Your Credit Card: Should You Focus on Low APR or Cash Back?
OCT 22, 2022
Low APR versus cash back: Which feature matters most when applying for a new credit card?
In a GOBankingRates survey, 1,003 Americans shared answers to the question about credit card features that matter most to them. According to our data, 26% of respondents value a low purchase APR. Rewards and/or cash back were the top priority for 22% of respondents.
Which of these features should cardholders prioritize? Sometimes the answer depends on how you plan to use your credit card.
Avanti Shetye, CFA and founder of Foolproof Financial Freedom, recommends cardholders ask themselves the following questions to figure out whether they need a low APR or cash back emphasis on their credit cards.
Vanguard vs. Fidelity: Which Is Best for You?
OCT 12, 2022
Fidelity has a wide range of high-performing index funds, including funds that track U.S. stock market indexes, international equity index funds and sustainable fund indexes. Top choices include the Fidelity 500 Index Fund (FXAIX) and the Fidelity U.S. Sustainability Index Fund (FITLX).
The performance between the companies’ index funds are likely similar, as they track the same market indexes. However, Avanti Shetye, a chartered financial analyst, or CFA, in Ellicott City, Maryland, says the fees and investment minimums vary between companies. “Fidelity funds have no minimum requirements on initial investments,” she says. “Vanguard, on the other hand, has a minimum investment requirement of $3,000. For an investor who is just starting and either doesn’t have $3,000 or wants to test the waters before getting comfortable investing, Fidelity is the clear choice with its zero minimum requirement.”
9 reasons why your credit score has suddenly dropped
OCT 10, 2022
Once you get approved for a credit card, you’re offered a set credit limit based on the information you provided during the application process. Over time, your lender may choose to change the credit limit it initially offered to you by increasing—or decreasing it.
A decrease in limit will affect your credit utilization ratio. “Lowering your credit limit increases your credit utilization ratio, which is your total outstanding balance on all accounts divided by the credit limit on all accounts,” explains Avanti Shetye, CFA, founder of Foolproof Financial Freedom.
So even though you may be charging the same amount to your credit card each month, you’re now using a higher percentage of available credit since your limit is lower. This may lead to a drop in score based on “amounts owed.”
So why does this happen? There are several reasons, such as a shift in the economic climate, or if you use too little or too much of your credit limit.