The UltraFICO score evaluates personal bank account information in addition to the data on an individual’s credit history. This opt-in credit model helps individuals with low personal credit scores of 680 or lower boost their existing FICO score by 20 or more points. It evaluates your savings’ amount, age of your bank accounts, and your…
How Hard Inquiries Impact Your Credit Score & Report
A hard inquiry, also known as a hard credit check, gives people your full credit report and typically occur when you apply for a loan or credit card. Hard inquiries stay on your credit report for up to two years, are visible creditors, and can decrease your personal credit score by one to five points….
The 5 C’s of Credit: What Banks & Lenders Actually Look For
The 5 C’s of credit are character, capacity, capital, conditions, and collateral. Together, these serve as a way for lenders to evaluate the creditworthiness of potential borrowers. Banks and lenders generally look at your ability to repay, level of debt, how you plan to use the funds, and the collateral you have to offer. The…
Hard vs. Soft Credit Checks & Their Affect on Credit Scores
A hard credit check negatively impacts your credit score compared to a soft credit check, which has no impact. Hard credit checks typically occur when you apply for a loan or credit card. A soft credit check occurs when your credit report is pulled for a background check, like when you check your credit score….
ETFs: What They Are, How to Invest, & Who They’re Right For
An exchange traded fund (ETF) is a type of fund that pools together individual stocks, bonds, and other securities. ETFs allow investors to diversify their investments much more cost-effectively than trading individual stocks and bonds. Investors can also trade ETFs anytime during the day, so they’re ideal for investors who want short-term gains. What an…
Best Real Estate Investment Software
Real estate investment software is used by residential and commercial real estate investors to help analyze an investment property. We reviewed more than 20 real estate software providers based on their cost, features, and reviews. Then, we chose 10 real estate investment analysis software to include in our list of the best options. How We…
Roth IRA: Rules, Contribution Limits & Deadlines
A Roth individual retirement account (IRA) is an individual retirement account that allows investors to contribute up to $6,000 per year for retirement. Unlike traditional IRAs, Roth IRAs allow post-tax contributions that then grow tax-free and are withdrawn tax-free during retirement. Roth IRAs are ideal for tax-conscious investors who want to lessen their income tax…
6 Best Small Business Retirement Plans 2018
Retirement plans help business owners save for retirement and attract the most talented employees. There are 6 main types of small business retirement plans that allow pre-tax contributions each year by employers and/or employees. Each type differs widely, ranging from $6,000 – $56,000+ in annual contributions, with some requiring employer contributions or match. When you’re…
Safe Harbor 401(k) Plan: What it is, Contributions, & Matching Rules
A Safe Harbor 401(k) is a retirement plan allowing employers and high-earners to shelter income that would be considered “discriminatory” against employees in a standard retirement plan. Employers and high-earning employees can shelter $56,000-$62,000 per year from income tax without falling out of compliance by providing matching contributions to employees. can help small business owners…
SEP IRA Rules, Contribution Limits, & Deadlines
A SEP IRA is an employer-sponsored retirement plan allowing business owners with 0 – 5 employees defer large amounts of income. A SEP lets employers and the self-employed contribute $56,000 or 25% of their taxable income each year – $50,000 more than Traditional IRAs. To use SEPs, employers must make proportional contributions to all full-time…
SIMPLE IRA Rules, Providers, Contribution Limits & Deadlines
SIMPLE IRAs are employer-sponsored retirement plans allowing participants to save up to $26,000 pre-tax in deferrals and matching. Using a SIMPLE IRA, employers must match employee deferrals on a dollar-for-dollar basis between 1% – 3%. To use a SIMPLE IRA, employers must implement their plan before October 1 of the year it becomes effective. How…
SEP IRA vs SIMPLE IRA: How to Choose the Right Plan 2018
Business owners comparing a SEP IRA vs SIMPLE IRA will find that each has unique benefits and works better in certain circumstances. SEPs have higher contribution limits ($56,000) but require employers to fund all employee contributions. SIMPLE IRAs allow employee deferrals up to $13,000 and require employers to match 1% – 3% of compensation. 401(k)…