Chairman Jerome Powell made clear Wednesday that the Federal Reserve is prepared to keep its benchmark interest rate very low through at least next year - and possibly longer.
Source CBNNews.com https://ift.tt/3596iUp
الأربعاء، 11 ديسمبر 2019
9 Scams To Watch Out For This Holiday Season
Holidays are supposed to be a joyous time – but scammers can replace the joy of the season with the headaches of fraud. Help yourself and take some simple precautions to keep the Grinches out of your bank accounts during the holidays.
Source CBNNews.com https://ift.tt/2YGclxk
Source CBNNews.com https://ift.tt/2YGclxk
Southwest Rapid Rewards® Premier Credit Card Review
The allows airline-savvy travelers to earn 2 points per dollar spent on hotel and car rental partner purchases and 1 point on all other purchases. Southwest fans, rejoice. This card translates Southwest loyalty into quality travel rewards — plus, you’ll get the chance to unlock other perks like A-List status and free flights for a chosen travel companion with the Companion Pass.
| Card | APR | Annual Fee | Intro Bonus | Credit Needed | Key features |
| Southwest Rapid Rewards® Premier Credit Card | 17.49% - 24.49% Variable APR | $99 | Receive 40,000 points after spending $1,000 in purchases during the first three months of your account being open | Good to Excellent | This airline rewards card allows cardholders to earn two points for every dollar spent on Southwest expenses and Rapid Rewards hotel and car rental partner costs. Earn one point per dollar for everything else. |
What we like about it
The is an ideal airline card for those looking to maximize their Southwest rewards and leverage their pre-existing Southwest frequent flyer miles and loyalty. For example, you can use this card to work your way up to earning the Companion Pass, which gives your chosen companion a year of free flights, minus some fees, of course. The Southwest Rapid Rewards card is considered the middle ground of the three available Southwest Rapid Rewards card options and offers cardholders impressive annual loyalty bonuses and other helpful perks.
If you’re planning on traveling abroad, you won’t have to worry about foreign transaction fees adding to your final bill, for instance. Although Southwest doesn’t fly to a large variety of international locations like Europe, the airline does offer flights to places like Belize, Turks and Caicos and multiple cities within Mexico. With that said, Southwest will allow you to redeem your Rapid Rewards points for international flights on different airlines that offer them. Plus, there are no blackout dates or restrictions regarding your airplane seat choice to throw a wrench in your plans.
Another major benefit is the generous anniversary bonus of 6,000 points after you renew your card each year. In addition, you can earn 1,500 tier-qualifying points for each $10,000 you spend on the card each calendar year, up to 15,000 points annually. These are called tier-qualifying points because they can help push you into different tiers, like A-List or A-List Preferred statuses, more quickly.
A-List members enjoy special perks like free same-day standby, dedicated A-List member phone line, priority boarding, 25% more Rapid Rewards points earned on each flight and priority check-in and security lane access.
Things to consider
One of the main drawbacks of this card includes the lack of luxury perks, but if you’re already a Southwest frequent flyer, you probably already expect as much. You also can’t stack the points you earn from another frequent flyer program, which is unfortunate if you’re not a through-and-through Southwest loyalist.
And, if you’re fee-averse, be aware, there is an annual fee you must pay that isn’t waived as part of any introductory offer. Although hefty annual fees characterize many travel credit cards, they also typically have more robust rewards structures or glamorous perks that allow cardholders the opportunity to cancel out the annual fee. There are still perks that can offset the cost, but it’s essential to keep that in mind as you evaluate if the Southwest Rapid Rewards® Premier Credit Card will work for you.
You also don’t receive free checked bags, as many other airline cards do. With that said, your first two checked bags on Southwest are already free anyway, so that perk is moot unless you were hoping for a third free bag check.
Southwest Rapid Rewards® Premier Credit Card travel rewards
To make the most of the , you should consider what you’re getting in return with your earning rate. The 2x points on Southwest expenses purchases mean you’re receiving 3% back on Southwest purchases.
You can redeem the points you earn in the form of merchandise, gift cards, rental cars, travel experience and hotels. However, the easiest way to redeem your rewards is by grabbing the next flight out of town. Southwest makes it easy for cardholders to redeem their points for flights, which is where you’ll get the most bang for your buck.
Southwest Rapid Rewards® Premier Credit Card fees
The only fee cardholders will need to worry about is the annual membership fee of $99. There are no foreign transaction fees, either, so regardless of what airline you take to visit Europe or the Caribbean, you can use the card anywhere Visa is accepted.
How does it compare to other airline cards?
The Alaska Airlines Visa Signature® Credit Card is another airline-specific rewards card but features a lower annual fee of $75. Benefits include a 40,000 bonus mile offer plus Alaska’s Companion Fare Offer, which costs just $121. To receive this reward, you’ll need to spend $2,000 within the first three months after your initial account activation. If you’re looking for a slightly cheaper annual fee and prefer Alaska over Southwest, you may want to consider this card as an alternative. You also earn at a slightly higher rate: three miles for every $1 spent on eligible Alaska Airlines expenses.
is another airline option with a similar $95 annual fee. However, there’s a massive bonus available. With this card, cardmembers can earn more points on travel and dining at restaurants plus travel protection benefits. If you spend $4,000 within the first three months of your account activation earn 60,000 bonus points. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®. This is a good option if you don’t want to stick to one particular airline, and you’d like more flexibility with your travel rewards.
The bottom line
If you’re looking for luxury travel perks, this may not be the right travel rewards credit card for you. But if you’re already a no-frills Southwest frequent flyer, you can quickly earn points and make your next vacation a little cheaper with the .
Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser's page for terms & conditions.
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Capital One® Venture® Rewards Credit Card Review
The is a travel card for those with excellent credit. Earn 2x miles on every purchase and a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel. Cardholders can also transform miles into other rewards like cash, although for a less-rewarding rate.
