Ask Liz Weston

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Liz Weston

Thursday’s need-to-know money news

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Today’s top story: Financial vital signs to monitor right now. Also in the news: July’s mortgage outlook, pandemic college enrollment, and how to make some cash before returning to school.

Financial Vital Signs to Monitor Right Now
A midyear financial review is often a good idea.

Mortgage Outlook: July Rates to Shrug and Stay the Course
A look at what could happen this month.

Pandemic Sinks College Enrollment Again, but Fall Looks Brighter
Community colleges saw enrollment drop most, but analysts expect a recovery for all types of institutions this fall.

How to Make Some Cash Before Heading Back to School
Tips for landing a summer job.

Financial vital signs to monitor right now

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A midyear financial review is often a good idea. This year, it’s almost essential.

With people going back to offices, travel resuming, and Congress making significant changes to various laws affecting your finances, consider taking some time to check in on your money. You might be able to make some smart moves to reflect the new realities. In my latest for the Associated Press, what to check-in on at the midyear point.

Tuesday’s need-to-know money news

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Today’s top story: A Roth IRA could help you avoid taxes like the ultrawealthy. Also in the news: How one DUI can nearly double your car insurance, the Child Tax Credit scam, and flying first class for cheap(er) right now.

A Roth IRA Could Help You Avoid Taxes Like the Ultrawealthy
You, too, could lower your tax burden with the right investment account.

One DUI Can Nearly Double Your Car Insurance — Here’s How to Save
On average, auto insurance rates skyrocket 96% after a DUI, our 2021 rate analysis found.

Scam Alert: Child Tax Credit Is Automatic; No Need to Apply
The IRS won’t call, text or email you so beware of unsolicited communications.

You Can Fly First Class for Cheap(er) Right Now
Luxury travel is a bit more accessible.

Monday’s need-to-know money news

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Today’s top story: With student loan payments set to return, here’s how to get help. Also in the news: A new episode of the Smart Money Podcast on managing finances abroad and a mid-year money check-in, taking financial advice from Reddit, and how to know if you’ll receive a plus-up stimulus payment.

With Student Loan Payments Set to Return, Here’s How to Get Help
The clock is ticking.

Smart Money Podcast: Midyear Money Check-in and Managing Finances Abroad
Checking in on your money goals.

Should You Take Money Advice From Reddit?
Crowdsourcing financial advice.

What’s a Plus-Up Stimulus Payment? (And How to Know If You’ll Get One)
You could be owed an additional payment.

Q&A: Credit scores and card limits

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Dear Liz: I have a 780 credit score but noted that one of my cards doesn’t count in the percent of credit used. I have had this card for 44 years and I could charge a couple hundred thousand dollars on a single purchase if I chose to, yet credit scoring formulas don’t figure in the “credit I have available” from Amex. Seems unfair?

Answer: As credit cards with six-figure limits are rare, what you’re describing is probably a charge card. Unlike credit cards, charge cards don’t have preset spending limits. They also don’t allow you to carry a balance from month to month, typically.

The “percent of credit used” you mention is called credit utilization, and it’s a large factor in credit scoring formulas. Credit utilization measures how much of your available credit you’re using, and the bigger the gap between your credit limits and your balances, the better.

But the credit utilization calculation can’t be made if one of the numbers — the credit limit — is missing. The only way the formulas would be able to calculate credit utilization in that case would be to assume that whatever amount you charged is equal to your credit limit, and that would be disastrous for your scores.