What Happens to My Debt if I Die

• Debt Reduction
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Debt is a challenge to many in this life. But what happens to your debt when you die? The answer depends on a number of factors, including where you live, the type of debt, and whether a debt is secured.

what happens to debt if i die

Nobody likes the idea of leaving their loved ones saddled with debt when they pass away. You may wonder if your heirs will be stuck with your bills when you’re gone.

The simple answer is that laws prevent debt collectors, creditors, and other entities from trying to collect money from your relatives once you’ve passed away. Your retirement accounts and life insurance payouts are typically off the table for covering your debts, as well. Whatever is in your estate, however, is technically up for grabs if creditors want to try to collect your debts. They can make claims on the money and assets you’ve left behind.

Joint accounts present another complicating factor. Spouses, children, business partners, and other people you have relationships with could be responsible for a debt that’s left behind on joint accounts or shared possessions.

Your loved ones will also have some extra rules to comply with if you live in a community property state. People in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin have slightly more to worry about when it comes to leaving loved ones saddled with debt.

Are you concerned about what will happen to your unpaid bills and debts if you pass away? It’s important to know who could end up having to pay off your house, car, credit cards, or student loans. Find out what happens to the most common types of debt after death.

Types of Debt

Your Mortgage

A home mortgage is usually one of the largest debts a person could leave behind. If you co-own a house or leave it to an heir, you could leave someone with the responsibility of paying off the rest of your mortgage.

Your executor will have the option to pay off the mortgage using money from your estate. However, the executor can sell the home if there isn’t enough money in your estate to cover the balance of the mortgage. An heir could have a bit of a headache to deal with if you’ve taken an equity loan out against your home, especially if it leaves the home mortgaged for more than it’s worth.

Your Student Loans

Some people like to joke that the only way to avoid paying off a student loan is to die. This is a unique type of debt because it essentially never goes away until you pay it in full or pass away (or, in some cases, become permanently disabled). You can’t get rid of it through bankruptcy.

But it turns out that it can even come back to haunt your loved ones.

Your spouse could actually be responsible for any unpaid private student loans that you obtained during your marriage if you live in a community property state. According to NOLO:

In community property states, most debts incurred by either spouse during the marriage are owed by the “community” (the couple), even if only one spouse signed the paperwork for a debt. The key here is during the marriage. So if you incur a debt, such as a student loan, while you’re single, and then get married, it won’t automatically become a joint debt. (An exception is where a spouse signs on to an account as a joint account holder after getting married.) Some states, like Texas, have a more nuanced way of analyzing who owes what debts by evaluating who incurred the debt, for what purpose, and when.

From this we learn a few things:

  • Laws vary from state to state. What might be true in one state may not be the case in another.
  • In community property states, a spouse may be liable for the other’s debts, not just student loans.
  • This stuff is complicated, and we can’t always let common sense guide us.

One good piece of news is that federal student loans are discharged when you die. In addition, Sallie Mae and Wells Fargo will forgive your debt if you pass away. Some of the newer student loan refinancing companies also allow for discharge upon death.

Your Credit Cards

The average American’s credit card debt is $3,600. That’s a pretty big unpaid bill to leave behind. What happens if you have unpaid credit card bills when you pass away?

A credit card is an unsecured debt. It isn’t secured by assets like a mortgage is. As a result, credit card companies can’t go beyond what’s in your estate when attempting to collect payments. This means your loved ones won’t be on the hook for your unpaid credit card bills.

A joint account holder, however, would be completely responsible for any outstanding balances. The credit card company can’t hold authorized users responsible for the debt in the same way, though.

Your Car

What happens if you’re still making car payments when you pass away? The lender won’t require anyone to finish paying off the debt. However, the executor of your estate can continue to make those payments to keep the car in your estate. There is also the option for the person who inherits the car to simply take over your payments. Your lender can repossess the car, however, if the executor misses payments.

Some Important Things to Remember

Creditors sometimes try to collect debt payments by contacting family members and making inaccurate claims regarding who owes what. Here are four easy tips to help you shield your loved ones from being stuck with your debt or hassled by creditors:

  • Keep the beneficiaries on your life insurance policies updated to ensure that benefits don’t end up going to your estate and getting into the hands of creditors.
  • Your estate’s executor should notify creditors that you are deceased as soon as possible to avoid unintended missed payments.
  • A copy of a death certificate should be sent to the three big reporting agencies to avoid identity theft or other issues that could affect your estate.
  • Authorized users of your credit cards should stop using them right away.

Your finances really do require a lifelong commitment. Unfortunately, the people you leave behind may have to carry on with some of that commitment if you’ve left unpaid debts. The important thing to remember is that creditors can’t go beyond what’s available in your estate when trying to collect personal debts. Your personal debts won’t become a burden for your loved ones to deal with under most circumstances.

You can make it easier on your relatives by keeping your financial papers in order. We call it a Death Dossier.

Finally, keep in mind that laws vary from state to state. It’s important to seek competent legal advice before making any decisions.

9 Reasons Your Credit Score Has Dropped

• Credit
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It’s a common question–Why did my credit score drop? Your score can fall for many reasons. Some drops are insignificant, while others can seriously hurt your finances. We examine nine common reasons your credit score may have fallen.

Why Your Credit Score Has Dropped

So you recently pulled your credit report or got an alert from a monitoring service. Suddenly, your score is lower than it was last month. What gives?

Credit scores are, to say the least, complicated. They’re based on a whole host of factors. Plus, each factor is weighted a little differently. So this means your score can drop for a number of reasons.

Pinpointing the exact reason for your credit score’s decline can be tough. But here are nine common reasons your score could have declined. Once you figure out which is causing your issue, you can take steps to fix it.

9 Reasons Your Credit Score Has Fallen

1. You’re 30 days late on a payment.

Technically, your creditors can report a payment as late as soon as it’s past the due date. In reality, though, this rarely happens. Most creditors won’t report a payment as late until it’s 30 days overdue. But once that happens, your credit is likely to take a big hit.

Solution: If you think you’re up-to-date on all your accounts, check your actual credit report. It will tell you which account has recorded a late payment. You can either bring the account up to date or call the creditor to dispute the late payment record. Another option is to ask for a goodwill adjustment. This can erase the late payment from your records, giving you a boost.

2. An already late payment became even later.

Creditors can report a payment as late at any time, but credit scores account for various levels of late. A 30-days-late payment will drop your score. But once you cross into the 60-days-late category, it’ll drop again. Go 90 days overdue, and you’ll see yet another decrease.

Solution: Again, you’ll find the record of which account is overdue on your credit report. Bring the account up to date as quickly as you can, even if that means working with your creditor on a payment plan.

Many times, lenders are willing to work with you, especially if you’ve recently undergone job loss or other hard times. Again, if you’re not in the habit of letting payments go late, you may be able to get a goodwill adjustment. But you’ll likely have to bring the account current first.

3. You charged up your credit card.

Your credit utilization ratio–how much credit you’ve used versus how much you have available–is an essential piece of your credit score. This is why the best practice is to pay off your credit cards in full each month. This keeps your credit utilization at or near 0%, which is great for your credit score.

