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ACE Elite Prepaid Debit Card Review

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ACE Elite Prepaid Debit Card Review

by Spencer Tierney Senior Writer | Certificates of Deposit, ethical banking, banking deposit accounts Spencer Tierney is a consumer banker at NerdWallet. He has covered the personal financial sector since with a focus on certificates of deposit as well as other banking-related subjects. His work has been highlighted by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. The location of his work is Berkeley, California.

Updated October 1, 2018

Written by Amy Hubbard Amy is a former editor in the banking industry and copy editor for NerdWallet. She previously worked as a writer and editor at The Los Angeles Times, the L.A. Daily News and the Hollywood Reporter, among other publications.

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At ACE Cash Express

It's possible that the ACE Elite prepaid debit card could cost more than its worth. The card, managed through NetSpend and issued through MetaBank, has a few extra services that aren't offered by other cards that are prepaid, including an interest-bearing savings account, however, the fees for the card add up. If you've got direct deposit, you can cut down on some charges. There are however .

Read on for more details about the ACE Elite's fees and other services.

Best for:

People who aren't able to sign up for an account with a bank account, want to receive direct deposit and take advantage of saving features.

Pros

Free to get the card online. It's also simple. You'll need to provide the Social Security number when you register, but you'll need no credit check.

Discount on monthly fee. If you've at minimum $500 in direct deposits each month (from payroll or government benefits) You can be part of the $5 FeeAdvantage Plan which is $60 per year.

It can take up to two days with direct deposit. Companies and government agencies may transfer your funds before the official payday However, banks generally take longer to process your funds. ACE Elite can process direct deposits quicker, however it depends on whether they get your money in a timely manner.

Monthly plans don't have charges for purchases. A majority of debit cards for prepaid don't charge any fees when you use the card at retail stores, but ACE Elite's pay-as-you-go plan has a price of 1 cent for each purchase. The cards two monthly plans, however, allow purchases to be made for free.

Three free reload options. Online transfers, direct deposits from an additional ACE Elite card and mobile check deposits that process for 10 days are available with no fee. Transfers from bank accounts may be free, but it depends on the bank.

Savings account that offers an APY of 5% for the first $1,000. This annual percentage yield is high, but after the first $1,000, the interest rate is reduced to 0.50 percent APY on the balance remaining. It means that you will earn $50 in interest on your first $1,000, then $5 on the next $1,000 and the same rate for the following. If you have to pay one year's worth of monthly charges, however, that expense alone could be more than what you earn in interest.

>> See more options: Check our list of

Cons

High monthly fee. Prepaid debit cards typically have a monthly fee around $5 on average however, ACE Elite's fees are $9.95.

Other fees. If you stop using this ACE Elite card for 90 days or ask for a check for a remaining card balance, there's a $5.95 fee. There's also a fee to purchase the card in stores, up to $9.95 as well as a one-time fee of $1 for declined transactions as well as fees for certain calls to customer service.

There is no free withdrawal network available to customers. Cash withdrawal from any ATM, or at a bank will cost $2.50 each time.

There is an overdraft option available. A big selling point for the majority of prepaid debit cards is that they do not charge overdraft fees if your account dips into the negative. ACE Elite, like other NetSpend-managed cards, comes with an overdraft program that comes with $15 overdraft fees and a maximum of three per month. It is less expensive than many banks' programs for overdrafts, but isn't the best choice to help you budget.

There's no free method to add money manually that's quick. Transfers online take days to process, while the option for processing check deposit mobile in a matter of minutes costs up to 2% or more for each check amount.

No free-reload network. Cash reloads at retailers in NetSpend's reloading network, such as CVS Pharmacy and 7-Eleven, are quick, but come with a fee, typically $3.95 which varies depending on the store. Certain locations do not charge but many do.

A brief overview of debit cards for prepaid

What is a debit card that is prepaid?

A pre-paid debit card can be described as a form of card that lets you spend the money you load onto the card. They do not aid in building credit. As with debit cards, a prepaid card works at any merchant that accepts its payment network, which includes Visa, Mastercard or American Express. It's more secure and convenient than cash. The prepaid cards usually have an app that allows you to deposit checks and transfer money. Find out more in our guide on prepaid debit cards.

