The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
FICO® scores are numbers measuring creditworthiness using a specific scoring system created by the Fair Isaac Corporation (FICO®). Your credit score, on the other hand, can use any scoring model to generate a number measuring your creditworthiness.
Your credit score is a personally assigned number generated by any credit scoring model that measures your creditworthiness. Lenders and creditors use this score to determine whether they can approve you for loans and credit, and if so, at what interest rates. A higher score means you’re seen as a more reliable borrower, and you’ll likely get better offers from lenders.
People often use the terms “credit score” and “FICO score” interchangeably. In reality, a FICO score is only one kind of credit score. Keep reading for a complete rundown of the differences between a FICO® score and a credit score.
What is a FICO score?
A FICO score is a type of credit score generated by the credit scoring system developed by the Fair Isaac Corporation (FICO). The FICO score was created in 1989 and is one of the most commonly used credit scoring systems for lenders today. According to FICO, 90 percent of all top lenders use FICO scores.
FICO scores can range anywhere from 300 to 850. There are multiple versions of FICO scores, but the newest is the FICO Score 10 model. FICO releases new credit scoring models every few years to adapt to changes in the marketplace. For example, one of the main updates seen in the FICO 10 model is that debt from the most recent 24 months is more heavily weighted than other debt.
Your credit score is critical as it can dictate what types of financial products you’re approved for (mortgages, credit cards, personal loans, car loans) and the terms and interest rates on these products. In fact, your credit score can even reach beyond your finances, as it can be collected by employers and landlords reviewing applicants.
Industry-specific FICO scores
In addition to the standard FICO models, there are industry-specific FICO scores, such as the FICO Auto Score and the FICO Bankcard Score. These industry-specific scores are made for select types of credit such as cars, mortgages, and credit cards. While standard FICO scores range from 300 to 850, industry-specific scores range from 250 to 900.
Overall, FICO industry-specific scores aren’t used as frequently as the standard model.
How is a FICO score calculated?
Your FICO score is made up of the following five factors, all of which are weighted differently:
35 percent: Payment history
30 percent: Amounts owed
15 percent: Length of credit history
10 percent: New credit
10 percent: Credit mix
FICO receives this consumer information from the three major credit bureaus (Equifax, Experian and TransUnion). And those credit bureaus receive consumer data directly from lenders and creditors, which tend to report the information monthly.
What is a good FICO score?
Generally speaking, anything above 670 is seen as a good credit score. However, this will vary from lender to lender.
The FICO model groups people’s scores into these categories:
Exceptional: 800+
Very good: 740 – 799
Good: 670 – 739
Fair: 580 – 669
Poor: 579 and below
An exceptional score means you’ll likely get quickly approved for everything (or almost everything) you apply for, you’ll receive the best terms and you’ll secure the lowest interest rates. In comparison, a poor score will usually lead to application denials, and when you are approved, it’ll be with high interest rates and poor loan terms.
How to get your FICO score
You can get your FICO score directly from FICO or from one of its partners.
Check the FICO Open Access Program: FICO has partnered with a number of institutions to provide your FICO score number for free under its open access program. Check to see if your bank or credit and financial counseling program is listed.
Purchase access from FICO: You can purchase your score and other services from FICO.
Purchase from an authorized FICO retailer: FICO authorized retailers are Experian and Equifax.
When you receive your score from any provider online, make sure to confirm which scoring model was used. Most lenders do use FICO scores when making lending decisions, but it’s still helpful to understand the other scoring models—like VantageScore.
FICO score vs. VantageScore®
The two dominant credit scoring models are the FICO score and VantageScore. VantageScore was created in 2006 by the three major credit bureaus. While VantageScore is less popular overall, it’s gaining more market share every year.
The VantageScore and FICO score models are very similar—they both range from 300 to 850 and release new versions of their scoring model every few years. Still, there are some critical differences between the two models. For example, FICO requires a consumer to have an account open for at least six months before a score can be given, while VantageScore assigns a score as soon as an account appears on your credit report.
Additionally, how VantageScore values various aspects of your credit data differs from FICO. VantageScore assigns the highest weight to credit usage, credit mix and payment history and the lowest weight to new accounts and credit history age.
As a result of these differences, your VantageScore and FICO score can differ. Unfortunately, even if you score higher with one model, you won’t usually be able to use this knowledge to your advantage. You often won’t know if a lender will pull a FICO score or a VantageScore.
Other kinds of credit scores
There are many other credit scores generated and used by other lenders and companies. Common ones are educational credit scores and business credit scores.
An educational credit score is based on a private lender or credit bureau’s ranking of your financial information.
For example, the PLUS score was designed by Experian to provide you with a basic idea of your risk level and creditworthiness. Although they’re designed to measure credit risk, educational credit scores aren’t used by lenders.
Models like the PLUS score are meant for consumer use only, which means they’re not considered when lenders review your loan application.
Business credit scores predict your company’s financial stability and how reliable you are in terms of managing company finances.
For example, Dun & Bradstreet’s D-U-N-S Number is used to identify your business and is the key to finance-related information about your company, like your business credit report, your D&B Delinquency Predictor Score and more.
All your credit scores will likely differ since numerous scoring models are used and these models weigh information differently. They may also pull information from one, two, or all three of the credit bureaus.
Instead of focusing on the specific criteria for each score, you should instead focus on responsibly managing your credit with FICO’s criteria as a guideline, since that score is most commonly used.
How to improve your FICO score
The good news is that if you’re unsatisfied with your FICO score, you can take steps to improve it. By understanding the five factors that make up your credit score, you can also determine what you can potentially do to increase your score. You can usually improve your FICO score by:
Paying down your debts
Paying your bills on time
Keeping your credit utilization low
Only opening new accounts when necessary
Avoiding too many hard inquiries
Keeping your oldest accounts open
It’s also important to check your credit reports frequently. Your credit reports can give you a better understanding of what’s dragging your score down, and you’ll want to make sure that your credit reports don’t contain any inaccurate or false information that’s unfairly affecting your score. If that’s the case, Lexington Law Firm can help you address the errors to get the accurate credit report you deserve.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Inside: You are wanting to work from home. Here are the best non phone work from home jobs. Exactly what you wanted to find.
Are you looking for a work from home job but don’t want to deal with people? You’re in luck!
There are plenty of non-phone jobs that allow you to work from the comfort of your own home.
This is becoming more and more popular because it allows you autonomous work without the influence of talking to others.
Plus we will cover the best non phone work from home jobs! There are many options available.
To help you get started, we’ve compiled a list of the 35 best non-phone jobs for you:
Can you work from home without talking on the phone?
Yes, you can work from home without talking on the phone.
More and more jobs are transitioning away from the use of a phone. So, there is no better time than to transition yourself.
Best non phone work from home jobs
Here is a comprehensive list of the best non phone work from home jobs.
You will find a variety of part-time, full-time, and contract opportunities in a wide range of fields. Also, the opportunity to become your own boss.
1. Stock Trader
Stock traders must have a good understanding of market trends, economic forces, and have the ability to make quick decisions based on their analysis.
The benefits of working as a stock trader include high pay, job security, and the potential to make a lot of money if the stock market is performing well.
Additionally, stock traders are able to work from home and have flexible hours, meaning that they can plan their working day around other commitments.
Personally, this is one way I make money is by trading stocks and options. Join the $1000 in a day club.
2. Video Editor
A video editor is someone who works with audio and visual content to create cohesive and engaging visuals for either commercial or creative purposes.
They use various software programs to manipulate video clips, sounds, and images in order to create a compelling story. The role of a video editor involves careful attention to detail and the ability to utilize a wide range of software and hardware.
The advantages of a job as a video editor include the potential to work from home and create a flexible schedule, as well as the potential to make great money, depending on the level of experience.
Additionally, it can be a great way to express creativity and further develop important skills.
On the other hand, one of the major disadvantages of working as a video editor is the high stress level that comes with the role.
Video editors are often under pressure to deliver projects under tight deadlines, which can lead to increased pressure and stress. Additionally, there is often a steep learning curve, as video editing requires a lot of technical knowledge and experience.
3. Proofreader
Proofreading is a non-phone work from home job that involves reading and carefully reviewing written documents for errors of spelling, grammar, syntax, and punctuation. It also involves making sure that the text makes sense and is consistent with the document’s purpose.
Proofreaders are expected to identify and correct errors as they appear in the text.
The pay for proofreaders is typically between $44k and $58k per year.
To make the job easier, I would take the Proofreading Anywhere course to understand what is expected of you.
4. Data Entry Jobs
Data entry clerks are often required to sort, organize, and verify the accuracy of data before entering it into the computer system.
Additionally, this type of job does not require any prior experience and can be learned quickly.
Data entry clerks can usually make an hourly wage, which makes it a great option for those looking for a side income. Furthermore, data entry clerks are often hired for short-term or part-time projects, allowing them to pick and choose their hours.