What if you recently made a big purchase or just over-relied on your credit card? If you don’t pay down the balance, that will show up on your next credit report. This will cause your score to decrease.

Solution: Pay down your balance as quickly as you can using a balance transfer credit card. And then try to make a habit of never charging more than you can comfortably pay off in a month.

4. An account went to collections, or you are subject to a tax lien.

Having an account go to collections or the government open a tax lien can really tank your score. These things stick around for a long time, too, so try to avoid them whenever possible.

Sometimes there’s a mistake that causes these items to show up on your report. But sometimes it can happen because you missed something in your own financial life. Maybe a missed medical bill went to collections quickly. Or maybe you thought you paid your taxes in full, but didn’t.

Solution: If there’s been a mistake, contact the party reporting the lien or collections account to straighten things out. Otherwise, get the account settled as quickly as possible. It will still show up on your credit report for up to seven years. And it will have a negative effect on your score for a while. But an account showing paid in full will have less of a negative impact.

5. You closed an old account.

Closing old credit card accounts can seem like a good thing. But part of your credit score is based on the average age of your accounts. If you close your oldest credit card, your average age of accounts will drop. This will negatively affect your score.

Plus, closing accounts lowers your overall available credit. This increases your credit utilization ratio if you’re carrying balances on other cards.

Solution: You can’t really undo this problem once you’ve closed the account. Now, your goal is to remember to leave older accounts open. And watch your credit utilization ratio closely. As your accounts age, your credit score will gradually increase again.

6. You opened a new account.

Wait, both closing and opening accounts can negatively affect your credit score? That’s right, though it’s for different reasons.

Opening a new account generally involves having a potential creditor (or possibly several if you’re shopping around) pull your credit report. This results in an inquiry appearing on your report, which can cause a slight drop in your score. Credit inquiries shouldn’t cause a huge dip in your score unless you open a lot of new accounts around the same time.

Solution: Credit inquiries remain on your report for a couple of years. The best way to keep them from affecting your score too much is to shop for credit selectively.

You should also shop around for larger loans, like mortgages, in a two-week period. Credit scores will typically count rate shopping as one single inquiry in this case.

7. A creditor reduced your credit limit.

Depending on your credit card’s terms of use, it’s possible that your creditor can lower your credit limit. This could happen when your creditor sees you as becoming a higher-risk credit user. Exceeding your credit limit or taking out a lot of cash advances can trigger a lowered credit limit. If you’re carrying balances, this will increase your credit utilization ratio.

Solution: You can always call a creditor to ask why they’ve reduced your credit limit and how you can get them to increase it again. Alternatively, focus on paying down your debts as quickly as possible to reduce your credit utilization ratio.

8. There’s inaccurate information on your report.

An FTC report found that one in five consumers have an error on their credit report. Sometimes these errors don’t affect your credit score. But they can.

This is why it’s so important to check your credit report and score consistently. If you notice an unfamiliar account or a mmisreportedlate payment, you’ll need to take steps to correct it.

Solution: Check your credit report at least every few months. When you notice inaccurate information, follow these steps to correct it.

9. You’re looking at a different score.

When you pull your credit score from two different sources, you’re likely to see two different numbers. This can happen even if you pull your scores on the same day! Why is this?

There are a couple of reasons. For one, each credit score is based on one credit report. You have three credit reports from the major credit reporting bureaus, Equifax, Experian, and TransUnion. Each report may contain slightly different information, resulting in a different score.

But what if you’re looking at scores that both say they’re based on your Experian credit report? In this case, you could be running into different scoring formulas. Credit scoring formulas are constantly changing, and there are tons of versions on the market. FICO alone has over nine different scoring algorithms!

When you apply a different algorithm to the same information, you’ll get a different score.

This is why it’s a good idea to look at scores from different sources if you’re trying to build your credit. You may not see exactly the same number a prospective lender will see. But tracking two or three different scores can give you a more holistic picture of your overall credit. (Luckily, there are plenty of ways to track different scores for free!)

If your credit score has recently taken a nosedive, do some digging to find out why. Then, take steps to improve habits, correct inaccuracies, and boost your score again.

How to Rent an Apartment When You Don’t Have a Credit History

• Credit
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Many landlords check a prospective tenant’s credit report. For those with no credit, finding a landlord willing to take a chance on you can be a challenge. Here are some tips to snag that apartment you love, even if you have no credit history.

Rent an apartment no credit history

Apply to units owned by individual landlords

Start by applying for rental units that are owned by individuals, rather than apartment complexes or rentals that are run by management companies. Individual landlords are mostly looking to get a viable tenant into their property. And they may be more flexible on their criteria. If you can show you’re prepared to pay rent on time every month, individuals may overlook your lack of credit history. Managers at larger conglomerates likely have to follow complex corporate rules, which likely require tenant credit histories on file.

Be Prepared to Document Your Previous Rent History

If you’ve been living with family and not paying rent or if you are fresh out of college, this obviously won’t be an option. But if you’ve been living anywhere else and paying rent, you can at least demonstrate a rent history. That’s what a prospective landlord should be most interested in any way.

Some landlords will accept a written rent reference from a previous landlord. But be warned that some are also aware that a previous landlord might give you a good reference – even if you are not a good tenant – to get rid of you. For that reason, they may insist on more tangible verification.

Copies of canceled rent checks for the past 12 months can go a long way toward documenting a good rent history. If you have that good rent history, be prepared to document it for your new landlord.

Make a Larger Security Deposit

Nothing calms the concerns of a nervous prospective landlord more than cash on the barrel! You can provide this by offering to make a larger security deposit. For example, if the landlord generally requires a one-month security deposit, offer two months or even three months.  You can use the extra payments to pay your rent in the final months of the first lease. Just make sure that that provision is written into the lease.

Show a Large Bank Balance

A large bank balance can sometimes be used to offset a lack of credit. For example, a few thousand dollars sitting in a high yield savings account can indicate to a prospective landlord that you have a strong ability to manage your finances. In addition, it can be seen as a cushion in the event that you have cash flow problems in the future. The landlord will know you have resources available to cover any employment weaknesses.

A 401(k) plan with a healthy balance can also help, even if it’s not the type of account that you would access in an emergency. It also demonstrates the ability to properly manage your finances in such a way that you were able to accumulate money.

Emphasize Income over Credit

A strong income can also offset a lack of credit. That doesn’t mean having just enough income to cover the rent payment. It means that your future rent payment won’t exceed 25% or 30% of your monthly income. That will let the landlord know that you at least have an income that will enable you to comfortably pay the rent every month.

Stress that You Have No Debt

This should be an obvious connection, but don’t assume that your future landlord will get it. The fact that you have no credit probably also means that you have no debt. From a landlord’s perspective, this is a major advantage.

Debt payments reduce your monthly cash flow, giving you less money each month to pay your rent. But if you have no substantial recurring obligations, sell this to the landlord as a major positive factor in your favor.

You might also make the case that you simply choose not to use credit. The landlord can also see that as a positive factor.

Get a Cosigner or a Roommate

If none of the above strategies work, or if you don’t have the ability to demonstrate any, consider a cosigner or a roommate.