In contrast to checking accounts, prepaid debit cards could not offer certain services, like free ATM or branch networks as well as checks, among other. If none of that appeals to you, see our list of best checking accounts. Or, if you've struggled with banks in the past, check out second chance checking options.

Prepaid debit card vs. debit card vs. credit card

Credit cards with prepaid cards -- make payments prior to the card is loaded with money the card through cash or checks, direct deposit or the bank account before paying for transactions.

Cardholders with debit cards- pay today: You use money directly from your checking account to pay to purchase or withdrawing cash through an ATM.

Credit cards -pay later: You can borrow money from a bank each time you make use of the card. You pay it back later.

What is the procedure for FDIC insurance for prepaid cards work?

Prepaid debit cards nearly always have FDIC insurance, which helps keep your funds safe in the event the issuer fails to pay its bills. Only financial institutions are eligible for FDIC insurance, so a prepaid card is either managed by a bank or by a prepaid card company that has a partnership with a bank in order to provide the insurance. You must register your debit card in a prepaid account using your personal name as well as other information about your identity in order to be eligible for FDIC insurance, as well as other security.

Author bio Spencer Tierney is a writer and NerdWallet's official authority on certificates of deposit. The work of Spencer Tierney has been featured on USA Today and the Los Angeles Times.

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4 min read Published October 25, 2022

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You have money questions. Bankrate has answers. Our experts have helped you understand your finances for more than four decades. We continually strive to give our customers the right guidance and the tools necessary to make it through life's financial journey. Bankrate follows a strict standard of conduct, so you can rest assured that our content is truthful and reliable. Our award-winning editors and reporters create honest and accurate content that will help you make the right financial choices. The content we create by our editorial team is factual, objective, and not influenced from our advertising. We're open about how we are able to bring quality content, competitive rates, and practical tools for you , by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods andservices or through you clicking certain hyperlinks on our site. Therefore, this compensation may influence the manner, place and in what order products are listed and categories, unless it is prohibited by law. This is the case for our mortgage or home equity products, as well as other home lending products. Other factors, like our own proprietary website rules and whether the product is available within your area or at your personal credit score could also affect the way and place products are listed on this site. Although we try to offer the most diverse selection of products, Bankrate does not include details about every financial or credit product or service. If you've got an auto loan that has fallen behind the lender might decide to charge off the loan that is, that the lender believes that you won't be able to repay the debt. The fact that you have a loan taken care of does not mean that you're free of the responsibility of making payments. And it doesn't change the original terms of your loan. In many instances, the lender may that will seek repayment from you. Know your obligations and what procedures will take place prior to and after the charge-off. What exactly is an auto loan charge-off is charge-off, businesses transfer the account, for example an account, from their asset column to a liability for accounting reasons. Often lenders take this step after unsuccessfully trying to collect on a debt for an extended time. To keep records it is the lender declares the debt as uncollectible. Auto loans generally have to be paid off within 120 days of the non-payment. An auto loan may be charged off in just 60 days if the lender receives notice of the fact that the borrower declared bankruptcy. When lenders or businesses are able to discharge a debt they are able to write off the tax for. However, you still owe the amount and nothing regarding the terms of the loan changes because of the lender taking this step. You are still fully responsible to pay back the loan. How does an auto loan charge-off works When an lender thinks that an auto loan indebtedness uncollectible, it may decide to start the charge-off process. Certain steps of this process have an impact on you as the borrower. The debt is shifted from liability to asset. The first step of the auto loan charge-off is just the accounting term used to describe. The lender moves its loan from its assets column and categorizes it into a liability, that means that the loan is not considered to be income for the lender. Instead, it's deemed to be a loss. Notice of default. Based on the state you live in the lender could be required to send you an notice of default and offer you the chance to repay the loan. This is not the case for every state. An agency for third party collection may be able to take over the collection process. Most of the time, when the initial lender charges off a loan the loan is then transferred to a third-party, such as , which takes over pursuing the debt's repayment. In the collection process, they may also sue you to collect. If there's a judgment against you then a portion of your income could be garnished as repayment. The charge-off is recorded with credit agencies. When a debt is taken off by an lender, your credit score will also take a reduction. This is because the charge-off will be disclosed to the credit reporting agencies. The credit report will show on your credit profile as being a charge-off as a grave negative mark indicating you did not fulfill the obligation. This mark can be on your credit report for as long as seven years. It is possible to see as high as a 100-point drop in your credit score. Additionally, you may have difficulty obtaining the car loan in the future. Repossession of a vehicle. With secured auto loans, when the vehicle serves as a security for the debt the car could eventually be . A car that has been in use for many years. The car you have financed car loan is typically secured using the vehicle bought with the loan. If you fail to make your payments and the lender can repossess and sell the car in order to pay for the loss. However, even when you are charged a lender charges off an auto loan, you may be able to drive the car -- at least for a brief time. Based on the location you reside in, a lender is obliged to send a default notice , and offer you to make the loan current before repossession. In such cases you may do so when you make satisfactory payments. However it is not the case in all states. this condition. If you purchase the vehicle, it isn't a guarantee for the loan and cannot be repossessed from the lender. What to do if your vehicle loan has been canceled your vehicle loan was repaid, there are several steps you can take. If the account has not yet been handed over to a collection agency, you can contact the lender and ask if you can make a one-time payment to settle the debt. This is referred to as a consider negotiating loan terms that are more feasible for you. You could also look into the statute of limitations for your state in order to determine how long a lender or a collection agency will continue to collect on you. The time limit for a statute of limitations is between three to 10-years from when you default, depending on where you live. Remember that the charge-off will remain on your credit report for seven years and impact your ability to get more automobile loans. Charge-offs on loans can also impact your future interest rates, so resolve the debt immediately if you are able. If you're struggling financially You may think about filing for bankruptcy. All charged-off loans are required to be considered in the bankruptcy filing. The next step depends on the type of bankruptcy you pursue. Options may include: Reaffirming the loan and continuing to make payments. The car can be redeemed by paying the loan in a lump sum. The car is then transferred to the creditor, who will use the proceeds to pay off the remaining debt and discharge the remainder. The bottom line: When you get a vehicle loan is charged off however, you'll still be responsible to pay back the loan. When the lender has paid off an auto loan then you'll probably have to deal with a third-party collection company. The car may be taken or you may be sued for repayment. Accounts that are charged off can also harm your credit score. If you're behind on auto loan payments The first step is contact your lender or collection agent to clear the loan or negotiate reasonable repayment terms. You may even seek a car loan settlement. If you're sued to repay, you must most likely speak with an attorney.