5. Writer
Typically, the role of a writer is to produce content, such as blog posts, articles, product reviews, press releases, and more, for various companies.
Writers must have a good command of the English language and demonstrate great grammar and spelling in order to be successful. Additionally, writers must have the ability to create content that is search engine optimized and persuasive.
Many people have found the Earn More Writing course helpful to bump start your freelance writing potential.
All in all, freelance writing is a great way to make a living and offers flexible hours, the potential for long-term growth, and higher pay rates.
6. Web Search Evaluator
Search engine evaluators have the important job of ensuring that search engine results are relevant and accurate to the user’s intent.
For example, a user might enter the search query ‘chocolate cupcake recipes’, and the search engine should return relevant results such as recipes. If the search results are irrelevant or inaccurate, the search engine evaluator is tasked with rating them accordingly.
Search engine evaluators typically earn around $20 per hour and can make up to $40k a year if they take the job as full-time professional.
7. Virtual Bookkeeper
A virtual bookkeeper is a professional who can provide bookkeeping services to businesses from remote location.
Most people choose to work for themselves as a bookkeeper with a bookkeeping side gig (or full-time business).
One of the main benefits of working as a virtual bookkeeper is that no college degree or qualification is needed to get started. Generally, bookkeepers charge around $80 an hour or more for their services.
Finally, you can learn more about getting started with Bookkeeper Launch to help you become a freelance bookkeeper.
8. Image Reviewer and Photo Editor
Similar to a video editor, a photo editor’s duties include, but are not limited to, ensuring that images display the desired quality, accuracy, and clarity; checking for visual consistency across all images; editing images to make them look more appealing; and providing feedback on the images.
Additionally, they may be responsible for curating collections of images, creating new content, and managing projects.
For those looking to sell on Shutterstock, this is a great side hustle.
9. Create and Sell Printables on Etsy
With a little creativity and the right software, you can create unique printables that customers can purchase and print out themselves.
This can be a great way for you to make passive income with minimal effort.
In fact, my friends Cody and Julie did so well selling printables; they now teach others how to make a living creating and selling printables.
10. Selling on Amazon (FBA program)
This is a way to make money by reselling products you find online or in brick and mortar stores on Amazon for a higher price.
Amazon will ship the products to your customers, handle customer service, and even provide storage for the products.
With the right amount of work and dedication, you can make quite a bit of money with FBA.
11. Blogger
With blogging, you have the ability to work from anywhere in the world with just a computer and an internet connection.
You can write about whatever topics you are passionate about and be your own boss.
You can also make money blogging through various income streams such as affiliate marketing, paid sponsorships, ads, and more.
12. ESL Instructor
The job of an ESL (English as a second language) instructor is to provide English language instruction, usually via webcam, to those who are not native English speakers.
The benefits of this job are numerous: it allows for flexible hours, can be done from anywhere in the world, and offers an opportunity to make a difference in the lives of learners from all over the world. Additionally, being an ESL instructor allows one to learn about other cultures, stay up to date with language trends, and gain valuable professional experience.
To get the job, you need to have a thorough understanding of the English language and pass any certification tests.
This is a great type of job that pays weekly.
13. Virtual Assistant
A virtual assistant (VA) is a professional who provides administrative and technical support to clients remotely. They help with a variety of tasks like answering emails, data entry, blog management, bookkeeping, editing, proofreading, marketing, research, filing documents, and customer service – to name just a few.
The type of services you offer will depend on your skills, experience, and education.
The biggest benefit of working as a VA is that you can work from home and set your own hours.
And the pay can be quite lucrative, with rates ranging from $25 to $100 an hour.
If you’re interested in becoming a VA, Kayla Sloan offers a free workshop that teaches people how to become Virtual Assistants and makes up to $10,000 a month. Download her Virtual Assistant checklist.
14. Accountant
An accountant is a professional who is responsible for tracking financial records and preparing financial statements for a business or individual. They ensure that their clients’ finances are accurate and in compliance with applicable laws and regulations.
One of the primary benefits of working from home as an accountant is flexibility. You are able to work your own hours and set your own schedule. This allows you to create a better work-life balance and also gives you more time to spend with your family.
15. Freelance Jobs
A freelancer is someone who does work for themselves and not for a company.
This is typically contract-type work.
You can find freelance jobs on sites such as Upwork, Fiverr, or People Per Hour.
The best way to freelance is to know your own skills and how to monetize them.
16. Editor
An editor is a professional who is responsible for reviewing and improving documents, whether that be in print, online, or even on video.
Editing involves ensuring accuracy, flow, grammar, and style. This is a great non phone work from home job because it allows for great flexibility and does not require a college degree.
Most positions are freelance which means that you can work on your own schedule and take on as much work as you can.
17. Social Media Manager
Social Media Managers are in charge of maintaining a client’s presence on a variety of social media sites, such as Facebook, Pinterest, Instagram, Snapchat, YouTube, Twitter, and Google Plus.
They are expected to respond to comments, manage brand partnerships, create posts, photos, and videos, and track analytics to come up with an effective marketing strategy to promote their client’s accounts.
In addition to creating content, Social Media Managers typically monitor and moderate what is posted on the client’s social media accounts. They are usually responsible for ensuring that the content is appropriate and that the rules and regulations of the platform are followed.
The potential salary range for Social Media Managers can vary, but they can typically make $78000 per year.
18. Transcriber
A transcriber’s role is to convert audio recordings into written documents. They listen to audio files and type out what they hear.
Transcribers have the advantage of being able to work from home and can earn up to $21 per hour or more if they start their own business. They also have the potential to increase their wage upon gaining more experience.
Additionally, transcribers do not need to interact with other people, making it an ideal job for those who are more introverted or prefer working alone.
Finally, there are various resources available to help transcribers get started, including free mini-courses and companies that hire experienced and beginner transcribers.
19. Marketing Associate
As a Marketing Associate, you’ll be responsible for a wide variety of tasks, including developing and executing marketing campaigns, conducting market research, creating content, and managing and optimizing paid search, video creation, and other digital marketing efforts.
Additionally, you may be asked to support customer service via live chat, social media, text, and email.
The ideal candidate for this role will have excellent communication skills, be proficient in typing and have excellent spelling and grammar, and be passionate about social media platforms.
20. House sitter
A house sitter is someone who stays in a home while the homeowners are away and provides care for the premises and any pets that the homeowners may have.
The job of a house sitter includes tasks such as watering plants, taking out trash, and performing general maintenance of the property.
House sitters can benefit from the opportunity to experience different places, save money on rent, and have some extra time to explore their surroundings.
Platforms such as TrustedHousesitter.com make finding house-sitting jobs easier than ever before.
21. Online Tutor
The role of an online tutor is to guide students in their studies and help them understand a particular subject or skill virtually, through video chat or online software. Plus you have the opportunity to work with students from different countries.
Online tutoring jobs vary in requirements, but typically a bachelor’s degree or current college enrollment is needed.
They provide instruction and guidance, assist students with assignments, answer questions, and give feedback on their progress. The tutor also has a responsibility to motivate and encourage their students to stay on task and reach their academic goals.
22. Pet-Sitting Jobs
Pet sitting jobs can be a great way to make some extra money from home while spending time with animals (and not people)!
With Rover, you can earn anywhere between $10 and $20 an hour for dog walking, $20-30 for overnight stays, and some people are even making $1000+ a month in metro city areas. As a pet sitter, you have to stay at home with someone else’s pets and they pay you for taking care of their pets.
Rover.com is a great platform to find pet sitting jobs as they offer a wide range of services such as dog walking, pet sitting, and pet care.
23. Personal Stylist
Personal styling is an exciting and relatively new job that offers the opportunity to work from home. The role of a personal stylist is to help clients express their individual style through the selection of clothes, accessories, and other items.
It involves curating a set number of clothing items and accessories based on the client’s fashion profile. This job requires an eye for detail, an innate sense of style, and creativity.
It’s perfect for creative individuals who are passionate about fashion and have an eye for details.
24. Website Tester
Website testers are typically paid to assess the overall user experience on a website and provide feedback on how to improve it. W
You do not need a phone to complete your tasks; they only require a laptop with a webcam and microphone to record your observations.
Website testing is a non-phone work from home job that pays good money to ensure that websites are user-friendly. It is a flexible and straightforward way to make some extra cash.
25. Closed Captioner
A closed captioner is a person who transcribes audio into text for specific use on video.
This is a great job for those who learn and work better visually, as well as those who can type quickly and accurately. This type of work allows for a very flexible work schedule, meaning you can work when you are most productive and there is no need for any phone interactions.
You get the freedom to work on your own schedule and make a decent amount of money doing something that doesn’t require phone conversations.