Between the two, the roommate is probably the stronger selling point. Since that person will be living in the unit with you, they’ll be motivated to pay the rent. A cosigner, on the other hand, might strengthen your application if a roommate is not an option.

Whether you bring in a roommate or a cosigner, make sure that that person has good credit. There’ll be no point bringing in another person if they likewise have no credit history. And it should go without saying that they should also have stable employment and an income that can support the rent payment.

Renting a home or apartment when you don’t have any credit isn’t impossible. Though it will take good financial management in other areas and some creativity. These tips will help you get there.

How to Write a Winning Cover Letter

• Working
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A cover letter is your 60-second chance to promote yourself. Write a poor cover letter and your resume lands in the rejection pile. Craft a compelling cover letter, however, and you land the coveted interview. Here are five keys to writing a great cover letter.

write a cover letter

Picture this scene. A recruiter at a popular company arrives to work Monday morning to look over applications that have come in over the weekend. These applications are for good opportunities available with her employer. And she has a very busy job sorting through them all.

She receives dozens or even hundreds of applications for each job opening. So how does our recruiter decide which applications she reviews carefully and which will receive an immediate rejection letter?

Many businesses automate some of the processes. A computer program often screens resumes and applications in the first instance for the basic role requirements. This process may knock a few resumes out of the running–mainly where people have hit ‘apply’ to jobs for which they don’t have the required skill set.

The remainder land on our recruiter’s (virtual) desk, and she needs to narrow the field to a smaller shortlist for interviews. This is where your cover letter comes in. Chances are all the resumes that have made it this far are from candidates who can perform the basic functions of the job. But our recruiter wants more. She wants to know you really care about this job. You’re interested in the company and what they stand for. And you’re going to stick around, do a good job, and grow with the business.

Here’s how to grab her attention.

Show some personality

Your cover letter is the best possible way to get your ‘foot in the door’ for a new job. Your resume will contain all the substance that shows why you’re able to perform the job. It’s your cover letter, however, that makes the recruiter actually want to invest time in reviewing your resume. Don’t forget: yours will be one among many. A hiring manager may not even see a many of the resumes submitted for popular jobs. A below par cover letter sees them heading straight for the trash!

The first key to writing a knock out cover letter is to understand that people want to work with people. Producing a cover letter that could have been written by a robot won’t make you stand out in the crowd. You need to show a little spark. That might be telling the reader a little about your (relevant) personal interests, demonstrating your passion for a particular product the company makes, or simply writing in a catchy tone.

It’s a good idea to start your letter with an introduction that sparkles. Of course, precisely what will work depends entirely on the circumstances. You can often get away with a very informal note, with a good dollop of humor, if you’re applying for a creative role or applying to a startup or small business. If you’re looking for a job with a more traditional institution, like a bank, you might want to hold the humor. You can still show a spark elsewhere. Consider these two possible cover letter openers:

“I’m an experienced customer service professional, and have worked in banks and finance for the last ten years”

Or

“I’m passionate about working in customer service. After ten years of looking after my bank’s clients, I still like nothing more than seeing a smile, as I turn a disgruntled customer into a delighted one”

I would rather talk to the person behind the second one! Wouldn’t you?

Connect with the brand

You’ve managed to persuade the reader you’re a real person. You’ve connected on a human level. The next priority is to show that you connect with the brand of the company.

This is really important to recruiters. They’re looking for someone with longevity in the business. If you truly love the company, chances are you’ll stay on for a good length of time. You may even seek internal promotions and professional growth within the business. A good recruiter thinks about not only the job you’ve applied for, but also about more senior positions you might be suited to with a bit of experience under your belt.

Show you connect with the brand by talking a little about the product, service, or mission of the business. How to do this might be obvious. Maybe you’re applying to a company that makes a product you love. Or perhaps you regularly use the company’s services, and as a loyal customer, you’re excited by the chance to work for a brand you love.

Of course, it might not be so obvious–especially if you’re looking to work with a business that does something more abstract or everyday. Think about how you could make this connection if you’re applying for a role with a utility provider, for example. In this case, it’s better to show a connection to the mission of the company–what they stand for rather than what they do. Take, for example, the largest energy company in the USA, PGE. You could say:

“I’d love to work for an energy company”

Or you might go with the following, to reflect their mission statement, and show a degree of excitement about the job:

“I’d love to work for a company that contributes so much to the lives of 15 million Californians. Building a better California is an ambitious mission, and one I’d love to get behind.”

Meet the brief

If you’re writing your cover letter from scratch, then you’ll probably include the first two key points above in the opening paragraph. Introduce yourself and why you’re applying up front, with a nod to your passion for the business.

Then you need to move to the substance of the cover letter. Here you show you meet the requirements of the role being advertised. Don’t forget; your cover letter isn’t a repeat of your resume. But it’s a smart plan to pick out a few key skills and experiences to showcase here. These will motivate the reader to properly review your resume. You’ll also want to make sure it’s built strongly and tailored to the role in hand.

You should focus on the job listing. The skills or experiences that are listed as ‘key’ here are the ones to focus your attention on. Think about how you concisely show you’re able to deliver on these, either through your experiences to date or your qualifications.

If you can, pick a mixture of behavioral and technical competencies to feature. Most roles ask for a skillset which is a mix of these, so you need to be able to use Excel or write reports (technical skills). But you also have to be organized and willing to work in a variety of teams (behavioral skills). By highlighting a couple from each category, you show yourself to be a well-rounded individual–exactly what our recruiter is after.

Sum up your USP

We’re arriving at the last paragraph or so of your cover letter now. You’re aiming to pique the interest of the reader and make sure they actually move onto reviewing your resume. To do this, you have to sum up what’s unique about your personal mix of skills and experience. You’re marketing yourself here, and in marketing talk, this is your USP–unique selling point.

You might need to invest some time thinking about what your USP really is. It should be just a sentence or two, describing what you think you really add to any role you take on.

For ideas, think about the things you have done to drive your own personal development. They don’t have to be strictly work related. Maybe you have contributed your time to an important cause or taken on extra responsibilities while you’re still in school. If the skills and experiences you gained are relevant to the job, you can use them.

It’s safe here to expand your thinking a little to cover the ‘desirable’ skills and experiences which are listed in the job ad. You will have already shown how you meet the core requirements of the role in the paragraphs above, so this is your chance to emphasize the added value you can bring to the business.

End positively

You should round off your letter with a positive note. As an example, ‘I look forward to hearing from you soon’, or a more proactive ‘I would appreciate the opportunity to meet with you to discuss the position in more detail’.

Whatever else you do now, you must proofread your cover letter. Make sure that details (like the name of the person you’re addressing it to) are correct. Even small errors can be costly when a recruiter has only a few seconds to scan each letter.

Your cover letter is an important document. It’s your shop window. It’s the first thing that the recruiter will read about you, and it will help them form their decision about whether or not to read on. No matter how good your resume is, if the reader is put off by a poor cover letter, the work you’ve put into your CV or resume will be wasted.

