utilities

6 Monthly Bills That Won't Affect Your Credit Score

Dan Rafter — Tue, 19 Jun 2018 08:00:30 +0000

What's the best way to keep your FICO credit score healthy? Simple: Pay your bills on time and don't rack up too much debt. Some bills, though, are more important to your credit score than others.

In fact, you might be surprised to learn that many of the payments you make every month have no direct impact on your traditional FICO credit score. That's because in order for a payment to boost your score, or a late payment to hurt it, it must be reported to at least one of the three national credit bureaus: Experian, Equifax, and TransUnion. And many of the companies and service providers you pay off each month don't do this.

That's a mixed blessing. Making a payment late to these creditors won't necessarily hurt your score — unless you pay so late that the bill is sent to collections. On the other hand, paying these bills on time won't help your credit score, either. (See also: 5 Money Matters That Won't Affect Your Credit Score)

Which bills are not reported to the credit bureaus?

There are six common monthly bills that have no direct impact on your credit score. They are:

Utilities.
Insurance payments.
Bills from medical providers.
Cellphone payments.
Cable service.
Membership to health clubs or gyms.

If you're a few days late in paying your car insurance bill, don't panic. Your misstep won't hurt your credit score, just as paying your bill on time won't help it.

But that doesn't mean you can just ignore the bill. There are other consequences for late payments. You might face late fees, penalties, or even the cancellation of service. Your auto insurer, for instance, might charge you an extra $25 if you make your payment after a certain date. Your gym might cancel your membership. And both of those scenarios are still not as bad as if your provider sends your account into collections.

That's because, while a biller may not report payments directly to the credit bureaus, if you miss too many payments, they might send a debt collector after you. Once your account falls into the hands of a collections agency, this will be reported to the credit bureaus. Having an account in collections can cause your credit score to tumble by 100 points or more. (See also: Here's What Happens to an Account in Collections — Even When You Pay Up)

What about rent?

Apartment rent is a more complicated issue. In most cases, the rent you pay each month isn't reported to the credit bureaus. Paying your landlord on time every month usually doesn't provide a boost to your credit score.

There is a movement, though, to change this. The theory goes that renters should be rewarded for paying on time, just as homeowners are when they pay their mortgage bill each month.

Some landlords have begun reporting rents to the credit bureaus. And if you want to report your own rent payments, you can sign up for a rent-reporting service such as Rent Reporters or Rental Kharma.

These services are limited. Both Rent Reporters and Rental Kharma, for instance, only report rent payments to one of the credit bureaus, TransUnion. You'll also have to pay for these services. (See also: 7 Ways to Rent An Apartment With Bad Credit)

Some alternative credit scores do include other bills

As lenders try to expand their market reach, some are looking beyond the traditional FICO score to so-called alternative credit scores. Some of these scores include your behavior with the bills listed at the top of this story, or your management of checking and savings accounts. The FICO Score XD, for example, is for people who have such thin credit reports that they're unscorable by traditional methods. It relies on a consumer's utilities, cellphone, and other bills.

The number of lenders who look at alternative credit scores is still in the minority. But if you're applying for credit and have a limited credit record, it never hurts to ask that a lender take into consideration your good payment history on other types of bills. (See also: How Alternative Data Can Help Those With Little or No Credit)

Monthly payments that always impact your credit score

Some of the payments you make each month will always be reported to the credit bureaus. It's important to pay these on time each month if you don't want your credit score to drop. They are:

Credit card bills.
Home equity lines of credit.
Mortgage.
Auto loans.
Student loans.
Personal loans.
Home equity loans.

Note that revolving credit accounts — credit cards and lines of credit — carry more weight in your FICO score than installment loans.

Also, a payment isn't reported as late to the bureaus until you miss it by 30 days or more. Your two-week delay on your credit card payment won't show up in your credit reports.

However, you'll still be charged a late fee for being even one day late. And every day that you delay payment, interest charges mount. So, it still benefits you to make your payments on time, or as soon after the due date as you can. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

Like this article? Pin it!

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Added Costs That Come With a Bigger House

Kentin Waits — Thu, 01 Mar 2018 09:00:06 +0000

Like most things in America, the size of our homes is expanding. According to data collected by Zillow, the median size of a detached single-family home has grown 24 percent since the late 1990s (from 2,100 square feet to about 2,600 square feet).

The trend isn't surprising. After all, bigger, better, more is part of our national identity — along with reality TV, free refills, and sweatpants that look like jeans. However, if you're thinking about buying a bigger home, proceed with caution. The added expenses go far beyond a steeper mortgage. Here are the extra costs that come with a bigger house.

1. Property taxes

There's usually a correlation between home size and home value. And since more valuable homes are assessed higher property taxes, expect to pay more. While tax rates vary by jurisdiction, most homeowners pay about 1.2 to 2 percent of the property's assessed value in taxes each year.

2. Homeowners insurance

Again, assuming that larger homes are worth more, expect your insurance premium to grow with the size of your space. Though there are many variables and deductions, plan on paying about $4 in premiums for every $1,000 in appraised value. For example, a home that's worth $200,000 could be insured for approximately $800 annually. (See also: 7 Other Kinds of Insurance You May Need to Buy for Your Home)

3. Utilities

Don't forget about those frigid winters and sweltering summers. With more space to heat and cool, your utility costs are likely to rise. Before you buy, have your real estate agent ask the current owners what they typically pay for electricity and gas during peak months. This will give you an idea of how much you can expect to see those costs jump. (See also: 34 Smart Ways to Cut Your Electric Bill)

4. Maintenance and lawn care

Larger houses are usually situated on larger lots, and that equates to higher landscaping and lawn care bills (or more time and more tools if you do it yourself). Additionally, maintaining a larger home can be more expensive — think more rooms to clean, more windows to wash, and more exterior surface to scrape and paint. Be ready to commit a significant portion of your days or your dollars to keeping the new place looking sharp.

5. Repairs

What grows with the size of your home? Your repair budget. More bathrooms mean more toilets to back up and more dripping faucets to fix. Have a foundation problem, electrical issue, or a roof to replace? Get ready to upsize your spending. (See also: 10 Simple Household Repairs Every Frugal Person Should Master)

6. Furnishings

Unless your style is "empty chic," more house means more square footage to furnish and decorate. Artwork, window treatments, rugs, sofas, and beds (oh my!) — they can all add up to a few thousand dollars in no time.

7. Expectations

A curious thing happens when people move into larger homes: It's expected that they'll entertain more, host holiday parties, and serve as the hub for every family gathering. All that merriment costs money. Whether those ballooning expectations are internal or external, plan on adding a few extra bucks to the "entertainment" column of your budget.

Like this article? Pin it!

This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Things You Should Never Hide From Your Landlord

Paul Michael — Thu, 15 Feb 2018 09:00:08 +0000

So, you're renting a place to live. And that means you have a landlord. Whoever is responsible for the house or apartment will be holding you to a set of standards. You'll have signed a contract. Whether you're renting the place alone, with friends, or even strangers, you better be upfront about the following, or you could find yourself out on the street.

1. Your pets

When you look for a new place to rent, you'll see that almost all of them have a pet policy. It will either be no pets allowed, pets OK with a deposit, or a stipulation on which kind of pets you can have (maybe dogs aren't allowed, but cats are).

If you have a pet and are planning to rent a place, you must disclose it to the landlord. It's tempting to think, "Whiskers is so old and small, no one will care," but that's not the point.

The policy is there for a reason. The landlord may not want the additional cleanup involved in getting a house or apartment ready for the next tenant. Some pets can cause damage far more expensive to repair than the security deposit will cover. Whatever the reason, they set the rules, and you must agree to abide by them.

If you are found with a pet, even if it's a pet you bought after you signed the lease, the landlord is well within his or her rights to ask you to get rid of it. They could also evict you for breaching the contract. It's not worth it. Find a place that's pet-friendly, or see if you can give your pet to a caring friend. (See also: 7 Smart Ways to Get Your Apartment Deposit Back)

2. Any new roommates

Many of us have shared a home or apartment with roommates so we can afford the rent. It happens a lot with college students, or when you're living in places like Manhattan or Beverly Hills. If three of you decide to rent a four-bedroom place, and all sign the contract, no problem. But if you decide to move another friend in after the fact, that's trouble.