Capital One® Venture® Rewards Credit Card cardholders also get travel perks like accident protection, car rental insurance, roadside assistance and up to a $100 credit for Global Entry and TSA PreCheck when you use your card. If you’re looking for a credit card that will reward you for travel and give you flexibility in the travel providers you choose, this is one you can combine with other rewards cards, like cash-back-focused cards.
| Card | APR | Annual Fee | Intro Bonus | Credit Needed | Key features |
| Capital One® Venture® Rewards Credit Card | 17.49% - 24.74% (Variable) APR | $0 intro for first year; $95 after that | Get a one-time bonus of 50,000 after spending $3,000 on purchases within the first three months of your account opening | Good to Excellent | Travel |
What we like about it
In addition to the travel rewards from this card, other Capital One® Venture® Rewards Credit Card perks include access to premier culinary experiences, VIP experiences for sporting events and concert event perks, including VIP packages.
Security protection for the includes security alerts delivered via mobile, email or phone call if there is suspicious activity on your account. Plus, if your card is ever lost or stolen, you won’t be on the hook for unauthorized charges. And if you do suspect foul play, you can utilize Card Lock to instantly freeze your credit access.
You can also see recurring merchants and frequently used merchants, add an authorized user to your account and track spending by user, transfer higher-rate balances onto your card, get 24/7 customer service, use Autopay for automatic payments each month, manage your account with the Capital One mobile app and use the Eno Capital One virtual assistant to manage your account on the go.
Things to consider
While you can also redeem rewards for something other than travel, including cash (check or account credit) and gift cards, these non-travel rewards may be worth less. The mile redemption is about $0.01 per mile, but rates for other rewards vary and are subject to change without notice.
Also, the annual fee $0 intro for first year; $95 after that is another consideration. There are travel cards out there without an annual fee that may be worth more depending on the amount you travel and plan to use your travel card for.
Capital One® Venture® Rewards Credit Card travel details
When you use the for travel, you’ll gain benefits. The card rewards you with unlimited 2x miles per dollar on every purchase and doesn’t restrict where you spend them travel-wise.
Points are redeemed as statement credits for travel purchases, so you have freedom in how you spend. You can use your miles on lodging, airfare and more. You also have the option to transfer miles to any of 10+ Capital One travel partners, where you might be able to get more mileage out of your miles. Rewards have no blackout dates and no expiration dates. There are no minimum miles required to redeem for travel.
To maximize your travel benefits from this card, purchase all your major travel items with the Capital One® Venture® Rewards Credit Card. Redeem your miles for travel purchases to maximize their value. If you want to get cash-back bonuses for other purchases, pair this card with a cash-back rewards card.
Capital One® Venture® Rewards Credit Card fees
The annual fee of $95 is waived for the introductory first year. Depending on how much international travel you do and how many purchases you make abroad, the zero international fees may make the annual fee worth this card after the first year.
Other fees include a 3% transfer fee, a fee of $10 for a cash advance or 3% of the amount of each cash advance (the higher amount) and up to a $39 penalty for late payments. These fees are comparable to other travel cards.
How does it compare to other travel cards?
If you’re looking for a travel rewards card, consider the , which gives you 60,000 points if you spend $4,000 in the first three months, worth up to $750 in travel if redeemed through the Chase Ultimate Rewards portal. There’s also an annual fee of $95, but you get 2x points on travel and global dining and 1x point per dollar for all other purchases. The bonus offer and point structure with the Chase Sapphire Preferred® Card, may be more appealing.
The bottom line
The provides a simple structure for travel rewards. You can maximize your rewards by booking hotels with Capital One’s hotels.com partner. You can also use your rewards for any type of travel you’d like, which makes for a straightforward rewards plan. If you’re not crazy about the annual fee, there are other travel card options that can reward you, as well.
Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser's page for terms & conditions.
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Renters Insurance for College Students
If you’re going to college, you likely have a long list of things you need to buy and things you need to do. While it might not be on the list of essential items you need for your first apartment or dorm room away from home, renters insurance is an important thing to add to what you need.
Insurance for college students is cheaper than you think and could save you money.
Renters insurance for college students: dorms vs apartments
If you live in a dorm, your renters insurance needs will be different than it would be in an apartment.
Renters insurance in a dorm
If you live in a dorm, you might not have to worry about renters insurance. Your parents’ homeowners or renters insurance probably covers you. Before you move into the dorms, your parents should call their insurance agent and check.
However, most homeowners insurance policies cap off-premises coverage and reimbursements if something happens. Your loss could be below your parents’ deductible. For example, your parents’ deductible might be $3,000. If only a few things were stolen or damaged, you might still have to pay to replace your stolen stereo if you use your parents’ insurance.
If you do want renters insurance for your dorm, you’ll have limited options. You’ll need to find a company that offers dorm insurance specifically so you aren’t paying for more than you need or will even be covered.
While you can protect yourself from loss or damage, like spilling a cup of coffee on your laptop while pulling an all-nighter, buying liability insurance might not be an option.
Liability insurance protects you from a lawsuit if someone gets hurt in your apartment or dorm room. Many insurance companies don’t sell liability insurance to college students who live in dorms. If someone injures themselves in the dorm, the college’s liability insurance would protect you and pay for medical bills.
It would also be the college’s responsibility to rehome you if your dorm flooded or otherwise became uninhabitable. If you live on-campus, your renters insurance policy won’t need liability or alternative accommodation coverage.
Because your insurance policy would be more limited in a dorm, you’ll likely be able to find cheap renters insurance.
Renters insurance off-campus
If you live off-campus, it’s unlikely that your parent’s insurance covers you. If you want to protect your property, you’ll need to buy your own policy. Don’t assume that your landlord’s coverage extends to you; it only covers the building’s exterior and common areas. Everything that happens within your apartment is your responsibility.