Often the most difficult thing about writing your cover letter, though, is getting started. Staring at a blank sheet of paper is daunting, but now is no time to procrastinate. Follow these pointers and capture the key messages the recruiter needs to see.

Get writing, and good luck!

How to Save Money on Car Insurance

• Automotive•Frugality•Insurance
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Lowering car insurance costs is a great way to save money. Sometimes a quick phone call is all it takes. Here are 6 ways to save money on car insurance.

Save Money on Car InsuranceEveryone is always looking for new ways to save money. Cutting expenses, trimming monthly bills, and tightening the budget are all great options. And this includes auto expenses.

So, as a companion to my other articles on how to save money on health insurance, homeowners insurance, and even life insurance, I thought I’d tackle car insurance.

What follows is a list of tips for reducing your premiums and saving a ton of money.

Keep your driving record clean

Your driving record can play a pretty big role in the premiums that you’ll pay for insurance coverage, whether shopping around for a new policy or just retaining the one you’ve had all along.

In other words, don’t get nailed for speeding like I did a few months back. I was fortunate in that it was a first offense. This meant that I was able to keep my record clean by pleading nolo contendre (no contest) and paying the fine.

However, next time I won’t be so lucky, as I’ll wind up with points on my license and higher insurance premiums. Get enough of these tickets (or a particularly bad one, like reckless driving), and your insurance company could even drop you!

Compare Auto Insurance Quotes

Increase your deductible

Your deductible is the amount of cash you’re expected to pony up if a claim is made on your own insurance policy (if there isn’t someone else whose insurance is responsible for the damage). You’ll be given a handful of options for setting the level of this when you sign up for or renew your policy.

Well, if you’re willing to bear a greater portion of the risk — in the form of a higher deductible — you can save a significant amount of money on your premiums.

Simply call your agent and ask them to increase your financial responsibility. This will likely lower your premiums a noticeable amount; the higher the deductible, the lower your monthly premium expense.

One word of warning, though: just be sure that you have enough cash on hand to cover your out-of-pocket expenses in the event of an accident. It’s not worth the monthly savings if you can’t afford that new $2,000 deductible when you get in a wreck.

So, be sure to balance the savings with what you can actually afford at a moment’s notice.

Related: Rebuilding Your Savings After An Emergency Expense

Drop unnecessary coverage

If you’re driving an older car, you might want to consider dropping your comprehensive and/or collision coverage entirely. After all, what’s the sense in paying a ton of money to insure against damage to a car that might not be worth repairing?

Note that I’m not suggesting that you drop your insurance coverage entirely, just the portion that pays for repairs on your own car. Liability insurance is still required by law, at the very least.

Bundle multiple policy types together

I can’t speak for all insurance companies, but we get a nice “multi-line” discount through USAA for carrying multiple policies with a single company.

We actually have two car policies, our homeowner’s policy, a personal articles policy (for my wife’s engagement and wedding rings), and an umbrella policy… all with the same company. In the end, it’s much cheaper than buying the same coverage through multiple different companies.

Ask about other discounts

You might qualify for discounts for being accident-free, renewing your policy, driving relatively few miles each year, taking a defensive driving course, etc. Be sure to talk to your agent and get what you have coming to you.

Shop around

Assuming that you’re doing everything else right, another great way to save money on car insurance is to comparison shop. You can either call around to local agents or use an insurance comparison tool. Here are four of our favorites companies:

Whatever you do, be sure to buy from a reputable company so you won’t run into any problems if/when you file a claim.

Resource: Reducing Your Automotive Expenses

So there you have it. These simple tips for saving money on car insurance can help you trim quite a bit off of that monthly payment.

Keep your driving record clean and only keep as much coverage as you feel you really need. Be sure to compare policies and ask about discounts regularly, too — insurance products change frequently, and you could be missing out on savings if you aren’t proactive!

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15 vs 30 Year Mortgages–What’s the Best Choice?

• Debt Reduction•Mortgages
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A 15 vs. 30 year mortgage–what’s the best option? It’s a question everybody who buys a home must answer. Here we provide the pros and cons of both mortgage types.

I’ve had mortgages on the brain recently. When assembling our mortgage history, I was struck by the decisions we face along the way. Aside from deciding when to refinance, the biggest decision we faced was what type of mortgage to get.

While we could’ve (arguably) saved some money by opting for adjustable rate mortgages, we already have enough unknowns in our life. Thus, we quickly narrowed our options to fixed rate products. While there are some 20 (and even 40!) year fixed rate mortgages out there, 15 and 30-year mortgages are far more common.

So… Which to choose?

Advantages of a 15-year mortgage

The higher payment on a 15-year mortgage might look scary at first. But it’s actually got some major advantages.

For one, a shorter mortgage is amortized over half the total time of a 30-year option. A bigger chunk of that larger payment goes to pay down principal each month. That means that even if you’re paying the exact same interest rate, you’ll pay much less interest on a 15-year mortgage.

But here’s the thing: you likely won’t pay the same interest rate. In fact, mortgage rates are usually significantly lower for 15-year vs. 30-year mortgages, all other things being equal. Combine that with the shorter amortization term, and you could save hundreds of thousands on interest.

Plus, since you’re paying more towards principal each month, you’re building up equity faster. This is great for your net worth, of course. But if you have to pay private mortgage insurance until you have 20% equity in your home, it’s even better. You’ll hit the 20% mark faster so that you can remove PMI payments from your mortgage check.

Advantages of a 30-year mortgage

That breakdown makes 15-year mortgages sound like the way to go. But 30-year mortgages also have some advantages.

The main advantage in a 30-year mortgage is the lower payment. Even with a higher interest rate, your monthly payment is likely to be lower with a 30-year mortgage. Sometimes it could be hundreds of dollars per month lower.

If you’re just on the brink of being able to afford homeownership over a rental, a 30-year mortgage may be your best option. Getting into a home with a longer term mortgage at least gets you started building up equity in your home. And you can always refinance to a 15-year mortgage later on, should you choose to do so.

But here’s the deal: those smaller payments on a 30-year mortgage will largely go towards interest for the first several years of the loan. It will take much longer to build up equity in your home.

15- vs. 30-year mortgages by the numbers

One place to look when making this decision is at the hard numbers. Let’s look at a scenario to get you started:

With your credit score of 700-719, you get some great mortgage rates. You’re shopping for a mortgage of $200,000, and you have a 20% down payment saved.

Note: If you don’t know your credit score, here are several free ways to get it.

Let’s say your interest rate on a 30-year mortgage would be 3.7%. On a 15-year mortgage, you’d qualify for 3.1%. Not a big difference, right? Well, look at the math, first.

We’ll use this mortgage calculator.

15-year mortgage

  • Monthly Payment: $1,390.80
  • Total Mortgage Cost: $250,344.45
  • Total Interest: $50,344.45

30-year mortgage

  • Monthly Payment: $920.57
  • Total Mortgage Cost: $331,403.75
  • Total Interest: $131,403.75

In short, if you pay no extra payments on your mortgage, a 15-year mortgage could save you $81,059.30 over the life of your loan!

That’s a lot of money. But don’t apply for that 15-year mortgage just yet.