Whether you're taking money from that person to help with the rent, or just letting them stay for free, you are breaking the rules of the lease. Think of it from the landlord's point of view. He or she vetted you, and anyone else who put their name on the contract. If you bring someone else in, they get by that process unchecked. They're an unknown, and landlords really don't like unknowns; especially if it's their own home they're renting out.

Not only that, but it's possible the apartment or home is only fit for habitation by a maximum number of individuals. Add more, and you could be putting people in harm's way. Whatever the case, you're once again risking the chance of being kicked out on the street.

3. DIY or home improvements you have made

It may be home sweet home, but it isn't yours. You're just "borrowing" it for a set amount of time. The house, and any contents that came with it in the lease, are not yours. Therefore, you don't have the right to start messing around with them.

You may think you're doing the landlord a favor; perhaps you want to rip out the carpet and install a wooden floor, or scrape off the older wallpaper and add something fresh and vibrant. Well, that may not be something the landlord wants.

Now, by all means, ask the landlord if you can do these improvements, and get it in writing if he or she agrees. Chances are, if you're planning to make upgrades that make the place more attractive, you'll get the go-ahead. But never assume, and never keep any work you've done a secret. On the day you move out, you could find your security deposit is not returned because you didn't leave the home in the same state you found it. (See also: 14 Simple Ways to Make an Apartment a Home)

4. Problems with utilities

Utilities may be included with the rent, or they may all be your responsibility, but either way, you should tell the landlord as soon as you notice any problems. Water leaks can start out as minor repairs, but left unchecked, they can lead to thousands of dollars in damages. They can also affect other tenants, and it will all be on the landlord's shoulders.

Electric problems are just as bad. If something is shorting out, it could lead to a fire, and that could be disastrous.

Even if it doesn't seem like anything — maybe just a slight drop in water pressure, a sketchy light switch, or an unexplained increase in the utility bill — talk to your landlord immediately. In this case, a stitch in time really does apply. Oh, and if the landlord has evidence that you concealed the problems, you could be liable for the full cost of the repairs.

5. Broken or malfunctioning appliances

Just like the utilities issue, broken appliances and other fixtures should also be reported to the landlord as soon as you notice them. Again, if the malfunction is caught early, it could mean a simple fix instead of a major repair — or worse, having to replace the entire unit.

Broken or malfunctioning appliances can also cause damage to the apartment. For example, a washing machine that's leaking water into the wooden floors can create issues that may not be caught until months later, and by then, it's a big problem. A stove that leaks gas is obviously a serious health hazard and should be turned off and reported. A furnace that is setting off your carbon monoxide alarm is incredibly dangerous, and makes the home uninhabitable.

If that does happen, call the landlord immediately and get out of the home. Or at the very least, open all the windows if you cannot leave, and stay close to the fresh air. The landlord will be responsible for getting the furnace fixed, or more likely, replaced.

6. You're running a home-based business

Most of the time, the landlord isn't really going to care if it's a small business that doesn't impact the regulations of the area. For example, if you're making extra money selling knitted goods on Etsy, tutoring students, or writing web code on a laptop in your bedroom, it's probably not going to be a big deal. However, other kinds of business can cause problems for the landlord.

If you decide to turn your apartment into a massage therapy facility, or start fixing cars in the attached garage, you could be violating zoning restrictions. And if it is noisy, smelly, and a nuisance to neighbors, you're just asking to be evicted. Check with the landlord before you sign the lease; there will usually be a section in there talking about home-based businesses.

7. You can't find your key

Hey, it happens. Maybe it fell off the key ring, or you misplaced it and have no idea where it is. Even if you have a spare, you need to tell the landlord as soon as you notice your key has gone missing.

Although it's unlikely that it will be used to gain access to the property, you cannot say for sure that it didn't end up in the wrong hands. For your own peace of mind, you should tell the landlord what has happened, as any kind of security risk poses a problem.

If the landlord decides that the locks need to be changed, you will almost certainly be responsible for the costs incurred. You may also have no choice about which firm replaces the locks. If you're handy you could offer to do it yourself and save some money, but it's doubtful you'll be allowed to do that.

8. You're subletting the property

It's very tempting to sublet your apartment or home if you know you're going to be gone for a significant amount of time. Some people also sublet when they know a big event is coming to town, and services like Airbnb make it very easy to do that and make a significant profit for a few days. All of this is a big no-no if you haven't checked with the landlord first.

Some states and municipalities have specific laws regarding subletting. Your lease may explicitly prevent you from subletting. Even if the landlord agrees, he or she may want to have a say in who you choose to sublet the property to, and may insist on a background check that you must pay for.

And remember, if you do sublet and the subtenant doesn't pay you, it's your responsibility to pay the rent. So choose carefully, or you could end up in a world of financial pain. (See also: The Easy Way to Sublet Your Apartment)

Like this article? Pin it!

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Unexpected Costs of Living in a Tiny House

Aaron Crowe — Thu, 23 Nov 2017 09:00:06 +0000

Not having a mortgage can certainly make life a lot cheaper. With the average price of a traditional home coming in around $273,000, according to Redfin, it's no wonder some people are turning to alternative housing in efforts to save more money.

The tiny house movement has gained a lot of traction in recent years, made all the more attractive by tiny home prices as low as $20,000. But there are some expenses that tiny homebuyers may not consider before building or buying a small home. Here are five of the most unexpected. (See also: Can Tiny House Living Actually Save You Money?)

1. Land

Adding the price of land to a tiny home's cost shouldn't be unexpected, but it can be forgotten about if the house is on wheels and you plan to move it. Even if you get a free deal to place your home on your parents' or friend's property, you should factor in the possibility that you may eventually want to move it. When you do, you may have to pay rent for a lot or space on the property of your choice.

2. Zoning laws

The jurisdiction in charge of the land you want to put your tiny house on will likely have laws on zoning, land use, building, and other red-tape headaches. None of these are cheap.

Zoning laws and building codes are meant to make sure a home is safe and in an area where homes are allowed. If your tiny house isn't approved by your municipality, a code enforcement proceeding could be started against you and you could be forced to remove your tiny home and pay a fine.

And while a tiny house built on a permanent foundation may have one set of zoning codes to follow, a tiny house on wheels that qualifies as a recreational vehicle will likely have others. An RV on wheels may only be allowed for temporary residential use, and it may be illegal to live in one unless it's parked at an RV or mobile home park. You'll need to check your local regulations so you understand the specific laws in your area.

3. Cost of being mobile

One appeal of a tiny home is that they're mobile, and can either be towed or put on a flatbed truck. If you're spending money to meet zoning laws and buy land, then being mobile may not be so cost-efficient. And unless you can safely tow your tiny house yourself with a truck big enough to haul it, you'll have to pay someone else to move it.

To be legal to tow, a tiny home must meet certain road requirements; namely, it can't be bigger than 13 feet by 6 inches in height and 8 feet by 6 inches in width, according to regulations in the U.S. Even if you have a truck with a big enough engine to tow a tiny house of 15,000 pounds or more, you'll want to ensure you can hook up trailer brakes to the truck, that your truck has the proper transmission for towing, and that you have the skills required to tow it.

These costs can vary, but Tiny House Giant Journey estimates the annual cost of towing their tiny house at $1,520. That includes gas, truck and trailer maintenance, truck insurance, campground fees, and propane.

4. Utilities

No matter how big or small your house is, utilities such as water, electricity, gas, and garbage are part of your living expenses. How do these utilities factor into the costs of living in a tiny home?

Probably not by much if the area you're living in has such services normally available. But if you're moving around often, you may have to pay hookup fees each time. You may also face other unique obstacles such as not being able to find drinking water that can easily be hooked up to your tiny home. You might also need to pay extra for things like a mobile internet service, which can be more expensive than service in a fixed location, and regular visits to the laundromat if you don't have room for a washer or dryer.

