Beating Broke

6 Tips You Should Know to Keep Your Credit Balance From Impacting Your Credit Score

January 21, 2025 By Teri Monroe Leave a Comment

If you’re not in a position to have zero balances on your credit cards, how can you keep a credit balance from impacting your credit score? Managing your credit balance and credit score is a delicate balancing act that takes knowledge and strategy. Here are the tips you need to know to improve your credit score, even when you have credit balances.

1. Pay More Than Your Minimum Balance

Just paying minimum balances every month will not only increase the time it will take you to pay off your credit cards due to interest, but it also won’t help your credit score. Instead of just paying your minimum balance each month, make payments throughout the billing cycle. This way, these smaller balances on your card will be reported to credit bureaus.

2. Pay on Time

This may seem obvious, but late payments will negatively impact your credit score. On-time payments make up 35% of your FICO score and it’s hard to come back from too many missed payments. If you’re struggling to make payments on time, contact your credit card companies as soon as possible. You may be able to negotiate a payment plan.

3. Keep Your Credit Utilization Low

Keep credit utilization low when you have a credit balance — Image Source: Pexels

Credit utilization is the ratio of your debt to available credit. This number accounts for 30% of your FICO score. Because of this, it’s usually not beneficial to just move debt around to one card and close other accounts. Your credit utilization will still remain the same. Instead, focus on paying off your credit balances.

4. Don’t Close Accounts

Even if you pay off some of your credit cards, don’t close the accounts. This short-term strategy to boost your score, won’t help you in the long run. Closed accounts can lower your score and impact your credit history. Plus, closed accounts still show up on your credit report.

5. Try and Increase Your Limit

Increase your credit limit — Image Source: Pexels

Calling your credit card companies and asking for a credit increase can help increase your credit score. Make sure to update your income information to increase your chances of an increase. Having more available credit will help boost your score. However, this doesn’t mean that you should open several new accounts to try and boost your score. This will actually have the opposite effect because each new account will trigger a hard inquiry on your credit report, lowering your score.

6. Take Advantage of Opportunities to Boost Your Score

Did you know that on-time payments on bills like utility bills, cell phone bills, or rent payments can help boost your score? You can try services like Experian Boost that take these payments and report them to increase your credit score. When you have balances on your credit cards, these creative ways to increase your credit score can make a big difference.

Managing a Credit Balance

Just because you aren’t debt-free doesn’t mean that you can’t have a good credit score. By managing your credit card balance wisely, you can increase your credit score and make smart financial decisions. It’s always a good idea to create a plan that will help you pay off your credit card debt.

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3 Upgrades The Outside Of Your Home Needs This Year

January 20, 2025 By Erin H Leave a Comment

Welcome to a new year of enhancing the beauty and functionality of your home! As homeowners, it’s essential to periodically assess the exterior of our homes to ensure they are not only visually appealing but also efficiently serving their purpose. This year, consider upgrades that offer long-term benefits and can even increase the value of your property. These enhancements not only contribute to curb appeal but also improve the reliability and sustainability of your home. From upgrading roofing materials to investing in quality siding and fuel options, these changes can make a significant impact on your home’s overall performance and appearance.

Long-Lasting Metal Roofing

When considering a roof upgrade, durability and longevity are key factors in the decision-making process. Metal roofing is a standout option for those seeking a roofing material that offers these qualities. With its ability to withstand harsh weather conditions and resist environmental wear-and-tear, a metal roof is not only practical but also aesthetically pleasing, providing a sleek, modern look to any home.

One of the significant benefits of metal roofing is its impressive lifespan. Unlike traditional roofing materials such as shingles, metal roofs can last much longer without requiring frequent repairs. According to This Old House, a metal roof could last up to 70 years, making it a wise investment for any homeowner looking for a durable roofing solution.

In addition to its durability, metal roofing also offers environmental benefits. Many metal roof options are made from recycled materials and are easily recyclable at the end of their useful life. This sustainability feature can help homeowners reduce their carbon footprint and make their homes more eco-friendly.

Enhancing Exteriors with New Siding

Updating the siding of your home can make a dramatic difference in its appearance and energy efficiency. New siding not only improves the visual appeal but can also provide better insulation, which can reduce heating and cooling costs. Homeowners have multiple options when it comes to selecting the right siding material to suit their aesthetic and functional needs.

Vinyl siding is a popular choice due to its affordability and versatility. However, if you’re looking to get more value out of your home, fiber cement siding might be the way to go. According to Consumer Reports, replacing vinyl siding returns 74.7% of your investment, while installing fiber cement siding returns 77.6% of it, highlighting the financial benefit of choosing the right siding material.

