I’m hosting NerdWallet’s first Facebook Live video, “Using Debt Strategically,” on Thursday starting at 7 p.m. Eastern/4 p.m. Pacific. I’ll be discussing ways to prioritize your debt and pay it off faster while building your overall wealth. Whether you’re struggling with debt or just trying to be smarter with it, I can help answer your questions. Like NerdWallet on Facebook for updates and alerts on this event: nerd.me/facebook.
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Thursday’s need-to-know money news
Today’s top story: How to find the best deals for Memorial Day sales. Also in the news: Money mistakes to avoid for new grads, why Americans are pretty clueless about their credit cards and scores, and deciding what to do with an old 401(k).
Memorial Day Sales: How to Snag a Good Deal, Guaranteed
The most bang for your buck.
New Grads: Avoid These 5 Money Mistakes
Don’t start off on the wrong foot.
Survey: Americans are pretty clueless on credit cards and scores
We need to do better.
To Roll Over or Not to Roll Over: What to Do With That Old 401(k)
What works best for you?
Wednesday’s need-to-know money news
Today’s top story: Insurance changes to make when you retire. Also in the news: Deciding between whole life and term life insurance, protecting your credit card points, and the pros and cons of balance transfer credit cards.
5 Insurance Changes to Make When You Retire
It’s a whole new ballgame.
Should I Get Whole Life Insurance or Term Life? Financial Experts Weigh In
Deciding what works best for you.
Crooks Want Your Credit Card Points — Here’s What to Do
Protecting your points.
The Pros and (Mostly) Cons of Balance Transfer Credit Cards
Money saver or money pit?
6 Things Detroit’s Bankruptcy Can Teach You About Money
Tips from an unexpexted source.
Tuesday’s need-to-know money news
Today’s top story: The best way to invest $5,000. Also in the news: How a credit card helps with building credit, the life-and-death financial decision you don’t want to think about, and apps to help lazy people save money.
The Best Ways to Invest $5,000
Putting your money to work.
Building Credit? How a Credit Card ‘Gets You There Faster’
One way to build credit.
The Life-and-Death Financial Decision You Don’t Want to Think About
Life insurance is essential.
These Apps Are the Perfect Money Saving Tool For Lazy People
No more excuses.
Q&A: The ins and outs of credit scores
Dear Liz: I’ve been using a free credit site to learn more about credit reports and credit scores. Recently I looked around and found reviews about how “horribly inaccurate” these free scores are. Where can I go to find my real FICO credit scores? I need the ones that matter, the ones that lenders use.
Answer: Some free scores aren’t used by any lenders. But many sites these days give out VantageScores, a FICO rival that’s being used in a growing number of credit decisions. So VantageScores are “real” scores, just not the most commonly used scores.
Here’s the thing, though: You generally can’t predict which scores a lender will use. Not only are there different name brands, but FICO offers versions customized for certain types of lending. The scores typically used by credit card issuers are different from the ones used by auto lenders, for example. These industry-specific FICO scores are on a 250-to-900 scale, rather than the 300-to-850 scale used by other FICO scores.
There are also different generations of each type of score, much like the different operating systems for your computer. Some lenders quickly upgrade to the latest version, just as some computer users upgraded to Windows 10 when it came out. Others use older versions of the scores, just as users may cling to Vista or XP. (For you Mac users, that would be something like hanging on to Mountain Lion or Snow Leopard instead of updating to El Capitan.)
Mortgage lenders, in particular, use relatively old versions of FICO. That’s because the agencies that buy most home loans, Fannie Mae and Freddie Mac, haven’t updated their requirements so that lenders can use newer versions.
Some credit card companies offer their customers free FICO scores, typically from one bureau. You can get a glimpse of the array of scores lenders might use by buying the most commonly used FICO, the FICO 8, for about $20 each from MyFico.com. Along with each FICO 8 you buy (you can buy three, one from each of the three major credit bureaus), you’ll get additional versions used for auto, credit card and mortgage lending.
If you’re going to be in the market for a major loan, such as a car loan or a mortgage, it makes sense to buy your FICOs so you can get a better idea of how lenders might view you. If you’re just interested in tracking your scores generally, though, the free versions can be perfectly adequate.
Friday’s need-to-know money news
Today’s top story: Why more banks are turning to biometrics for security. Also in the news: How natural disasters can hurt your finances, how to get your late credit card payment waived, and 10 things that will cost you less this summer.
More Banks Turn to Biometrics to Keep an Eye on Security
Your eyes could hold the literal key to your account.
5 Surprising Ways Natural Disasters Can Hurt Your Finances
Incidentals alone can add up quickly.
How to get your late credit card payment waived
It can’t hurt to ask.
10 Things That Will Be Cheaper During the Summer of 2016
Where you can expect to save some cash.