Category: Brandpoint Business & Finance

2019-02-25T07:03:00

(BPT) – High school students across the country will soon be eagerly awaiting financial aid award letters from colleges. For many aspiring college students and their parents, this is when things can start to get complicated.

College is a big expense and it’s important to have a clear understanding of the financing options to ensure students and their parents make wise decisions. According to a recent survey from College Ave Students Loans by Barnes & Noble College Insights, more than twice as many parents (69 percent) found this time — figuring out how to pay for college — more stressful than the college selection process (30 percent).

Joe DePaulo, CEO and Co-Founder of College Ave Student Loans, is here to help by decoding one of the most important documents on the road to college: the financial aid award letter.

1. Financial aid award letters can be confusing.

Financial aid letters vary from school to school. There is no uniform format they must follow, so each letter can vary in how they use symbols (such as L or LN for loans) and even how they calculate the cost of college. Make sure to compare how items such as scholarships, loans and work-study are applied to the bottom line.

2. Know the ‘net price’ of college.

Your letter may include the cost of attendance (COA), which is an estimate of what you can expect to pay for one year of school. Typically the COA includes tuition, fees, and room and board. To find the ‘net price’ at the college, subtract the ‘free aid,’ or scholarships and grants, from the COA. This net price — which sometimes can be significantly lower than the ‘sticker’ price of a college — is the amount the family is expected to pay.

3. Expect to pay more.

Though financial aid award letters typically call out the “expected family contribution” (EFC), expect to pay more over the course of the year. According to the College Ave survey, 59 percent of parents said college was more expensive than they had anticipated. Parking, transportation home, club and organization fees, even dining out, can add to the bottom line.

4. You can petition your award letter.

If you felt the financial aid award letter did not accurately represent your family’s needs, you can ask the school to re-evaluate your financial aid offer (especially if your circumstances have changed). Contact the financial aid office and request they review your cost of attendance to ensure it includes other expenses (such as childcare) or changes in your ability to pay (job loss or medical costs), which may help you secure more money in grants, work-study or loans.

5. Keep applying for scholarships.

While some scholarship applications have many applicants, others have little competition. Be sure to apply for specialty scholarships unique to your area of educational study or even local area. Every amount helps and reduces the amount your family has to pay. One easy scholarship to apply for is the College Ave $1,000 Scholarship Monthly Sweepstakes.

If you find you still fall short after scholarships and grants and federal loans in the student’s name, one option to consider is a private student loan. Look for a private loan with good interest rates and flexible terms that meet your family’s unique needs. Check out the College Ave Student Loans calculator to find out how different repayment plans save you money over the total cost of the loan.

2019-02-13T08:01:00

(BPT) – In a recent survey, one in five Americans reported they have never had a serious conversation about money with their significant other, and less than half said they’re comfortable discussing finances with their partner.

It isn’t always easy to talk about money, but it’s essential since a clear majority of individuals surveyed say they are likely to split from someone who isn’t financially responsible. Whether you’re just beginning a relationship, considering moving in together, getting married, or are working toward financial goals with your spouse, each step of a relationship calls for a different approach to money and handling potentially thorny issues.

What’s your relationship status … and how do finances fit in?

Dating

You’re in a new relationship, everything is exciting, and you look forward just to being together. Asking financial questions may be unnecessary, yet it still pays to make some observations.

• What types of activities does your partner suggest — going out for fancy dinners or making a home-cooked meal?
• Are splurges a regular occurrence, or are they saved for a special occasion?
• A question such as, “How should we divvy up date night costs?” can suggest how your partner views spending habits.

Casual dating isn’t the time to deal with complex financial questions, but it can be a time to explore how your partner feels about basic financial issues.

Moving in

When moving in together, the money questions become more practical because cohabitation usually involves sharing expenses. This is the time to learn more about each other’s finances and views on money as your finances become more entwined.

• Ask about a partner’s debt situation, student loans, savings habits, credit score and, perhaps, skeletons in each other’s financial past.
• Share income materials including credit reports, particularly if you’re renting a new apartment or buying a home together.

