just 3% down doesn’t have much of a cushion (if any) when it comes time to sell to avoid default or foreclosure. The typical home sale may cost 8-10%, so 3% down simply won’t cut it.
Conversely, the borrower with a 60% LTV mortgage will have no trouble selling if they can’t keep up with payments, and without harming the issuing bank (or taxpayers).
I’m not saying we should usher in stated income loans again, but I do question the quality of super-low down payment mortgages coupled with what many would refer to as marginal-to-poor credit scores.
If you have an 810 credit score, congratulations. The score is considered excellent and could help you qualify for loans with more favorable terms or premium rewards credit cards.
Let’s take a closer look at what an 810 credit score means and some different strategies that could help boost your credit score.
What Is a Credit Score?
A credit score is a three-digit number that reflects a consumer’s creditworthiness, or ability to pay back loans in a timely manner. Scores range from 300 to 850. Generally speaking, the higher the credit score, the better you tend to appear to a potential lender.
The two most popular credit scoring models are FICO and VantageScore. To calculate your score, both use credit history information provided by the three major credit bureaus: Experian, TransUnion, and Equifax.
Check your score with SoFi Insights
Track your credit score for free. Sign up and get $10.*
Reasons to Care About Credit Scores
There are several reasons why a good credit score is essential to your financial health. Here are three to keep in mind.
It can increase your chances of being approved for a loan
The higher your credit score, the more likely lenders will approve loan or credit card applications. Whether it’s to purchase a house, buy a car or private student loans, having access to loans can help you achieve some big financial goals. Note that some banks may also run credit checks before issuing you an account.
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You may have access to better loan rates and terms
Lenders are more likely to offer consumers with better credit scores lower interest rates and more favorable terms because they’ve proven they pay back their loans on time. A higher credit score may also get you access to other types of products such as premium rewards credit cards.
You could save money
When you move into a new home, the utility company or your landlord may check your credit score to determine how much of a security deposit you’ll need to put down. Typically, the lower your score, the higher your deposit. Though the money is often refundable, it’s usually held in a third-party account that you won’t have access to. Potential employers may also run a credit check before you’re offered a job.
Recommended: Everything About Tri-Merge Credit Reports and How They Work
Is an 810 Credit Score Considered Good or Bad?
An 810 credit score is considered very good. In fact, just 21% of consumers in the U.S. have a credit score of 800 or higher. By comparison, the national average credit score is 714, according to Experian.
What Does an 810 Credit Score Mean?
Having an 810 credit score means you’ve proven through your credit behavior that you are likely to pay back loans on time. As mentioned above, a score of 800 or above places you in the top tier of consumers.
You are also considered to be in the “exceptional” range for your FICO score and “superprime” for your VantageScore. This means lenders are more likely to approve you for loans and offer you access to products such as loans with lower interest rates and premium credit cards. Landlords and utility companies may also ask for a lower security deposit amount (if at all).
How to Build Credit
Looking to build your credit? You have several avenues to explore. Below are a few to consider. Note that there’s no one-size-fits-all solution, so it’s a good idea to research all the options available to you.
Use a Credit Card
Even if you’re just starting out in your career or only have fair credit, you may still be able to be approved for a credit card. For instance, you can open a credit card that’s specifically for college students. Or you may want to consider a secured credit card, where you pay a refundable security deposit that acts as your credit line.
Whatever purchases and payments you make on the card are reported to the three major credit bureaus. This in turn helps to establish your credit history.
Become an Authorized User
An authorized user means that your name will be put on someone else’s credit card account. You can use the credit card much like the primary cardholder can, though this person is ultimately responsible for ensuring the minimum payments are paid on time.
If the primary cardholder has a good credit score, then their positive credit history may be added to yours.
Add Monthly Bills to Your Credit Report
Some free credit monitoring services will report your utility and rent payments to your credit report. Doing so can help build your credit history. Even if there is a small fee involved, it may be worth using for a few months, depending on your financial situation.
Recommended: How to Read and Understand Your Credit Report
Take Out a Credit Builder Loan
Credit builder loans are designed to help borrowers who are looking to build their credit. They’re similar to a personal loan, except you don’t initially receive the loan proceeds. Instead, the money will be held in a separate savings account until you pay off the loan. Meanwhile, your payment activity will be reported to the credit bureaus.
How Long Does It Take to Build Credit?
It can take several months for you to establish and build credit. This is because credit scoring models need enough information from your credit history in order to assess your creditworthiness.
As you work on building your credit, do your best to practice good financial habits, such as making on-time payments.
Credit Score Tips
Even if you have an excellent credit score, it’s a good idea to keep up good credit behavior. This includes:
• Consistently making on-time payments
• Keeping your credit utilization, or the percentage of the available limit you’re using on revolving credit accounts, as low as possible
• Avoiding applying for too many new loan or credit accounts at once
• Keeping your longest credit card or loan account open
• Regularly monitoring your credit score
• Checking your credit history and immediately disputing any errors you find
How to Check Your Credit Score
Wondering how to find out your credit score for free? You have several options. The first is your credit card statement. Many credit card issuers provide customers with a complimentary look at their score. To find it, you may need to log into your account or check your monthly credit card statement.
Another option is to use credit score monitoring tools; some are free, others require a payment. Before opening an account, compare each tool to see which one best serves your needs.
The Takeaway
It’s good news if you have an 810 credit score and a sign that you have a track record of paying back your loans. A good score may help improve your access to loans with better terms or premium or luxury credit cards. If you want to improve your score — or just maintain it — you can try practicing good financial habits, like consistently making on-time payments, keeping tabs on your credit score, and disputing any errors.
If you need help managing your spending and saving, consider using a money tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a decent credit score for a 23-year-old?
Chances are, at 23 you’re probably still building your credit. According to Experian data, the average credit score for people aged 18 to 25 is 679. If yours is higher, then it’s considered above average.
What is the highest credit score possible in 2023?
The highest credit score you can achieve is 850 for both FICO and VantageScore scoring models.
Is a credit score of 800 good at age 23?
Whether you’re 23 or not, an 800 credit score is considered excellent.
Photo credit: iStock/Makhbubakhon Ismatova
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. SORL0423008