5. Resale value

Selling your tiny home sometime down the road may be the last thing on your mind when you first move in, but resale value could be a potential problem later on.

The tiny house market is too new to know yet if the resale value of these homes will go up. Location will likely play a big part, as it does for permanent homes. A home on wheels may be thought of more as an RV, which can depreciate quickly in value like a car.

And since a tiny home is so small, the new owner will have to be happy with the same customizations you chose if they don't want to spend a lot of money changing things. You may be OK having a small kitchen and a bigger living room, but another buyer may want it the other way around. (See also: 3 Ways to Finance a Tiny House)

Like this article? Pin it!

This article is from Aaron Crowe of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Things Your Credit Report Does NOT Include

Dan Rafter — Fri, 22 Sep 2017 08:30:11 +0000

Ordering your credit reports every year and studying them carefully is a smart way to get a window into your financial well-being. But while credit reports contain a wealth of information about your history with money, they don't tell you everything about your financial health.

In fact, there is plenty of financial information you won't find in any of your credit reports.

1. Your credit score

Your credit score is a key financial number. It gives lenders a snapshot of how responsible you've been with your finances. If you have thousands of dollars of credit card debt and you routinely pay bills late, your credit score will be low. If you pay your bills on time and you are using a smaller percentage of your available credit, your score will be high.

Unfortunately, your credit report does not contain your credit score. To obtain your score, you'll have to pay one of the three national credit bureaus for it. Your credit card provider might also list a credit score on your monthly statements. This score might not be your official FICO credit score — the one most lenders rely on when deciding whether to lend you money. It can still give you a general idea of where you stand, though, and is worth keeping track of. (See also: FICO or FAKO: Are Free Credit Scores From Credit Cards the Real Thing?)

2. Your payments to utility companies

You pay your gas and electric bills on time every month. You might think that this key indicator of your financial responsibility would be listed on your credit report. Unfortunately, it's not. Utilities don't report payments to the credit bureaus.

This means that your on-time payments to utility providers don't help your credit score. Late payments aren't reported, either. But be careful: If you're far enough behind on your payments that a utility sends your account to collections, that will show up on your credit report. And that black mark will give lenders reason to hesitate when deciding whether you qualify for a loan. An account in collections can also send your credit score plummeting by 100 points or more. (See also: Account in Collections? Here's How to Fix It)

3. Your rent payments

Paying your rent on time probably won't help your credit score, either. That's because most landlords still don't report rent payments to the credit bureaus, meaning that these payments don't show up on your credit report.

There are services today, though, that landlords can use to report rent payments to the bureaus. Most landlords don't use these services yet, but the fact that they are available could be a sign that rent information will become more common on credit reports in the future.

4. Medical bills

The payments you make to doctors, dentists, and other medical professionals don't show up on your credit reports, either. Again, this is because doctors don't report payment information to the credit bureaus.

Paying these bills late, though, could show up on your credit report if your medical providers send your account to a collections agency.

5. Your salary

You'd think the money you earn would be a key indicator of your financial health, and it is. But it's not an indicator of how likely you are to pay your bills on time and manage your credit. Because of this, it doesn't show up on your credit reports.

6. A job loss

Your credit reports do provide some basic employment information, with some listing your past and most recent employers. But if you've just lost your job, that information won't be included in your report. Your reports never mention whether you are still employed, and they don't list how long you've worked with any one company.

7. Your spouse's credit history

Your credit reports list financial information about you and you alone. If you're married, your spouse's history of paying bills and running up debt won't show up.

However, if you and your spouse both have your names on a loan or credit card, that debt will show up on both of your credit reports. So will late payments you made on these accounts, even if paying the bills was your spouse's responsibility and not yours.

Like this article? Pin it!

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

20+ Questions to Ask During an Open House

Annie Mueller — Thu, 20 Jul 2017 08:30:14 +0000

Shopping for real estate can be daunting. It takes time and discernment to know which house is right for you. To avoid wasting time on open house visits, be prepared with these key questions. If you find a house that matches your wish list, chat with the listing agent to find out all the details you don't want to overlook.

Before you start asking questions

First things first: Pick up a copy of the property information. These are often on the kitchen counter or near the entry during open houses. Many people view the house, and then look over the information. But the disclosure statements often reveal things you'll want to see while on site; maybe there was water damage, or the carpets were recently replaced. Spend five minutes reviewing the property information so you can eyeball the improvements or issues as you move from room to room.

Some listing agents will wait near the information sheets, ready to talk to prospective buyers. If you're not ready to chat yet, say so; the agent should accommodate your desire to view the house and review the information before either of you starts asking questions.

General questions

Ask these questions to get an idea of the overall condition of the house and area.

What's the reason for the sale?

This may seem like a personal question, but it's a valid one. If the house is being sold because the owners are unhappy with its condition, need for repairs, the safety of the area, or the feel of the neighborhood, you want to know. Your goal is to understand if the reason for the sale is personal or due to an issue with the house or area.

Don't press for personal information about the owners, of course; the agent should protect their confidentiality while giving you a top-level answer. If the agent is very hesitant, or unable to provide even a generic or partial answer, note that. If you're interested in the house, you can have your own real estate agent follow up with the listing agent.

What are the biggest problems with the house?

If you ask, "Are there any major problems with the house?" then the agent may say, "No, it's in great shape." Phrasing matters. Every house has problems. This is the time to find out what those problems are. The listing agent wants to sell the property, of course, but they want the sale to be a satisfactory one.

In many states a seller's disclosure is required, and should be included with the property information. You can ask for more details on any issues disclosed:

Have there been any more water problems since the sump pump was replaced?
How extensive was the termite damage listed on the disclosure?
Have the owners done any further mold testing?

Asking for more information will help you determine if the issues have been resolved or would require additional repair or maintenance.

What are the average utility costs?

Older houses tend to be less energy efficient, and can come with heftier utility bills than you'd expect. On the other hand, the owners may have a installed top-of-the-line HVAC system, put in double-paned windows, and invested in other energy-saving upgrades. The listing agent will know, or be able to find out, the average monthly cost for utilities. It's a good idea to ask for a typical monthly cost in the winter and in the summer, so you can compare how much the energy use might fluctuate seasonally.

Has the price changed at all?

The listing agent will know the history of the house, if the listing price has dropped or increased, and the reasons for any change in price. A lower listing price can be great news for you, but multiple drops in price should be a red flag. Was the house listed much too high for the area? Or are there major issues that are keeping buyers away?

In your discussion on price, you can ask other questions to get an idea of the urgency of the sellers:

How long has the house been on the market?
Have there been other offers on the house?
Are the sellers eager to negotiate?
Are the sellers in a hurry to sell?

You may not get direct answers to all these questions, but they're still worth asking. If you are genuinely interested in the property, talking with the agent can give you insight on what matters most to the sellers. If they're in a hurry to move, for example, they might accept a lower offer with a rushed closing date.

Is this a good neighborhood for families?

Maybe you don't have a family; this is still a good question to ask, because "family-friendly" is often code for safe, clean, and welcoming. Are there community events nearby? Is there a neighborhood association? Ask the agent about the nearest places for shopping, entertainment, and dining out. If the nearest grocery store is 10 miles away but the nearest bar is just around the corner, it may not be so family-friendly, after all.

A discussion about the neighborhood is a good time to ask about area resources and attractions, as well as cost of living:

Are there any parks or natural attractions nearby?
What do people in this area like to do for fun?
What's the best restaurant nearby?
Do you know what the average income is for this area?
Where is the nearest hospital?

Room by room questions

Some questions are room-specific. Ask the agent to walk through the house with you and discuss as you go.

Kitchen

Which appliances are included? How old are they?
Have there been any major updates or renovations in the kitchen?
Are there any water issues in the kitchen?
Have there been any major repairs in the kitchen?

Basement

Are there any water issues in the basement?
Is there a sump pump installed?
Have there been any issues with mold?

Living rooms and bedrooms

How old is the carpet?
What's underneath the carpet?
Have the rooms been recently painted?
Are the window treatments included?
Have there been any renovations or updates done lately?