Cohabitation can have financial implications depending on where you live, and a financial professional can help you understand any potential benefits or costs. If neither partner has a trusted financial professional, it may be time to consider finding one.

Tying the knot

When the conversation turns to marriage, talks about money must get serious. A strong link exists between disagreements about finances in a marriage and divorce. And should tough times hit, such as a job loss, how will you handle it as a couple?

• It’s important to find common ground about major lifestyle decisions and purchases, including a house, cars, credit and savings objectives.
• Married couples also need to determine whether a prenuptial agreement is a good idea, and if accounts are going to be separate or managed jointly.
• This can also be a good time to talk to a financial professional about financial planning and taking steps toward realizing future goals.

There are no “right” or “wrong” answers to these questions, and each couple can determine what is the best situation for them based on honest communication.

Planning your future together

It pays to establish structure or guidelines for your financial lives that each of you agree on. These can include when to check with each other on big-ticket purchases or when to spend from one or the other’s personal funds.

• Don’t forget about important issues that can get overlooked, such as establishing an emergency fund or assessing retirement fund/401(k) allocations.
• It’s possible you’ll face “sandwich generation” pressures related to caring for and supporting both young children and aging parents. Millennials and Gen-Xers increasingly find themselves squeezed by such generational issues, surveys find, including one by North American Company for Life and Health Insurance, a Sammons Financial Group company. This survey also looked at planning for retirement and revealed that most couples don’t discuss this important aspect of their future, and then find they’re unprepared.

Even if you haven’t done so earlier, any time is a good time to seek out a legal and financial advisory team. A lawyer can help with wills, and a financial and insurance agent and counselor can help decide on health, life, disability and property insurance coverage; discuss annuities; and explore college funds/529 plans.

Love may be blind, but it knows how to count

“Talking money” and addressing issues related to finances are essential in every stage of your relationship. And arguments about money are all too common — in fact, 70 percent of married couples fight about money. That’s why it’s vital to talk about investment strategy and risk-taking, and to reach decisions together about investment goals and time frames.

Couples often credit a third party for helping them with financial matters including insurance-, investment-, tax- and legal-related financial issues. One survey found that 40 percent of couples who disagree about money said an adviser helped them make decisions about financial concerns that otherwise might have triggered tension in their relationship.

If you and your partner are interested in speaking with a financial professional, Midland National Life Insurance Company and its independent agents are ready to help, specifically with life insurance and other related financial matters, including annuities and retirement planning. To find an agent, click here.

2019-02-13T06:01:00

(BPT) – Balancing work, school and family can be a challenge. Some days might feel like more of a struggle than a juggle, but that doesn’t mean it’s impossible to have it all. In fact, one in four of the 17 million Americans enrolled as an undergraduate in a higher education institution is caring for a child, according to the National Center for Education. Many people in this position turn to online education to help make it possible to manage work, life, family and earning their degree.

Learning how to successfully integrate coursework into an already-packed schedule comes with practice (and patience!). It never hurts to receive advice from those who’ve been in similar shoes. Here are three tips from juggling connoisseurs who have experience completing their degrees online while raising a family:

1) Have patience and think about the big picture

Brian Hood juggled earning a bachelor’s degree in software engineering online with Arizona State University (ASU) while parenting young triplets. His road to graduation wasn’t without its fair share of challenges.

“My desk is in the middle of my house and opens to a room that doubles as my kids’ playroom. To say that I had challenges while trying to listen to lectures is an understatement,” Hood said.

Several times throughout his academic journey, he hit roadblocks trying to balance it all. “It was so frustrating, and at times, deflating. But then you take a step back, look at the situation, and ask yourself, ‘How do I do this?’ When you tell yourself that failure isn’t an option, it becomes much easier to focus on finding a solution, rather than being consumed by the problem,” Hood said.

Hood’s expert tip: With young kids around, invest in a good pair of headphones, and be flexible, patient and willing to pause and re-watch your lectures.

2) Communication is key

For Cherise Shockley, the key to finding balance was opening a dialogue with her family and ensuring everyone was on the same page about her online degree program. “If you are married or have kids, you have to tell your family what’s going on. Explain to them that this will require a time commitment but, in the end, it will be worth it,” Shockley said.

