potential

Apache is functioning normally

With housing becoming more and more unaffordable in the U.S., a new Zillow analysis shows that residents in the capital, Washington D.C. have the most cash left over after paying their mortgage.

Zillow’s
study assumes the median annual gross income and mortgage payment for
each of the 35 largest housing markets in the U.S. Its data shows
that residents in the capital have almost $7,000 of their monthly
incomes left to spare after paying for their home. That compares to
second place San Jose, whose residents have on average, $6,800 after
paying their mortgage repayments.

At
the opposite end of the scale, residents of Los Angeles and Florida
struggle the most. In LA, homeowners there average $3,450 per month
left over, which is slightly less than those living in Miami, Tampa
Bay and Orlando. However, renters in those three Florida cities have
the smallest amount of leftover cash after paying their monthly rent.

Unfortunately
for LA residents, they’re left with even less when the substantial
income tax rates of California are taken into consideration. Those
taxes cut deep into whatever income is left over for other expenses,
such as food, transportation, child care and education costs.

“In
our quest for happiness, or at least satisfaction, we must accept
tradeoffs,” said Skylar Olsen, Zillow’s Director of Economic
Research. “A good-paying job with career growth potential often
comes with expensive housing, leaving less for life’s other
essentials such as taxes, child care, transportation, medical
services, food and leisure. Finding that balance where housing costs
leave a comfortable amount of spending money is tricky, especially
when the prices of life’s non-housing essentials also vary widely by
market.”

The
bad news for buyers is that affordability overall has worsened in the
last year due to rising interest rates and accelerating home value
appreciation over the last year. In November, the average 30-year
fixed rate mortgage had risen to 4.94 percent, up from 3.95 percent
at the start of the year. Fortunately, rates have now dipped slightly
to below 4.4 percent, while home value appreciation is finally
beginning to cool in many markets. That could lead to better
affordability in recent months, Zillow said.

Other
data from Zillow’s study shows that a mortgage payment on the
typical home in the U.S. required 17.5 percent of the median income
in Q4 2018. This is up from 15.4 percent in the last quarter of 2017
but still below the historic average of 21 percent from the late
1980s and 1990s. Using this traditional measure of housing
affordability, less expensive Midwest markets such as Pittsburgh, St.
Louis and Cincinnati top the list.

The
typical U.S. renter spent 27.7 percent of their income on rent
payments in 2018. This is down slightly from 28.1 percent in 2017,
but higher than the historic average of 25.8 percent. Rent payments
accounted for more than 30 percent of the median income in 13 large
U.S. metros, widely considered the standard for unaffordable housing
costs.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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Source: realtybiznews.com

Apache is functioning normally

A new analysis from Trulia, soon to be taken over by Zillow (maybe), claims the home price rebound is over.

In other words, home price gains resulting from the prior crisis are kind of baked in at this point. And more importantly, you need jobs for your city to continue to see home price gains going forward.

This is an important detail if you’re still looking to buy a home. Instead of bottom fishing, you’ve got to look at the future potential of the city or metro’s economic situation.

If home prices simply rebounded because they overcorrected, there might not be much home price appreciation left.

Conversely, if the city is bringing in new residents because of solid job growth, home price gains might still be in the early innings. And you might make a buck.

Last month, asking prices nationwide increased just 0.5% from December, which is the smallest seasonally adjusted monthly gain since August.

And year-over-year asking prices only climbed 7.5%, compared to the 9.3% year-over-year increase seen through January 2014.

The good news is that asking prices continue to rise pretty much everywhere with year-over-year gains seen in 94 of the 100 largest U.S. metros in January.

Biggest Winners Now Have Big Job Growth

Jobs are always good for the economy and that generally translates to higher home prices in a given area.

After all, the more people there are with money from a steady job, the more demand there is for housing and household creation.

Even during the early years of the recovery, it was metros with strong job growth that saw home prices rise faster.

But now it appears as if the correlation between peak-to-trough home price declines and subsequent home prices gains is statistically insignificant.

That trend seemed to peak in mid-2013, and now fundamental things like job growth are primary drivers again.

This is evidenced by recent year-over-year home price gains in places that didn’t experience a major housing bust.

If you look at the top 10 asking price gainers above, you’ll notice that four barely experienced a home price crisis.

Property values in Houston, Indy, Denver, and Austin didn’t even register 10% peak-to-trough declines during the bust.

Despite this, year-over-year prices were up by double-digits in all these metros. They also happen to be exhibiting solid job growth.

The only exception was Detroit, which is probably still enjoying a rebound effect to some degree.