26. Online Test Scorer
An online test scorer is responsible for scoring assessments such as tests, exams, and essays from students of high school or college. This job requires a certain level of expertise, as the test scorer must be able to interpret and evaluate the quality of the assessments accurately and fairly.
The test scorer must also be able to maintain the confidentiality of the students’ answers and grades and be able to provide feedback that is relevant and constructive.
This job typically requires a bachelor’s degree, and it is often seasonal with part-time hours.
27. Translator
The role of a translator is to take a language and convert it into another language, be it oral, written, or audio.
Translators not only have to be multi-lingual and have a good command of grammar and spelling, but they also need to be able to convey the meaning of the words they are translating accurately. They can work on a variety of projects, from subtitling to full-length books.
There is a wide range of online platforms on offer, so translators can pick the one that best suits their skill set and desired pay rate.
28. Graphic Designer
A Graphic Designer is someone who is skilled in using platforms like Photoshop, Canva, and other software to create visual and graphical designs.
Typically, these designs are used for things like logos and branding materials, websites, social media content, or clothing.
You must have a creative flair, as well as knowledge of graphic design and the required software. In order to be successful, they must have a computer with a good internet connection and the programs necessary to do the job.
29. Medical Coder and Biller
A medical coder and biller are responsible for translating a patient’s symptoms, diagnosis, and medication prescribed by a doctor into codes.
These codes are then entered into a database for the biller to use, who will turn them into a bill to be submitted to the patient’s insurance company.
The average pay scale for medical coders and billers can range from $45k – $65k per year, and they can find many remote positions on job sites like Indeed.com.
30. Instructional Designer
The role of an Instructional Designer is to research, write, design, and create training courses and manuals for a variety of people, such as educators, students, and employees.
Instructional designers need a degree in the subject being written about, or a degree in education, and should enjoy writing and editing. Working from home as an Instructional Designer has many benefits.
Working from home in an Instructional Designer role gives you the freedom to explore new methods and techniques to create the best possible course or manual.
31. Non-Phone Remote Nursing Jobs
With more and more companies offering remote work opportunities, there are many non-phone remote nursing jobs available.
The type of work ranges from utilization review nurses, clinical research associates, and data abstractors all work with data and compliance, ensuring procedures are being followed correctly and that they are medically necessary.
Companies such as Cigna, CVS, Flatiron, PPD, and UnitedHealth Group are just some of the many hiring companies offering these types of remote nursing positions.
32. Fraud Investigator
Fraud investigators are in demand in many industries, including financial institutions, e-commerce stores, healthcare companies, and insurance companies. As a fraud investigator, you’ll be tasked with looking for fraud, abuse, and irregularities in financial transactions.
If you have an eye for detail and like doing research, this could be a great non-phone job opportunity for you.
Companies usually require customer service experience or a criminal justice degree and/or a CAMS certification (Certified Anti-Money Laundering Specialist). It’s a great way to make a good income without having to pick up the phone.
33. Community Moderator
A community moderator is a person who oversees online forums, groups, and social media accounts to ensure that rules and regulations are being followed, questions are being answered, and spam and junk content are being removed.
It is an online opportunity where moderators can be employed to manage and moderate comments on various social media sites and chat rooms.
The benefits of working as a community moderator include the opportunity to work from home and a flexible schedule. Additionally, moderators will gain experience in digital engagement, such as moderating forums, chatting with customers, managing communities, and buzzing on social media.
34. Netflix Tagger
The Netflix Tagger is a real job opportunity that allows individuals to work from home watching movies and tagging them with the appropriate keywords, genres, and descriptions.
This job is ideal for those who have a passion for movies and experience or education in radio, television, and film.
Working as a Netflix Tagger (also known as Metadata Analyst) is not only rewarding but it is also beneficial for those who want to work remotely without having to make phone calls or talk to customers.
35. Provider Enrollment Specialist
A provider enrollment specialist is a non-phone work-from-home job that involves researching, reviewing, analyzing, and managing provider enrollment applications to ensure they are in compliance with guidelines.
Provider enrollment specialists usually require prior experience in medical terminology, appeals, claims, or customer service, and may also require an associate’s or bachelor’s degree.
36. Survey Taker
By completing surveys, survey takers are able to share their opinion and help inform companies and brands on how to provide better products and services that meet customer needs and expectations.
Benefits of working as a survey taker from home include the flexibility of being able to work at your own pace and the ability to earn extra income while working whenever and wherever you choose.
Additionally, survey takers can take advantage of cash, rewards, and sweepstakes entries as compensation for their time.
It is not a way to get rich, but it is a great way to make extra money on the side.
Here are the top legit survey platforms:
37. Chat and Email Support
Chat and email support workers provide customer support and assistance via email and online chat. They are responsible for responding to customer inquiries and resolving customer issues.
This customer service-oriented position does not require the use of a phone.
Chat and email support workers must be able to answer customer questions and respond to their inquiries quickly and accurately. They must also be able to use active listening skills and type quickly.
Companies often provide chat and email support workers with guidelines for providing customer support, and they may also require workers to understand their products in order to provide effective customer service.
Are non phone work from home jobs legitimate?
The answer is yes! In fact, there is a growing number of non-phone work from home jobs for those who don’t want to be on the phone all day.
Whether you’re a mom with kids and pets running around, or if you find customer service work draining, there are good options out there for you to make money from home without being on the phone.
In conclusion, non-phone work from home jobs are legitimate and provide a great opportunity to make money from home without being on the phone.
FAQs
Ultimately, the skills needed to succeed in non phone work from home jobs will depend on the type of job you are pursuing.
More than likely, you’ll need excellent typing skills, excellent spelling and grammar, and the ability to troubleshoot and solve issues, among other skills.
However, many of the jobs mentioned above pay between $15 an hour to $50 an hour.
Some companies may also offer a base salary plus bonuses or incentives.
Fortunately, there are plenty of non-phone jobs available for remote workers that don’t require a diploma.
However, you may have to take some online courses to excel faster in your field.
Many on this list are great low stress jobs that pay well without a degree.
Yes, there are software or tools needed for non-phone work from home jobs, depending on the type of job.
More than likely, you will need a computer and a reliable internet service.
Are you Excited to Work from Home Job No Phone?
Working from home has become increasingly popular over the years, as it offers flexibility, comfort, and the ability to work from anywhere.
All of these jobs that offer the best comfort and increased focus is working from home on the laptop. The advantages of this job include flexibility in schedules, the ability to remain in control of your own workspace, and enhanced focus as there is less noise and distraction.
With the number of remote job leads that are available, you are sure to find the perfect work from home job that suits your needs.
In addition, working from home gives you the freedom to work in a location of your choice. You no longer have to commute to an office or be bound by office hours.
Also, you can take breaks when you need them and work in a comfortable environment.
Which career choice are you going to look into?
Know someone else that needs this, too? Then, please share!!
My wife and I just got back from Turks and Caicos, which is an incredibly beautiful island in the Caribbean. While there, we were tempted to buy a vacation rental. It seems like every time we go on vacation we think about buying a vacation house, but this time we gave it more thought. Turks and Caicos was the favorite place we have ever been too and the prices were relatively affordable.
We thought about buying a vacation house because we loved the island and plan to go back again and again. At first, buying a vacation rental appears to be a wise decision if you visit the same destination enough. The plan would be to buy a house or condo on the beach, stay there a few times a year and rent out the place when we are not staying there. But when you look at the pros and cons of vacation homes from an investing perspective, we were reminded why it is not always a wise financial decision. The expenses are extraordinarily high on vacation rentals and are you really saving money when you stay there on vacation?
Why was Turks and Caicos so amazing?
Before I get started with an analysis of vacation houses, I want to discuss Turk’s and Caicos. TCI, as it is called locally, is a chain of islands in the Caribbean between the Bahamas and the Dominican Republic. We choose to vacation there, because the water looked crystal clear and had that amazing blue-green color my wife and I love. We have been to Mexico, St Martin, Dominican Republic, and taken a cruise to a few more destinations in the Caribbean. We enjoyed those destinations, but we heard TCI was better, had fewer people and was worth the extra money (it is expensive). We were not disappointed in Turks and Caicos as the water was gorgeous, the beaches were soft white sand and there was a reef right outside our resort that we snorkeled at every day. We saw a giant ray, sea turtles, many tropical fish, a large barracuda, corals and much more.
The island is not as busy as many other places we have visited and everyone was very friendly. My wife also has many food allergies including gluten, soy, dairy, eggs, and the grocery stores were extremely well stocked in allergy-friendly and organic food. There are 40 islands in the country, most of them uninhabited with the same perfect water and beaches. The main island, Providenciales was expensive as most are but was well worth it.
What are the pros and cons of vacation homes?