Openness and honesty go a long way, according to Shockley, who earned her mass communication and media studies degree online with ASU. “You have to be organized and know that there are no shortcuts. If a problem comes up, make sure to speak up and ask when you need help.”

Shockley’s expert tip: When challenges arise — as they inevitably do — remind yourself and your family that anything is possible with sacrifice, hard work, faith and determination.

3) Make your family a priority

Robert Rutledge, an online student with ASU, earned a bachelor’s degree in business with a concentration in global leadership while juggling a full-time job and parenthood.

Often, while he worked on his studies, his two younger children would come into his office and ask, “Daddy, are you done yet?” In these instances, Rutledge would take time to explain to his children what he was doing and why he was doing it.

His biggest piece of advice? Make your kids a priority. “It’s difficult for [children] to grasp the importance of the time you’re spending on your education instead of with them — especially with younger children.”

Rutledge’s expert tip: Use study breaks as bonding time with your loved ones. Go for a walk or play a game with your children and come back to your studies refreshed and ready!

Managing everything can be overwhelming at times, but remember: completing your education can open doors to so many new possibilities for you and your family, such as the opportunity to advance your career, increase your overall earning potential and even pursue a personal passion.

With nearly 4.8 million parents pursuing degrees, remember that you’re in good company and are now armed with some expert advice on how to successfully juggle life, learning and family. With the right support and resources, earning your degree is possible and there is no better time than now to get started on pursuing your educational dreams.

2019-02-04T08:43:00

(BPT) – The beginning of a new year can mark the start of resolutions and the setting of personal goals, from eating healthier to learning how to play a new musical instrument. It’s also an ideal time to get in tune with your personal finances by making sure unexpected health costs can be paid on time.

As Americans strive to ensure they’re covered by enough insurance, many are investing in supplemental coverage — like what is offered by Aflac — that goes beyond the basic health insurance offered at work. In an era of uncertain health care policy, accident, cancer, critical illness, dental, vision or life coverage can be offered as an additional layer of protection to help with out-of-pocket health expenses.

In fact, 85 percent of U.S. employees surveyed in the 2018 Aflac WorkForces study pointed to a growing need for supplemental coverage, and similar research by financial advisor Willis Towers Watson found that 69 percent of U.S. employers see supplemental coverage as vital to their offerings between now and 2023.

As you consider your options, here are three facts about what Aflac isn’t to help you better understand that Aflac is different and more than you think:

Aflac isn’t auto or homeowners insurance.

While there are many types of insurance on the market, Aflac doesn’t provide coverage for vehicles or homes. Instead, Aflac provides supplemental coverage for individuals and families, directly or through businesses of all sizes. Aflac’s policies can help with everything from routine preventative care to critical illnesses, giving customers an additional level of financial protection. So, while Aflac won’t cover repairs to your car in a fender bender, they could be there to help if you’re injured in an auto accident. Similarly, if a tree limb unexpectedly cuts through your roof, Aflac will not cover home repairs, but it will pay cash directly to you when you get sick or injured.

Aflac isn’t health insurance.

While health insurance can provide basic coverage for preventive services and emergency care, it only pays a portion of health care costs, leaving consumers responsible for the remaining out-of-pocket expenses. That’s where supplemental coverage steps in to help pay the difference, making it relevant for everyone. Aflac helps with expenses your health insurance doesn’t cover, allowing you to focus more on recovery and less on expenses.

Aflac isn’t paid directly to the care provider.

Unlike health insurance, which often requires a lengthy approval process before your care providers are paid, Aflac pays cash directly to you^* when you get sick or injured — and in most cases, in just one day.^** That way, you can choose how to apply these payments — whether to help cover out-of-pocket costs like copayments and deductibles or daily living expenses, such as child care, travel costs or other needs.

Get help with expenses health insurance doesn’t cover. Get to know us at Aflac.com.

*Unless otherwise assigned.