Renters insurance protects you from loss or damage to your property, liability and medical costs if someone is hurt in your apartment. It also pays for you to live somewhere else if your apartment is inhabitable. Before thinking, “I found my couch by the side of the road; I don’t have any valuable property!” inventory your possessions.
How easy would it be to write your papers without a laptop? What about your stereo, your cell phone and other electronics? Even if you just had to replace all of your clothes and textbooks, you might be surprised at how much it would cost you. With renters insurance, if those items are lost, damaged or stolen, you can have them quickly replaced.
You can use an app to take pictures of your belongings and record any important information like serial numbers and original prices. If you don’t think you have enough to merit using an app, keep a list on your phone or on a cloud document with information about at least the most expensive things. It can also help to take pictures of your room and belongings to both help prove that you have them and to remind you of anything you might miss when you make a list of the things you own.
Renters insurance can cover more than your belongings if they are lost, damaged or stolen. What if a pipe bursts and you can’t stay at your apartment? Sure, you can crash on a friend’s couch, but that’ll get old fast. Renters insurance for off-campus students includes provisions for alternate accommodation. If you can’t stay at your apartment, the insurance company will pay for a hotel or another rental.
Average cost of renters insurance
The average cost of renters insurance for college students is only $17 a month. That works out to about 4.25 a week. You might also be able to bundle your renters insurance with your car insurance to help you pay a little less for both of these insurance types.
Cheap renters insurance could be the difference between getting a new laptop in time to meet a deadline or asking your professor for an extension. While it’s not required, renters insurance will help out if anything ever happens to your belongings or if someone gets injured. Having it can give you some extra peace of mind so you can focus on your studies and not worry if anything goes wrong with your apartment.
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Capital One® Secured Mastercard® Review
The is a credit card for those looking to rebuild their credit. A refundable security deposit of $49, $99 or $200 enables cardholders to approve for their card, which will be regularly reported to the three major credit bureaus. Full, on-time payments can help cardholders increase their line of credit and improve their credit score.
This card comes with $0 annual fee and cardholders get the same Capital One benefits that unsecured credit cardholders do, like security features, mobile banking, a virtual assistant, balance transfer options and free credit report change alerts. After you’re approved and you make your security deposit, you’ll receive your card in as few as two weeks to start making purchases and building your credit.
| Card | APR | Annual Fee | Intro Bonus | Credit Needed | Key features |
| Capital One® Secured Mastercard® | 26.99% (Variable) APR | $0 | None | Limited, Bad | Credit-building |
What we like about it
For people who can’t get approved for cards requiring higher credit scores, the provides an entry to building up credit, as long as payments are made on time. The required refundable security deposit means you’re likely to be approved. No interest is applied to the security deposit. As long as you’ve paid off your entire balance, you’ll receive it back once you close your account.
Even though this is a secured credit card, you still get similar benefits to Capital One unsecured credit cards. You can choose a personalized monthly due date and payment method, including online, by check or at a local branch. Better yet, just sign up for the Autopay feature so your payments are automatically deducted from your savings account. You can get personalized mobile or email reminders that help you stay on top of your account so you can make on-time payments.
Have an issue? Capital One cardholders get 24/7 customer service. Security features include notifications of potentially suspicious transactions, $0 fraud liability and the ability to pay with virtual card numbers online. If your card does happen to get lost or stolen, you can lock your card in the mobile app. If you’re still wondering if the thief caused any damage, you can check credit report changes for free with the CreditWise feature.
The Capital One® Secured Mastercard® also features travel benefits. There are no foreign transaction fees, and you can get travel accident insurance through the card and 24-hour travel assistance services. You can also get collision and theft damage coverage on eligible rental vehicles.
Things to Consider
It’s to be expected with a secured credit card, but the initial credit limit of $200 for a $49 security deposit for the is pretty low. Some cardholders who have reviewed the card mentioned increasing the limit is slow to non-existent.
The card also has a high APR at 26.99%. Cardholders who are late with payments will have to pay a fee of up to $39 for each late payment.
This card comes with no rewards program, as well. For some, simply being able to rebuild credit is rewarding in itself, but those who want a rewards program with a secured credit card have at least one option, the Discover it® Secured card.
Capital One® Secured Mastercard® credit-building details
To qualify for Capital One® Secured Mastercard®, cardholders must make the minimum required security deposit of $49 to get an initial credit line of $200. Depositing a higher amount of $99 or $200 will give cardholders access to a higher credit line.
Cardholders will also get access to a higher credit line after making the first five monthly payments on time. For cardholders using this card who want to get the highest credit line possible, it’s best to make a $200 deposit and make all of the first five monthly payments on time.
Cardholders can avoid fees and the high APR by making all payments on time, in full. During the credit-building process, it’s best to only use the credit card for purchases that can be paid on time. That will require discretionary spending and budgeting, but a result of a higher credit score and line of credit may be worth it.
Capital One® Secured Mastercard® fees
Late payments require a fee of up to $39. For a cash advance, the fee is $10 or 3% of the amount of the cash advance, whichever is greater. These fees are fairly standard, especially for unsecured credit cards.
A benefit with the is that there are no annual fees, no foreign transaction fees and no transfer fees. As long as cardholders use the card responsibly, they can avoid late payment fees as they build their credit.
How does it compare to other credit-building cards?
If you want to build credit with a secured credit card, you have additional options. The credit card also requires a refundable security deposit that affects how high your credit line is. A $200 deposit gives cardholders access to a $200 credit line, while a $500 deposit gives cardholders access to a $500 credit line. There’s no annual fee, with a 24.49% Variable purchase APR.
The Discover it® Secured credit card enables cardholders to earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases. If you’re able to afford a higher minimum deposit, you can get a lower APR and better rewards with this card compared to the Capital One® Secured Mastercard®.
Another secured credit card option is the . The card requires a minimum refundable security deposit of $200, but with a deposit of $5,000, you may be able to increase the credit limit to $5,000. The card has an annual fee of $49 with 9.99% Fixed APR for purchases and a 18.99% Fixed APR for cash advances.