Asking Prices Down Where the Jobs Aren’t

Now take a look at the bottom 10 metros in terms of asking price gains (or even declines). The biggest loser was Little Rock, Arkansas, where job growth was actually slightly negative over the past 12 months.

All 10 metros have had pretty anemic job growth with the exception of Columbia, South Carolina, and all 10 have experienced weak year-over-year asking price gains (if any at all).

Trulia also found that job growth matters when it comes to rent. Nationwide, rents increased 6.5% since January 2014.

Rents increased the most in Denver, Oakland, San Francisco, St. Louis, and Phoenix. All five metros have experienced very positive job growth, though St. Louis only mustered a 1.4% gain.

Still, it illustrates the back-to-basics trends emerging in the housing market. Long story short, you might want to check your city’s employment situation before house hunting.

Source: thetruthaboutmortgage.com

Apache is functioning normally

While some feel yesterday’s Federal Open Market Committee decision to raise short-term rates by 25 basis points is likely to be the last of this cycle, others are expecting another hike at some point in 2023.

The Fed’s actions this week had already been baked into the 10-year Treasury, which closed on Tuesday at 3.91%, 17 basis points higher from the July 19 close. The latest raise is likely to have little impact on mortgage rates, which are already close to the top, said Bill Cosgrove, the president and CEO of Union Home Mortgage.

“We expect rates should start to trend down. We think it’s going to be slow,” added Ruben Gonzalez, the chief economist at Keller Williams. “We aren’t expecting a lot of movement before the end of the year.” But there’s still the potential for volatility in how mortgage rates move as various pieces of data come out.

While a good case can be made for this being the last hike by the FOMC, Gonzalez added he doesn’t believe it will hesitate to push short-term rates higher if the data points to the need for that.

The 10-year fell 6 basis points on Wednesday (the closing price is posted at 3 p.m. Eastern time, one hour after the FOMC made its announcement), but had started rising again in trading on Thursday morning, as U.S. government data estimated second quarter gross domestic product at a 2.4% annual gain, with the first quarter’s updated to 2%.

The positive GDP report “I think gives them continued room to raise rates if they feel it’s necessary,” Gonzalez said.

Freddie Mac’s Primary Mortgage Market Survey put the average for the 30-year fixed rate loan at 6.81% as of July 27, up 3 basis points from 6.78% seven days prior. For the same week in 2022, the rate was 5.3%.

The 15-year FRM was at 6.11%, a 5 basis point week-to-week increase from 6.06% and 153 basis points higher than 4.58% year-over-year.

Higher rates continue to dampen housing activity. “However, overall U.S. consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July 2023,” Freddie Mac Chief Economist Sam Khater said in a press release. “Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.

But because pent-up demand co-exists with the inventory shortage, the FOMC’s latest move is not a detriment to the housing market, Cosgrove said.

He was chairman of the Mortgage Bankers Association in 2015 and one of his talking points even then was the multiyear existence of a housing shortage. Not only has that not been dealt with, the pandemic-driven rush has added to the deficit and those dynamics aren’t likely to change any time soon.

Even if mortgage rates were to move down 25 or 50 basis points, the shift would not free up a large amount of homes already owned by borrowers hanging on to their low rate, Gonzalez noted. “We’re going to be in a stable but continually depressed market in terms of the sales of existing homes.”

Controlling inflation and wages have been the FOMC’s primary goals. But there is an extreme labor shortage, especially in some sectors like health care. “And then obviously, with the housing shortage of single-family homes, you’re not getting any price relief, or very little price relief there,” Cosgrove said.

So reducing inflation to the decades-old 2% target will be difficult for Fed Chair Jay Powell to achieve.

“If they would adjust their thinking to 3% as a target, you would have a better chance of having a soft landing of the economy, but at a continued 2% target, they may not be done with rate hikes and that’s concerning,” Cosgrove explained.

Current mortgage rates are being affected as “investors weigh the risk that an increase in the Fed’s benchmark short-term rate may not be its last,” said Orphe Divounguy, senior macroeconomist at Zillow Home Loans. “Although the latest inflation reading shows price growth is moving toward the Federal Reserve’s target, the slower pace of disinflation, stubbornly high nominal wage growth, and the recent uptick in economic activity suggest the inflation battle may not be won yet.”

As of Thursday morning, Zillow’s tracker had the 30-year fixed rate mortgage at 6.54%, one basis point lower than the prior week’s average of 6.55%.

Mortgage rates are likely to remain elevated until the FOMC sees more evidence suggesting core inflation is still moderating, Divounguy said in a separate statement.