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Written by Contributing Writer Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain the confidence to manage their finances through providing precise, well-researched and well-researched information that breaks down otherwise complex topics into manageable bites.

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Related Articles Auto 5 minutes read on October 19, 2022. Loans 6 min read Sep 30, 2022. Loans 5 min to read on Aug 17, 2022. Auto Loans 3 min read Aug 03 2022

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Cash Advances Are Still a Pain, but A credit Card Loan? Perhaps Less So

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Cash Advances Still Sting But a Credit Card Loan? Maybe Not So

Other options to borrowing from your limit -- if your card offers such features -- can cost less than using your account at ATMs to withdraw fast cash.

by Sara Rathner Senior Writer/Spokesperson | Credit cards, travel rewards, debt payment Sara Rathner is a NerdWallet expert in credit and travel. She has been featured as a guest on "Today" show, as well as CNBC's "Nightly Business Report" and has been quoted in The New York Times, The Washington Post, The Wall Street Journal, Yahoo Finance, Time, Reuters, NBC News, Business Insider and MarketWatch. Before joining NerdWallet, Sara worked at The Motley Fool for nearly 10 years. She also worked as a freelance personal finance writer as well as a paraplanner. She also holds an associate's education in Journalism at Northwestern University.

Updated February 7, 2023 6:43AM PST

Editor: Kenley Young Credit score, credit cards Kenley Young oversees the daily coverage of credit cards for NerdWallet. Before that, he was a homepage editor and digital content producer for Fox Sports, and before that a front page editor for Yahoo. He has years of experience in both digital and print media, with periods as the chief of the copy desk as well as a wire editor, and metro editor for McClatchy. McClatchy newspaper chain.

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More Like This

If you're not able to access the funds in your bank account to deal with an unexpected expense A cash advance is one option to gain access to the funds you require, but there are some major downsides. You'll be on the hook on cash-advance and ATM charges, as well as the interest rate that starts to rise the moment you get the cash.

In regards to that interest: According to data from the Federal Reserve of St. Louis The average APRs for cards that charge interest exceeded 20.4 percent in November 2022. That's already pretty high and, in many cases, interest rates specifically on cash advance loans are even higher than this.

