Fix Your Finances – Page 2 – shemakescents
Category: Fix Your Finances
Is the UltraFICO Score the Best Way To Boost YOUR Credit Score?
Published on October 26, 2018 by Danielle YB VasonLeave a comment	
A new credit scoring system, called the UltraFICO Score, is being introduced in the new year and it could mean a boost in your credit score, making it easier for you to get better rates for large purchases like a car or home. Launching in early 2019, this scoring system is designed to validate the score of consumers, but more importantly, it will be used to assess the willingness of consumers to share their personal financial data for a potentially higher score. By opting in and linking with your checking, savings or money market accounts, your UltraFICO Score enhances your credit score based on indicators of responsible financial behavior.
The model, developed by FICO, will be implemented through Experian and borrower data will be aggregated through Finicity. The UltraFICO score is slated to potentially boost the credit scores of 7 million people with financially savvy millennials in one of the best positions to take advantage of the new score system. The UltraFICO score isn’t for everyone, but it just may be a great tool for you.
Is the UltaFICO Score Right for Me?
According to the UltraFICO press release, “Experian, FICO and Finicity estimate this new score has the potential to improve credit access for the majority of Americans and is particularly relevant for those who fall in the grey area in terms of credit scores (scores in the upper 500s to lower 600s) or fall just below a lender’s score cut-off”. The process for applying for loans will remain the same, with loan providers checking your FICO score. If you are rejected from a loan based on your FICO credit score, you may request that they pull your UltraFICO which then takes into consideration the way you handle your physical money in your checking, savings, and money market accounts. If you make more deposits than withdrawal, have no bounced checks, maintain an average account balance and don’t have a history of overdrawn accounts, for example, then it may present you as more creditworthy than when considering your FICO score alone.
Again, this applies best to those who fall in the grey areas of credit scores.
Why the UltraFICO Score Could Be A Good Things for Millennials
Millennials are known for a lot of things, good and bad, but one thing I can say for sure, we learned a thing or two from the Great Recession of 2007-2008 when many of us were in college, graduating college, or in our first job right out of college. I mention this because that terrible time for the US economy taught millennials the importance of putting money aside in savings. A survey from Transamerica found that fully 39% of millennials are defined as “super savers” since they are saving more than 10% of their salary. That’s close to the 15% experts often recommend.
Millennials have delayed several life milestones, like buying a house, because student loan debt is factored into one’s credit score. Now, if someone were to opt-in to the UltaFICO Score for consideration when trying to be approved for a mortgage, it may be into their best interest to leverage their checking and savings account data to access more lending options and better terms. Especially when the access to one’s financial data supports the super savers finding from the Transamerica survey.
Why I Don’t Believe the Hype of the UltraFICO Score
There are several scenarios where I can see the UltraFICO Score as a smart money move, especially for those who are looking to secure an affordable mortgage. If leveraging your data can help get you approved for a mortgage or even a lower interest rate, then by all means, make that smart money move, girlfriend. Like I said earlier, it isn’t for everyone but it just may be the measurement tool for you.
Personally, my mind flagged some of the language used in the UltraFICO Score press release and on the FICO website and my spidey senses (also known as my intuition) were tingling. Both the press release and the website used basic persuasive writing techniques by infusing the announcement with positive power words like “empower” and “control” to give consumers the feeling that they are in control of their own credit score destiny. Yes, in theory, you are in control of your credit score, but sometimes past decisions and life circumstances are a more powerful reflection of why your credit score is what it is. I interpreted FICO’s declaration stating, “you are in control of your credit score” to mean that if you choose to opt-in to this new scoring model then you are controlling the boost that your UltraFICO score may reflect.
The thing is, rarely do we get something for free. In this instance, this consumer empowerment message that you are being sold is for the bartered price of your personal financial data. In a world where personal data is just as valuable as money, if not more, it makes me wonder if we as consumers are being blinded by the smoke and mirrors of a better credit score. Just think of how much your financial data is really worth if they are willing to give you a little credit boost in exchange for it.
Only time will tell how this will really impact the scores of those who decide to opt-in. As more information is available, the questions that many of us have will hopefully provide more insight in deciding which score, FICO or UltraFICO would be best for you.
Categories Fix Your Finances, Lifestyle•Tags credit score help, Danielle YB Vason, debt management, FICO score changes, how to boost your credit, how to boost your credit score today, new credit score, personal finance for women, personal finance made easy, She Makes Cents, UltraFICO score	
How You Can Start Making More Money With Cash Back Apps & Referrals
Long gone are the days where you sit around and cut coupons to save money. This is the time for cash back apps, digital coupons, and automatic promo codes that make the things we buy every day, more affordable. If you are not saving a little money on your everyday purchases, you are missing out. Months ago, I introduced She Makes Cents readers to the Cash Back App, Ibotta. I shared my review of Ibotta after using it for one month because I was impressed with how easy it was to earn money quickly with minimal effort by shopping for the things I would normally buy. Seriously, they have over 300 supported Ibotta retailers so there is no excuse not to earn money. Since downloading the app, I have earned money back from buying groceries, clothing, Uber rides and even experiences from Groupon (I used that one as a birthday gift for the Mr. last year). The $10.00 welcome bonus was also a great boost to add to my lifetime earnings using Ibotta. Since then, I have learned a few ways to raise the earning potential so that everyone can get more money even faster.