While it may not happen at the next meeting, Cosgrove expects the FOMC to push rates up another 25 basis points during this year.

The Fed’s next steps will be based on what the data shows over the next two months, noted Melissa Cohn, regional vice president of William Raveis Mortgage, in a statement. The next FOMC meeting is on Sept. 19 and 20.

“The Fed looks for inflation to continue to moderate as the high rate environment begins to take its toll on employment and consumer spending; both having been surprisingly resilient to date,” Cohn said.

She thinks 2% is an achievable target, but likely many months down the road. However, “we will hopefully see mortgage rates begin to settle down soon,” Cohn said.

Jobs and inflation are now moving in a direction that could make this the Fed’s last hike in the current cycle, said Mike Fratantoni, the MBA’s chief economist, in a statement.

“We expect that to be the case, but for the Fed to hold off on any rate cuts until we are well into 2024,” Fratantoni said. “We do expect mortgage rates to trend down once the FOMC clearly signals that they have reached the peak for this cycle, as the reduction in uncertainty with respect to the direction of rates should narrow the spread of mortgage rates relative to Treasury benchmarks.”

Based on the 10-year Treasury being at 3.94% as of 11:25 a.m. Thursday morning and the Freddie Mac PMMS, the current spread is about 287 basis points; normal is in the range of 150 basis points to 200 basis points.

“In the housing context, the stability afforded by a pause mindset in the back half of the year should help shrink the spread between the 10-year Treasury and 30-year FRM, providing relief after a spring of skyrocketing rates; however, we will still see tension in the short term,” said Dan Burnett, head of Investor Strategy at Hometap Equity Partners, in a statement.

The outlook for further Fed rate hikes this year remains unclear, with the market currently pricing it at under 50%, said a Keefe, Bruyette & Woods analyst report from Bose George, Christopher McGratty, David Konrad and Catherine Mealor.

“Given this interest rate backdrop, mortgage volumes are likely to remain under pressure through year-end 2023 as rates remain elevated,” KBW said. “This is challenging for mortgage volume-dependent names (title insurers/mortgage originators) but constructive for mortgage servicers.”

Source: nationalmortgagenews.com

Apache is functioning normally

Medicare is the United States’ federally administered health care program.

The program was established in 1965 for the purpose of paying certain health care expenses for people age 65 and over, as well as for other select individuals, such as those who have end stage renal disease.

When originally established, there were only two parts. These were Part A for hospitalization coverage, and Part B for doctors’ services. Over time, the Medicare program has been expanded to offer additional coverage and choices for its enrollees.

We understand that any type of insurance coverage, from the best car insurance companies, best life insurance coverage, or best burial insurance for seniors, can be quite confusing. Remember, we are here to help!

How Coverage Works

The Medicare program today is divided into four parts, and each of these covers a different area. These parts include:

  • Part A – Hospital Coverage. Part A coverage will help an enrollee pay for inpatient care in a hospital or in a skilled nursing home facility. It also covers some types of home health care, as well as some hospice care. In most cases, there is no cost for participating in Part A.
  • Part B – Medical Coverage / Doctors’ Care. Part B helps to pay for doctors’ services, as well as for a variety of other medical services and supplies not covered in Part A. Those who are enrolled in Part B will be required to pay a monthly premium. In 2015, most people pay a premium of $104.90 per month. This can vary, however, based upon the individual’s income and on whether they file their tax return jointly with a spouse or as a single individual.  This article goes in depth about the  income limits and fees that high earners -“Medicare IRMAA brackets“- may have to pay regarding Part B and Part D coverage.
  • Part C – Medicare Advantage / Managed Care. Part C is also referred to as Medicare Advantage. It provides a managed care approach to delivering Medicare-covered services, such as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Those who are eligible for Parts A and B may alternatively choose to receive all of their services through a Medicare Advantage provider organization under Part C. The premium one pays for Part C will depend upon the plan that is chosen, as well as on the enrollee’s geographic location. You can learn more about this coverage HERE.
  • Part D – Prescription Drug Coverage. Part D helps to pay for prescription drugs doctors prescribe for the treatment of a patient. The premium charged for a Part D policy will depend upon the prescriptions you are taking, and thus, the actual plan that is chosen.

Recipients of Medicare, also referred to as beneficiaries, are able to choose coverage via the Original plan – which is actually Parts A and B – or they may choose Part C – which is Medicare Advantage.

Who Qualifies?

In order to be eligible, an individual must have lived in the United States for at least 5 continuous years, and also be a permanent resident of the U.S.