**One Day Pay^SM is available for certain individual claims submitted online through the Aflac SmartClaim^® process. Claims may be eligible for One Day Pay^SM processing if submitted online through Aflac SmartClaim^®, including all required documentation, by 3 p.m. ET. Documentation requirements vary by type of claim; please review requirements for your claim(s) carefully. Aflac SmartClaim^® is available for claims on most individual Accident, Cancer, Hospital, Specified Health, and Intensive Care policies. Processing time is based on business days after all required documentation needed to render a decision is received and no further validation and/or research is required. Individual Company Statistic, 2018.

Aflac herein means American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York. WWHQ | 1932 Wynnton Road | Columbus, GA 31999.

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2019-01-21T06:01:01

(BPT) – –

2019-01-16T09:01:01

(BPT) – When it comes to real estate, you’ve probably heard kitchens and bathrooms typically sell houses. While you may not have enough money for a kitchen remodel, adding a bathroom can be a more affordable way to enhance your property and catch buyers’ attention.

By adding another bathroom to your home, you immediately increase your chances of the property getting noticed. Technology makes it simple for buyers to search properties of interest by their designated criteria. One of those is “minimum number of bathrooms.” By adding to that amount in your listing, you’ll be getting in front of that many more potential buyers.

Adding bathrooms to difficult spaces

Bathrooms increase a home’s value and add to its functionality — both elements that buyers desire. Homeowners can begin to research opportunities to add bathrooms to their properties presale. This often means enhancing basements, garage slabs and other spaces that can be more difficult for contractors to add plumbing systems with conventional in-floor drainage.

If you have a space that would be ideal for a bathroom but appears to be impossible due to the need to break through concrete or other types of flooring, there’s another solution to consider: above-floor, macerating plumbing systems. Developed a half century ago in Europe, these systems are still relatively unknown in the United States; however, they offer a vast opportunity for homeowners.

Macerating systems from makers like Saniflo reduce waste and paper from the toilet and send it under high pressure through piping directly into the septic or sewer system. No waste is stored, and the systems are low-cost compared to traditional plumbing. Systems are discreet, quiet and open the possibilities of affordable additions in less time. Learn more at Saniflo.com.

If you want to add a bathroom to prepare your home for resale, don’t be limited by the seemingly impossible. Here are five “impossible” home improvement scenarios where above-floor plumbing may be the solution:

Main floor on-slab construction

Owners of slab-built homes may hesitate to cut into the concrete foundation in order to accommodate conventional plumbing. No matter how careful a contractor is when cutting into concrete, a variety of problems can arise — from unexpected obstructions to poor-fitting patches and even stress cracks. Above-floor plumbing systems eliminate the need to cut into the slab, so integrity isn’t compromised.

Basements

If your home is built with a basement, bathroom additions can be problematic due to concrete and existing plumbing limitations. Above-floor, macerating plumbing is a smart solution for fast, cost-effective bathroom additions in lower-level rooms. Now you can highlight the comfortable living space and make it feel like a true entertainment center or like home to prospective buyers.

Historic homes

Opening walls or floors to accommodate piping may jeopardize important historic elements, such as original wood flooring or plaster walls. Systems like Saniflo’s macerating toilet and plumbing technology eliminate the need to cut through a floor to install new drainage, while minimizing the impact on walls as well. The system also fits easily into small areas like a closet or the dead space behind a stairway, meaning homeowners don’t have to compromise the flow of their historic homes to add a bathroom.

Raised homes

Bayou and beach towns often boast charming raised homes. Adding a bathroom to the lowest floor of a raised home can be problematic; conventional plumbing pipes may detract from the aesthetic value of the space beneath the home, which is often used for car ports, porches and decks. Above-floor plumbing eliminates the need for unsightly pipes, so you can make a great first impression to potential buyers.

Warehouse rehabs

In cities across the country, warehouses have found new life as condos and apartments. The problem is heavy brick construction can make adding traditional plumbing difficult. Above-floor plumbing eliminates the need to cut into or remove bricks, and allows renovators to install attractive, cozy bathrooms in smaller spaces. Imagine how upgrading a one-bath condo to a property with two bathrooms will enhance resale.