The Green Dot Platinum Visa Credit Card has no rewards program, but it may be the choice for those who want a higher line of credit and a lower APR.
The bottom line
For those with the goal of building credit, the is a straightforward option. It has one of the lowest minimum refundable security deposit requirements available. But with a high APR and no rewards program, it takes a little patience to work your way up to a more lucrative option.
Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser's page for terms & conditions.
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Bestow Life Insurance Review
Bestow Life Insurance is among several companies bringing life insurance into the 21st century.
If you fit the right profile — and many younger adults do — you could have reliable life insurance coverage in force within five minutes.
Getting quality life insurance this quickly would have been impossible just a few short years ago.
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How Does Bestow Life Insurance Work?
Bestow Life Insurance is an online-only life insurance agency launched back in 2016 to make life insurance more accessible to more people.
Before companies like Bestow came along, getting quality life insurance coverage in place could take months. You’d have to deal with paper applications, trips to the post office, home visits from medical professionals with needles, and watching the mail for an approval or denial from underwriters.
Most insurers still work within this traditional framework even if they offer an online application. Bestow Life is different.
You’ll get a streamlined, online application with an automated underwriting process. As a result, you could apply and be approved for coverage within minutes. And because Bestow has partnered with a couple of A-rated life insurance providers, you can get quality coverage along with this quick access to protection.
Is Bestow Life Insurance Right For You?
Bestow works best for younger shoppers in their 20s and 30s.
In fact, Bestow won’t sell you a 20-year term policy if you’re older than 45, and the company won’t cover you at all if you’re 55 or older.
Bestow also isn’t your best option if you have a complicated health history. Traditional life insurance companies require applicants to undergo a medical exam to screen for high blood pressure, high cholesterol, and poor overall health.
How Does Bestow’s Underwriting Process Work?
Bestow lets you skip the medical exam, but the company will access a variety of databases to learn about your health before covering you.
Bestow will access:
- Medical Records: If you have a chronic illness, underwriters will know and can deny your application.
- Pharmacy Records: If you need medication to manage a condition, underwriters will see the evidence and can flag your application for more detailed scrutiny.
- Driving Records: Poor driving habits may not doom you to a denial, but they could increase your premiums.
- Prior Insurance Data: The results of prior medical exams from other insurers will be available to underwriters.
An applicant who sails through this digital underwriting process can have great coverage in place within minutes with Bestow. More complicated applicants may have to wait longer or may need to look elsewhere for coverage.
Bottom Line: Bestow works best for a young shopper who needs hassle-free coverage.
Bestow Term Life Insurance
In keeping with its simple, streamlined approach to coverage, Bestow sells only term life insurance.
Term life covers you for a specific period of time but offers no bells or whistles. You pay a monthly (or quarterly or annual) premium in exchange for life insurance protection.
A term policy will not gain equity or any other kind of value beyond the protection it provides your family in case you die. If you died, your family could claim the policy’s death benefit (which maxes out at $1 million with Bestow).
Your partner, children, or other named beneficiaries could use the money as needed to pay off debts, save for college, pay your final expenses, or pay for any other need.
If you live beyond the term limit of your policy — and here’s hoping you do! — your insurance will expire. At that point, you can reassess your insurance needs and decide whether to buy permanent coverage, another term policy or go without coverage.
Types of Term Policies Offered by Bestow
Bestow sells the following types of term policies:
2-Year Term
A 2-year policy can be convenient if you need coverage only temporarily, especially during a transition between other policies or if you’re starting a business. Bestow’s 2-year term policies max out at $500,000 in coverage.
10-Year or 20-Year Term
Bestow offers up to $1 million in coverage with its 10-Year and 20-Year term policies. This coverage works well if you have a young family and need protection while you build a more stable financial life. Naturally, 10-year policies cost less than 20-year policies.
Bestow Offers Up to $ 1 Million in Coverage
When you apply for coverage on Bestow’s Web site or app, you’ll have to decide how much coverage to apply for. A lot of younger insurance shoppers underestimate their coverage needs. After all, $1 million does sound like plenty of money to most of us.
How Much Life Insurance Do I Need?
To come up with a policy that fits your life, consider your debt and your future plans. How would your loved ones fulfill these plans without your income?
Here’s a common way to get a handle on these questions: Your life insurance should replace your income for seven to 10 years.
If you earn $75,000 a year, you’d need up to $750,000 in coverage based on this simple equation.
You may want to add more depending on your specific life plans. If you plan to send your children to private school or an elite university, having a higher coverage amount may be a good idea.
Pros & Cons of Bestow
Making life insurance more accessible to more people is a pretty big pro in my book, and Bestow sets a high standard there.
Pros:
- Flexible Options: The company’s 2-year policy is a rare find, and getting this transitional coverage in place so quickly can simplify your life.
- Quality Coverage: Unlike some new insurance companies, Bestow opted to partner with experienced and reliable insurers giving you more reliability.
- Quick Customer Service: You can reach agents via chat, phone, or email anytime.
- Online Policy Management: After you get covered, you can manage your policy quickly and easily online. If you need to change your beneficiary, change your address, or change your payment method, you shouldn’t have any trouble.
- No Medical Exam: We covered this above, but it’s worth saying again. You can get affordable, medically underwritten coverage without the medical exam. Most no-exam policies charge higher rates.
- Great Rates: Younger people with simple health histories can get coverage for just a few dollars per month. Getting more coverage for a longer term will cost more, but Bestow has competitive rates across all these categories.
Cons:
- Term Policies Only: If you want permanent insurance that accrues value over time and has an investment component, you’ll need to shop elsewhere.
- Fewer Term Options: Shoppers who want a 30-year term policy or a policy exceeding $1 million in coverage will need to keep looking.
- Simple is Best: If you’re 55 or older, or if you have a complicated health history, you’ll need to shop somewhere else. I recommend finding an independent insurance agent who can connect you with an ideal option.