Bathrooms

Are there any water issues in the bathrooms?
How is the water pressure? (Ask if you can check it.)
How recently have the bathroom fixtures been updated?

Yard

Does the landscaping allow water to flow away from the house?
Are there any wet or soggy areas in the yard?
Have the owners done regular pest control?
Are there any issues with the yard or garden?

Open house etiquette

Open houses vary, but there are some common etiquette rules to follow. Don't forget to sign in; leave your name only if you prefer not to include your contact information. Be sure to greet the listing agent. Let the agent know you have questions, but don't keep them from being able to interact with other visitors. Discuss, don't dominate.

Expect to answer a few questions about yourself, such as "How long have you been looking?" A good listing agent will be trying to determine who's a serious buyer and who's there for the free mints.

Like this article? Pin it!

This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Unexpected Costs of Selling a Home

Damian Davila — Thu, 06 Apr 2017 08:00:09 +0000

Getting ready to sell your house? You may be itching to pocket all those dollars you think are headed your way, but don't get too excited just yet. More factors go into selling a home than you might realize. Unfortunately, hidden expenses are one of those factors. Brush up on these eight surprising costs ahead of time to lessen the blow.

1. Utilities

It's a good idea to keep the utilities running until the very last day before closing on the sale. Not only will it help your real estate broker to demonstrate that the home is fully operational, but it can also help you prevent other issues.

For example, keeping some lights and A/C on during the summer or highly humid days can help your home stay mold-free. Molds thrive when the humidity levels exceed 70 percent. A running A/C cools the home, removes moisture from the air, and keeps the air inside circulated and filtered. Keeping mold in check will help you pass the home inspection and prevent additional fees. Another example would be turning off the water and ending up with an unappealing (and dead!) lawn, which sends potential buyers the wrong message about your property.

You also want to make sure that utilities are still on for your buyer's final walk through. Consult with your broker for the right time (generally closing day or the day after) to turn off the utilities and settle those bills.

2. Repair and renovation costs

A fresh coat of paint, a thorough carpet steam clean, or a new toilet in the master bathroom can go a long way in increasing the appeal of your home. Budget for the cost of hiring a contractor or doing these necessary repairs yourself before putting your home on the market. Addressing repairs early can save you money in the long run and increase your chances of passing a home inspection on the first try. (See also: How Much Are Pricey Home Upgrades Really Worth?)

3. Seller credits to buyer

In the event that you are against dealing with repairs or renovations, you could extend to a buyer a seller credit to make up for the costs of fixing up the property. However, lenders cap the credit amount that a seller can extend to a buyer at 3 percent to 6 percent of the total mortgage.

Since the majority of buyers will ask for one, most real estate agents recommend that you budget for a range that you would be comfortable with in extending as a seller credit. This is in case your property stays on the market for far too many days. Cash-strapped buyers may request seller credits to cover additional expenses, such as closing costs, or escrow fees. In 2016, the National Association of Realtors (NAR) estimated that 37 percent of sellers offered incentives, such as seller credits, toward remodeling or repairs to attract buyers.

4. Digital staging costs

To maximize the exposure of your property to potential buyers, you need not only to stage your home, but make great photos and descriptions available online.

Keep in mind that your agent may outsource digital staging services to a third party, which may or may not be the same one staging your home. According to Kiplinger, home sellers spend on average $1,800 to stage a home, but costs can range from a couple of hundred dollars to $5,000 or more. The more bells and whistles that you request (say a 360-degree picture or video walk-through), the more that you pay.

5. Agent commissions

Real estate agents are paid on commission — typically 5 to 6 percent of the home's agreed upon selling price. The commission is generally split between the seller's agent and the buyer's agent. On a $300,000 home, a 6 percent commission works out to $18,000, all of which comes out of the seller's side of the deal. Agent commissions are negotiable, although a seller who pushes too hard on this point may make their home unattractive to buyer's agents, ultimately reducing traffic and potential buyers.

6. Capital gains taxes

While owning real estate can give you plenty of surprising ways to cut down your tax bill, you may still have to pay Uncle Sam a share from your home sale under certain circumstances.

As long as you've owned the home for at least 24 months and used it as your primary residence during the last five years leading up to the date of closing, you may receive an exemption up to $250,000 ($500,00 if married filing jointly) of the gain from your home sale. If you were in the lucky position that your capital gains exceeds those limits due to a "hot market," then you would need to pay applicable taxes

7. Title insurance

This type of insurance protects real estate owners and lenders against loss or damage that can occur due to defects in the title on a property.

While typically included in the closing costs covered by the buyer, some states may require the seller to pay for title insurance or allow for negotiation of this cost between buyer and seller. The cost of title insurance can range from a few hundred dollars to more than $2,000. (See also: Yes, You Need Home Title Insurance — Here's Why)

8. Moving costs

Now, you wouldn't expect all of your belongings to move themselves, would you? Whether it's with time or cash, you'll need to pony up moving expenses, which can run well into the thousands depending on the size of your property and the distance of your move.

If you're moving at least 50 miles due to a new job location, you can deduct reasonable expenses for moving your belongings and traveling to your new home. Hiring a professional moving company would help you provide proof to the IRS that your moving expenses are valued at a fair market price. (See also: 6 Reasons You Should Always Hire a Moving Company)

The bottom line: Account for all home sale costs

It's easy to fall for the trap of thinking that you're making more money on your home sale than you really are.

Let's run some numbers. If you were to close at a price of $300,000 for your home and still owe $160,000 on your mortgage, you'd think that you made $140,000 in profit. Assuming that you paid 8 percent of your sales price in total costs for your home sale, you would have coughed up $24,000 and brought down your net profit to $116,000 (a 17.14 percent drop!).

The smaller the gap between your sale price and remaining mortgage, the more critical that unexpected costs of selling a home become.

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Pay These 6 Bills First When Money Is Tight

Dan Rafter — Fri, 31 Mar 2017 08:00:16 +0000

Is your money situation a little tight this month? It happens to the best of us. What if you don't have enough money this month to pay every bill by its due date? For the time being, you might need to prioritize your payments.

This isn't the ideal solution. Far from it — paying any bill late could result in a late fee. But thanks to a bit of leeway when it comes to credit reporting, paying bills just a bit late might not hurt your all-important FICO credit score.

This makes it a bit easier to determine which bills you absolutely must pay on time, and which bills you can more easily tackle after their due dates pass.

1. Mortgage

It's important to keep the roof over your head. And not paying your mortgage payment on time can send your credit score plummeting by 100 points or more. Credit scores are important: Lenders rely on them to determine if you qualify for a loan and at what interest rate.

There is some leeway, though, with mortgage payments. First, lenders can't report your payment as late to the credit bureaus until you're at least 30 days past due. This means that paying your bill one, two, or three weeks late won't hurt your credit score.

Second, according to the U.S. Department of Housing and Urban Development, lenders usually won't start the foreclosure process until three to six months after your first missed mortgage payment.

Even though these safeguards are built in, you don't ever want to take the chance of losing your home. Make sure to pay your mortgage as soon as you can.

2. Rent

If you're renting an apartment, do everything you can to pay this bill on time. Your landlord can send you an eviction notice if you're just one day late with your rent payment. Now, actually evicting you will take time, and most landlords probably won't file a notice that quickly. But you don't want to give your landlord any excuse to start this process in motion.

3. Car payment

As with your mortgage, there is a grace period before your late car payment starts to affect your credit score. Your auto lender can't officially report your payment as late to the credit bureaus until that payment is more than 30 days past due.

However, you need to be aware that if you stop making car payments, your vehicle can be repossessed. If this happens, your credit will suffer the consequences — by up to 100 points. Auto lenders can repossess your vehicle quickly, too. In fact, in most states they have the legal right to repossess your car as soon as you miss a single payment. It's unlikely that your lender will move to take your car that quickly, but why take that risk? If you're prioritizing your bills, this is definitely one to move to the top of your list.

