Hours of research by our editors, distilled into minutes of clarity.
With fees removed from the equation and more time at home thanks to pandemic-related lockdowns, Americans who had never bought or sold stocks before started participating in the market. Charles Schwab dubs this cohort “Generation Investor” and notes individuals from all age ranges took part in this phenomenon. Study up here.
A mortgage is a loan used to buy property, like a house. Borrowers typically put down a percentage of the cost of the home, and the amount left over is financed through a lender, like a bank.
After adjusting for inflation, housing costs have more than doubled since 1965. And based on average incomes, buyers are spending more than five times their income for a home versus buyers in 1965, who typically spent less than three times their income.
It’s easy to let your credit score slip without realizing it. Checking your credit score and getting to know what’s on your credit report are the first steps to getting to the “700 club,” or “good score” range, according to one financial expert.
Your credit history is used to calculate your credit score. It includes information such as how often you miss payments (on credit cards, for instance), the types of financial accounts you hold, how long you’ve held those accounts, and more.
A bad credit score can lead to spending roughly $100K more on a typical mortgage. Poor scores also prevent you from getting certain jobs, apartments, and more, hindering you from building wealth in the long term.
Contrary to popular belief, checking your credit score doesn’t hurt your credit. Many credit card companies show your score when you log into their app online, but there are other ways to check it.
Credit reporting started as a service for businesses rather than consumers. In the 1700s US economy, consumer credit reporting wasn’t necessary. A loan to a farmer for agricultural supplies, for instance, would inevitably help them purchase both personal and business items.
VantageScore and FICO weigh various factors that determine your credit score differently. For instance, while your payment history makes up 40% of your VantageScore, it only makes up 35% of your FICO score.
While VantageScores and FICO scores both offer credit scores between 300 and 850 and consider the same core factors, they weigh those factors differently, and specific numbers can have different meanings depending on the type of score.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.