In addition, qualified recipients of benefits must be at least 65 years of age or over, or have a specific type of qualifying disability.

For a person to be considered permanently disabled, they must be entitled to receive benefits from Social Security, and they must have been receiving those benefits for a minimum of two years.

An individual who is diagnosed with end stage renal disease and who also requires kidney dialysis or a kidney transplant may also be considered eligible for benefits from the program.

With the high costs of health care it makes sense for those eligible for Medicare to take advantage of this government administered health care program.

Adults Over 65

Most adults in the United States are eligible for Medicare when they turn 65. Individuals must be U.S. citizens or permanent residents and enroll in the Medicare program to qualify.

Individuals who are already receiving Social Security benefits will be automatically enrolled in the Medicare program. Approximately three months before their 65th birthday, an enrollment package will be sent and must be completed to activate coverage.

Medicare Part A, which covers hospitalizations, requires no payment. However, adding Part B – which is for doctors visits, outpatient procedures, or additional coverages, such as prescription drug coverage, does cost money. The premium is determined based on income level. So, individuals must decide what plan is best for them when enrolling and what they can afford to have.

Individuals with Disabilities

Medicare coverage is also available to individuals with disabilities regardless of their age. Once an individual has been collecting social security disability payments for twenty-four months, they become eligible for Medicare during the 25th month.

An enrollment package will be sent a few months before a person becomes eligible for Medicare coverage. If a person with Social Security disability does not receive the enrollment package, they should contact their local social security office to request a packet.

Like an individual who is over age 65, disabled persons who have been getting Social Security disability payments are automatically eligible for Medicare. There is no reason to decline coverage, as Medicare Part A costs nothing and covers hospital care and nursing facility care.

However, if a disabled individual would like, they can decline Medicare Part B coverage, which would require premium payments. There is a card that comes with the enrollment package that the individual can mail back declining Part B coverage.

Who Does NOT Qualify for Medicare

People who are not already receiving Social Security benefits will need to contact their local Social Security office to apply for Medicare coverage. This should be done three months before the individual’s 65th birthday.

The enrollment period begins in the three months before the month of the 65th birthday and ends three months after. If one enrolls during this time frame, there is no cost for enrollment and coverage should begin at the start of the 65th birthday month or shortly thereafter (if one applies after their birth date).

If, however, one does not apply during that enrollment period, then fees apply. So, it is important to apply on time, and as close to the three month prior date as possible. This will ensure everything is done correctly and coverage starts at the beginning of the individual’s birth month.

How to Enroll

To begin receiving benefits, an eligible individual must enroll through the office of Social Security. There is only one exception to this rule, in that those who are already receiving benefits through Social Security or the Railroad Retirement Board are automatically enrolled when they turn age 65.

All other potential recipients must submit an application for coverage during the open enrollment period. This period of time begins three months prior to the applicant’s 65th birthday and it ends seven months after.

Those who do not enroll in Part A and/or Part B when they are originally eligible are allowed to alternatively enroll between January 1 and March 31 each year. For those who do, their coverage will begin on the following July 1.

Medicare is Not Medicaid

Because their names sound so similar, people can oftentimes confuse Medicare with Medicaid. These two programs, however, are not the same. Medicaid is a joint state and federal program that provides medical assistance to those who meet very specific low income requirements.

In addition to medical necessity, a person must be considered at his or her state’s poverty level in terms of income and assets for Medicaid qualification purposes.

Through the Social Security Act, those who have income and resources not considered to be sufficient enough to meet the cost of their needed medical care, as well as certain long-term care needs, can qualify for Medicaid’s benefits. Therefore, Medicaid is considered a “means” tested program.

When determining which assets “count” toward qualifying for Medicaid, funds and property are divided into three different classes.

These include the following:

  • Countable Assets – Countable assets include any personal assets that the individual either owns or controls. These funds are required by Medicaid to be spent on the applicant’s care before he or she will be able to qualify for Medicaid’s benefits. Some examples of countable assets may include cash, stocks and bonds, and deferred annuities (provided that the annuities have already been annuitized).
  • Non-Countable Assets – Even though non-countable assets are still acknowledged by Medicaid, the particular types of assets are not necessarily utilized when making a determination regarding an applicant’s eligibility for Medicaid benefits. Non-countable assets can include household belongings, such as furniture, appliances, term life insurance policies, a burial plot owned by the Medicaid applicant, and the applicant’s primary residence – as long as the value of the home does not exceed a certain amount.
  • Inaccessible Assets – Assets that are inaccessible are those considered to be resources that would have had to be spent on a person’s care; however, the assets have instead been transferred to another individual or into a trust. This transfer has therefore made the asset inaccessible. With inaccessible assets, Medicaid has the right to review the applicant’s financial records at the time that the application for benefits is made. In most cases, if assets were transferred within a certain amount of time prior to a person’s application, Medicaid may deem the individual as being disqualified from receiving benefits – at least for a certain period of time.