The best of both worlds

What if you’ve decided that you want to be mortgage-free as soon as possible? A 15-year mortgage is a no-brainer, right? Maybe, but maybe not.

Depending on a number of factors, such as your income, job stability, and level of self-discipline, you might be better off taking out a 30-year mortgage and then simply over-paying it every month.

The advantage of this approach is that you get the best of both worlds. You can pay your mortgage off in 15 years (give or take) while still having the flexibility to fall back to the lower payment level if you ever run into financial problems.

Another look at the numbers

Let’s say you take out the 30-year mortgage but decide to make the 15-year mortgage payment every month. So you’ll add about $470 per month to your mortgage payment.

In this case, you’d pay off the mortgage in 15 years and 11 months, and you’d pay a total of $64,701.42 in interest. That’s a $66,700 savings above what you would have originally paid in interest on the 30-year mortgage.

You’ll still pay more in interest with this plan than with the 15-year mortgage, of course. You’re paying a higher interest rate. But here’s the thing: while you’re paying off your mortgage more quickly, you’ll have tons of flexibility.

Maybe you’re purchasing a home that needs some updates. So you make the minimum mortgage payments for a year and put that extra $470 towards home improvements. Then you kick that money into your mortgage for the next decade or so. You’ll still pay off your mortgage early and save, but you’ll also cash flow home improvements.

Also, if you happen to lose your job or run into other financial difficulties, you can easily free up nearly $500 per month from your budget without risking losing your home.

Alternatively, since mortgage interest rates are so low right now, you might decide not to pay off your mortgage early. Instead, you take that $470 per month and invest it. If you earn an average 7% return, you could easily out-earn the extra interest you’ll pay on your home!

So which is best for you?

Honestly, it depends. Here are a few ways to think about your goals and how to reach them:

Goal: Become mortgage-free

  • If you’re very motivated and self-disciplined, the 30-year mortgage could work well for you. You’ll just make the extra payments, but have some flexibility if you need it.
  • What if you tend to spend all the money you have available? In this case, a 15-year mortgage forces you to pay off your home more quickly.

Goal: Buy your first home

  • If you don’t have a lot of wiggle room in your budget, a 30-year mortgage can get you into your first home more quickly. You can buy an affordable home, build up equity, and then try a 15-year mortgage when you refinance or buy your next home.
  • What if you have enough room in your budget for a 15-year mortgage? In this case, you’ll build up equity much more quickly, which can help you move up in homes sooner if that’s your goal.

Goal: Invest as much as possible

  • If your goal is to invest as much as you can and you think you can beat your mortgage’s interest rate, opt for the smaller payment on the 30-year mortgage. Then, invest the difference in the payments. With today’s low mortgage rates, you could come out well ahead.
  • But if you’d rather become as debt-free as possible before you start investing heavily, the 15-year mortgage helps you do that faster.

The best place to begin here is with a clear understanding of your personal mortgage goals. Then, run the numbers for your particular situation to see which option works best for you.

8 Tips to Make the Most Out of Business Travel

• Travel
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Business travel has its pros and cons. At first, it can be exciting to hit the road on your employer’s dime. Eventually, however, it can become tedious. The good news is it’s easy to make the most of business travel.

make the most of business travel

Business travel doesn’t have to feel like work if you do it the right way. Optimizing the way you travel is important if your career is going to take you away from home frequently. You can’t succeed in your work if you’re too busy focusing on the headaches of travel. Luckily, you can take a few simple steps to enhance your travel experience, be better prepared for meetings, and earn great travel rewards. Take a look at the five ways to make the most of business travel.

1. Join an Airline Loyalty Program

Joining a miles program is a smart idea if you’ll be flying frequently. Ideally, you’ll fly on the same airline. This will allow you to build miles quickly.

In addition to free flights, you can earn perks. Members of airline loyalty programs receive perks like seat upgrades, priority check-in status, lounge access, and free checked bags. Earning enough points to reach a top-tier status and receive the best perks should be easy if you book frequent flights for business travel.

2. Stay in a Business-Oriented Hotel

A business traveler really shouldn’t be staying in the same hotels as families and honeymooning couples. A business trip requires a business-oriented hotel. Business-oriented hotels are becoming more important in light of all of the talk about laptop bans going on in the world of air travel.

Hotels that cater to business travelers usually offer several key perks. These include 24-hour business centers, flexible check-in times, fitness centers with good hours, free WiFi, and meeting rooms. Do you really want to run around a new city late at night looking for a store where you can make copies or print charts? Rooms with large desks are a must, too.

Staying in a business hotel can really save the day if you need to prepare a document or polish a presentation at the last minute before meeting with clients or contacts.

3. Steal an Hour Every Morning

The funny thing about business travel is that people who visit amazing cities for work don’t usually get to do any sightseeing. It can feel like you’re going from inside of the airport to inside an office building without ever stepping foot outside. This can definitely make you feel like you’re missing out.

A schedule full of meetings and deadlines usually doesn’t allow a person much time to do fun things. However, getting up one hour earlier than you need to just to take a walk near your hotel can help you feel like you have a chance to connect with the city you’re visiting. Try to make a habit of stealing one hour right after you wake up to take a walk by yourself.

4. Invest in a Good Pair of Headphones

You can justify spending a lot on a good pair of noise-canceling headphones if you travel frequently for business. Good headphones can change your life if you constantly try to fall asleep on airplanes. Having the ability to block out the noise from other passengers can be priceless.

This is a small investment that can have a big payoff. Arriving at your destination feeling rested and relaxed is priceless. You will be able to hit the ground running when it comes to preparing for meetings or charming clients.

Our top pick is the Bose QuietComfort 20 Acoustic Noise Cancelling Headphones. The size and quality can’t be beat. Bose also offers a wireless version.

5. Get the Right Credit Card

You may not be optimizing every charge you make if you don’t have a credit card that caters to business travelers. This is especially important if you work for a company that requires you to put travel expenses on your own card before being reimbursed. You can actually look forward to raking in amazing perks for no cost if you have the right card.

The The Business Platinum® Card from American Express OPEN, the Ink Business Preferred? Credit Card, and the Starwood Preferred Guest® Business Credit Card from American Express all offer great up front bonus offers for cardholders who meet spending thresholds and generous perks.

6. Pack Smart

Lugging more than you need through the airport is the worst. Packing smart means taking only what you need. It also means using the right luggage.

For those on a budget, the City Traveler Durable Nylon Business Suitcase is a good option. It typically sells for under $100 on Amazon. For those with a bigger budget, the Briggs & Riley Baseline Domestic Carry-On Upright Garment Bag is a good choice.

7. Track Your Miles

Tracking multiple airline and hotel rewards programs can be a headache. Use free tools like Award Wallet to track all of your miles and points. You can even use the site to track your itineraries.

8. Track Your Expenses

Expense tracking can be a nightmare for frequent travelers. Your hotel and airline expenses are easy to track. It get’s more burdensome to track small-dollar purchases. Cash expenditures, such as tips, are also difficult to track.

Mobile apps can save you a ton of time and aggravation. Once such app is BizXpense Tracker. This app helps you track all of your business travel expenses. It also generates pdf reports. You can find several other options on the American Express OPEN Forum.