We enjoyed the island so much, that we looked at buying a vacation house or condo there. The prices actually seemed somewhat affordable for oceanfront property compared to other places we have been like Florida. We stayed at the Coral Gardens and although there is a rather ugly half-finished resort next to it, it was a lovely resort.
The resort next door (The Toscana) was supposed to be a high-end Italian style resort that was started in 2008. The island was hit very hard economically in 2008 thanks to two hurricanes and the global economic meltdown. The building of the Toscana stopped dead in 2008 and the site has been an eyesore ever since, although I found it fascinating. It turns out the original company that started construction ran out of money and went under after taking many deposits for the complex from future owners. The bank that took it over tried to auction the property off multiple times without success, but recently the owners of the penthouses got together and have agreed to finish the project themselves.
Staying on the island is very expensive and our one-bedroom condo goes for $400 to $500 a night. It had direct ocean views, a balcony, two baths, and a full kitchen. You can buy similar condos in the same building we were in for under $400,000. On the surface that looks like a great return on your money. Buy a place for $400,000 and rent it for $12,000 a month. That blows the 2 percent rule out of the water and is a lot higher rent to value ratio than I get on my 13 rental properties. The properties I buy in Colorado rent for $1,200 to $1,500 and I bought them from $80,000 to $135,000.
Can you make money?
One reason I was intrigued by Turks and Caicos real estate is the rent to value ratios. We stayed in Florida on the gulf coast a couple of times in the last few years. On our last trip, we paid $2,400 for a week in a three-bedroom, oceanfront house. That house was recently for sale for 1.6 million dollars and I guessed it was worth $1.5 million. The rent was less on the beach house in Florida, but the value was over three times as much as the Turks and Caicos condo.
The problem with vacation rentals is the cost to manage and maintain them. I pay 8 percent of my rents to have my rental properties managed by a property manager. The cost for a property manager on vacation rentals is 30 to 50 percent of the rents! The management fees on the Coral Gardens units that we looked at were 40 percent.
There will also be many more vacancies on short-term rentals than on long-term rentals. There are also high and low seasons for vacation rentals and you can’t expect to see peak income year-round. The total income for 2014 on one unit in TCI was $72,000 and another $62,000. These units were identical and right next to each other, but these income differences show the volatility with vacation rentals. It also shows that you can’t count on $400 a night every night. Weekly rates will be lower, many nights will be vacant and rates will be much lower in the off-season.
The actual income is not $12,000 a month, but closer to $6,000 a month once you factor in the vacancies and off-season rates. Now we are getting closer to the returns we see on my rental properties in Colorado. However, we have not considered the management fees.
Why are management fees so high on vacation rentals?
I pay 8 percent for someone on my team to manage my rental properties. I used to manage them myself, but once I got to seven rentals I started to run out of time to manage my properties, flip houses, run a real estate team and write this blog! With a property manager, my properties have become almost completely passive, except when I first buy them.
I own single-family rentals that take very little management. The tenants tend to stay for long periods of time, the houses are repaired after I buy them so little maintenance is needed. We occasionally have problems, but for the most part, our tenants pay on time and take good care of the properties. The tenants pay all the utilities and are on long-term leases.
When you manage a vacation rental, it is an entirely different situation. Vacation rentals take much more marketing, much more active management, have more inquiries from renters, need more cleaning and are more like a hotel. Managers need to be able to check people in at all times of the day and night and even be a concierge in some cases. More responsibilities and work means you have to pay much higher fees as sometimes the manager will need to hire from services like Tidy TN due to time restraints of their duties.
Just the property management fees on the Turks and Caicos condos are $20,000 to $30,000 per year! We have not even talked about the other expenses that come with a vacation house.
What expenses will you have?
When you invest in condos you also have to consider HOA or maintenance fees. On beach front condos the HOA fees can be very expensive. There is a pool, maid service, parking lot, towels and properties close to the beach that have extra expenses. The beach has to be maintained and buildings weather faster due to salt and winds. The occasional hurricane can really cause problems. HOA fees on beachfront condos can easily run $1,000 a month or more.
Vacation rentals must be furnished, have plates, silverware, linens, televisions and everything someone would need while staying there. Over time these items would have to be replaced and upgraded to keep the rental unit desirable. If you are charging $400 a night, it better be very nice.
Vacation rental owners will have to pay for all the utilities as well. The electric, gas, cable, water, internet all are added expenses and will most likely cost more in exotic places like the Caribbean islands. Fresh water comes from rain and desalinization, not wells or rivers. Internet, cable, electric all cost more.
If you want an oceanfront property it is almost guaranteed to be in a flood zone. You will have to get flood insurance, which is much more expensive than regular insurance.
Here are the total costs per month of a vacation rental on the beach compared to a regular single-family rental (assuming they rent for the same amount, or you have multiple single-family rentals that rent for the same as one vacation rental):
Vacation House Single-family Rental
Rents received $5,833 $5,833
HOA fees $1,000 0
Management $2,333 $467
Utilities $60 0
Credit card fees $200 0
Travel agent fees $300 0
Maintenance $600 $600
Taxes $0 $416
Insurance $500 $400
Total Costs $4,993 $1,883
These are not all the costs but are meant to show the huge differences between a long-term rental and a short-term vacation rental. I did not include vacancies, because the rents I used for the vacation rental are actual returns. Keep in mind with a single-family rental property you will have much fewer vacancies than a vacation rental. There are also a few more costs I did not discuss yet on the vacation rental.
If you are renting vacation rentals most people will book with a credit card and you have to pay credit card fees to accept credit cards.
Travel agents also get paid a commission if they book a vacation rental for you.
The insurance number could vary greatly. I am assuming 5 single-family rentals were needed to create that income, but its insurance could be higher or lower based on the number of properties. Flood insurance is much higher per property.
Taxes are very skewed in this scenario on the vacation rental. In TCI there are no property taxes, but there is a 15 percent tax on all property purchases. You would have to add $60,000 to the purchase price of $400,000 for taxes when you bought the condo. Over five years that would average out to $1,000 a month.
The utilities on the condos we looked at were not very high, because the HOA took care of the water, electric and cable. The HOA takes care of the exterior maintenance, but not the interior maintenance. You can see that almost all of the income is used up by the expenses on the vacation rental. If you consider the huge initial tax bill all the income is used up on the vacation rental and you don’t have any loan costs!
Do you save money?
The reason most people consider a vacation rental is they think buying a vacation house will save them money. Even though you are actually losing money on this particular vacation condo, maybe it makes sense to buy it if you stay there enough. You will save thousands on every vacation, right? The problem is every time you stay at your vacation rental you are taking it off the rental market. You could be renting the property to someone else and you are losing rental income.
Is it really an advantage to own a vacation house if you are staying there a week or two every year? Will you also feel obligated to go on vacation every year to the same spot? What if you have a wedding, graduation, a family reunion, a funeral or another occasion you have to use your vacation time on? Most people do not use their vacation properties as much as they think. This is one reason timeshares are such a horrible investment, but that deserves another article.
Loans on vacation houses
All of the numbers I have used so far have assumed you are paying cash for a vacation rental and you are still losing money! If you get a loan it will lose even more money and do you want to tie up $400,000 plus in a vacation rental that you use a couple of times a year? That much money would make me over $7,000 a month in rental income because I can use that money with financing and still make money each month. That $7,000 a month would more than pay for a couple of vacations a year in some really nice places! Not to mention it is not easy to get financing in another country or even another state.
When would it make sense to buy a vacation rental?
There are a few instances when it would make sense to buy a vacation rental, but they can still be very risky.
If you wanted to invest strictly for appreciation it might make sense to buy a vacation rental. I never invest for appreciation, because I cannot predict the market. Prices can go down on vacation properties just like other houses.
If you were going to live in a vacation house for months out of the year, it might make sense.
If you were going to manage the property yourself you could make money with vacation rentals. However, you have to spend a lot of time on marketing and management.
Even in these scenarios, there are other risks like beach erosion, natural disasters, political changes in other countries, insurance changes and giant half-finished resorts next to your condo!
Conclusion
On the surface, vacation house may seem like a great investment. They aren’t making any more ocean and there is only so much beachfront property. However, if you have to tie up huge sums of cash to buy the property and you still lose money every month is it worth it? For me, it is not worth the risk, the money it would take and I would lose flexibility with my vacation choices. I love Turks and Caicos, but that does not mean I want to spend every vacation for the rest of my life there.
Congress has finally passed a second stimulus package to combat the massive COVID-19 economic impact. The $900 billion package covers stimulus checks, unemployment boost, small business aid, school and public health funds, rental and nutrition assistance and a ban on surprise medical bills. Many Americans feel the proposed measures are not enough. Here’s what made the cut:
$600 for each adult per household
Based on 2019 income, single people with an income up to $75,000 will receive $600. Married couples earning up to $150,000 will receive $1,200. While immigrants without Social Security numbers are not eligible, the rest of their household can qualify if they meet the other eligibility requirements and hold an SSN.