What is Supplemental Insurance and What Does It Cover?

Medicare supplement insurance plans are a type of insurance coverage supplemental to what Medicare covers. This type of coverage can pay for some – or in some cases, all of the copayments and/or deductibles so that the enrollee does not need to pay such expenses out-of-pocket.

Medigap insurance is specifically designed to supplement Medicare’s benefits, and it is regulated by both federal and state law. A Medigap policy must be clearly identified as being Medicare Supplement insurance, and it must provide benefits that help to fill in the gaps in Medicare’s coverage.

Although the benefits are identical for all supplement plans of the same letter (i.e., all Plan A policies offer the same coverage options), the premiums may vary from one insurance carrier to another, as well as from one geographic area to another.  There are even three states that do not use the letter system, but have different ways of designating their plans.

What is Medicare Advantage and How Does It Work?

A Medicare Advantage (MA) plan, similar to an HMO or PPO, is type of Medicare plan available to those who are eligible for “Original Medicare”, or Parts A and B. This option is also referred to as Part C. These plans are actually offered by private insurance companies approved by Medicare.

When an individual joins a MA Plan, Medicare pays a fixed amount of their premium every month to the companies that offer these plans. These companies are required to follow strict rules on coverage.

Each of the Advantage Plans are allowed to charge different out-of-pocket costs, and they may also have different rules as to how enrollees can receive their services. For example, some plans may require participants get a referral before going to a specialist. And, these rules may change every year.

MA Plans also have an annual cap on how much participants will pay for their Part A and Part B services throughout the year. This annual, maximum out-of-pocket amount can differ from plan to plan. You can get a full understanding of how MA plans can be a benefit to you HERE.

How to Find the Best Coverage

When seeking Supplemental or Advantage coverage, it is best to work with a company that has access to more than just one insurer.

That way, you can obtain information on numerous different benefits and quotes to see what your options are and what benefits are available to you.

When you’re ready to begin the process, you can use the form on this page and a top independent agent will work with you to get the best policy at the best rates.

Source: goodfinancialcents.com

Apache is functioning normally

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Get a $500 Cash Bonus.

Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.

You’ve picked out what you think is the perfect secured credit card. It has the deposit limit you’re looking for, the right annual fee, and it even offers rewards. Imagine your surprise when the company denies your application. Can that even happen with a secure credit card? 

Unfortunately, the answer is yes. But a rejected application doesn’t mean there’s no way forward. 

What to Do if You’re Denied a Secured Credit Card

First things first: Don’t get too bummed out. Credit card denials happen all the time. According to a 2022 Salary Finance survey, 33% of polled applicants were denied credit cards in the past year. But there are simple steps you can take to make sure you find a solution that works for you. 

1. Determine Why the Credit Card Company Denied Your Application

If you get a denial letter, your first question is likely why. Credit card companies want your business, so there’s usually a clear reason. Check your initial notification for the legally required explanation. It may be near the words “adverse action” or “adverse action notice.” But if you still have questions, you can call the customer service line and speak with a representative. 

While you’re less likely to face denial when applying for a secured credit card, there are still a few reasons you could get rejected.

  • You didn’t meet income requirements. Even with a secured credit card, you’re still required to meet a minimum income threshold. Credit card companies want to know you can pay them back, and that requires a consistent form of income.
  • There was an identity verification issue. If the credit card company can’t verify you’re the one applying, they can’t approve the application. 
  • You have too much debt. If you already have high debt, credit card companies are often weary about allowing you to take on more. You can read more in our article on debt-to-income ratio. 
  • You don’t have a good enough credit score. Yes, even some secured credit cards have a minimum credit requirement. This requirement is often low, but if you still don’t hit that number, it signifies to credit issuers that you may not be able to manage credit. 
  • You can’t pay a deposit. Most secured credit cards require a deposit. That’s what secures your credit line rather than your credit profile. If you can’t come up with the money (often a few hundred dollars), you don’t qualify for the card. 

2. Review Your Credit Report

It’s becoming more common for secured credit cards to require no credit check at all. Still, some do. If an issuer denies you due to a poor credit score or history, your first step is to get your hands on your full report. 