Best Airline Miles Credit Cards of 2018

• Credit Cards
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Editor’s Note: Thank you for your interest, any offer(s) below might be expired and no longer available.

Some people choose a credit card based on the interest rate or perhaps a balance transfer promotion. However, if you don’t intend to carry a balance on your credit card, you may be more interested in a rewards program.

The best credit card rewards programs are tied to your interests. Here, you can check out a number of credit and charge card offers that also come with rewards. We’ve compiled enough of these programs that you’re sure to find one that matches the way you want you to be rewarded.

The Best Airline Miles Credit Cards of 2018

Gold Delta SkyMiles® Credit Card from American Express – American Express loves big bonuses, and the Gold Delta SkyMiles® Credit Card from American Express is no different.

New cardmembers will earn 50,000 bonus miles after spending $1,000 in the first three months. Plus, you’ll get a $50 statement credit after you make your first purchase. As a one-time thank you, American Express will also waive the first year’s annual fee (of $95).

You’ll earn 2x miles on all Delta purchases and 1x miles on all other purchases. And your earned miles will never expire.

Unlike the Platinum Delta SkyMiles® Credit Card from American Express, you will not earn bonus Medallion Qualification Miles (MQMs). But all the other perks apply to both cards. These perks include free checked luggage on your first bag (for up to 9 members of your party) and all American Express travel benefits.

  • Biggest PRO: Big up front bonus/first year annual free waived.
  • Biggest CON: No bonus Medallion Qualification Miles
  • Includes free access to your FICO® score

Southwest Rapid Rewards® Premier Credit Card – New cardholders of the Southwest Rapid Rewards® Premier Credit Card will earn 75,000 points after they spend $3,000 in the first three months of account ownership. Since I fly Southwest almost exclusively, I can tell you that these points are good enough for at least one round trip. Sometimes you can squeeze in two if you’re smart about times and flight distances.

Cardholders earn double points on all Southwest purchases, including hotel and car rental partner purchases. You’ll earn single points on all other purchases. As always, when you fly Southwest, you’ll have no baggage or change fees, no blackout dates, and no restrictions on using your reward points.

Every anniversary, you’ll earn 6,000 bonus points. Unfortunately, this card carries a $99 annual fee that is NOT waived for the first year.

  • Biggest PRO: 75,000 intro bonus points is good enough for two frugal round-trip flights
  • Biggest CON: $99 annual fee
  • Includes free access to your FICO® score

Citi® / AAdvantage® Platinum Select® World EliteTM Mastercard® – BIG BONUS ALERT: Cardholders earn 60,000 American Airlines AAdvantage bonus miles after making $3,000 in purchases during the first three months.

The standard rewards program is similar to others on this list. Cardholders earn double miles per each dollar spent on all American Airlines flights and single miles on all other purchases. Every time you redeem your AAdvantage miles, though, you earn a 10% bonus. For example, if you redeem 20,000 miles, you’ll be credited 2,000 miles back!

The Citi® / AAdvantage® Platinum Select® World EliteTM Mastercard® waives the $95 annual fee for the first year. It also includes perks like free checked baggage for the first bag and 25% off American in-flight food and beverage purchases.

  • Biggest PRO: Big upfront 60,000 mile bonus
  • Biggest CON: High spend hurdle to acquire the bonus ($3,000)
  • Includes free access to your FICO® score

JetBlue Plus Card – One of the lower up-front bonuses on our list, the JetBlue Plus Card starts off by offering 30,000 bonus points after you spend $1,000 in the first 90 days (a common theme, for those paying attention). The larger value in owning this card, though, comes from its rewards program.

You’ll earn six points per dollar on JetBlue purchases, two points per dollar spent at restaurants and grocery stores, and one point per dollar elsewhere. Cardholders of the JetBlue Plus Card get their first checked bag for free, 5,000 annual bonus points, and 50% off in-flight JetBlue purchases.

This card carries a $99 annual fee. Also, if you spend $50,000 or more annually, you’re eligible to receive TrueBlue Mosaic benefits. This includes express lines, free alcohol on the plane, and higher point multipliers on JetBlue flights.

  • Biggest PRO: 6 points per dollar spent on JetBlue flights.  Fly often, and that adds up quickly
  • Biggest CON: Comparably low intro bonus
  • Includes free access to your FICO® score

Platinum Delta SkyMiles® Credit Card from American Express – Out of the gate, American Express serves up 35,000 bonus miles after you spend $1,000 in purchases in the first the first three months. As an added bonus, they’ll also give you a $100 statement credit after you make any Delta purchase (again during the first three months).

Every anniversary, you’ll receive a domestic, main cabin, round-trip companion certificate and 5,000 Medallion Qualification Miles (MQMs). Your first checked bag on all Delta flights is FREE (up to 9 people in your reservation), and you earn double miles on all Delta Airlines purchases.

One last bonus to mention: every year that you spend $25,000, you’ll earn 10,000 bonus miles and 10,000 Medallion Qualification Miles. Spend another $25,000, get another 10,000 bonus and 10,000 MQM miles. The Platinum Delta SkyMiles Credit Card does, however, carry a pricey $199 annual fee.

  • Biggest PRO: Free companion certificate every anniversary year
  • Biggest CON: $199 annual fee
  • Includes free access to your FICO® score

United MileagePlus® Explorer Card – Newly-approved cardholders can earn 30,000 bonus miles after they spend $3,000 in the first three months of card ownership. Add an authorized cardholders to your account and you’ll get another 5,000 bonus miles.

The United MileagePlus® Explorer Card offers a standard rewards program: 2 miles per dollar spent on tickets for United flights and one mile per dollar spent on everything else. The first checked bag for you and a companion are free. You’ll also receive priority boarding on all United flights.

Every year that you spend $25,000, you’ll get an additional 10,000 bonus miles — which would offset the cost of the $95 annual fee. The last benefit to mention is that every year, cardmembers will receive two United Club passes to relax before a flight ($100 value).

  • Biggest PRO: Two annual United Club passes on the house
  • Biggest CON: High spend hurdle ($3,000) for a low up-front bonus (30,000 miles)
  • Includes free access to your FICO® score

Qualifying for a rewards credit or charge card

Most credit and charge cards that offer rewards are limited to customers with good or excellent credit. If you have poor credit, you may need to work on building up your credit score by paying off credit card balances and making on-time payments before you can be approved for a points and miles credit card.

Interest rates and fees

While it’s great to be rewarded for using your credit card, credit cards with miles promotions or other rewards often have a higher interest rate than other credit cards. Some also have a higher annual fee in order to compensate for the rewards you’ll earn.

Don’t apply for a rewards credit card unless you’re sure that you can pay off the balance in full each month. Also be sure that the annual fee won’t cancel out the benefit of the rewards you earn.

Choose your rewards

Before choosing a rewards credit card, you need to decide if you want to earn cash back, gas rebates, points you can use for travel or merchandise, or airline miles that you can use to supplement your frequent flyer miles.