Bottom Line: Coverage Is a Must for Most of Us
Who needs life insurance? Anybody whose financial life intertwines with someone else’s. Your death would be a tragedy no matter what, and you can’t change that.
But if your death would also cause financial chaos for someone else — whether it’s your life partner or your business partner — life insurance can help.
For years younger people went without life insurance because they didn’t have time to haggle with agents and schedule medical exams.
Now, with companies like Bestow, you have no excuse for going without coverage.
Bestow Life Insurance Summary
- Best For: Someone young and healthy, looking for hassle-free coverage.
- Policies: 2-, 10-, 20-year term only
- Coverage: $500,000 max for 2-year term; $1 million max for 10- or 20-year term
- Ratings: Policies backed by A-rated insurers according to A.M. Best
- Customer Service: Available via online chat, email, or phone
- Age Requirement: 45 and younger for 20-year term; 54 and younger for 10-year or 2-year term
- Medical Exam: Not required; database checks only
- Rates: Competitive, especially for no-exam coverage
- In-Person Staff: None; online or app only
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Boat Loans and Financing
Whether your idea of a day at the lake is a motorboat for bass fishing or a pontoon boat for parties, boat financing may be needed for you to drop anchor. Boat loans can cover a full range of options and help you buy a seaworthy vessel with a price tag as little as $5,000 and as high as several million. Loan terms may range up to 20 years to accommodate costs, making the rates of boat loans vary greatly based on value and repayment periods. The best loan terms will be obtained by well-qualified buyers with a solid credit history.
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
The 5 best boat loans and financing options of 2019
- : best 100%-financing option
- U.S. Bank: best same-day decision
- : best no-collateral loan
- Good Sam: best easy-reference interest rates
- Southeast Financial: best big-loan option
The best boat loans and financing options of 2019
USAA: best 100%-financing option
provides veterans and family members with a competitive option for boat purchases. With access to 100% financing and a minimum loan amount of $5,000, motorboat and sailboat enthusiasts can get easier access to a boat loan through USAA. As an added bonus, a boat loan can also incorporate the costs of a trailer for towing to the lake and back. For those looking for an even smaller loan option, USAA also offers a leisure vehicle loan package that would cover a Jet Ski or personal watercraft purchase. A personal loan could also help cover a rowboat for fishing or a canoe for recreational rafting.
U.S. Bank: easiest same-day decision
When you want to buy a boat and you want it today, you may not want to deal with the hassles of the financing process at a boat dealership. If you’re a new or existing U.S. Bank customer, you can apply for your financing independently and obtain same-day approval. All you need is the boat’s year and estimated value. The best rate provided by the bank as of November 2019 is 5.74% on loans of four years or less. To lock in the best rate, you’ll need a new boat purchase of $25,000 or more and automatic payments from your checking or savings account with the bank. U.S. Bank also offers other options with same-day approval but rates will vary for used boats, smaller loan amounts or longer terms.
LightStream: best no-collateral loan
Oftentimes a boat loan is going to require collateral, particularly in the form of the boat being financed. Boat Loan from SunTrust deviates from that practice by offering unsecured boat loans ranging in value from $5,000 to $100,000 for boats of any size. A fixed-rate APR as low as 4.29% is available if you set up automatic payments. The loan term is for 12 to 84 months, and the entire loan process is handled online. Funding can also be obtained for your boat-related expenses, including a trailer and motor. Same-day approval is also possible, making LightStream an extremely streamlined loan option.
Good Sam: best easy-reference interest rates
When you’re in the loan contemplation stages, an at-a-glance review of interest rates in various price ranges on different loan lengths can help you determine how much money you want to spend on a new boat. Good Sam provides a comprehensive boat loan rate chart covering loan periods from four to 20 years and loan amounts from $10,000 to $1,999,999. APRs range from 4.39% to 7.69% based on the loans. Quoted APRs are provided daily to provide the best possible loan information for new, used, refinance and live-aboard boat loan options.
Southeast Financial: best big-loan option
When your idea of a boat takes the shape of a yacht or a deluxe motorboat with premium features, you’re going to need major financing. Southeast Financial offers loans from $10,000 to $4 million to accommodate more common boat purchases and the deluxe options that work-hard, play-hard enthusiasts crave. For a motorboat with superior styling or a fetching yacht with a high price tag, repayment terms can extend up to 20 years. Southeast Financial also provides more comprehensive services for boat owners, such as extended warranties and insurance advice. As of November 2019, the best rates qualified buyers can access a 4.49% interest rate through the lender.
The 5 best boat loans and financing options summed up
| Lender | Min. Loan | Max. Loan | Lowest APR | Max. Term |
|---|---|---|---|---|
| USAA | $5,000 | 100% of cost | 5.75% | 180 months |
| U.S. Bank | $25,000 | $100,000 | 5.74% | 48 months |
| LightStream Boat Loan | $5,000 | $100,000 | 4.29% | 84 months |
| Good Sam | $10,000 | 100% of cost | 4.39% | 240 months |
| Southeast Financial | $10,000 | $4 million | 4.49% | 240 months |
What is a boat loan?
Boat loans are a type of installment loan used to finance the purchase of a watercraft for a period of years, typically ranging from four to 20 years based on the dollar amount of your purchase. Many boat loans will require collateral and are known as secured loans. In these instances, picture your boat loan as a sibling to your car loan. If you quit making payments, the lender can repossess the boat to recoup expenses — just like a car can be repossessed. An unsecured boat loan is only backed by your ability to repay and may feature higher interest rates to compensate for the increased risk.
How should I choose the right boat loan?