$600 for dependent children
Each eligible household will receive $600 per dependent child. Only dependents under the age of 17 qualify — leaving out older high school children and college-aged dependents.
[ Read:11 States Stepping up to Supplement Unemployment Benefits]
$300 a week in unemployment aid
The stimulus bill includes an extra $300 per week as part of federal unemployment benefits. This boost for jobless workers will only run for 11 weeks, through March 14. The bill will also extend the Pandemic Unemployment Assistance program, which will offer benefits to the self-employed, independent contractors and gig workers for 11 weeks. The Pandemic Emergency Unemployment Compensation (PEUC) will also be extended and cover additional weeks of jobless aid to people who have run out of their state unemployment benefits.
$325 billion for small businesses
As part of the Paycheck Protection Program (PPP), $284 billion in aid will go to forgivable loans and allow businesses with fewer than 500 employees to cover essential expenses, including rent, payroll and utilities. A total of $15 billion allocated for the Save Our Stages Act will go to movie theaters, live venues and cultural institutions.
Minority small business and businesses in low-income communities
Some of that funding will also assist even smaller businesses through lenders like the Minority Depository Institutions after the first round of PPP loans faced backlash for overlooking minority-owned businesses. Twenty billion in Economic Injury Disaster Loans will be set aside for business in low-income communities.
[ Read: Best Small Business Loans for 2020 ]
$82 billion for schools and child care
Child care providers, K-12 schools and colleges may be granted aid from this portion of the fund. Elementary and Secondary School Emergency Relief Fund will receive $54.3 billion and the Higher Education Emergency relief Fund will get $22.7 billion. Money allocated to these funds from the CARES Act was mostly dedicated to technology for remote learning, supporting nutritional services and given to students through emergency financial aid grants.
$69 billion for public-health measures
Vaccine distribution, testing assistance and tracing measures will also receive funding. This portion of the bill is also for hospitals and healthcare providers to receive reimbursement for healthcare-related expenses and lost revenue related to the pandemic. The Centers for Disease Control and Prevention (CDC) will also receive $9 billion for vaccination efforts.
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$45 billion for transportation
Airline payroll support will receive $15 billion; state highways get $10 billion, airports and related businesses receive $2 billion and Amtrak is allocated $1 billion in funding. MTA is designated $4 billion as well. The funding is intended to support transportation jobs and COVID-19 financial impacts.
$ 25 billion in rental assistance
The bill will offer $25 billion in rental assistance and an extension of eviction moratoriums until January 31, 2021. The rental relief can be used for future rent and utility payments or any back owed rent.
[Read: Landlords Are Exploiting Loopholes in the Eviction Moratorium ]
$13 billion in nutrition assistance
The Supplemental Nutrition Assistance Program (SNAP) will be raised by 15% for six months. This program supplies food stamps to labile families. $175 million will go to nutrition services for seniors like Meals on Wheels and the Commodity Supplemental Food Program. The bill will also provide $400 million for food banks and pantries through the Emergency Food Assistance Program.
A ban on surprise medical bills
Surprise billing for out-of-network emergency care, most out-of-network care at in-network facilities and air ambulance services has been banned. Patients will instead be asked to pay in-network obligations. The goal is to protect insured patients who inadvertently received out-of-network care and a big bill.
What’s not included in the bill
Although the package is half the size of what was provided last Spring, a few key components were skipped out on this time around.
Liability protection from COVID-related lawsuits for universities, health care centers and businesses has not been extended.
State and local governments will not receive any direct aid in this stimulus package. This includes funding for Medicare, teachers and first responders.
The pause on student loan payments was not extended in this stimulus package. Beginning next month, students will be expected to resume monthly payments on their federal student loans.
We welcome your feedback on this article. Contact us at [email protected] with comments or questions.
Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.
First Mortgage Direct
First Mortgage Direct is the online lending division of First Mortgage Solutions, a brick-and-mortar lender based in Kansas City, Missouri. The lender doesn’t charge origination fees or other hidden costs, nor participate in any gimmicky specials or limited-time offers.
Strengths:
Borrowers assigned readily available loan officer to work with via phone or email
No origination or hidden fees
Loans for purchases, first-time homebuyers and refinancing
Weaknesses:
Not available in every state
Limited call center hours for general inquiries
Read Bankrate’s First Mortgage Direct review.
Sage Mortgage
Sage Mortgage is an online mortgage company that both underwrites loans and works with multiple wholesale lenders. The company can help you secure a preapproval in one to two days, and the typical closing takes 27 days.
Strengths:
Works with multiple wholesalers to offer competitive rates and fast cycle times
Dedicated loan officer works with borrowers throughout the entire process
Weaknesses:
Doesn’t offer VA loans
Doesn’t offer home equity loans or home equity lines of credit (HELOCs)
Read Bankrate’s Sage Mortgage review.
Better.com
Better.com is a direct online lender established in 2016 that provides a completely online process where rates, loan preapprovals and resources are available 24/7. The lender offers a variety of mortgage options, including conventional and jumbo fixed-rate and adjustable-rate mortgages and bridge loans.
Strengths:
No commissions or fees charged
Smart technology automatically looks for and applies discounts to eligible borrowers
Automated process yields a preapproval letter in three minutes
Will beat competitor’s offer or give you $100 (only available to applicants who go directly through Better)
Weaknesses:
No branch locations
No home equity lines of credit (HELOCs) or home equity loans
Some government loans not available
Read Bankrate’s Better.com mortgage review.
Interfirst Mortgage Company
Interfirst Mortgage Company is an online-only mortgage lender headquartered in Chicago, Illinois. Preapprovals with Interfirst typically take one day, and closings usually happen in 30 to 45 days. Interfirst does not offer discounts to current customers, but it also doesn’t charge points, application fees, lender fees or other hidden fees.
Strengths:
Online application process
Speedy preapproval
No points or hidden fees
Weaknesses:
Doesn’t offer government-insured loans like FHA, VA or USDA loans
Requires a higher credit score to qualify
Does not consider alternatives to traditional credit scores, like rent payment history
Read Bankrate’s Interfirst Mortgage Company review.
LoanMonkey
LoanMonkey, a mortgage broker and lender, offers “The Online Everything Mortgage” that allows borrowers to manage their loan applications completely online. The broker and lender was founded in 2019 by mortgage industry veterans and animal enthusiasts Sean Marsh and Christopher Russow, and is headquartered in San Diego, California.
Strengths:
Streamlined application managed online; takes approximately 15 minutes to complete
Low overhead can yield lower rates
Closings average 30 days
Weaknesses:
Only available in some states
Doesn’t offer some specialized mortgages, including construction and USDA loans
Getting a mortgage is, by general consensus, the most treacherous part of buying a home. In a recent survey, 42% of home buyers said they found the mortgage experience “stressful,” and 32% found it “complicated.” Even lenders agree that it’s often a struggle.
“A lot can go wrong,” says Staci Titsworth, regional manager at PNC Mortgage in Pittsburgh.
If you’re out to buy a home, you have to be vigilant. To clue you into the pitfalls, here are six of the most common ways people mess up getting a mortgage.
Waiting until you can make a 20% down payment
A 20% down payment is the golden number when applying for a conventional home loan, since it enables you to avoid paying private mortgage insurance (PMI), an extra monthly fee of 0.3% to 1.15% of your total loan amount. But with mortgage rates where they are today—in a word, low—waiting for that magic 20% could be a huge mistake, since the more time passes, the higher mortgage rates and home prices may go!
All of which means it may be worth discussing your home-buying prospects with lenders right now. To get a ballpark figure of what you can afford and how your down payment affects your finances, punch your salary and other numbers into a home affordability calculator.
Meeting with only one mortgage lender
According to the Consumer Financial Protection Bureau, about half of U.S. home buyers only meet with one mortgage lender before signing up for a home loan. But these borrowers could be missing out in a big way. Why? Because lenders’ offers and interest rates vary, and even nabbing a slightly lower interest rate can save you big bucks over the long haul.
In fact, a borrower taking out a 30-year fixed rate conventional loan can get rates that vary by more than half a percent, the CFPB has found. So, getting an interest rate of 4.0% instead of 4.5% on a $200,000, 30-year fixed mortgage translates into savings of approximately $60 per month, or $3,500 over the first five years.
So to make sure you’re getting the best deal possible, meet with at least three mortgage lenders. You’ll want to start your search early (ideally, at least 60 days before you start seriously looking at homes). When you meet with each lender, get what’s called a good-faith estimate, which breaks down the terms of the mortgage, including the interest rate and fees, so that you can make an apples-to-apples comparison between offers.