That is to say, that cash advance is likely to cost you.

However, you might have cheaper alternatives, thanks to credit card loan programs that let you borrow against your card's existing credit limit -- which is basically what you get when you request a traditional cash advance. But unlike a cash advance the newer loan programs have several benefits:

A fixed interest rate for the entire term of the loan.

No separate loan application or credit check is required.

There are no fees in most cases above your interest payment (or any late payment that you might make).

An open procedure that allows you to see what options you'd be qualified for and what the monthly cost of each one would be.

New ways to use credit to repay your loan

Of the major lenders among major lenders, each of Chase and Citi provide these kinds of loans to cardholders who meet the criteria. You can see what you'd possibly be eligible for by signing in to your account online or via either the Chase or Citi applications.

My Chase Loan

allows you to borrow up to 500 dollars. You'll be given the option of several payment plans of varying terms -- for example, you might have the option of choosing an option like a six-month plan or a 12-month option, possibly at a lower rate (think single digits) than your card's current flexible rate on purchases. (Your rates and terms will differ based the creditworthiness of your.) You'll also find out what the monthly payment would be with every loan option. Your loan installment will become part of your credit card's minimum payment each month until the time you are able to pay the loan off. There's no penalty if decide to pay off your loan earlier. Conditions apply.

Citi Flex Loan

A operates similarly: Borrow a minimum of $500 with a fixed rate for a predetermined time. You'll be able choose from loans with different amounts and lengths, and you'll be able to see how much your monthly payment will be in accordance with the terms you choose. Your payment will be included with your minimum credit card installment each month. The terms and conditions apply.

Beyond the loan programs offered by major companies, you might have other options. For instance, hybrid products created by a company known as Upgrade can be used for purchases just like you would normally with a conventional credit card, but you pay off your bill in fixed installments at the same rate similar to a personal loan. You may also be able to borrow against your credit limit by requesting that cash be deposited in your account. APRs and terms vary but it can be less costly than a cash advance.

Possible drawbacks

Both of these loan programs offer the ability to access money quickly for a lower cost than a cash advance, but there can be negatives

You don't get cash in hand immediately. With My Chase Loan, the money you borrow could take between one and two business days to be direct-deposited into your account. Citi Flex Loans can also come in the form of direct deposits which can be as quick as a day of business or a check that is mailed and takes as long as the mailer is delayed by the mail.

The interest rates might not be competitive with personal loans. If you meet the criteria for, you may be eligible for lower interest rates on other types of loans (though for a personal loan it is necessary to submit an application and undergo an assessment of your credit). If you have more time to research and compare rates, it's worth looking into other options to ensure you can secure the cash you need.

You'll still pay interest. If you require cash for upcoming purchases, there are other possible ways to pay with no interest, but you could be charged a fee.

Alternatives to consider

If you have expensive purchase coming up There are options to make use of credit cards to defer the interest payment or to split payments:

A similar plan that you can get through the credit card you use -- such as My Chase Plan or Citi Flex Pay lets you to split a larger cost into monthly installments which are added onto the credit card bill. With Chase, you'll pay a monthly fixed fee for the plan, while with Citi's, you'll be charged interest. Numerous other major issuers provide some version of these plans. If you decide to join an installment plan using your credit card, or the purchase now from a third-party pay later service, be cautious. A report issued in September 2022 from the Consumer Financial Protection Bureau identifies the risks that are associated with these plans, which include the risk of spending more, as well as the chance of being unable to make installments if you combine multiple loans at once.

A credit card with an interest-free promotion of 0% on new purchases can give you up to a year dependent on the card, to settle a balance interest-free. Just know that if you have any remaining debt when the promotion expires, you'll begin to be assessed the normal interest rate.

About the author: Sara Rathner is a NerdWallet credit and travel expert. She has been featured on the "Today" show, Nasdaq as well as CNBC's "Nightly Business Report."

On a similar note...

Find the right credit card for your needs. If you're looking to pay lower interest or earn higher reward points, the right card's out there. Just answer a few inquiries and let us narrow down the selection for the right card for.

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4 min read published September 20 in 2022.

Authored by Rebecca Betterton Written by Auto Loans Reporter

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Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to take control of their finances with concise, well-researched, and clear facts that break down complicated topics into bite-sized pieces.