4. Utility bills

Typically, you'll receive plenty of advance warning before your utility providers shut off your services. But you will have to pay these bills eventually to keep them on. Put these bills at the top of your priorities list.

If you are struggling to pay these bills, don't ignore them; call the utility company. Utilities will often work with homeowners who are struggling financially. They might lower your bill for a period of time or defer your payments for a few months to allow you to rebuild your finances.

5. Student loans

Student loan debt is a financial burden for many, but you might be able to work out a new repayment plan with your lender if you are struggling. This is usually easier to do with federal student loans. You might qualify for a deferment, depending on your financial situation. But even if you are struggling to pay private student loans, call your lender. The company issuing your loans might be willing to work with you to keep you from falling into default. (See also: 8 Surprising Ways to Pay Off Your Student Loans)

6. Credit cards

Yes, your credit card issuer can hit you with a late fee if you miss a payment. And yes, your card's interest rate might then soar. But credit cards don't need to be at the very top of your priorities list if you are struggling with critical bills like your mortgage.

Your credit card provider can't throw you in jail if you miss payments, and it can't take your house or car. So paying this provider after making your mortgage and car payments is OK in a financial pinch.

It typically isn't a smart move to pay only the monthly minimum on a credit card, because it's often such a small amount. However, if you're really struggling with money, this is another temporary option you can take. This will keep you current on your bill, and you can always boost your payments back up again once you've regained financial footing. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

Like this article? Pin it!

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Financial Mistakes That Won't Hurt Your Credit Score

Dan Rafter — Thu, 23 Mar 2017 10:00:11 +0000

Certain financial mishaps can cost you dearly when it comes to your FICO credit score. Pay your credit card bill more than 30 days late, and your score can drop by 100 points. Declare bankruptcy or lose a home to foreclosure? Your score will fall by even more.

In general, lenders today consider a FICO credit score of 740 or higher to be a very good score. They consider anything over 800 to be excellent. Keeping your score in these ranges requires that you pay your bills on time each month and keep your credit card debt low.

But here's a secret about FICO scores: They don't measure all of your financial activity. It's possible to suffer a few financial setbacks, or make some money mistakes, without seeing your credit score take a dive.

Here are five financial mishaps that, though they might cause problems in your daily life, won't hurt your credit score.

1. Paying your credit card bill just a little late

You should always pay your credit card bills on time. And ideally, you should pay off your cards in full each month. But if you miss your deadline by two days or three weeks, it won't impact your credit score.

Your credit card provider will only report a payment as late to the three national credit bureaus — Experian, Equifax, and TransUnion — if you are at least 30 days late on it. As long as you pay before that 30-day deadline passes, your credit score will remain intact. (See also: How Late Payments Affect Your Credit)

Of course, this doesn't mean that you won't take a financial hit. Your credit card provider could raise your card's interest rate and levy a late fee — usually around $35 — against you.

2. Forgetting to pay your doctor's bill

Not all bills are equal in the eyes of your credit score. Pay your credit card or mortgage payment more than 30 days late, and you can expect your FICO score to plunge. Do the same with your doctor's or dentist's bill, and your credit score won't budge.

That's because medical providers don't report late payments to the credit bureaus. So paying your dentist bill 40 days late won't hurt your credit score.

Again, though, you need to be careful. Paying your medical bills late could have other financial consequences. Your medical provider might tack on additional fees to your bill if you don't pay on time. And if you put off paying that bill for too long, your medical provider might send a collections agency after you. This will be reported to the credit bureaus, and it will cause your credit score to fall.

3. Not paying your phone or utility bill on time

Your phone, electrical, gas, water, garbage, and cable bills are much like your medical ones: The providers of these services don't report to the credit bureaus. You can pay these bills late without suffering a hit to your credit score.

Again, be careful. You don't want your utility company shutting off your service or sending your late bill into collections, something that will hurt your credit score.

4. Paying your apartment rent late (usually)

It used to be that apartment rent payments were never reported to the credit bureaus. Today, that is slowly beginning to change, with some services popping up that will report on-time, and late, rental payments to credit bureaus.

But the majority of renters still don't see their monthly rent payments reported to the credit bureaus. That's bad news for renters who pay their rent on time each month; those on-time payments could boost their credit scores if they were reported. It's a better deal for those renters with a history of late payments, as these financial mistakes won't hurt their credit scores.

5. Losing a job

You might be surprised to learn that your annual income has no impact on your FICO credit score. Your credit score only tracks how well you pay your bills and manage your credit. It does not care whether you make a $1 million or $10,000 a year.

If you lose your job and your income suddenly dips, your credit score won't budge.

If your reduced income causes you to run up your credit card debt or start paying your bills late, though? That will hurt your credit score.

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Infuriating Ways You're Ruining Someone Else's Credit

Mikey Rox — Tue, 21 Mar 2017 10:00:17 +0000

Your credit score is one of the biggest deciding factors in your financial health. It influences whether you qualify for the best interest rates on mortgages or auto loans, it can impact your insurance rates, and it can even determine whether you land that dream job or not.

Establishing good credit requires managing your credit accounts responsibly. But your own credit score isn't the only one that can suffer the consequences of poor credit management. In the same way money can ruin a friendship, your financial carelessness could ruin someone else's credit. Here's how.

1. Charging up someone else's credit card

Becoming an authorized user on someone else's credit card helps build your own credit history. You'll receive a credit card in your name, and you're allowed to make charges on the account. But even though your name is on the card and the account shows up on your credit report, only the primary account holder receives the statements. This person is ultimately responsible for any purchases you make with the card.

If you're an authorized user, the mature thing to do is pay whatever you charge each month. If you don't or can't pay, this sets in motion a chain of events that could ruin the other person's credit.

Any purchases you charge to the account can raise the primary account holder's balance and increase their credit utilization ratio beyond a healthy range (utilization ratio is the credit card balance compared to the credit limit). Ideally, credit utilization should never exceed 30 percent of a credit limit — the lower, the better. A high utilization ratio can lower credit scores.

In addition, ringing up charges on someone's credit card and not paying what you owe could trigger payment problems. This can happen if the primary user doesn't have enough money for higher minimum payments. If they can't pay the credit card bill within 30 days, the credit card company could report the late payment to the credit bureaus. While a 30-day delinquency won't tank a credit score, if it's longer than that, the damage is more serious — at which point, you'd better run.

2. Defaulting on a co-signed loan

Maybe you're getting a car loan and need a co-signer. If you have no credit or bad credit, a co-signer can help you qualify for financing. But if you don't uphold your end of the bargain by making on-time payments (or if you stop paying altogether), your actions affect both of your scores.

Co-signers become responsible for loan payments when a primary signer can no longer make payments to the lender (which is why I would never, ever cosign for anyone). If you default on a loan and your co-signer can't take over the loan payments, the delinquency appears on both of your credit reports and remains there for up to seven years. (See also: Is It Ever Okay to Cosign a Loan?)

3. Bailing on shared expenses

Skipping out on a shared or joint expense, like a lease or a mortgage, is another way to ruin someone else's credit. If you move out abruptly after getting into a fight with your roommate or partner, and you refuse to cough up your half for joint expenses, the other person must come up with the cash or else risk an eviction, breach of contract lawsuit, or foreclosure. All three scenarios can destroy both of your credit scores.

A similar issue can occur if you bail on a joint utility bill. If the account goes unpaid, the utility company will send the information to a collections agency. Collection accounts remain on credit reports for up to seven years — but your friend's urge to punch you square in the nose will last a lifetime.

4. Pressuring friends to spend money

Financial peer pressure gets many people into trouble. Whether you realize it or not, you could be guilty of driving your friends to spend money they don't have. Of course, everyone is responsible for their own finances. But if you push a "You only live once" attitude on others, or if you constantly entice your friends to spend outside their budgets, they could succumb to the pressure and use credit to finance keeping up with you.

5. Ignoring a parking ticket in a borrowed car

Don't hide or ignore a parking ticket you get in someone else's car. Even if there's no way to identify the actual driver at the time of the violation, the parking ticket is tied to the owner's license plate and they will owe any fines you incur. If the parking ticket goes unpaid, a negative mark can appear on the car owner's credit report.