By law, you can get full credit reports from all three agencies once per year at AnnualCreditReport.com. However, at the beginning of the COVID-19 pandemic, the three major bureaus began offering weekly credit reports, which you can still access for the time being.

Look through the report, checking for any errors, such as misreported debt amounts or incorrect debt collections bills. Verify everything in your report is 100% accurate. These errors — particularly if they relate to misreported debts — can lead to a denial.

3. Address Credit Issues or Errors

If you find any, disputing credit report errors is the next step. Submit disputes either online through Equifax, Experian, and TransUnion’s sites or by mail. The Consumer Financial Protection Bureau has dispute forms for each credit union.

If you received a denial because your credit score is too low and disputing errors doesn’t raise it, you have options. 

One way to raise your credit score quickly is to pay down debt as fast as possible. That’s easier said than done, but checking off your debts one by one can help improve your credit score. 

There are several strategies to help you pay off debt fast. For more information, see our article on the avalanche, snowball, and snowflake methods. 

4. Consider Alternative Credit-Building Options

At the end of the day, a denial may mean a secured credit card isn’t the right option for you. Thankfully, secured cards are far from the only credit-building product on the market. There are alternatives, such as:

  • Credit-builder loans. Credit-builder loans are a unique product designed to help you build credit from scratch or rebuild poor credit. Unlike a traditional loan, you don’t get access to the funds until after you’ve already paid it off. In the meantime, your lender stores your money and reports your (hopefully timely) payments to credit bureaus. 
  • Becoming an authorized user. An authorized user is someone who has access to another person’s credit card but doesn’t bear the responsibility of paying it off. If you become an authorized user on a family member’s card, your credit can benefit from their on-time payments. 
  • Store credit cards. Some store credit cards don’t require credit checks or have few credit requirements, making it easier to get approved. Pick a store you visit frequently, such as Target or Walmart, and put your usual purchases on that credit card, making sure to pay it off regularly. 

5. Reapply or Explore Other Secured Credit Cards

Despite all your research, you may not have applied for the right secured credit card. There are dozens to choose from, and approval may be a lot easier if you apply for a different one. 

If it’s a credit issue, focus on secured credit cards with no credit requirements, such as the Discover it Secured Card and Capital One Platinum Secured. 

If it’s providing income information you’re worried about, first consider whether a credit card is right for you and whether you can handle regular payments. That said, cards like the OpenSky Secured Visa Card have a high approval rate and very few qualification requirements. 

If the card you originally applied for is the secured card of your dreams, your best bet is to improve your credit or fix the issue that caused your denial and try again later. With a few months of dedicated work on your score, you are more likely to get the approval you’re looking for. 

Final Word

A credit card denial is far from the end of the world, though it might feel like it for a second. There are reasonable steps you can take, such as improving your credit, applying with a different lender, and addressing any potential errors on your credit report. 

Also, think about alternative credit card options. Although a secured credit card can seem like the obvious first option when you have bad credit, there are unsecured credit cards for bad-credit customers, student credit cards for college students who want to start building credit, and even prepaid cards for those just looking for something swipeable to pay with. 

Christopher Murray is a professional personal finance and sustainability writer who enjoys writing about everything from budgeting to unique investing options like SRI and cryptocurrency. He also focuses on how sustainability is the best savings tool around. You can find his work on sites like Bankrate, Money Crashers, FinanceBuzz, Investor Junkie, and Time.

Source: moneycrashers.com

Apache is functioning normally

Contrary to popular belief, you don’t need to pay annual fees topping $550 to get the best travel credit card. If you don’t travel enough to use all the benefits that come with a top-tier card — or simply don’t have room in your budget to justify these fees each year — there are still plenty of no-annual-fee cards to choose from.

When it comes to hotel credit cards, the good news is that a no-annual-fee card can offer you more benefits than you might expect. From complimentary (or a pathway to) elite status to earning hotel points on your everyday purchases, you’ll only gain from owning these cards instead of worrying about outsizing the value from cards with no annual fees.

While the best hotel card for you will depend on which hotel chain you prefer, the best options of the bunch are the Marriott Bonvoy Bold Credit Card and the Hilton Honors American Express Card. Both brands are widely prevalent, meaning you have more opportunities to earn and redeem points at properties worldwide.