If you’re preparing your home for the current real estate market, you want it to stand out. An extra bathroom can help you do that and attract high bids from buyers. Thanks to above-floor macerating plumbing systems, the possibilities are endless.

2019-01-14T06:01:00

(BPT) – If you’ve ever considered getting your MBA, you’ve probably asked yourself: Is it worth it? It’s a fair question, particularly as going back to school as an adult often requires shuffling your priorities so you can make time for class and assignments.

Ultimately, business school should help you accomplish your academic goals and propel your career forward. Some business schools can be expensive, so depending on your needs, it may be a good idea to find programs that are flexible, so you have the ability to work while taking classes.

With so many programs and schools offering MBAs and business courses, it’s important to know what resources to turn to and what features to look for in a program to ensure you receive a measurable return on your investment — financially and professionally.

1. Consider business schools that are ranked by reputable organizations and publications.

Any way you look at it, rankings are critical. A well-regarded business school can help you while networking, job searching and applying for promotions. These rankings are often determined by student surveys and criteria including faculty, technical platforms and career outcomes. Resources like The Princeton Review, Poets & Quants and CEO Magazine deliver helpful annual rankings to guide prospective students.

2. Look for program options that meet your needs.

The ability to take online classes can be a game changer, particularly for working adults who cannot afford to stop working to go to school. Instead of committing yourself to a traditional, brick-and-mortar program, look to see if online courses or other flexible program options are available. For those who consider a salary increase to be the primary reason for enrolling in an MBA program, a recent survey conducted for the Jack Welch Management Institute shows that an online MBA program may be the way to go. Out of the 648 MBA graduates surveyed, 468 reported receiving some kind of raise. Of the 291 online MBA graduates who received a raise, 90 percent reported at least a 10 percent increase in salary. Online students fared slightly better than traditional students — 85 percent of the 177 traditional MBA graduates reported a raise of 10 percent or more.

3. Search for programs that go beyond theory.

Adult students who are working and attending business school can bring an important value to their job. Depending on the school, students can apply what they learn in the classroom directly to their workplace. Choosing a program that integrates current business trends and content with practical application helps ensure students have nearly an immediate return on their investment. Faculty can also play a big role in this approach. Consider programs that provide opportunities to learn directly from faculty with practical experience in business, not just a mastery of theory or research experience.

4. Prioritize programs that build leadership and other soft skills.

According to a LinkedIn survey, the most in-demand soft skills sought by companies are leadership, communication and collaboration, with leadership being the most critical skill. Mary Carr, Dean of Curriculum at the Jack Welch Management Institute, says, “Many careers often stall because while people may have technical competencies and strong business acumen, they lack basic people management skills needed to move up. It’s important to consider a program, such as JWMI, that focuses on leadership development. Our students learn critical lessons often overlooked by traditional business education such as hiring the right people, building great teams, managing conflict and developing an executive presence.” Bottom line: Businesses are looking for skilled employees who can lead people. By selecting a business school that focuses on organizational dynamics, influence and strategic thinking, you will be better prepared to have a positive impact in the organizations and companies you’re a part of throughout your career.

2019-01-14T08:01:00

(BPT) – If you’re like many Americans, retirement planning may not be high on your ”to-do” list. When life is busy and you’re shouldering the burden of looking out for yourself and your family, setting up a retirement plan can slide down the priority list — especially if you’re hoping it will somehow be easier in a year, two or more.

But if you look at the root causes of inertia behind retirement planning, it’s clear how the effects from your behavior can be significant.

Below are some insights to help you get on track and better understand the kinds of behaviors that can get in the way of planning for your financial future.

1. Put simply, it’s overwhelming. Saving for retirement can feel open-ended and ambiguous, in large part because it’s difficult to predict just how much you’ll need. Adding to the stress are many hard-to-anticipate variables, including how long you will live and healthcare needs. The good news is there are on-line calculators that can assist you in determining what your future needs may entail.