How To Earn More Money With Ibotta
Welcome Bonus. Who doesn’t love FREE money? A few people (my hubby included) missed out on the $10.00 welcome bonus because they did not know how to redeem it. Repeat after me: “We are not leaving money on the table anymore”. This happened to them because they didn’t understand that after downloading the app with my promo code (tahbinu) you MUST redeem your first rebate within the first month of setting up a new account. You will receive your special bonus AFTER you have redeemed a mobile shopping offer or an in-store offer (Any Brand and Any Item offers excluded). Follow the link to begin earning money with Ibotta.
**Please note: Make sure you sign up through my link on a unique mobile device that is not already associated with another Ibotta account. Also, remember to verify an offer (excludes “Any Brand” or “Any Item” offers) within the allotted time period found on your bonus.**
Add Things You Are Planning to Buy to Your “My Offers” When You Find Them. The folks from Ibotta suggest that you should save your desired offers as soon as you see them. It is what I do especially when I am planning our household meals for the week. I quickly scroll through to see if any of the items on my grocery list are also cash back items and when they are I add them to “My Offers” tab on the navigation bar. I find it to be a much easier process when it is time to redeem.
Try to Redeem Offers Weekly. Unless you are on a no spend week, I imagine that you will make a purchase from one of the 300+ retailers at some point during your week. I say this, not to encourage you to shop and spend more but more so to make you aware that it really is easy to earn money back from things you are already spending on. You can earn even more by redeeming weekly offers and earning bonuses with your team. Plus when you check back weekly, it ensures that you won’t miss out on the option to opt into additional bonuses that usually have a bigger payout.
Invite Friends. Build Your Team. Earn Cash $$$ Faster. By simply inviting friends to Ibotta and helping them redeem their first offer (excluding “Any Brand” and “Any Item” offers) you earn money and they do too. Build your team by inviting friends. Each month, your team will be given a total earning goal. If you and your team reach the monthly goal, everyone on your team will earn a cash bonus! The more friends you have, the faster you will earn.
Categories Fix Your Finances, Lifestyle•Tags cash back apps, Coupon Tips, Debt Free Journey, Earn Money, Grocery Savings, Ibotta, Money Saving Apps, Never Pay Full Price, saving money	
Roth IRA vs Traditional IRA | Which is Better for You?
Published on February 3, 2018 February 3, 2018 by Danielle YB Vason1 Comment	
An Individual Retirement Account (IRA) is a savings account where money grows tax-free. Any individual, regardless of age, who has earned income, can contribute to an IRA and the earlier one is able to do so, the better compound interest works in one’s favor. The money used to fund an IRA must come from taxable income, which the IRA explains, “can encompass more than just one’s annual salary. Taxable income can include profits from stocks or real estate sales, winnings from the lottery, betting the dogs or horses, and winnings from any casino (domestic or abroad). Even the cash value of bartered items is considered taxable income”. As of 2017, the maximum individual contribution for an IRA was capped at $5,550.00. However, people 50 years or older, are allowed to save an additional $1,000.00 for a maximum contribution of $6,500.00 as a sort of catch-up contribution since they are closer to retirement age.
The Difference Between Traditional & Roth IRAs
IRAs fall into one of two categories, a Roth IRA and a Traditional IRA, and the opportunity for your money to grow tax-free is one of the most appealing benefits of this type of retirement account. Even with the benefits, Uncle Sam still requires his cut. The most distinct difference between the two types of IRAs, Roth and Traditional, is when you pays taxes on the money. With a Roth IRA, you pay the taxes up front and with a Traditional IRA, you pay the taxes at the time of withdrawal. Regardless of the type of IRA one chooses, a person can access one’s money once they hit 59 ½ years old, without being hit with a 10% tax penalty for early deduction.
Even though Traditional and Roth IRA play by different rules, those differences allow you to select the best account type for you that helps your money grow tax-free until you reach your retirement years. Once you understand the differences between both types of IRAs, it will be easier to understand which account is best for you. Check out this Roth vs. Traditonal IRA infographic from Business Insider that breaks it all down.
Categories Fix Your Finances•Tags Millennials and IRAs, Roth IRA, roth ira vs traditional ira, Traditional IRA, Which is better a Roth IRA or a traditional IRA?, Why You Need A Roth IRA	