The best no-annual-fee hotel credit cards

The information for the Best Western Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Comparing the best no-annual-fee hotel credit cards

Card Rewards rate Intro bonus
Marriott Bonvoy Bold 3 points per dollar at participating Marriott Bonvoy hotels, 2 points per dollar on other travel purchases and 1 point per dollar on all other purchases Earn 50,000 bonus points after spending $1,000 on purchases in your first six months from account opening; plus earn an additional 50,000 bonus points after you stay six eligible paid nights at Marriott Bonvoy through Jan. 31, 2024. Offer ends Aug. 10.
Hilton Honors American Express Card 7 points per dollar on eligible purchases directly with hotels and resorts in the Hilton portfolio, 5 points per dollar at U.S. restaurants, U.S. supermarkets and at U.S. gas stations and 3 point per dollar on other eligible purchases. Earn 80,000 Hilton Honors bonus points after you spend $1,000 in purchases on the card within your first three months of card membership.
IHG One Rewards Traveler Credit Card 5 points per dollar at IHG Hotels & Resorts, 3 points per dollar on utilities, internet, cable, phone services and select streaming services, gas station and restaurant purchases and 2 points per dollar on everything else. Earn 80,000 bonus points after you spend $2,000 in purchases in the first three months of account opening and up to $50 in IHG statement credits on purchases at IHG Hotels & Resorts during the first 12 months from account opening.
Choice Privileges Mastercard 5 points per dollar at eligible Choice Hotels, 3 points per dollar at gas stations, grocery stores, home improvement stores and phone plan services, and 1 point per dollar on everything else. Earn 60,000 bonus points after you spend $1,000 in purchases within three months of card membership.
Best Western Rewards Mastercard 13 points per dollar on Best Western purchases and 2 points per dollar on everything else. Earn 40,000 bonus points after you spend $1,000 within the first three months after account opening.
Capital One VentureOne Rewards Card 1.25 miles per dollar on all purchases Earn a bonus of 20,000 bonus miles once you spend $500 within the first three months from account opening.

The best no-annual-fee hotel credit cards

Marriott Bonvoy Bold Card: Best card for Marriott

ERIC HELGAS/THE POINTS GUY

Current sign-up bonus: Earn 50,000 bonus points after spending $1,000 on purchases in your first six months from account opening; plus earn an additional 50,000 bonus points after staying six eligible paid nights at Marriott Bonvoy hotels through Jan. 31, 2024. Offer ends Aug. 10.

Rewards rate: Earn 3 points per dollar at participating Marriott Bonvoy hotels, 2 points per dollar on other travel purchases and 1 point per dollar on everything else.

Other benefits: You’ll become an automatic Silver Elite member as a cardholder, which gets you perks such as priority late checkout and 10% bonus points on stays. Therefore, you’ll have the ability to earn up to 14 points per dollar on eligible Marriott stays (3 points per dollar with this card, 10 points per dollar for being a Marriott Bonvoy member and 1 point per dollar for Silver Elite). Plus, earn 2 points per dollar on all travel purchases.

You’ll also have the opportunity to improve your elite status the more you stay with Marriott. This card comes with an impressive number of travel and purchase protections, including baggage loss and delay insurance and more. To top it all off, there’s no annual fee (and no foreign transaction fees).

Analysis: As you build up your credit card portfolio, you’ll eventually want to have a card that earns transferable points, along with an airline card and a hotel card. If Marriott is your hotel chain of choice (we don’t blame you since there are more than 7,000 properties worldwide), the Bold is the perfect place to start. With a complimentary jump-start to Silver Elite status, the possibilities of reaching higher tiers of Marriott elite status are endless.

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Further reading: Marriott Bonvoy Bold card review

Apply here: Marriott Bonvoy Bold

Hilton Honors American Express Card: Best card for Hilton

THE POINTS GUY

Current welcome offer: Earn 80,000 Hilton Honors bonus points after you spend $1,000 in purchases on the card within your first three months of card membership

Rewards rate: Earn 7 points per dollar on eligible Hilton hotel and resorts purchases, 5 points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations, plus 3 point per dollar on other eligible purchases.

Other benefits: It’s not often that a no-annual-fee card (see rates & fees) provides you with as many perks as the Hilton Honors Amex card does. For starters, enjoy complimentary Silver Elite status to get 20% bonus points on stays and a fifth free night benefit. In addition to a lucrative rewards rate on Hilton and everyday purchases, you’ll have secondary rental car coverage and no foreign transaction fees (see rates & fees).

Analysis: The Hilton Honors Amex proves you don’t have to pay an annual fee to get top-notch perks. Its welcome bonus offers a healthy stash of Hilton Honors points and ample ways to continue earning on your everyday spending. We recommend this card for those who enjoy staying at Hilton properties but want to keep costs as low as possible.