6. Blowing off library fines

On the off chance you go to the library and check out a book using someone else's library card, return the book on time and pay any late fines you owe. Some cities report these unpaid fines to collection agencies, which can cause a negative mark on the library cardholder's credit report. In all likelihood, it's just a few bucks we're talking about here, which makes the situation particularly annoying.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Pay Your Bills With a Credit Card?

Holly Johnson — Wed, 22 Feb 2017 10:30:36 +0000

One of the smartest — and easiest — ways to earn more credit card rewards is to charge as many regular bills as makes sense. By using credit instead of your checking account to pay bills you normally pay anyway, you can increase your rewards without spending money you don't have.

First step: Get out your monthly bank statements and make a list of expenses you pay on a regular basis. These might include utility bills, insurance premiums, and even rent.

Next, determine whether you can pay these bills with credit. Using a credit card to pay your bills allows you to rack up cash back, hotel points, and airline miles a lot faster, but there are some downsides you need to consider, too. (See also: Why I Use My Credit Card for Everything)

Beware of Fees

While some businesses let you use a credit card without an added fee, others might charge a fixed or percentage-based convenience fee for using credit. This is because companies are charged a fee for processing credit card payments.

If a fee is involved, it's usually not worth it to put the payment on your credit card. That additional fee would cancel out (and sometimes be more than) any rewards you'd get for the charge.

Let's say you want to pay your $100 cellphone bill with a credit card, but your service provider charges a flat $1.95 fee for doing so. If your credit card offers 1% back for each dollar you spend, you would earn $1.00 in rewards for a $1.95 fee. You'd clearly be better off using some other payment method.

On the other hand, if you have a rewards card that offer 5% back on cellphone purchases, you'd earn $5.00 in rewards on that $100 cellphone bill in exchange for a $1.95 fee. That's still a pretty good deal.

Don't Get in Debt for Rewards

No matter what, you should never charge bills you can't afford to repay right away. There is no amount of rewards that would be worth the interest credit cards charge for carrying a balance. Before you charge any bill, you should make sure you have the cash to pay your bill in full when it's due.

Don't Use Convenience Checks

Don't think you can bypass the fees by using those convenience checks credit cards send you, either. Those are considered cash advances, and you will not only not earn rewards using them, but you will be assessed interest the moment they are cashed. The interest on cash advances are much, much higher than the standard APR, too. So never, ever use those checks to pay your bills!

Overlooked Bills You Can Pay With Credit

With all of those caveats in mind, consider this list of bills you might not currently be paying by credit card:

Cable/Internet/cellphone bill — Depending on which telecommunications service providers you use, you may be able to charge these bills to a credit card online or over the phone.
Car/homeowners/renters insurance — Most providers of these types of insurance let you pay your premiums with a credit card, though you may have to pay a fee. This is true whether you pay your bill monthly or just once or twice a year.
College tuition — Not all schools accept credit cards for tuition, and many that do charge a fee. For all the rest, charging your bill to a credit card can help you earn points and miles quickly. Because this tends to be a large bill, it's especially important to point out that this only pays off if you can pay the credit card charges in full at the end of the month. (See also: Best Credit Cards for College Students)
Day care — Many larger daycare centers let patrons charge their weekly or monthly day care expenses. Smaller providers may also accept credit cards, though they are more likely to charge a convenience fee.
Electricity, gas, water — More and more utility companies let consumers charge their bill payments to a credit card.
Health insurance — If you buy your own insurance on the open market or through the exchanges, you may be able to pay for your premiums with a credit card. Although some large health insurance companies have dropped this option, there are still some providers who allow it.
Income taxes — The Internal Revenue Service authorizes three providers to accept and process federal income tax payments by credit card. All of them charge fees, but at least part of the fee may be tax deductible. If you want to charge state income taxes, you'll need to check with your state for rules and additional details. (See also: Should You Ever Pay Your Taxes With a Credit Card?)
Kids' sports and activities — If your children are in baseball, ballet, or any other activity, don't forget to charge their activity fees or dues. You may also be able to charge equipment rental and uniform fees.
Offerings at your house of worship — An increasing number of churches, synagogues, and other houses of worship accept credit card donations. If you tithe or regularly contribute to the offering plate, this is an expense to consider charging, keeping in mind that part of your donation will go to pay for credit card processing fees.
Rent — For a few lucky tenants, paying rent with a credit card is an option. Some landlords provide this service for free. Otherwise, there are companies that will accept your credit card payment and then pay your rent or mortgage by check, but the fees are almost always greater than any rewards you could earn.
Subscriptions and membership dues — You can usually charge your fees for a gym, video streaming service, dating service, magazine, and other subscription services. Most large organizations will also let you pay for membership dues with a credit card.

Like this article? Pin it!

This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Questions to Ask Before Signing a Lease

Paul Michael — Wed, 31 Aug 2016 10:30:09 +0000

So you've been searching for a place to live. You've looked at a bunch of different homes and apartments, driven all over town, and have finally decided on the one you want. It's perfect. But before you whip out the pen and commit to something, ask the following 10 questions. They could prevent you from making a very costly — and time-consuming — mistake.

1. Which Utilities Are My Responsibility?

Depending on where you live (and how generous the landlord is), utility responsibility may vary. If you're living in a large apartment complex, you may find that a lot of utilities are covered by your rent. In other cases, it may only be water and sewage, or in the worst case scenario…nothing at all. So make sure you know exactly which utilities are going to be your responsibility, and see if you can get a history of the bills at that address. Some homes are more energy efficient than others, and some homes have additional costs you may not consider (such as fees for constructing new pipelines). When you get the complete picture, you may discover that the utility bills put a unit beyond your reach.

2. How and When Do I Pay My Rent?

You already know what the rent costs, but you also need to know how and when to pay it. These days, many larger apartment leasing companies will take payments online, or through an automated debit system. Private landlords will most likely take a check or banker's draft, and may want you to mail it, or hand it over in person. There may also be fees for paying online or by check, so ask about that. And of course, ask about late fees and grace periods. You may get up to five days to pay your rent without incurring a penalty.

3. Do I Have to Have Renters Insurance?

Any kind of renters insurance is good to have, even if it covers the bare minimum. But times are tough, and you may not have the money to afford it right now. Your landlord or leasing agency may not care. Or, they may have a very strict renters insurance policy, which could once again put you over your monthly budget and make the apartment off limits. If you are required to have it, shop around and get multiple quotes. Use these quotes as bargaining chips with each insurance company to get the best possible rate that covers more of your possessions.

4. What Is Your Guest Policy?

In this day and age, the vast majority of landlords are not going to care if you have guests for long visits. But, it never hurts to check the rules of the apartment complex or landlord. Even then, it's a very tricky rule to enforce, so it's doubtful anything will happen. The problems usually come with guests staying for an extended period of time. If your best friend suddenly becomes homeless and asks to stay in your spare room for a few months, that could have ramifications. And if you decide to move your partner in to live there permanently, you will have to consult the landlord. It's possible a background check will be needed.

5. Can I Make Improvements?

When you move into a new place, you want it to feel like home. That often means personalizing it with paint, wallpaper, new curtains, maybe even new carpet or tile. This should all be openly discussed with the landlord before you ever sign the lease, and put in writing. It's quite possible that any improvements you want to make (even a simple coat of paint), will have to be approved first. Even if you think you're making the place even better (adding a wooden floor for instance), the landlord has every right to take your security deposit when you move out.

6. How Long Is the Lease?

It may seem like an obvious question, but not all leases are created equal. Some landlords may be renting their home out for the summer, and want a tenant for six months or less. Some apartment complexes offer discounts for longer leases. Some leases are month-to-month. You need to know this up front, and also, what kind of fees you will pay to break that lease. It's possible you'll be asked to pay two months' rent to get out of it, and may also lose your security deposit. Other places may be much more relaxed, especially if you find someone to take over the lease.