Getting pre-qualified rather than pre-approved
Mortgage pre-qualification and mortgage pre-approval may sound alike, but they’re completely different. Pre-qualification entails a basic overview of a borrower’s ability to get a loan. You provide a mortgage lender with information—about your income, assets, debts, and credit—but you don’t need to produce any paperwork to back it up. In return, you’ll get a rough estimate of what size loan you can afford, but it’s by no means a guarantee that you’ll actually get approved for the loan when you go to buy a home.
Mortgage pre-approval, meanwhile, is an in-depth process that involves a lender running a credit check and verifying your income and assets. Then an underwriter does a preliminary review of your financial portfolio and, if all goes well, issues a letter of pre-approval—a written commitment for financing up to a certain loan amount.
Bottom line? If you’re serious about buying a house, you need to be pre-approved, since many sellers will accept offers only from pre-approved buyers, says Ray Rodriguez, New York City regional mortgage sales manager at TD Bank. Here’s how to start the process of mortgage pre-approval.
Moving money around
To get pre-approved, you have to show you have enough cash in reserves to afford the down payment. (Presenting your mortgage lender with bank statements is the easiest way to do this.) Nonetheless, your loan still needs to go through underwriting while you’re under contract for your loan to be approved. Because the underwriter will check to see that your finances have remained the same, the last thing you want to do is move money around while you’re in the process of buying a house. Shifting large amounts of money out or even into your accounts is a huge red flag, says Casey Fleming, mortgage adviser and author of “The Loan Guide: How to Get the Best Possible Mortgage.”
So if you’re in contract for a home, your money should stay put.
Applying for new lines of credit
If you apply for a new credit card or request a credit limit increase a few months before closing, watch out: Credit inquiries ding your credit score by up to five points. So, don’t let the credit inquiries add up.
“Worse than the actual hit on your credit score is any pattern of trying to borrow more money all at once,” says Glenn Phillips, CEO of Lake Homes Realty. Translation: Applying for multiple lines of credit while you’re buying a house can make your mortgage lender think that you’re desperate for money—a signal that could change your mortgage terms or even get you denied altogether, even if you’ve got a closing date on the books.
Changing jobs
Mortgage lenders like to see at least two years of consistent income history when pre-approving a loan. Consequently, changing jobs while you’re under contract on a property can create a big issue in the eyes of an underwriter.
Your best bet? Try to wait until after you’ve closed on your house to change jobs. If you’re forced to switch before closing, you should alert your loan officer immediately. Depending on the lender, you may simply need to provide a written verification of employment from your new employer that states your job status and income, says Shashank Shekhar, the founder and CEO of Arcus Lending in San Jose, CA.
If you rent an apartment in Los Angeles, you may think that your landlord’s insurance will cover you in the event of a fire, storm or another disaster. And you’d be partly right: it would cover the actual building, including your unit. But your landlord’s policy won’t cover your personal belongings or liability if someone is injured in your apartment. For that, you need renters insurance.
America’s top-rated renters insurance
Policies starting at just $5/month
Sign up in seconds, claims paid in minutes
Zero hassle, zero paperwork
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The good news? Renters insurance is fairly cheap. In California, the average annual cost for a renters policy is only $182. We’ve taken a hard look at the companies offering renters insurance in Los Angeles and, using our evidence-based SimpleScore methodology, have selected the best renters insurance companies in Los Angeles.
The best renters insurance in Los Angeles
Best coverage options – Allstate
A major player on the national insurance stage, Allstate’s size benefits you through expanded coverage options and maximum financial stability.
J.D. Power Rating
2/5
AM Best Rating
A+
Standard & Poor’s
AA-
SimpleScore
4.2 / 5.0
SimpleScore Allstate 4.2
Discounts 5
Coverage Options 5
Customer Satisfaction 2
Customer Satisfaction 5
Allstate is the second-largest writer of homeowners and renters policies in the U.S. and has the chops to offer a variety of coverage options that allow you to customize your policy. Coverage such as scheduled personal property — which covers your high-priced belongings beyond the limits of your personal property coverage — make it a good choice if you have expensive electronics, art or other valuables. Allstate can also cover you with additional umbrella insurance or if your apartment is in a flood zone, supplemental flood insurance.
Best customer service – Lemonade
Although Lemonade is the new kids on the block, it has quickly earned a reputation for quality service and customer satisfaction.
J.D. Power Rating
5/5
AM Best Rating
N/A
Standard & Poor’s
N/A
SimpleScore
3.6 / 5.0
SimpleScore Lemonade 3.6
Discounts 1
Coverage Options 3
Customer Satisfaction 5
Accessibility 5
Lemonade has become popular very quickly, thanks to its low rates and easy-to-manage website. Getting a quote or filing a claim takes just seconds, and the company says you may have your check almost instantly if the claim is approved. All that user-friendly management has made Lemonade the top choice in J.D. Power’s 2020 Overall Customer Satisfaction Ranking for renters, rating it above perennial favorites such as Erie Insurance and Allstate.
Best for military families – USAA
Low prices, excellent customer service and rock-solid financial stability all make USAA a top choice for military families.
J.D. Power Rating
5/5
AM Best Rating
A++
Standard & Poor’s
N/A
SimpleScore
3.8 / 5.0
SimpleScore USAA 3.8
Discounts 2
Coverage Options 5
Customer Satisfaction 5
Accessibility 4
USAA may be the best insurance company you’ve never heard of — unless you’re in the military, in which case you know the company has a reputation for quality service and coverage. USAA’s rental insurance is only available to active and retired military members and their families, but if you fit that demographic, it should be your first stop when looking for the best renters insurance in Los Angeles.
Best claims management – Stillwater
Expect friendly service and quick claims management for renters insurance claims to Stillwater.
J.D. Power Rating
N/A
AM Best Rating
A-
Standard & Poor’s
N/A
SimpleScore
4 / 5.0
SimpleScore Stillwater 4
Disconts 3
Coverage Options 5
Customer Satisfaction N/A
Accessibility 4
Stillwater offers competitive rates for renters insurance in Los Angeles, which comes with a reputation for solid claims management. The Better Business Bureau gives the company an A+ rating, with customer reviews averaging 3.8 out of 5 — reviewers note the friendliness and professionalism of their agents and claim representatives. Stillwater offers a nice range of discounts for policyholders, including one for those aged 60 and over.
Best local insurer – Mercury
Like the Roman god the company is named for, Mercury provides fast and effective service for all your rental insurance needs.
J.D. Power Rating
N/A
AM Best Rating
A
Standard & Poor’s
AA-
SimpleScore
4.3 / 5.0
SimpleScore Mercury 4.3
Disconts 3
Coverage Options 4
Customer Satisfaction N/A
Accessibility 5
Mercury has been providing insurance for California residents since 1961. The company has an A rating with both Fitch and AM Best, indicating that it is financially stable and well-managed, and it was named one of America’s most trustworthy companies by Forbes magazine. You’ll find comprehensive coverage at Mercury, with a handful of discounts to lower your rate, and optional coverages that protect you from identity theft and more.
America’s top-rated renters insurance
Policies starting at just $5/month
Sign up in seconds, claims paid in minutes
Zero hassle, zero paperwork
Average annual premium, by company
Company
Average annual premium
Allstate
$162-210
Lemonade
$202-285
USAA
$168-204
Stillwater
$189-212
Mercury
$175-218
Choosing your provider
Whether you choose a large national insurer, like Allstate, or a smaller regional carrier, Like Mercury, you want the best possible insurance. How can you be sure to get it? A little research is all it takes to give you the info you need to choose wisely. You can start by asking your neighbors and friends who they like and visit the website for any company you’re interested in to see how easy they make it to do business with them.
[ Read: What Does Renters Insurance Cover? ]
Local carrier
Pros
They have the feet-on-the-ground knowledge of your local area.
They understand state insurance laws and regulations.
Generally, smaller companies offer high customer service from friendly, local employees.
Cons
May not be able to offer the discounts or coverage options that are standard with larger companies.
Not rated by consumer agencies such as J.D. Powers or Consumer Reports.
Websites are often bare-bones, without the ability to get an online quote or file a claim.
National carrier
Pros
Easy to evaluate them with national assessors like J.D. Powers and AM Best.
Tend to have good websites with tons of functionality and easy access.
Have the ability to offer extensive discounts as well as coverage extras that allow you to customize your policy.
Cons
With tens of thousands of policyholders, you may not get the personalized attention you would with a smaller company.
[ Read: Best Renters Insurance Companies]
Los Angeles minimum insurance requirements
Unlike car insurance, renters insurance isn’t a legal requirement in California. You may find, however, that your landlord requires it. And even if they don’t, it’s a good idea to consider it seriously. Depending on where you live in the city, you may be at risk of theft, vandalism, or damage from natural sources like storms or earthquakes. Consider carefully how much money you would need if you had to start over again from scratch. That’s a good starting point when considering the amount of Los Angeles renters insurance to purchase.
