Wednesday, August 16, 2023 |
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Once you hit this credit score, there's no real 'benefit to scoring higher,' says expert |
Having a perfect 850 credit score may be a flex, but you don't need it to unlock the best benefits. "Typically, once you hit the mid-700s, you're considered to have excellent credit and there's no practical benefit to scoring any higher," says Ted Rossman, senior industry analyst at Bankrate. "It's just bragging rights above that threshold." The exact number in that mid-700s range varies by lender, but usually a credit score between 740 and 750 will qualify you for the best terms on credit cards and auto loans, Rossman says. A 760 will typically get you the best rates on mortgages. Here's how FICO credit scores break down, according to Experian. Poor: 300 — 579 Fair: 580 — 669 Good: 670 — 739 Very good: 740 — 799 Exceptional: 800 — 850 While nuances in scores don't mean much at the top, every 20 points or so make a huge difference for anyone below "very good," Rossman says. One great way to boost your score: lower your credit utilization rate, a measure of how much of your available credit you're using at a given time. If you have a credit card with a $10,000 limit and you carry a balance of $3,000, your rate is 30%. Financial pros recommend keeping your rate below 30% because it shows lenders that you're generally good at managing debt. If you're above that threshold, aim to cut back your spending or ask your lender to increase your credit limit. |
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Money Tip of the Week: 3 steps for combining finances with your partner Among adults aged 18 to 42, 3 in 5 unmarried couples live together, according to a recent survey from the Thriving Center of Psychology. Half of those couples say finances were part of their decision to cohabitate. Financial pros say you'd be wise to start talking with your partner about money early and often to make sure you two are on the same page. Here's how to broach the subject, whether you've been dating a few months or are ready to tie the knot. Share money habits. Don't ask for a credit report on the first date. But as things start to warm up, begin learning about the other person's financial picture. What are their goals? What's their approach to spending? Do they have any major debts? Getting to know these things now can give you an idea of what, say, saving and budgeting together might look like in the future. Have regular money talks. OK, the person you were dating has become your partner, and you've gotten to the stage of partially combining finances. Now what? Keep talking. "I recommend once a month," says Kendall Meade, a certified financial planner with SoFi. "I call it money dates, where you just sit down, and you can be doing something fun, like going out for dinner. And you just talk about finances." Consider meeting with a pro. If you and your partner plan to enter into a lifelong relationship, it may be time to chat with a financial professional or two. Whether you're married or not, an estate lawyer is a good idea. By drafting an estate plan, you can ensure your partner has financial and medical decision-making power should you become incapacitated and will receive any assets you want to leave them in the case of your death. |
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Next Gen Investing: Bill Gates watched ChatGPT ace an AP bio exam and went into 'a state of shock' |
Even tech icon Bill Gates was caught off guard by the rapid development of artificial intelligence programs like ChatGPT. When Gates first tested the AI chatbot – developed by Microsoft partner OpenAI – he came away unimpressed. "I was like, 'Yeah, it's kind of an idiot savant. I don't think it's practical,'" Gates recalled saying in a recent episode of his "Unconfuse Me" podcast. So he issued a challenge to OpenAI CEO Sam Altman: bring ChatGPT to him once it could achieve the highest score on the AP Biology exam. Two months later, ChatGPT aced the test. "I'm still, personally, in a state of shock at, 'Wow, it is so good,'" Gates said. He has predicted that AI chatbots could start helping kids learn to read and write as soon as next year, and believes they could soon become valuable tools for teachers. "If we think about the next 10 years, [in terms of] both the absolute level of learning and the gap with lower-income, minority students ... these new tools can both close the gap and raise up the overall level of achievement," Gates said. |
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Worth the Money: $33 alarm clock |
I never thought I could be a morning person until I got my sunrise alarm clock ($32.75 on Amazon). Basically, you set the time you want to wake up, and the device mimics a sunrise that reaches its brightest point at the time you've set.
Long gone are the days of waking up in a state of panic due to my jarring phone alarm clock. Now, it feels more like a gentle welcome into a new day, and I start my days in a better mood. I love the different brightness and sound settings, too. I usually choose nature/bird sounds. — Cheyenne DeVon, Money Reporter |
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