Even if you decide a free airline credit card is perfect, you’ll need to choose whether you want to earn miles for one specific airline or miles that you can use on multiple airlines.

Comparing points/miles credit cards

Next, you’ll need to compare the specific programs to see which one will earn you the most rewards. Compare:

  • Signup bonuses. Some credit cards offer new customers a bonus of extra points for their first purchase or a certain level of purchases within a certain time.
  • The rate of rewards earnings. If you are looking for airline miles, look for a credit card that earns you airline miles at a rate of at least one mile per dollar spent. Some credit cards allow you to earn rewards in specific categories at a faster rate, depending on where you use your credit card.
  • Reward redemption rules. Some credit card rewards programs require you to wait until you accrue a certain number of points before you can redeem them. Others may limit your rewards to gift cards or to flights on specific airlines. If you are looking for airline miles, check that the airlines you use are covered by each rewards program. Make sure you leave enough time to cash in your points before your next vacation if you want to use points for a hotel room.
  • Compare your spending with the rewards. The number of points you need for a free flight varies by rewards program. Try to find the program that earns you the most points for the least amount of money or the one that allows you to convert points to airline miles at a low rate.
  • Check the dates. Make sure your points or miles won’t expire before you can use them. Some rewards programs don’t have an expiration date at all. Also, see if your airline miles are subject to blackout dates. If you plan on traveling at a popular time, you want to make sure you can use your points.

If you’ve decided that a credit card with miles promotions that you can use for airline tickets, hotels, or merchandise is best for you, compare the points and miles credit card offers on this page to find the credit or charge card that matches your needs.

The Best Way for Couples to Manage Their Money

• Banking•Family & Life
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Should couples keep separate bank accounts or a joint account? There is no one right answer to this question, and some couples keep both types of bank accounts. Here’s our take on the best way for couples to manage their money.

It’s hard to find a less romantic topic than banking. Yet nearly every couple eventually faces this question: Should we have a joint bank account or keep separate accounts?
According to a survey by TD Bank, the answer is often “both.” Nearly half (42%) of couples with joint bank accounts also keep individual ones.

Independence was the most commonly cited reason for maintaining separate accounts. Women were more likely to value their financial freedom, though. In fact, 43% of women said independence was their top motivation, compared with 34% of men.

Just over 20% of couples said they kept separate accounts in order to make sure they had enough money for individual needs, including emergencies and personal spending. Another 16% reported that convenience when budgeting and paying bills was a significant factor, though men were 38% more likely to say so. Only 7% of couples said they kept individual accounts to maintain their privacy.

The survey also found a number of generational differences in couples’ money habits. Millennials were more likely than older age groups to combine their finances before getting married — 70% percent of millennial couples waited to exchange vows before opening a joint account, compared to 88% of duos 55 and older.

Right now, the implications of keeping separate accounts are a little unclear. Some researchers suggest couples are happiest when they combine most, if not all, their money. But those findings might not apply when couples are raising kids together, for example.

Like most money matters, there isn’t a one-size-fits-all approach to joint banking. There are about as many ways of handling this money issue as there are couples dealing with it.

Related: The Best Way for Couples to Manage Their Money

Wondering whether or not you should combine finances with your significant other? Or how to do it? Here’s a quick guide to reasons to combine (or separate) your finances, and ways to make it happen.

To Combine or Not to Combine?

As the TD Bank survey showed, couples don’t usually maintain separate accounts for privacy reasons. Sure, you might want to hide Christmas shopping from your spouse. But if you feel the need to keep most of your spending private, maybe it’s time to rethink being in a serious relationship.

With that said, there are some great reasons to combine your accounts, just as there are great reasons to keep them separate:

Reasons to Combine

Although the TD Bank survey cited ease of budgeting as a perk of separate accounts, sometimes this can get hairy. How do you handle paying for joint expenses, like your mortgage and childcare? What do you do on date night? These questions can be easier when you combine at least some of your finances.

Combining finances can also make it easier for one parent to stay home with the children if that’s what works best for your family. Separate finances only work well when both partners are bringing in an income.

Combined finances also means you need to work towards the same financial goals, and that you need to communicate about your progress. Money can be a source of fighting in marriage, for sure. But once you work through the fight and get on the same team, it can also be a source of strength.

Retirement planning is easier. While you might want to save for retirement through separate accounts, planning holistically as a couple is easier. What happens if one of you saves a lot more than the other? Is one spouse going to travel the world during retirement while the other lives a quiet, frugal life of necessity?

Reasons to Separate

One common reason couples keep their finances separate is that they come into the marriage with significant assets. In this case, you may be more comfortable keeping your money separate.

Also, if you have widely varying spending styles, separating your accounts could help you smooth out money arguments. You’ll each have to meet your obligations to the family unit, but then be free to spend or save as you please.

This seems to be one of the main reasons, in fact, that couples keep their finances separate. They want to be able to make independent spending decisions. And if you ever separate, having separate finances already can make that a bit easier.

Finally, when couples combine finances, the money management often falls exclusively on one spouse. Even if this is what both parties prefer, what happens in the case of divorce or death? The spouse who had no hand in the money management may be clueless about how to even access accounts or pay the bills!

Options for Both

In reality, the majority of couples are somewhere in the middle of completely separate finances and completely combined finances. In order to have completely separate finances, you’d have to maintain completely separate lives–no shared home, grocery bills, etc. And even couples who combine almost all their assets might maintain separate accounts for personal spending.

Here are a few ways you might go about managing money somewhere on this spectrum:

1. Combined, but with separate fun money

This is how my husband and I manage our money. We married young and broke, so we weren’t concerned about keeping anything separate. After all, who cares about separating your assets when they consist of a 10-year-old vehicle and $20 in your checking account?

We’ve had to work hard over the past ten years to meld our differing money management styles. But one thing that’s helped us tremendously is separate fun money accounts. It’s basically an allowance for adults.

Each month, we look at our income and expenses. From the money that’s left, we each get a set amount–the same for each of us–to transfer to a personal checking account. We can spend that money however we want, no holds barred. But we’re also responsible for using this money to fund things like new clothes and other essential personal expenses.

This helps us have some personal flexibility, but keeps us on the same page financially. Plus, we can use these accounts to shop for each other’s Christmas and birthday gifts! Before we did this, I was notorious for finding out what I was getting while balancing the common checkbook.

2. Contributing a set amount

One option for semi-combined finances is to make sure your basic financial goals and needs are covered together. To get started, figure out what you spend each month on things that benefit both of you or the whole family. This might include:

  • Mortgage/rent
  • Shared transportation costs
  • Childcare if you both work
  • Other child-related expenses
  • Food that you cook at home
  • Shared restaurant trips
  • Utilities and other items like internet and cable
  • Pet care expenses, etc.

Let’s say this comes out to $3,500 per month, at a minimum. Plus, you want to save $300 per month for your annual family vacation, and $300 per month for emergencies like a broken washing machine. So your total is $4,100 per month in shared expenses.

You should then maintain a shared checking and savings account, and each spouse can contribute $2,050 to that account each month. You’ll pay your bills and essentials out of that account. But whatever is left over goes to your personal accounts, to spend or save as you please.