If you are purchasing new or investing in a more expensive boat, a secured loan provides lower APRs and access to higher credit limits and longer loan terms. For a used boat purchase or a cheaper new boat, an unsecured loan is an option to explore, particularly if your credit will qualify you for lower interest rates. After choosing the type of loan you want, start looking for lenders who provide loans as low or high as the cost of the boat you plan to purchase. Then look for the best interest rate possible. Avoid financing for as long as possible. The faster you pay off the boat loan, the less you’ll spend on interest.
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
The bottom line
Even if you have cash on hand, financing a boat can be a sound strategy for maintaining cash flow as you set sail. As you prepare to buy a boat, use a loan calculator to assess potential repayment plans and the cost of the loan over time to establish a preferred loan length and the down payment you would like to make at purchase. If you’re also buying a trailer or towing equipment, know in advance if you want to add these to the loan and how that may impact your financing options. After your purchase, make sure that the boat is properly insured in order to protect your new investment and your finances.
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Amortization Explained
Put simply, amortization is the process of paying off a debt, such as a mortgage or auto loan, in equal installments over a certain period of time. When someone takes out a loan, they are typically provided with an amortization schedule for their amortization loan by then lender. This document outlines the monthly payment, with due dates and how much of the payments will go toward interest versus the principal. Understanding amortization is very important for borrowers because it provides a specific outline of their payments and the borrower can see just how much they will be paying in interest over time. It also provides clarification on why borrowers pay less on principal at the beginning of a loan term and more at the end.
“An amortization schedule allows full transparency to the borrowers. They will know exactly how much of their payments are going to principal and interest, which allows them to understand where their payments are going and when the loan will be paid off,” Alyssa Inglis, a credit union lending officer, said.
How to calculate amortization
To determine the amortization of a loan, multiple formulas and values are needed to get there.
1. Loan payment = Amount / Discount Factor (P = A / D)
2. (n) = the number of payments over the life of the loan
3. (i) = interest rate divided by the number of monthly payments per year
4. (D) = discount factor formula ((D) = {[(1 + i) ^n] – 1} / [i(1 + i)^n])
5. (a) = the loan amount
Here’s an example amortization formula. This is on a 30-year fixed mortgage of $200,000 with an interest rate of 4.5%:
1. (n) = 360 (30 years with 12 months per year)
2. (i) = .00375 (4.5% interest rate, as .045, divided by 12 months in a year)
3. (D) = {[(1+.00375)^360] – 1} / [0.00375(1+.00375)^360]
4. (D) = 197.36
5. P = A / D
6. Loan payment = $200,000 / 197.36
7. Loan payment = $1,013.37
Now, let’s take a look at an example amortization schedule. This schedule a years worth of payments for the same 30-year fixed mortgage of $200,000 with an interest rate of 4.5%.
|
Payment Date |
Payment | Principal | Interest | Total Interest | Balance |
| Month 1 | $1,013.37 | $263.37 | $750.00 | $750.00 | $199,736.63 |
| Month 2 | $1,013.37 | $264.36 | $749.01 | $1,499.01 | $199,472.27 |
| Month 3 | $1,013.37 | $265.35 | $748.02 | $2,247.03 | $199,206.92 |
| Month 4 | $1,013.37 | $266.34 | $747.03 | $2,994.06 | $198,940.58 |
| Month 5 | $1,013.37 | $267.34 | $746.03 | $3,740.09 | $198,673.23 |
| Month 6 | $1,013.37 | $268.35 | $745.02 | $4,485.11 | $198,404.89 |
| Month 7 | $1,013.37 | $269.35 | $744.02 | $5,229.13 | $198,135.54 |
| Month 8 | $1,013.37 | $270.36 | $743.01 | $5,972.14 | $197,865.17 |
| Month 9 | $1,013.37 | $271.38 | $741.99 | $6,714.13 | $197,593.80 |
| Month 10 | $1,013.37 | $272.39 | $740.98 | $7,455.11 | $197,321.40 |
| Month 11 | $1,013.37 | $273.42 | $739.96 | $8,195.06 | $197,047.99 |
| Month 12 | $1,013.37 | $274.44 | $738.93 | $8,933.99 | $196,773.55 |
Types of amortization loans
The most common types of amortization loans are home, auto and personal loans. These loans allow individuals to purchase a home, purchase a car or use borrowed funds for other financial needs.
Home loans
If someone wants to purchase a home, they’re most likely going to have to take out a home loan, also known as a mortgage. This is usually the largest loan people will borrow in their lifetime, and these loans come with a wide range of terms and interest rates. Whether someone is in the market for a fixed-rate mortgage or a variable-rate mortgage, there is usually a solution available that will fit their financial needs. A borrower will also pay the most amount of interest on this type of loan. If we take our example from above (30-year fixed mortgage worth $200,000 with a 4.5% interest rate), the borrower will pay more than $160,000 in interest over the life of the loan if they are only making their monthly payment. In addition to the amount of interest paid, about 70-75% of their monthly payment will be applied to interest within the first year.
Auto loans
Financing a vehicle can allow a person to purchase a new or used vehicle without having to save thousands to pay out of pocket. Auto loans usually come with terms from 12 months to 72 months, but depending on the lender, borrowers can even get a term up to 84 months. As an example, let’s say a borrower finances a vehicle for $20,000 for 60 months (5 years) at an interest rate of 3.99%. This gives them a monthly payment amount of $368.24, and this borrower should expect to pay about 15-20% of their monthly payment in interest within the first 12 months, along with nearly $2,100 in interest over the life of the loan.
Personal loans
Perhaps one of the most versatile loans available, a personal loan can be used for various different reasons. Many borrowers use the funds to consolidate debt, pay medical bills, make small home improvements or for any other needs they may have. These loans are typically a fixed rate and terms can be anywhere from 12 months to 84 months depending on what the lender offers. Borrowers receive the funds in one lump sum and then pay back the amount in installments based on the term.
Oftentimes, personal loans have a lower interest rate than major credit cards, which makes them appealing to pay off high-interest cards and consolidate multiple payments into one.