7. How Much Is the Security Deposit and Do I Get All of It Back?

The typical amount for a security deposit is one month's rent, but it can vary from place to place. Some may only want a nominal fee — say $300. Now, by law, any kind of security deposit is refundable, that's why it's called a security deposit; you put the money down as insurance for the landlord, you get it back if all is well. However, different landlords have different thresholds for wear and tear, and it's possible you won't get the whole amount back, especially if you have pets.

8. How Will the Apartment Be Prepared and How Should I Leave It?

These are two different questions, but both relate to the cleanliness and appearance of the apartment. Before you move in, you need to know if the entire place will be cleaned and repaired. You may well be viewing the place before any of this has happened, and may be in for a shock if you move in and the carpets are stained and the lighting is broken. So, get in writing how the home should be delivered and returned. Also, when you move out, you may have to pay for some of those very services that make the home ready for the next tenants. So, ask if you have to have the carpets shampooed, or the place professionally cleaned. If you do, and don't do it, this fee can come out of your security deposit.

9. What's the Pet Policy?

Landlords don't like pets, often for good reason. They sometimes leave a smell, they can tear things, they're noisy at times, and they can leave nasty surprises on the carpet. For this reason, most places will have some kind of pet policy in place. It may be as simple as "Yes, pets are fine, but don't let your dog bark all the time." Other places could impose a nonrefundable fee for the term of the lease to cover additional cleaning, or impose a monthly fee, known as pet rent. Even if you don't have a pet now, ask about it. You don't want to have to move out later because you want to get a dog or a cat.

10. How Do You Deal With Maintenance and Emergencies?

Again, this will vary depending on the kind of place you're looking at. Big apartment complexes usually have a maintenance staff on site, and a simple call to the front desk can be all it takes to get an issue resolved. If you're renting a home from a private landlord, you'll want to know up front what kind of response you will get, and how soon. If it's just a guy renting his house out, and your fence blows down, will it take weeks for the repair to happen? Can you call someone to make repairs, and remove the cost of service from your rent? Do all repairs have to go through the landlord, and are there preferred providers? All this should be asked up front.

Have you ever been burned by the hidden terms of a lease?

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Hidden Housing Costs New Homeowners Don't Expect

Mikey Rox — Mon, 18 Apr 2016 09:00:05 +0000

You're a new homeowner — congrats! The hardest part is over, for sure. Saying so long to most of your savings isn't easy, after all. But the money hemorrhage isn't finished just yet. There are several under-the-radar and often overlooked fees and expenses that accompany homeownership that a newbie like you might miss. Keep tabs on these expenses with this list of hidden housing costs to help soften the blow.

1. Moving Expenses

Your belongings have to get from A to B somehow, but have you considered the method? If you plan to enlist the help of your friends, you'll save a huge chunk of change, but if you have more than a few truckloads, it's probably best to hire movers — and movers aren't cheap. Depending on how much stuff you have, how many flights of stairs the movers are going up and down (my fourth-floor movers haaaated me), and the distance they need to travel to deliver it, the cost could reach upwards of $10,000. With so many other expenses coming down the pipeline, this isn't one you want to forget about. (See also: Don't Forget to Budget for These Unexpected Moving Expenses)

2. Furnishing All the Rooms

Your eyes opened wide to the four-bed, three-bath colonial when you first saw it — all that space! But those rooms aren't going to furnish themselves. This is important to keep in mind if you're coming from a much smaller dwelling. You likely don't have enough furniture to outfit the entire new home, which means that you'll have to buy new items to make it livable. Beds, dining tables, couches, sofas — any or all of these may be required, and none of it is cheap. Otherwise you can take the easy way out and assign two of your empty, furniture-less rooms to "storage," like I've seen some of my friends do. You'll just have to accept that somebody (like me) is totally judging you, lazy.

3. Window Treatments

When I moved into my first apartment in Manhattan, I assumed that the place would come with blinds. No such luck. What was worse was that my landlord wouldn't supply the blinds… and the ones I had to order if I didn't want nosy neighbors watching me do everything had to be custom made. The cost was an extra $500 or so that I didn't plan for, which is annoying when it's for something as silly as window treatments. Although, according to interior designer Tiffani Stutzman, I got off pretty easy.

"New homeowners are always shocked at the price of window treatments," she says. "The average cost of a very basic blind or shade for a medium-sized window is normally around $500. Most homeowners should budget around $1,000 per window as a good rule of thumb. However, the cost can increase significantly for very large or tall windows or windows with non-standard shapes like arches. If you are interested in using custom fabrics or other features such as motorized shades, expect much higher costs per window."

Yeah, I definitely got off easy, and I made half my money back by selling the window treatments to the renter who was coming in after me. Business is business. For your own reference, I used Blinds To Go, which was extremely affordable compared to Stutzman's estimates, and the process was a cinch.

4. Utilities and Other Day-to-Day Usage Expenses

If you previously lived in an apartment where your utilities were included in the rent, you're in for big sticker shock your first few months of energy usage. Gas and electricity isn't cheap, and if you've been taking advantage of the built-in amenities that your rent covered, you better brace yourself. To make the transition smoother, ask the seller if you can see a copy of a recent utility bill so that you can somewhat prepare. Knowing is half the battle. Tread lightly initially, too. Stay conscious of lights, heat, and A/C running only when necessary to help slow down the speed at which you're accruing new bills.

5. HVAC Inspections and Upkeep

Heaters and air conditioners are crucial to climate-controlled living (I'm so uppity I won't even spend the night someplace without an air conditioner; I get hot, bro), and they don't fix themselves. Unless you have these very specialized skills to handle their maintenance, you'll have to hire the work out. Of course, it's wise to ward off major catastrophes with annual inspections — which will still cost you — but not nearly as much as early replacement of a furnace or A/C unit that's been neglected.

6. Termite and Pest Treatments

Before you move into your new home, you should get the all clear that it's termite-free. Your inspection will reveal the pests, and it should fall on the owner to address the problem. If not, you have the right to walk away. That's not always the case, however. The owner is not required to rid the house of pests, but only to disclose the existence of the pests. If you choose to move forward with the sale knowing that there's an active pest problem, the problem is on you if it's not negotiated that it will be exterminated by the time you move in.

And if you don't mind me saying so, it's an incredibly dumb move on your part to accept the pests, as they can be very costly to eliminate. You also want to check for roaches, ants, mice and rats, and bedbugs. None of these critters are signs of good fortune.

7. Landscaping and Other Outdoor Maintenance

I do a lot of things myself to cut costs on having to pay for someone else to do it, but I draw the line at mowing the lawn and other yard maintenance. I hate it. Thus, I bring in the big guns to do the dirty work, and it costs about $800 a year. Other hidden costs to new homeowners can include, but aren't limited to: snow removal, roof maintenance (which can be a huge expenses if there's a serious problem), gutter cleaning, and outdoor pest removal, like the hornet's nest that set up camp in my own backyard.

"Lawn mowing services can run roughly $25 a week or more, but that's just for cutting the grass; that doesn't include tree trimming, fertilization, and other landscaping services," says Ryan Farley, co-founder LawnStarter, a lawn-care concierge service. "If you go the DIY route, lawn care involves an expenditure of both time and money; it's hard to put a price on your time. If you prefer to let someone else take care of your lawn, be sure to include that cost in your monthly housing budget. Whatever you decide to do, keep in mind that a well-landscaped lawn can easily boost the value of your home by 10%, and a lousy looking lawn can cause you to lose money when you're ready to sell.

8. An Eventual Increase in Property Taxes

There are only two certainties in life — death and taxes, and the latter will keep increasing until you wish the former would come faster. While you should be aware of your expected property taxes before you purchase the home, you may not expect the rate at which they will increase over the years.

“When you buy a home, most sales are reported to the taxing authority, which means your property taxes will be raised to the value — or the price you paid — for the house. For many buyers this can be a 20% to 30% increase in their property taxes," says Sissy Lapin, co-founder of ListingDoor.com, a DIY home-selling resource.