Flood
Coverage for flooding isn’t included in most renters insurance policies. To find out if you’re at risk of flooding, the FEMA Flood Map Service Center lets you input your address and see if you’re in a flood zone. If you have any reason to believe your apartment might flood, ask your insurance agent about supplemental flood insurance, which can be purchased through the government’s National Flood Insurance Program.
Hurricane
Hurricanes rarely hit California’s coastal regions. In fact, a “California hurricane” is the name of a tropical cyclone that travels up the coast — and that’s happened only twice since 1900. If the remnants of a tropical storm impact your apartment, you would be covered for any damage that was caused by wind. Damage caused by the flooding that often accompanies hurricanes would not be covered by a policy unless you had supplemental flood insurance.
Earthquake
Standard renters insurance policies do not cover earthquake damage. But that doesn’t mean you need to stay unprotected. Most insurers feature an endorsement, or add-on, that will cover earthquakes. The California Earthquake Authority offers insurance for renters, and it’s easy to get an online quote at its website. Plan on spending roughly $150-250 for an earthquake policy — money that’s well spent if it buys you peace of mind.
[ Read: Best Cities to Buy Rental Property ]
How much does renters insurance cost in Los Angeles?
The rate you pay for renters insurance will be determined by a number of variables, including the amount of rent you’re paying, your deductible and the value of your belongings. The average cost of Los Angeles renters insurance is roughly $195 a year, though your rate will probably differ. This is more than the California average of $182 and considers the fact that Los Angeles real estate is on the pricey side.
Keep in mind that there are things you can do to lower your insurance rate. One major factor, for example, is your deductible. The lower your deductible, the higher your premium rate will be. If you can handle a higher deductible — say, $1,000 or even more — you will get the best rates for renters insurance in Los Angeles.
Los Angeles renters insurance FAQs
Although you are not required to have insurance by law, your landlord may want you to have a policy. Even if they don’t, it’s a good idea to ensure that your personal possessions can be replaced in the event of a fire or other disaster by having a policy in place.
Expect to pay a little more than the state average of $182 annually. Your own rate will be determined by multiple factors, including your apartment’s location, deductible, and the amount of coverage you’d like.
There’s no one best company for everyone — the company that gave your neighbor the lowest quote may not offer you the same. That said, the insurers we’ve discussed above are a good place to start. Or, if you prefer, head on over to our listing of the Best Renters Insurance Companie.
Too long, didn’t read?
If you rent an apartment in Los Angeles, you’ll want to consider renters insurance to protect you and your belongings in the event of a disaster. There are a number of national insurers who sell policies in Los Angeles, including Allstate, Lemonade and USAA. There are also some smaller, regional companies like Mercury and Stillwater that offer competitive pricing along with top-notch customer service. Any of these companies will have comprehensive coverage available that is customizable for your own needs, at a good price point.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at [email protected] with comments or questions.
Whether you’re planning to visit your bank for a routine transaction, open a new bank account, or consult a financial advisor, it’s essential to know when banks are open or closed.
This article provides an overview of bank hours, bank holidays, and what services are available during federal holidays. We’ll also discuss online and mobile banking alternatives that can save you time and offer added convenience.
Factors Affecting Bank Hours
Bank Type: Local, Regional, or National
The operating hours of a bank can vary depending on its size and reach. Generally, local and regional banks have more restricted hours, while national banks may offer extended hours at select branches or have more locations open on weekends.
Geographic Location
Bank hours can vary based on the branch’s location. For instance, banks in urban areas may have longer hours compared to those in rural communities. Furthermore, specific financial institutions may adjust their hours in different regions or cities to better serve their customers.
Online vs. Brick-and-Mortar Branches
While traditional brick-and-mortar bank branches have set operating hours, online banks are accessible 24/7. If you have a bank account with an online bank, you can access your account and perform transactions without worrying about bank hours.
Regulatory Guidelines and Public Holidays
The Federal Reserve System regulates banks in the United States, and its guidelines influence bank hours. Banks usually close on federal holidays to comply with these regulations.
Typical Bank Hours
General Operating Hours for Most Banks
Banks typically open around 9 a.m. and close between 4 p.m. and 6 p.m. from Monday to Friday. Some banks may have extended hours on specific weekdays, opening earlier or closing later to accommodate customers’ needs.
Variation in Hours Among Banks
Different banks may have slightly different operating hours. It’s essential to check your bank’s specific hours, as there may be variations based on the factors mentioned above.
Weekend Hours
Many banks have limited hours on Saturdays, often closing around noon or 1 p.m. However, some banks do not operate on Saturdays at all. Sunday hours are even rarer, with only a few banks open on Sundays, typically in high-traffic areas like shopping centers.
Extended Hours for Select Branches and Services
Some bank branches may offer extended hours for specific services, such as drive-thru teller windows or customer service hotlines.
Federal and State Bank Holidays
Federal Bank Holidays
Banks close on federal holidays, as mandated by the Federal Reserve System. Here’s a list of federal holidays when banks typically close:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day
If a federal holiday falls on a weekend, banks may close on the preceding Friday or following Monday. For example, if Independence Day falls on a Saturday, banks may close on the preceding Friday.
State-Specific Bank Holidays
In addition to federal holidays, banks may also close on state-specific holidays. It’s essential to check your state’s official holidays to determine if banks close on those days.
How Holidays Affect Bank Hours and Services
Banks may adjust their operating hours around holidays, such as closing early on the day before a holiday or staying closed the day after a holiday. Bank services, such as wire transfers and check clearing, may also be affected by bank holidays.
Online and Mobile Banking Availability
24/7 Access
Online and mobile banking platforms offer 24/7 access to your bank account, allowing you to perform transactions and access essential services even when banks are closed. This convenience means you don’t have to wait for banks to open to manage your finances.
Available Services
With online and mobile banking, you can:
Check account balances
Transfer funds between accounts
Pay bills
Deposit checks via mobile check deposit
Set up account alerts
Apply for loans or open new accounts
Monitor credit scores and reports
Limitations of Digital Banking Services During Bank Holidays
While digital banking platforms are accessible 24/7, some transactions may be delayed due to bank holidays. For example, wire transfers or check-clearing may take longer to process if initiated on a federal holiday or weekend.
Finding Your Bank’s Operating Hours
Bank Websites and Mobile Apps
Bank websites and mobile apps typically display their operating hours and holiday schedules. You can check these resources for accurate information about your bank’s hours.
Google Maps and Search Engine Queries
You can also find bank hours using Google Maps or by searching for your bank’s name along with the specific branch location. Search results often display the bank’s hours and contact information.
Calling the Bank’s Customer Service Line
If you cannot find the information online, you can call your bank’s customer service hotline to inquire about their operating hours and holiday schedule.
Alternatives to Bank Visits
ATMs and Their Services
ATMs are an excellent alternative to visiting a bank branch, as they’re accessible 24/7 and can perform essential services. These machines are typically located near bank branches, inside shopping centers, and at various other convenient locations. Some key services offered by ATMs include:
Cash withdrawals: ATMs allow you to withdraw cash from your bank account, providing quick access to funds when needed.
Deposits: Many ATMs accept cash and check deposits, making it easy to deposit money without having to visit a bank branch.
Balance inquiries: You can check your account balance and recent transactions at an ATM, helping you stay informed about your financial status.
Transfer funds: Some ATMs enable you to transfer funds between your accounts or even to other bank accounts.
Bill payments: Certain ATMs allow you to pay bills directly, such as credit card payments, utility bills, or loan installments.
Peer-to-Peer Payment Apps
Peer-to-peer (P2P) payment apps, such as Venmo, PayPal, and Zelle, allow you to send and receive money quickly without visiting a bank. These apps are especially useful during bank holidays when banks are closed. P2P apps offer several benefits, including:
Instant transfers: P2P apps enable instant money transfers between users, making it easy to send or receive money in real-time.
Mobile convenience: You can use P2P apps on your smartphone or tablet, allowing you to transfer money from anywhere with an internet connection.
Splitting bills: P2P apps make it simple to split expenses with friends, family, or roommates, eliminating the need to deal with cash or checks.
Direct Deposit and Automatic Bill Pay
Setting up direct deposit for your paycheck and automatic bill payments can help you avoid the need to visit a bank, ensuring your transactions are processed on time, even during bank holidays. These services offer several advantages:
Timely transactions: Direct deposit ensures your paycheck is deposited into your bank account on time, while automatic bill payments ensure your bills are paid before their due dates.
Convenience: Once you set up direct deposit and automatic bill pay, you don’t have to worry about visiting a bank branch or mailing checks, saving you time and effort.
Reduced fees: By paying bills on time through automatic bill pay, you can avoid late fees and penalties, potentially saving you money in the long run.
Better budgeting: With regular deposits and bill payments, you can better track your income and expenses, making it easier to manage your finances and budget accordingly.