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
The bottom line
Loan amortization can seem complicated, but understanding how it works can provide borrowers with the power to set various goals in order to pay debt off faster. It also can show where exactly their money is going and when they can expect to see their principal balance decrease more. Whether a loan is worth $5,000 or $500,000, amortization is an important component in the bigger financial picture of the loan.
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How Home Construction Loans Work
If you’ve decided to build your home rather than buy an existing one, you’ll need to obtain a construction loan. A home construction loan covers the costs of building your home. Some construction loans have higher interest rates and a shorter term than a traditional mortgage. Others can be transitioned into mortgages once construction is complete. If you intend to purchase an old home at a discount and renovate it or do significant renovations to a home you already own, you may also be able to obtain a home improvement loan to do so.
The Best Home Construction Lenders of 2019
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
Home construction loans versus standard home loans
Unlike a traditional home loan, construction loans are paid out in installments rather than a lump sum. Rather than being paid to you, each installment is paid directly to the builder as each phase of the building process is completed.
For this reason, it’s important to work with a reputable builder and plan out each phase of your construction project before applying for a home construction loan. You should also have a clear estimate of how much it will cost to build your house. Once construction is complete, the cost of the loan will be transferred to you and you will be responsible for repayment per the loan’s conditions.
It’s important to note that, as a consumer, taking out a construction loan generally involves taking on a higher level of risk than you would with most traditional mortgages.
According to John Donlon, co-founder of GoldCoast Mortgage in Beverly, Massachusetts, “There are a lot of moving parts when it comes to building a house with a new construction loan, and there are categories of risk that the consumer may not even be aware of and are outside of their control.” These include risk categories like the weather, but also risks associated with the team working on the project.
For this reason, home construction loans are typically best handled by a business owner, such as the builder. “For the homeowner, it’s best to transfer that risk to the builder, as they can assess the risk of contractors, sub-contractors, on-site health risks to workers, and other factors,” says Donlon. “In most cases, we recommend the consumer make a contract to buy a finished project from the builder and allow the builder to manage the financing. This keeps the builder motivated to deliver a great product and it removes those categories of risk that the consumer just can’t be expected to handle.”
Different types of home construction loans
There are three different types of home construction loans. The one you choose will depend on the goals you have for your new home and your financial situation. The most common types of home construction loans are construction-to-permanent loans and stand-alone construction loans.
Construction-to-permanent (C2P) loans
A C2P loan converts to a permanent mortgage once construction on your home is completed. Your interest rate will be locked in when the loan is closed.
This is the best choice if you have a construction plan in place, if you intend to live in your home once it’s built or if you don’t otherwise intend to sell it. Once construction is complete, you’ll have a predictable interest rate on your mortgage.
Stand-alone construction loans
Unlike a C2P loan, a stand-alone construction loan must be paid off once construction is complete. The loan does not convert into a mortgage.
This type of loan is only a good idea if you have large cash reserves. Some homebuyers also opt for this type of loan if they believe the proceeds from the sale of their previous home will cover much of the cost of the new one.
Renovation construction loans
Renovation construction loans typically finance substantial renovations to an existing property, such as adding additional rooms or levels. Depending on the loan you obtain, you may not be required to make payments if you can’t live in your home while it is being renovated.
Like new home construction loans, renovations loans also carry a certain amount of risk due to factors outside the consumer’s control. There are also risks involved with taking out FHA 203k loans.
“When you take out an FHA 203k, you end up stuck with a minimum of eleven years of mortgage insurance that never decreases. You can also get into pitfalls with home equity lines of credit, which often carry a maximum adjustable interest rate of 19.99%. For home renovations, we recommend our clients use other options that don’t involve risking their homes, such as borrowing from their own retirement accounts or other non-secured options,” explains Donlon.
Best home construction loan lenders
BB&T Bank
BB&T Bank is based in Winston-Salem, North Carolina, and operates over 2,000 band branches in multiple states. The bank’s home construction loans are a good choice if you’re looking for a C2P loan, as you’ll only have to pay interest during the construction period.
You can apply for either a fixed or an adjustable-rate loan and there are no prepayment penalties. BB&T home construction loans only require one closing and a single set of closing costs.
Citizens Bank
Headquartered in Providence, Rhode Island, Citizens Bank operates in surrounding New England states as well as others, such as Ohio and South Carolina. Citizens Bank lets you start the home construction loan process online, but they offer one-on-one support with a loan officer throughout the process.
Citizen Bank lets you verify information using a secure document exchange, which can help you qualify faster. Most of the bank’s home construction loans are made for a duration of one year or less.
Wells Fargo
Wells Fargo is a large financial bank that offers several loan products, including mortgages and home construction loans. The bank provides prospective home buyers with a range of useful tools, such as their “new construction home financing checklist” and instructional videos.
When you obtain a home construction loan with Wells Fargo, you can take advantage of their Builder Best Extended Rate Lock program, which protects your interest rate while your home is being built. For a fee, you can lock down a range of interest rates for 6 to 24 months on different types of loans. This makes Wells Fargo a decent choice for C2P loans.
US Bank
US Bank is a consumer and personal banking company owned by Berkshire Hathaway. The bank offers traditional banking services to consumers, including savings and checking accounts, credit cards and loans.
US Bank offers a range of home construction loans like other banks, including construction-to-permanent loan options. However, their biggest selling point is their online platform, which includes tools to match you with a local loan officer.
TD Bank
TD Bank is a national bank that provides loans, banking services and credit cards to consumers primarily on the eastern coast. Their home construction loans come with either a fixed or adjustable-rate and include interest-only payments during the construction phase. You can also lock down your interest rate at the start of construction.
You can begin TD Bank’s home construction loan process online, by phone or in person at a TD Bank branch.
Bank of America
Bank of America is one of the largest banks in the world, providing banking and financial services to both businesses and consumers. In addition to its range of mortgage products, Bank of America also offers construction loans through its National Builder Division. This is a program that builders can take part in so their customers can access specialized construction loan products.