Further reading: Hilton Honors American Express card review

Apply here: Hilton Honors American Express

IHG One Rewards Traveler Credit Card: Best no-annual-fee card for IHG Hotels

THE POINTS GUY

Current sign-up bonus: Earn 80,000 bonus points after you spend $2,000 in purchases in the first three months of account opening and up to $50 in IHG statement credits on purchases at IHG Hotels and Resorts during the first 12 months from account opening.

Rewards rate: 5 points per dollar at IHG Hotels & Resorts, 3 points per dollar on utilities, internet, cable, phone services and select streaming services, gas station and restaurant purchases and 2 points per dollar on everything else.

Other benefits: This hotel card comes with the unique benefit of a fourth-night reward, meaning you’ll pay the price of three nights to stay for a total of four nights. Plus, you’ll get a 20% discount on points purchases when you pay for those points with your card.

Analysis: By being strategic with this card, you can get a ton of value without ever paying an annual fee.

Further reading: IHG One Rewards Traveler card review

Apply here: IHG One Rewards Traveler card

Choice Privileges Mastercard: Best for Choice Hotels

ALVAREZ/GETTY IMAGES

Current bonus: Earn 60,000 bonus points after you spend $1,000 in purchases within the first three months of card membership.

Rewards rate: 5 points per dollar at eligible Choice Hotels, 3 points per dollar at gas stations, grocery stores, home improvement stores and on phone plan services and 1 point per dollar on everything else.

Other benefits: You’ll get automatic Gold Elite status, which unlocks benefits such as an elite welcome gift, early check-in and late checkout. You’ll also get up to $800 of cellphone protection against damage or theft when you pay your monthly bill with this card (subject to a $25 deductible) as well as Mastercard World Elite benefits.

Analysis: Being a Choice Hotels elite member will enhance your hotel experience, and with this card, you’ll be granted this status for free. While not the most lucrative no-annual-fee hotel card out there, this card offers simplicity — a reason to keep it in your wallet each year with the opportunity to earn anniversary points.

Further reading: 2 new Choice Privileges credit cards are now open to new applicants

Apply here: Choice Privileges Mastercard

Best Western Rewards Mastercard: Best for Best Western

WILL BARTON/GETTY IMAGES

Current bonus: Earn 40,000 bonus points after you spend $1,000 within the first three billing cycles after account opening.

Rewards rate: 13 points per dollar on Best Western purchases and 2 points per dollar on everything else.

Other benefits: With this card, you’ll enjoy no foreign transaction fees, exclusive member room rates and complimentary Gold status, which guarantees you 10% bonus points for your eligible stays and early check-in and late checkout.

Analysis: For a card with no annual fee, those who stay at Best Western properties regularly can get considerable value from the welcome bonus and ongoing Gold elite status.

Further reading: Your ultimate guide to Best Western Rewards

Capital One VentureOne Rewards Card: Best for all hotels

THE POINTS GUY

Current bonus: Earn a bonus of 20,000 bonus miles once you spend $500 within the first three months from account opening.

Other benefits: While the hotel cards above can get you elite perks or other exclusive benefits, sometimes limiting yourself to one brand doesn’t make sense. That’s why the VentureOne is our favorite for all hotel stays, as it offers a simple earning scheme (unlimited 1.25 miles per dollar on all purchases) plus an even simpler way to redeem. You can redeem your miles at 1 cent each for any hotel (or other travel) charges on your card. If you’re an advanced award traveler, you’ll be happy to know that you can transfer your Capital One miles to airline and hotel partners like Air Canada Aeroplan and Singapore Airlines KrisFlyer to find even more potential value.

Analysis: We like the flexibility that the VentureOne offers. You won’t get hotel elite status with this card, but you can use this card to pay for hotels from any brand. If all you’re looking for is a way to earn and redeem your travel rewards, this is a good card for you. Plus, with no foreign transaction fees, you can take the VentureOne with you anywhere.

Further reading: Capital One VentureOne review

Apply here: Capital One VentureOne

Bottom line

Almost all of the no-annual-fee hotel cards in this guide get you automatic elite status, plus a pathway to the next level for even better benefits. The best pick for you will first depend on the hotel chain you prefer, but take a deeper look at the ongoing rewards rate and any additional benefits you can get from the card (such as no foreign transaction fees or any travel and purchase protections).

And remember: Since you’re not paying an annual fee on any of these cards, you won’t have to worry about if you’re stretching enough value to justify the cost each year.

Additional reporting by Emily Thompson.

For rates and fees of the Hilton Amex card, click here.

Source: thepointsguy.com