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You have money questions. Bankrate can help. Our experts have been helping you manage your money for over four years. We are constantly striving to provide our readers with the professional guidance and the tools necessary to make it through life's financial journey. Bankrate follows a strict , so you can trust that our content is truthful and precise. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial team is factual, accurate, and not influenced from our advertising. We're honest about the ways we're able to bring quality information, competitive rates and helpful tools to our customers by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods and services, or through you clicking specific links on our site. So, this compensation can influence the manner, place and when products appear in listing categories and categories, unless it is prohibited by law. This is the case for our mortgage, home equity and other products for home loans. Other factors, like our own proprietary website rules and whether or not a product is available within your area or at your personal credit score can also impact the manner in which products appear on this site. We strive to offer the most diverse selection of products, Bankrate does not include details about each financial or credit item or service.

The credit rating of your, vehicle you buy and your lender all play a part in the price of your auto loan. Finding the most suitable place to borrow from is a process that involves numerous applications and extensive research before shopping. But getting preapproved gives you more negotiating power when you visit the dealer -- and it could help you obtain a lower-cost car loan that can save you thousands worth of money over the loan period. 5 steps to obtain a low-cost car loan Be prepared to look around for a loan by knowing your budget as well as your credit score and loan time. These steps will guide you toward an affordable and, hopefully, affordable -in the long run. lender. 1. Be aware of your budget Experts suggest you spend no more than 20% of your total per-month income for auto loan expenses, which include your monthly loan payment, fuel and other related costs. (The recommended limit for used and new car payments is 15 percent and 10 percent, respectively.) Ideally, you'll go into an auto showroom with a clear plan of what you'd like to buy, with the extra . Be mindful of your budget when searching for a car that will meet your needs. Utilize websites like Edmunds or Kelley Blue Book for car cost and reliability estimates. Rates of interest on new vehicles are generally lower than on -- however, used vehicles generally cost less overall. 2. Examine your credit score Lenders take your credit score when they evaluate your capacity to pay back a loan. The better your credit score will lower the interest rate. And if you're trying to qualify for the best rate that the lender provides, a high score is often needed. You can get your score as well as past history through Equifax, Experian and TransUnion or for free at . Make sure you have your credit rating in the highest condition possible before trying to get an auto loan. There are several ways to do this, including filing disputes with credit bureaus. If you find any errors to your credit reports, you should file complaints with the correct credit reporting agency right away. Negative information on your credit report that's incorrectly reported could lower your credit score. Being current with any past due debt balances. The amount of your payment history is 35 % of credit scores, therefore it is essential to bring any past due accounts current and to make timely payments on all outstanding debts moving forward. Reducing your unpaid debt balances. Aim for a credit utilization rate to 30-percent or less to improve your credit score. Also, you can lower your credit utilization rate. Avoiding new credit applications. Do not apply for any other type of loans and credit cards. A string of hard inquiries within an unspecified time period can hurt your score on credit. 3. Prequalify with multiple lenders Although many lenders utilize the same elements to determine your interest rate, they apply these factors differently. The most efficient way to find the cheapest deal depending on your credit score is to apply to with several lenders. Find out information from a handful of banks, credit unions or online lenders, and then evaluate their rates of interest. A quick search will give you an idea of what's out there. Once you've got an idea of the amount you're eligible for, you'll be able to get an understanding of your monthly payments will be. Plus, if you do want to , you can make an arrangement with a backup plan already in place. 4. Make an application for loans within a 14-day period Each credit application you submit is an inquiry on your credit report that dips the credit rating by just a few points and stays on your credit report for upto two years. The impact of hard inquiries can affect the credit rating for up to twelve months. This makes numerous applications within a short period problematic for your credit rating. Luckily, an exception the rule is applicable to auto loans. Any loan applications made within a 14-day window count as a single inquiry, minimizing the impact on your credit score. Remember that applications submitted after this period could result in an even more drastic drop in your credit score and make you ineligible for the most favorable rates. 5. Calculate the numbers If a low annual percentage rate (APR) is attractive but it's not the only number to be concerned about. The value of your trade-in prior car, as well as your and the amount of it that is incorporated into your total price of your new vehicle. The greater the upfront cost -- and the lesser interest you pay overall -the lower your vehicle loan will be. Utilize an application to determine the amount of interest you will be paying and the monthly amount you will pay. It's a great instrument, especially when you have prequalified with several lenders and understand the rates you can anticipate. The majority of auto loans are available with the range of 24 to . And while a longer term means lower monthly payments however, it is more expensive in the long run due to the interest. Choose a loan with the shortest duration you are able to be able to afford, and lower the total cost. Where can you find the most affordable car loan Dealerships collaborate with banks, credit unions as well as online lending institutions to provide you financing. For the most affordable car loan, you should to be sure to avoid paying additional fees for the same loan. Banks: If you already have an open account with a financial institution, you can look at Auto loan. It is possible to score a relationship discount on top of a competitive interest rate. Because the majority of dealers rely on banks for financing and lending, you'll receive the same level of service . Online lenders: Because online lenders have to compete with credit unions and banks and credit unions, they usually have similar rates. The best part is that they have a relationship with borrowers who are not creditworthy some credit history, which makes them a good place for an affordable loan if you lack an extensive credit background. Credit unions: Since they are nonprofit, they often provide competitive rates and similar loan terms to a bank. They're also one of the most cost-effective ways to secure the auto loan. But because you have to be an active member, it could take a few months -and an active account -- before you're eligible to apply. Next steps Car loans are one of the biggest expenses most people have to pay for and so you must put in the work to find the most affordable car loan that you can. Determine the monthly payment and the total loan amount you are able to afford prior to signing the contract for a new set of wheels. Find out about and prequalify with several lenders to ensure that you're getting the best deal. Find out more