Bank of America home construction loans come with the Builder Rate Lock Advantage, which lets builders lock down interest rates for both fixed and adjustable-rate loans for up to 12 months. The bank finances home construction projects up to $5 million.
Best Home Construction Loans Summed Up
| Lender | Lock-In Rate Term | APR* | Min. Down Payment |
| BB&T Bank | Up to 12 months | 3.364% – 3.830% | 3% |
| Citizens Bank | Up to 12 months | 3.125% – 3.625% | 3.5% |
| Wells Fargo | 6 – 24 months | 3.240% – 3.872% | 3% |
| US Bank | N/A | 3.625% – 3.946% | 3% |
| TD Bank | Up to 12 months | 3.843% – 4.687% | 3% |
| Bank of America | Up to 12 months | 3.291% – 3.837% | 3% |
*Based on advertised rates as of 12/10/2019
Check Your Personal Loan Rates
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
The bottom line
Most people who are looking to build a new home would be well-served with a construction-to-permanent loan if they intend to live in their new home. If you have extra cash lying around, you could consider a stand-alone construction loan.
You have several options for making renovations, including personal loans and government-insured loans. A private loan from a bank may be a good option if you can lock down a good interest rate.
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The 4 Best Investment Apps of 2019
Investment apps make it easy for beginners to learn the tricks of the trade, while also allowing seasoned investors to do business on the go. We’ve narrowed down the wide array of options and have chosen the four best investing apps available to consumers.
The 4 best investment apps of 2019
- Robinhood: Best for commission-free investments
- Acorns: Best for automated investments
- : Best for investing novices
- : Best for financial planning
| App | Fees | Apple App Store Rating | Google Play Store Rating |
| Robinhood | $0 or $5/month | 4.8/5 | 4.4/5 |
| Acorns | $1-$3/month | 4.7/5 | 4.5/5 |
| Stash | $1, $3, or $9/month | 4.7/5 | 4.1/5 |
| Wealthfront | 0.25% | 4.9/5 | 4.8/5 |
The 4 best apps for investing of 2019
Robinhood: Best for commission-free investments
Currently sitting at the No. 1 spot for investment apps in the Apple App Store, Robinhood — through Robinhood Financial — has made its name by offering investment options with no commission fees for trading. This app also sweetens the deal by having no minimum requirements to start the investment journey. Consumers who may be a little more experienced in the investing world can sign up for the Gold membership, where they are granted access to over 1,700 Morningstar stock research reports, level II market data and much more. This extra information makes for a more informed investment decision. While consumers don’t have to pay any fees for a basic Robinhood membership, the Gold membership does require a monthly fee and it starts at $5.
Acorns: Best for automated investments
Acorns provides a stress-free and low-maintenance way to invest. With Round-Ups, Acorns automatically invests your spare change from debit card transactions. Clients can sign up with Acorns for $1 a month. For $2 a month, they can also open up a Later account, which is an individual retirement account (IRA). Finally, for $3 a month clients can upgrade to Acorns Spend, a checking account that automatically saves and invests. Spend comes with the standard investment features with Round-Up, plus a Later account, as well as a checking account and debit card that links it all together. Another benefit of Spend is that the checking account comes with no overdraft fees or minimum balance fees.
Stash: Best for investing novices
For those who may be new to the investing realm, is a great option. Stash Beginner costs $1 per month and includes an investment account with bank account access. For $3 a month, Stash Growth can land clients a Beginner account, plus an individual retirement account. Lastly, for $9 a month, Stash+ provides all of the features from Beginning and Growth, accompanied by additional features like investing accounts for up to two kids, monthly market insight reports and more. Each of these accounts comes with the ability to earn Stock-Back, Stash’s rewards program that allows you to earn stock with purchases from your Stash debit card. Another benefit to this app is it provides free financial education. From blogs to podcasts, clients can benefit from various media forms to learn about smart investing. Clients also have the option to begin with one plan and switch to another as their financial needs change, offering flexibility and personalized options.
Wealthfront: Best for financial planning
With , investors have access to more than just investment opportunities. On top of having your investment accounts all in one place, investors can also use their free Path tool, which allows them to plan for big financial events like buying a home, college savings and retirement.
Wealthfront also has low management fees of 0.25% for investments, but Path is completely free to users and available even before consumers begin their investment journey. This service also provides tax efficiency. If a client does their taxes with TurboTax, they can input their Wealthfront log in information to TurboTax to automatically generate assets and tax-loss harvesting data without having to manually enter it in.
What is an investment app?
An investment app is a mobile application that can be downloaded onto any eligible smartphone. These apps allow individuals to get information on publicly traded companies. Consumers who use these applications can check out stock quotes, company information and much more. This shared information allows investors to make educated decisions on the companies they choose to invest in. The convenience of having a mobile application allows individuals to make investment decisions on the go instead of having to meet with a broker. It also allows novice investors to learn more about the markets and gives them immediate access to information.
How should I choose the right investment app?
Choosing an investment app may require a lot of research to find a solution that fits your needs the best. According to Cory Triolo, executive consumer investments digital solutions & experience at Merrill Edge, “When searching for an investment app, look for a platform that streamlines investing and gives you access to research and insights, flexible tools and step-by-step guidance when needed.”
The right app is primarily dependent upon individual financial situations. Those in the market for an investment app should examine their finances closely to decide which tool is right for them.
“Determining your investing goals, such as building a diversified portfolio or setting up a retirement fund, will help you pick the right investment tool for your needs,” says Triolo.
The bottom line
While investments may seem intimidating to a novice, they can be extremely beneficial in the long run. The right investment app is whichever one best fits someone’s financial situation. Examining one’s own financial needs is where they should start, and, when needed, they can seek out a professional opinion.
As Triolo puts it: “Whether you want digital or in-person advice or a combination of both, there are several solutions available depending on the complexity of your financial needs.”
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