2. We can’t see our “future selves.” Researchers have found that people struggle to identify with their future selves, according to a study published in the Journal of Marketing Research. It’s not just young people who have difficulty imagining how long they’ll live in retirement — older Americans also often underestimate how long their retirement nest egg will have to last. Increased life expectancy means we may live 20 or 30 years — or even longer — in retirement. The good news is that companies like Prudential Retirement now offer interactive games like an Aging App to help people better understand how the decisions they make today could influence their futures.

3. We procrastinate planning for retirement. Research shows that for many people, procrastination plays a big role in hindering retirement planning. On average, we spend two hours a day procrastinating. In our busy lives, it’s often easier to daydream about our future than it is to spend time planning for it. The good news is that if you haven’t begun saving for retirement, it’s never too late to begin. Try taking a small step forward and consider setting aside 1 percent of your paycheck for a retirement account. Or, if you already have a retirement account but you’re saving very little, increase your contribution by 1 percent.

4. Budgetary pressures. Families have other future needs to plan for, such as their kids’ college education or saving for a down payment for a home. Add in the immediate need to cover day-to-day expenses, and it always feels like it’s “the wrong time” to save for retirement. The good news is that there is a great deal of information available online to help with retirement planning. Take time to educate yourself and become familiar with the various tools that are available.

The push to make retirement planning easier

“It turns out that many financial companies and employers are acknowledging the psychological barriers that can get in the way of retirement planning,” says Harry Dalessio, head of full service solutions at Prudential Retirement. “Today, many employers have products and solutions to assist with student loan debt and that help employees set aside money for emergencies. Financial counselors are now available in many companies to discuss approaches to help get employees on the right path,” Dalessio said.

In addition, important innovations, such as automatic enrollment, where new employees are automatically enrolled in their company’s retirement plan, have led in many cases to plan participation exceeding 90 percent. Also, simplified products such as target date funds are making it easier for investors to benefit from savings products that are appropriate for each worker’s age and goals. Finally, innovations, such as the ability to use mobile devices and gamification tools, make it even easier to stay engaged.

“Even with these innovations, there is still ample opportunity to think bigger, and make retirement planning more accessible to employees,” says Dalessio.

The bottom line is that it’s easy to underestimate the importance of retirement planning. The good news is that with more tools and innovation, people may be better able to achieve the financial future they hope for as they grow older.

2019-01-02T06:01:00

(BPT) – Unemployment is at its lowest point since 1969 and job openings are at a 17-year high, according to the Bureau of Labor Statistics. With a tightened labor market the competition for candidates with the right skill set is soaring. Yet, many workers lack the skills necessary to pursue new opportunities, suggests a new survey from Prudential Financial, Inc.

The fifth American Workers Survey, conducted in November on behalf of Prudential by Morning Consult, found that more than one in four American Workers say opportunities for career advancement are available to them — but they lack the skills and training for these positions.

The skills gap is even more concerning for millennials — 51 percent say they’re worried a lack of skills or education will negatively impact their career in the next five years.

The biggest barriers to building those skills? According to American workers, access to educational opportunities and financial concerns rank at the top. For millennials, most likely to be new parents, more than half say learning and developing new skills will require access to affordable childcare.

American workers expect the private sector to take the lead in their personal development — nearly four in five say the private sector has responsibility for retraining, and nearly six in 10 expect their employer to help pay for training and new skills.

“Jobs are core to the foundation of American workers’ financial well-being,” said Rob Falzon, vice chairman of Prudential. “Right now, there’s a skills gap emerging. There’s competition for talent, but at the same time, the jobs are changing as a result of disruption. Ensuring workers have the right skill sets to fill these jobs will be paramount for their future financial wellness.”

Companies including Prudential have been addressing this challenge through investments in the National Fund for Workforce Solutions and partnerships with local universities that help shape educational experiences and mentor students for careers in financial services and information technology. Companies are also looking for ways to help tap into new talent pools. For example, Prudential’s program with Workplace Opportunity Services is designed to train and prepare veterans and military spouses for the civilian workforce.

“The future of work is already here,” Falzon said. “Employers need to create opportunities to strengthen our workforce by increasing worker flexibility and mobility.”