This option works well when your income levels are similar, but you have divergent financial goals. Or it works well if one spouse enters the marriage with significant debt that the other spouse doesn’t want to take on.

In this situation, you need to discuss what you’ll do if one spouse becomes unemployed or gets a raise or a steep pay cut. You’ll also need to be flexible on what counts as a common expense over time, and you’ll have to be excellent at making those spending decisions as a team.

3. Contributing according to income

What if you’re dealing with two widely varying incomes? Maybe one spouse works for a non-profit making $30,000 per year, and the other is in a high-paying career making $80,000 per year? That’s a big spread!

And it’s probably unfair to expect the spouse making $30,000 per year to contribute his whole paycheck to the common fund while the other spouse contributes less than half of what she makes.

If you still want to maintain separate accounts, in this case, use similar steps as the option above. First, total up all your shared expenses and savings goals. Then, divide them according to income.

In this case, the lower-earning spouse could contribute about 27-30% of the shared expenses, while the higher-earning spouse contributes 72-80%. In the case of the $4,100 budget mentioned above, that’s $1,107 per month from spouse A and $2,952 per month from spouse B.

Spouse B will still have significantly more left over than spouse A. But they’ll both have money left over for personal spending, saving, or investing.

Again, communication is essential here. Maybe it makes sense to split the input a little unevenly, having the lower-earning spouse put in even less money so he has more left over. Or maybe it makes sense to split things exactly according to income, but have the higher-earning spouse take on more of the extras, like vacations.

The bottom line is that any time you’re combining lives, you’re combining finances on some level. Even if you’re only sharing some expenses, marriage means you’ll have to figure out how to meet those expenses together. And your money management choices might change dramatically over time.

So be sure to keep track of all your savings and spending–whether on personal or common expenses–and be open to changing your money management style over time.

Our Best Cash Back Credit Cards List for 2018

• Credit Cards
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Notice: Information found is this page not not currently up-to-date. Please visit the offering advertised for current information.

I carry many types of credit cards in my wallet. I have several travel rewards credit cards for when I need to book a flight or rent a car. And I use one balance transfer credit card that I got to make a large transfer a few years ago. And I also have a few cash back credit cards that I use for just about everything else.

To say that I know my way around a cash back rewards program would be an understatement. Which is why I wanted to put together a list of the best cash back cards I’ve come across in my rewards-earning ventures.

You can find the best cash back credit cards listed below. They come from a variety of issuers. They also include a variety of cash back rates and other perks.

These perks make each card somewhat unique. So you need to consider them when deciding which one is right for you. I use a combination of half of the cards on this list — and I rack up hundreds of dollars in annual cash back savings!

Whether you’re a big spender or a casual spender, it’s financially responsible to own at least one of the cards on this list. (After seeing how much I got back last year, I would even argue more than one.)

The Best Cash Back Credit Cards

Citi® Double Cash Card – 18 month BT offer – The Citi® Double Cash Card offers 1% cash back on every purchase and another 1% cash back when you pay your monthly credit card bill. Add it up, and you’ll earn 2% cash back on every purchase.

It also includes a 0% intro APR on balance transfers for 18 months (no intro offer on purchases). The standard APR after the intro period expires is 17.74% – 27.74% variable.

There is no annual fee to own the Citi® Double Cash Card.

  • Biggest PRO: 2% cash back on all purchases, the highest rate on this list
  • Biggest CON: No 0% intro APR on purchases
  • Includes free access to your FICO® score

Chase Freedom Unlimited – The Chase Freedom Unlimited opens up with a $150 cash back bonus after you spend $500 in purchases during the first three months of account ownership.  The everyday cashback rate is 1.5% on all purchases. It has no categories or tier levels to worry about.

New cardholders will earn a 0% intro APR on both purchases and balance transfers for the first 15 months. Then a 19.49% – 28.24% Variable interest rate kicks in.

There’s also no annual fee for the Chase Freedom Unlimited.

  • Biggest PRO: 0% intro APR on purchases and balance transfers for 15 full months
  • Biggest CON: A high ongoing APR after the intro rate expires
  • Includes free access to your FICO® score

Please read our Blue Cash Preferred® Card from American Express Review here.

Capital One® Quicksilver® Cash Rewards Credit Card – The Capital One® Quicksilver® Cash Rewards Credit Card provides a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

The everyday cashback rate is 1.5%. It applies to all purchases without tier levels or spending limits. All cardholders will receive a 0% intro APR on purchases and balance transfers for 9 months. Then the APR reverts to the standard 19.24% – 29.24% variable. If you transfer a balance, the fee is 3%.

There is no annual fee to own the Capital One® Quicksilver® Cash Rewards Credit Card.

  • Biggest PRO: An added perk of 50% cashback savings on your monthly Spotify premium (expires April 2018)
  • Biggest CON: 1.5% cash back is one of the lower rates on our list
  • Includes free access to your FICO® score

Blue Cash Everyday® Card from American Express – The baby brother of the card above, the Blue Cash Everyday® Card from American Express is the no-fee version with a slightly reduced rewards program.

Cardholders will earn a $100 cash bonus after spending $1,000 in purchases during the first three months. You’ll earn 3% cash back at the grocery store (up to $6,000 spent annually), 2% cash back at gas stations and select department stores, and 1% cash back everywhere else.

Cardholders also receive a 0% intro APR for 15 months on purchases and balance transfers. The ongoing APR is 18.74% – 29.74% variable. As mentioned, there is no annual fee for this version.

  • Biggest PRO: 3% cash back at the grocery store
  • Biggest CON: Low 1% cashback rate on most everyday purchases
  • Includes free access to your FICO® score

Discover it® – Cashback Match™ – The title says it all.

Discover it® – Cashback Match™ will match the cashback you earn for the first full year of card ownership. The regular cashback rate is 1% on all purchases with 5% cashback on select categories every quarter (like gas, restaurants, and Amazon.com). This means that for the first year, your effective cashback rate will be 2% and 10%.

The card includes a 0% intro APR on purchases and balance transfers for 14 months. Then the standard APR is 11.74% – 23.74%, variable.

The Discover it® – Cashback Match™ does not have an annual fee.

  • Biggest PRO: Up to 10% cash back for the first year
  • Biggest CON: 1% cash back on most purchases beyond year one, the lowest on our list
  • Includes free access to your FICO® score

Wells Fargo Cash Wise Visa® Card – Wells Fargo is kind enough to give all new cardholders of the Wells Fargo Cash Wise Visa® Card a $200 cash bonus after spending $1,000 in the first three months.

Cardmembers will earn a flat 1.5% cash back on every purchase. You’ll earn an extra 20% bonus cash back on purchases made with Apple Pay or Android Pay in the first 12 months of account opening.

There is a 0% intro APR on purchases and balance transfers for 12 months. After that, the variable APR is 13.99% – 25.99%. As a nice little bonus, cardholders also receive up to $600 protection on their cell phones ($25 deductible).

The card carries no annual fee.

  • Biggest PRO: $200 up front cash bonus
  • Biggest CON: A potential 25.99% interest rate is highest on our list
  • Includes free access to your FICO® score