Whether you opt for vinyl, fiber cement, or another material, installing new siding can significantly enhance your home’s exterior. It’s an excellent opportunity to update color schemes, patterns, and designs to match your evolving tastes and trends. Moreover, modern siding options often come with improved technologies that offer better protection against elements such as water, wind, and pests.

Investing in an Underground Propane Tank

For homes relying on alternative energy sources, installing an underground propane tank can be a game-changer. Propane is a versatile energy source that can be used for heating, cooking, and even powering appliances. By opting for an underground propane tank, homeowners can enjoy the advantages of propane without unsightly tanks disrupting their landscape.

While the initial investment might seem steep, the long-term benefits are worth considering. Homeowners should be aware that, according to HomeGuide, an underground propane tank can cost between $1,100 and $5,200 to install. However, this installation not only offers aesthetic benefits but can also contribute to a more efficient energy supply, reducing reliance on electricity.

Additionally, an underground propane tank provides safety advantages, as it is protected from weather conditions and potential accidents. This discreet setup minimizes the risk of tank damage and ensures a reliable energy supply for your home throughout the year. With this upgrade, you’ll be able to maintain the beauty and functionality of your home while enjoying the benefits of clean, efficient, and dependable energy.

Upgrading the exterior of your home with these three significant changes can bring numerous benefits. Whether it’s the longevity and resilience of a metal roof, the aesthetic and financial advantages of new siding, or the reliable energy supply from an underground propane tank, each upgrade serves a critical role in enhancing your home. As a homeowner, investing in these upgrades not only improves your living experience but also increases your property’s value and appeal. As you plan for the year, consider these upgrades to achieve a sturdy, efficient, and beautiful home exterior.

8 Banks Cutting Branches in Response to Digital Banking Trends

January 16, 2025 By Teri Monroe Leave a Comment

According to data collected by the OCC, around 1000 bank branches closed in 2024. This trend, accelerated by the COVID-19 Pandemic, can be attributed to many customers choosing online banking as opposed to visiting a branch in person. Many banks are cutting branches in an effort to cut costs and reinvest in new technology. But these closures have created an increase in banking deserts in many communities.

According to a report by the Philadelphia Federal Reserve, from 2019 to 2023, the total number of bank branches declined by 5.6 percent, while the number of Americans living in banking deserts grew by 760,000. Self Financial experts estimate that if this trend continues physical bank branches could cease operations by 2041. This could become a problem for older Americans who do most of their banking at branches. Here is what you need to know about 8 banks that are cutting branches.

Which Banks Are Cutting Branches?

Bank of America: Leading the way with closures, Bank of America closed 132 branches last year in total.
U.S. Bank: U.S. Bank closed 40 branches in 2024. Oregon was hit the hardest by U.S. Bank closing branches, with seven branches shutting their doors. All branches in Kentucky were also closed.
Wells Fargo: Over 79 branches from several prominent banks have closed in 2024
PNC: PNC closed more than 20 of its branches in 2024, according to regulator filings from the company. The closures come after the financial institution cut more than 200 locations in 2023.
Citizens Bank: In 2024, Citizens Bank cut 15 branches across six states, including Massachusetts, Michigan, New Hampshire, Ohio, Pennsylvania, and Rhode Island.
Fidelity Bank: Fidelity Bank closed 6 branches as of June 2024.
Flagstar: In December 2024 alone, Flagstar Bank closed 7 branches.
Chase: JP Morgan closed 28 Chase Bank branches in 2024.

Which States Will See The Most Branch Closures in 2025?

mobile banking — Image Source: 123rf.com

According to research conducted by Self, California has seen the highest level of bank closures of any state, with 1,080 branches now closed in the last 10 years. Florida comes in second with 1,056 closures and Illinois is third with 823 closures. While there is no clear way to tell which states will be impacted the most in the coming years, this data can give us some hints.

Impacts of Cryptocurrency Banking

While digital banking has had significant impacts on brick-and-mortar branches, cryptocurrency is changing the banking industry as well. Cryptocurrency is agile in ways that traditional banking isn’t. With cryptocurrency banking, customers can transfer and invest money efficiently, with fewer fees and cumbersome practices. Especially in areas that are underbanked, cryptocurrency serves as an alternative to traditional banking services. As more customers gravitate toward nontraditional banking like cryptocurrency, banks may continue to struggle to keep up.

The Future of Banking

Banks will continue to cut branches in the future and invest money in technology to improve efficiency, security, and the customer experience. Trends to watch out for in 2025 include an increase in automation and AI use, open banking to securely connect customers to third-party providers, and more advanced payment processing like contactless payments and mobile wallets. These technologies will take priority over keeping bank branches open.

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