Please visit news.prudential.com to learn more about this survey.

The American Workers Survey is the fifth in a series conducted on behalf of Prudential by Morning Consult from Nov. 13 to 16, 2018, among a national sample of 1,919 self-identified part-time and full-time employed adults (age 18 and over). The interviews were conducted online, and the data was weighted to approximate a target sample of adults based on age, race/ethnicity and gender. Results from the full survey have a margin of error of ±2 percentage points. Percentages may not total 100 percent due to rounding.

2018-12-20T07:01:01

(BPT) – Ever since the dawn of credit reporting, the information has looked relatively the same. Your lenders reported information to one, two or all three of the national credit reporting companies (CRCs) based on your most recent loan payment activities and balances.

This method of reporting is informally referred to as a “snapshot in time” because your credit reports represented information based on any one single day in your credit lifecycle.

And because credit scoring systems consider the information on your credit reports at the exact time your credit report is accessed or “pulled,” your scores are also based on a snapshot in time and not necessarily the actual balances on your credit accounts that particular day. The credit reporting and scoring systems have operated under that structure for the better part of the last three decades.

Newer credit report data

Over the past several years the CRCs have been collecting and maintaining information that represents how you manage your balances and payments over time. This information is formally referred to as “trended credit data” or “time series” data.

The information includes the chronology of your balances, your minimum payment requirement and often your actual payment amount. For example, reports and the scoring models based on them can now decipher between whether you have an account with a balance averaging $4,000 over the past six months versus someone who charged the same amount just in the previous month but normally has a lower balance.

This represents a considerable upgrade in credit report information. Rather than a credit report representing a snapshot in time, it now represents your most current balances and payments for the past 24 months.

How trended credit data can help my scores

Credit card users who pay their bill in full each month don’t pay interest. So, there’s a tremendous savings to never revolving a balance. But it can also improve your credit score if the scoring model leverages trended credit data. That’s because those who pay off their balances every month can be identified and rewarded for practicing this positive credit behavior.

A model that includes trended credit data also takes into account whether a consumer makes payments above the minimum amount required. So if you make payments on your car loan for more than is minimally required, your score could improve.

The most current version of the VantageScore credit score, VantageScore 4.0, does utilize trended credit data on your credit reports, and it is available to lenders now.

The impact of holiday spending

According to a recent poll from VantageScore Solutions, 37 percent of 2018 holiday shoppers plan to use credit cards for their purchases. That’s great because you have very consumer-friendly fraud protections when you use your credit cards … plus you might earn points and rewards! The drawback, of course, is the temptation to overspend and end up with large credit card balances going into the new year, making a payment for the full amount due challenging.

Large credit card balances can result in lower credit scores. The reason is because of the credit scoring metric known as “revolving utilization,” which represents the percentage of your credit limits that have been used. According to the same VantageScore poll, the issue of utilization is not an unknown. Indeed, 84 percent of the poll respondents acknowledged understanding that spending a high percentage of their credit limit can hurt their credit scores.

Here’s where a credit score that considers trended credit data can help you relative to a credit score that does not. If you historically pay your credit card in full, or pay more than the minimum consistently, your holiday overspending won’t result in as profound of a score impact. The reason: The credit scoring model recognizes that your holiday shopping is atypical relative to the other months because it can see and consider how you normally use your credit cards.

If the scoring model only considered the snapshot in time after your holiday spending spree, it would factor that balance in and potentially cause your score to drop.

The ethical credit score hack

A logical question at this point would be, “what can I do to protect my scores during the holiday season if a lender isn’t using trended credit data?” The answer is to use your credit card but make several payments during the month. You don’t have to wait until the due date to make a payment on your credit cards. You also don’t have to wait until the statement shows up to make a payment.

Assuming you haven’t charged anything more, making multiple payments during the month will ensure that when your statement is generated it will have a lower balance. Since the balance from your statement is what’s reported to the credit reporting companies and factored into your credit score, you’ll go a long way to protect or even improve your score.

And the best benefit? You either won’t pay any interest on your credit card or the interest you pay will be as minimal as possible.