What to Do if Your Bank Isn’t Open Today
If your bank isn’t open today due to a holiday or other closure, there are still several options available to manage your finances effectively. Here’s what you can do:
Use Online Banking Platforms
Most banks offer online and mobile banking services, allowing you to access your accounts, transfer funds, pay bills, and more, even when the bank is closed.
Visit an ATM for Essential Transactions
ATMs remain accessible 24/7 and provide essential services, such as cash withdrawals, deposits, balance inquiries, and in some cases, bill payments and fund transfers.
Utilize Peer-to-Peer Payment Apps
As mentioned, peer-to-peer payment apps, like Venmo, PayPal, and Zelle, enable quick and easy money transfers between individuals without the need to visit a bank.
Plan Ahead for Time-Sensitive Transactions
If you have a time-sensitive transaction, such as a wire transfer or a loan application, plan ahead and complete the transaction during bank hours or well before the bank closure.
Contact Your Bank’s Customer Service Hotline
If you require assistance and the bank isn’t open, try reaching out to your bank’s customer service hotline. Some banks provide support over the phone or through online chat services even during holidays.
Conclusion
Understanding bank hours, federal holidays, and how they affect banking services can help you plan your financial activities better. While brick-and-mortar banks have set operating hours, online banks offer 24/7 access to your accounts and essential services. By utilizing these resources and alternatives, you can efficiently manage your finances without being restricted by bank hours or holidays.
Frequently Asked Questions (FAQs)
Are banks open on Christmas Eve?
Banks typically operate on Christmas Eve, but their hours may be shortened. It’s a good idea to check with your local branch for their specific hours on Christmas Eve, as they can vary depending on the bank and location.
Are banks open on New Year’s Eve?
Similar to Christmas Eve, banks are usually open on New Year’s Eve but may have shortened hours. It’s best to verify the operating hours of your local branch for New Year’s Eve to avoid any inconvenience.
Are banks open on Easter?
Easter is not a federal holiday in the United States, and most banks typically follow the federal holiday schedule. However, since Easter always falls on a Sunday, banks are generally closed, as most bank branches do not operate on Sundays.
Can I still use ATMs during bank holidays?
Yes, ATMs are available 24/7, even on bank holidays. You can use them for cash withdrawals, deposits, balance inquiries, and other essential services. However, keep in mind that some transactions, such as check deposits, may take longer to process due to the holiday.
Do bank holidays affect direct deposit?
Bank holidays can impact the processing of direct deposit transactions. If your payday falls on a bank holiday, it’s possible that your funds will be deposited on the preceding business day or the following business day. Check with your employer and bank to understand their policies regarding direct deposit and bank holidays.
What happens if a bank holiday falls on a weekend?
When a federal bank holiday falls on a weekend, banks usually observe the holiday on the preceding Friday (if the holiday falls on a Saturday) or the following Monday (if the holiday falls on a Sunday). Check your bank’s holiday schedule to confirm their specific observance dates.
Home loans, the mainstay of retail lending, witnessed a dip in demand in the December quarter, a credit information company said on Wednesday.
However, there has been a “marked increase” in demand for credit cards and personal loans, which constitute the more stressful unsecured loans portfolio for banks, Transunion Cibil said.
The demand for unsecured lending products is being driven by the adoption of consumption-led credit products, the CIC said.
Inquiry volumes for home loans for the three months ending December 2022 were 1% lower than the year-ago period, while the same for personal loans and credit cards shot up by 50% and 77%, respectively, it said.
From a loan origination perspective, home loans witnessed a 6% dip by volume and 2% by value in the December quarter against a healthy uptick in personal loans, credit cards and two-wheeler loans segment.
It can be noted that the period saw a surge in interest rates, which led to concerns over the impact on home loans that are longer term in nature, and any increase in interest rates pushes up either the monthly loan servicing costs or increases loan tenors.
The CIC said young consumers now account for a major share of the demand for loans, pointing out that 43% of the inquiries were by people between 18–30 years of age in the December quarter compared to 40% in the year-ago period and 36% in the December 2020 quarter.
From a geographical perspective, there has been an increase in the share of inquiries from the rural and urban segments at the expense of inquiries from metro areas, it said.
In what should be a data point keenly looked on by the lenders, potential borrowers classified as “below prime consumers” saw a 4 percentage point increase to 40% in the December quarter compared to the same period a year ago.
Home loan approval rates have come down marginally to 41%, while both personal loan and credit cards saw sharper corrections at 21% each, the report said.
From an outstanding balances perspective, home loan balances were up 16% in December 2022 compared with a 19% growth in credit cards and 33% in personal loans, it added.
The credit card segment has displayed a 0.25% increase in non-payments for over 90 days at 2.31%, while the same for personal loans has improved by 0.14 per cent to 1 per cent, and home loans have seen a 0.39% improvement to 1.21%.
“In view of the impact of global headwinds, it is crucial to continue to carefully monitor credit risk, especially early delinquencies and leverage ratios,” Managing Director and Chief Executive Rajesh Kumar said.
Do you find yourself transferring money back and forth between your low-interest brick-and-mortar checking account and your high-interest online savings account? It’s understandable. After all, who doesn’t want to earn the most on their money and still have access to all that online checking accounts have to offer?
But here’s the thing: transferring money is a pain. I much rather be spending time with family than worrying about my account balances or the interest I’m earning. I’m sure you’re in the same boat.
What if you didn’t have to transfer money and could still get an awesome interest rate? It’s now a reality folks, and it’s called Radius Hybrid – a new all-in-one checking account from Radius Bank.
Let’s take a closer look.
Maximize Earnings Without Transfers
You’ll be hard-pressed to find even a couple of saving accounts that offer such a generous amount of interest: up to 1.00% APY. And keep in mind, this is a checking account – most checking accounts don’t come anywhere near this amount of interest.
The main benefit to this is that you’ll no longer have to transfer money between accounts in order to maximize your earnings. You’ll need to have at least $2,500 in the account to earn the most interest, but if you’re budgeting and saving like you should, you’ll probably have enough to make this work.
Protect Your Money
Radius Hybrid accounts are FDIC-insured which means your money is insured up to at least $250,000. Why would you need a savings account if your money is protected in a high-interest checking account?
I can’t think of a better way to protect your money than to have your money in an FDIC-insured account like Radius Hybrid.
All-in-One Features
Radius Hybrid comes with many of the features you’d expect from a checking account and more.
You’ll get a debit card, online banking, and mobile banking. These are the essentials.
When it comes to moving money, you’re covered. There are free internal and external transfers (just in case you need them). You can deposit your paycheck right into the account and also complete mobile check deposits via mobile banking. You can even make fee-free deposits and balance inquiries at ATMs displaying the NYCE® Shared Deposit Program logo. Finally, you can get unlimited deposits via postage-paid Bank by Mail envelopes.
Need to make a withdrawal? Yep, you can do that too. You’ll get unlimited, fee-free withdrawals at all Radius Bank ATMs and Banking Center locations. You’ll also get unlimited surcharge-free withdrawals at ATMs displaying the SUM(SM) Program logo. Travel? All foreign ATM fees will be rebated each month!
There are a variety of ways to make purchases with your Radius Hybrid account. First, you can pay bills and people using bill pay through your online banking account. You can also pay with your phone and their free Radius Pay app linked to your Radius Debit Card. Finally (and probably most importantly), you can make signature and PIN-based purchases in stores and online with your Radius Debit Card.
You can also stop payments, make wire transfers, and have overdraft protection. You’ll get all the handy bells and whistles.
By the way, there are no monthly fees. Many accounts of this caliber have them, so this is a nice perk. And your first order of checks? Free.
Radius Bank has truly created a well-rounded checking account with just about everything anyone would want from their bank. Two thumbs up from me.
How to Open an Account
Opening an account is super simple.
First, read all about what Radius Hybrid has to offer. You can use their Radius Hybrid Calculator to determine how much interest you’ll earn over the period of 12 months.
When you’re ready, sign up. The process goes like this . . . .
You can apply from your phone or tablet by just taking a picture of your Driver’s License and they’ll pre-fill your contact information for you. Pretty easy.
There’s only a $10 minimum balance to open an account. With such a low minimum and no ongoing monthly maintenance charges, anyone can afford to start an account.
Final Thoughts
Radius Bank’s tagline is “Built Around You.” I think they’ve proven themselves worthy of such a tagline, because it’s true.
Remember a few years ago when banks wanted to charge you fees just for using your debit card? Ridiculous. It’s time that banks start treating customers with respect and create accounts without frustrating fees.
When you sign up for a bank account, you’re adding your money to a pool of capital that they can use to make loans or participate in other investments. In return, you should have easy access to cash, all-in-one features, a great interest rate, and easy-to-use banking tools.
Radius Bank’s new Radius Hybrid account delivers that and more.