9. Homeowner's Association Dues

If you're moving to a fancy neighborhood, you can bet there's a homeowner's association, which, in my opinion, is just a congenial title for "a sanctioned group of nosy neighbors who like to tell other people what to do" — but I digress. Either way, you'll have to pay up to be part of the club, whether you like it or not. But, hey, at least you get an awkward holiday party out of it at the end of the year.

"While these fees are likely disclosed during the purchase, and may bring many benefits, they are an additional cost to owning a home in many parts of the country," Lapin says. "Furthermore, there can also be periodic 'one-time' additional assessments to cover special projects or budget deficits by the association."

10. Special Assessments to Cover Special Projects

Special assessment fees generally don't apply to single-family homeownership, but they can be a surprise aspect of condo living if you're not prepared. Recently, we had to replace the roof on our building in Manhattan to the tune of more than $1 million. Uh huh. I needed a minute when I heard that, too. With only 12 units in the building, the cost was divvied up between the owners based on the shares we held in the building. Needless to say, it wasn't cheap for anyone, and special assessments like these can force you out of your home if you're not financially capable of paying your share.

Furthermore, if you're forced to move because you can no longer afford the mortgage plus fees, it can be difficult finding a buyer given the financially-strapped circumstance of the unit and the building. There's no real way to prepare for things like this — it's more of a roll-with-the-punches situation — but it's certainly something to consider before buying a condo.

Are you a new homeowner? What are some of the pop-up fees you weren't prepared for? I'd love to hear about it in the comments below.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Move to a New City to Reduce Lifestyle Costs?

Carrie Smith — Thu, 21 Jan 2016 12:01:03 +0000

Moving to a big or popular city is often associated with higher housing costs. But even so, it may be worth it when you're able to change your lifestyle for the better — while reducing overall costs elsewhere.

This is the exact decision that my husband and I faced a few months ago when we decided to move across the country to be closer to family.

If you're considering whether or not you should move to pursue a better career or lifestyle, here's why you may want to move to a new city even if rent or housing costs more. (See also: The 5 Best Mid-Sized Cities for Millennials)

Why I Chose to Pay Double the Cost of Rent

Compared to our previous apartment near Dallas, TX our Boulder, CO rent is nearly double the price. Basically, the average price per square foot to buy an apartment in Texas is $100, while Colorado is as much as $383 per square foot.

Our one bedroom rented apartment in Texas only cost $900, whereas here in Boulder it's $1,660 — not including utilities. But we looked at our budget and took all our lifestyle costs into account before deciding that moving was the best option. Here are four reasons we decided to move to a new city despite the higher housing costs.

1. Lower Utility Charges

One of the biggest factors to your budget, aside from rent and housing costs, are your utility costs. This can include your water, electricity, gas, Internet, TV, and other small things like trash and sewer maintenance.

Depending on whether you live inside or outside the city limits, these costs could be quite high. Added together, my husband and I used to pay close to $400 per month towards our utility bills. But now that we live in a more cost efficient city, we're able to save nearly half of that each month.

Check your utility costs against those of your potential new city by making a list of your current bills. Compare those utility costs to your potential new place. (You can compare the costs online via the utility company's website, or calling the local phone number.) Be sure to check:

Internet
Phone
TV/Cable
Electricity
Gas
Water/Sewer
Trash/Recycling

Even though we may pay a lot more in rent, the amount we save every month by having low-flow faucets and more cost effective heating/cooling is definitely worth the move to us.

2. Food Costs and Waste

Groceries are a non-fixed expense that can eat into your budget if you're not careful. In our previous city, we had limited options of grocery stores to choose from, which left us little choice of saving money on food. We could either spend a fortune at a small boutique grocery store, or sacrifice the quality by going to a big chain store. We chose to spend a bit more for organic food and had a grocery bill upwards of $800+ per month — just for the two of us!

Since moving to Colorado, we have access to 10 different grocery stores (seriously, we counted!) and can find what we need at a much lower price. In the past several months we've knocked an average of $230 off our grocery bill, and it keeps declining.

Better quality organic food at one-fourth the cost has been well worth the move to a new city. In addition, we're able to buy less food and avoid so much going to waste. Having more options has allowed us to save money while still getting the organic and healthy food we want.

3. Environmental Impact

One of the main reasons my husband and I wanted to move from Texas to Colorado was to be more environmentally aware of the impact we were making. This city has a built-in recycling program so we no longer have to take weekend trips to the recycling center.

And because of the climate, there's no air conditioning unit in our apartment. During the cold months, we simply use a gas-powered furnace. When you compare the cost of a electric heater versus a gas furnace, prices for gas typically cost much less to operate than electric ones.

According to the EPA, the fuel from a gas furnace comes from natural gas production, which burns much cleaner and poses less of an environmental threat. It's important to evaluate your impact on the environment, as well as your overall lifestyle costs. Consider how this change could save you money and help better the local community.

4. Transportation Costs

Since settling into our life here in Boulder, my husband and I have only filled up the car with gas twice in the past three months. Our gas and car maintenance budget used to be $250 per month, but now it's down to around $40–$50 for all our transportation costs.

Because this new city has several different transportation choices, including a bus system, carpooling, and car sharing options, we've stopped using our car as much. We now bike or walk to work or while running errands.

This allows us to save over $200 a month on gas and maintenance costs for our car. In addition it allows us to put less emissions into the environment.

All-in-all, we increased our housing costs by $760 but are currently saving $610+ in lower utility, transportation, and food costs. For us, this was definitely worth it.

Are you thinking of moving to reduce lifestyle costs? What are some other things that impact your decision?

Like this article? Pin it!

This article is from Carrie Smith of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Common Household Leaks You Can Fix Without a Plumber

Amanda Meadows — Wed, 18 Nov 2015 16:15:37 +0000

Whether you live in a house or an apartment, leaks are so common that you definitely don't want to hire a plumber every single time it happens. Pick up a few supplies, take an afternoon and try these easy and cheap ways to fix household leaks.

1. Shower Leak

If your shower is leaking, it is likely due to one really simple-to-fix issue. The showerhead slowly gets loosened from the pipe stem over time. Usually you just need to tighten the hold by reattaching the showerhead and using pipe tape to seal the pipe around the showerhead. The tape is available at nearly any hardware store or on Amazon for about $10. You'll also want to check the washer (also called an "o ring") on the inside of the showerhead.

2. Faucet Leak

Drip. Drip. Drip. Not only is that really annoying, but it's wasting gallons of water per day. The most common reason for faucet leaks is just a worn out gasket. So it's usually very easy to fix this one.

First, remember to turn off your water line under the sink before opening up your faucet, and place drain stoppers in all drain openings to prevent losing parts. Then, cover the faucet exterior (handles, etc.) with tape so your wrench doesn't scuff them up. Next, you take apart each piece and screw them back in, after replacing the worn-out gasket or washer. Try watching one of many online video tutorials on the subject to get the visuals down.

3. Water Heater Leak

The water heater looks like a pretty intimidating appliance, which is why most people are afraid to tinker with it. However, did you know that the water you find pooling at the bottom of your water heater may not actually be a leak? It could easily be the condensation from the outside of the heater dripping down to the floor. If you've ruled that out because water is spraying from the hose, immediately shut off the water valve (should be a red handle located near the pipe). If the temperature release valve is leaking, it might be because the temperature setting is too high, which can fixed with the manual's instructions with a wrench you have a home.

If you detect corrosion or other more dangerous defects, don't take the risk — call a plumber.

4. Toilet Leak

This might be among the scariest of all leaks, because who wants anything to seep out of their commode? If the leak is coming from the bottom of the toilet, you likely need to tighten the bolts securing it to the floor. (For more instructions, check This Old House.) However, one of the leading causes of toilet leaks is one simple item: an over-worn toilet flapper. That's the rubber gasket that makes the flushing mechanism work. They tend to just wear out or build up mineral deposits and decay. It's such an easy replacement, you don't need a tutorial or a plumber. (See also: 10 Easy Plumbing Repairs that Don't Need a Plumber)

Have you repaired your own leaks? Share with us in the comments!

Like this article? Pin it!

This article is from Amanda Meadows of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: