source Deserve Deserve is a new company that’s focused on helping young people build credit. It just raised $17 million from Sallie Mae, Accel, Pelion, Aspect Ventures, and Mission Holdings. For many college students, there’s a Catch-22 when it comes to their finances: They can’t get a credit card or student loan because they have no credit history. But they have no credit history because they can’t get a credit card or student loan – or at least, not a good one. This dilemma is all too familiar to Kalpesh Kapadia, CEO and founder of Silicon Valley-based startup Deserve – which today announces a $17 million round of funding led by lending mega-giant Sallie Mae, with participation from early Facebook investor Accel as well as Pelion, Aspect Ventures, and Mission Holdings. When Kapadia came to the US from India for college, he was turned down again and again when applying for credit cards and student loans. “I got … [Read more...] about Credit card startup Deserve raises $17 million to help young people build their credit in a system that makes it way too hard
Building good credit
Credit scores are needed to qualify for a car loan or mortgage. And the way you establish a credit history is by getting a credit card, right? That's a familiar personal finance myth that has led millions of Americans to get their first credit card -- and risk falling into high-interest debt, experts say. The average American in 2017 had two-bank issued credit cards and carried $5,551 in debt, according to the credit bureau Experian. Collectively, Americans have $1 trillion in credit card debt, more than any country in the world. Here are four ways consumers can create a credit history without falling into the credit card trap. Report monthly bills like rent and utilities Bills like rent and utilities traditionally aren't used to create a credit history – only loans are. But new companies and scoring models are springing up that include monthly bills like rent, said Robert Harrow, a credit card specialist with ValuePenguin. Those bills include rent, cell phone, internet, … [Read more...] about 4 ways to build good credit without using a credit card
It’s true — there’s no shortcut to achieving a good credit score. It takes years of paying your bills on time and in full, keeping balances low and managing different kinds of debt. But there are small steps you can take to help your credit, in the same time it takes to watch an episode of your favorite Netflix drama. Options for building your credit differ if you have an established credit history or if you’re new to credit. If you have established credit 1. Pay down debt One of the main factors in your credit score calculation is credit utilization, or how much of your credit limit you are using. If your credit cards are nearly maxed out, paying down the balances will lower your utilization and potentially help your score. Credit experts recommend keeping all balances below 30% of your credit limit — and lower is better. 2. Make an extra payment in a billing cycle If you cannot afford to pay your credit card balances in full once a month, making multiple … [Read more...] about 6 ways to build your credit in less than an hour
Conventional wisdom about credit cards is often black and white, from whether you should use cards at all to which types deserve a slot in your wallet. But personal finance is just that — personal, experts say. “Financial advice is best when it is not one-size-fits-all,” said Bruce McClary, spokesman for the National Foundation for Credit Counseling. “Everybody is different in the way they set priorities and manage budget decisions, so it makes sense that some advice may not be a perfect fit for all people.” Credit card tips might be easier to understand when they’re binary — do this, don’t do that — but that advice usually doesn’t apply to everybody. In fact, some advice could hurt more than help. Here’s a sampling of conventional wisdom on credit cards and why it might not apply to you. ‘Never use credit cards’ Cardholders can get in trouble by charging too much, then paying finance charges. That downside … [Read more...] about When to ignore credit card advice
Dreaming of a spring getaway with white-sand beaches and a cool drink in your hand?A search for airline tickets can bring your dream down to earth, if the steep fares charged by many airlines outstrip your savings.What if you could book your trip today and pay for it later — without maxing out your credit cards?Major airlines including American Airlines, JetBlue, Southwest Airlines and United Airlines integrate buy-now-pay-later concepts into their online booking. Working with technology startups that provide the financing, they offer loans to travelers who would rather pay a fixed amount over time than dip into savings or use high-interest credit cards.Financing a trip may be a reasonable option in a few situations — for trips that are important and have inflexible dates, for example, or for emergency travel. But if you don't know how you'll pay, borrowing isn't a good idea, experts say.LOAN OR LAYAWAY"We are trying to help people take the trips of a lifetime," says Brian … [Read more...] about Fly now, pay later: Are travel loans a good deal?