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Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ways and pitfalls of borrowing money to purchase an automobile.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are enthusiastic about helping readers gain confidence to manage their finances with clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces.

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How to spot Debt Collection Scams

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How to Spot Debt Collection Scams

Know how to spot scams, safeguard your information , and inform authorities in the event that you encounter an untruthful debt collection scam.

By Sean Pyles Senior Writer | Personal finances, financial debt Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet's "Smart Money" podcast. On "Smart Money" Sean talks with Nerds from NerdWallet's NerdWallet Content team to answer listeners' questions about personal finance. With a focus on thoughtful and actionable money advice, Sean provides real-world guidance that will help consumers improve their financial lives. Beyond answering listeners' money concerns on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments on topics like the racial inequality gap as well as how to get started investing and the history for student loans.

Before Sean was the host of podcasts at NerdWallet He also covered issues that dealt with consumer debt. His writing has been featured on USA Today, The New York Times as well as other publications. When when he's not writing about personal finances, Sean can be found digging around the garden, taking runs and walking his dog for long walks. He lives within Ocean Shores, Washington.

Updated Aug 5, 2021 at 2:48 PM PDT.

Written by Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, managing money and debt Kathy Hinson leads the Core Personal Finance team at NerdWallet. In the past, she worked for 18 years with The Oregonian in Portland in capacities such as chief of the copy desk and team editor and designer. Her previous experience includes writing copy as well as news editing for several Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in mass communications and journalism from the University of Iowa.

A majority of the products we feature are from our partners who compensate us. This influences which products we feature and where and how the product appears on a page. However, this does not affect our assessments. Our opinions are entirely our own. Here's a list and .

If you're receiving threatening phone calls about the payment of a debt even if that you know about, you could be the target of a debt collection scam.

Here are some key steps to recognize and protect yourself against bogus .

The red flags for frauds in debt collection

You could be receiving an unsolicited call from a debt collector if the caller doesn't know the debt you are supposed to is due or if you hear the following:

Don't have or aren't willing to provide complete details about the debt as well as the original creditor.

They won't divulge any details about the organization the person claims to represent, including name address, phone number and address.

Uses aggressive tactics to pressure the customer into paying immediately.

Makes a request for payment by phone.

It asks for sensitive data, such as information regarding your bank account, your Social Security number or your debit or credit card number.

>> MORE:

Common scams

It's simple to spot fraud when an individual attempts to collect a debt that you don't acknowledge or even know that you don't owe. False debt collectors have a variety of methods to get your details and hope to pressure you into quick payment through a cold call.

Other scams can be more difficult to identify, for instance, an enticing scammer trying to recover a debt you due. Scammers might tap into your credit report in order to discover whom you owe money to for instance they may then make calls pretending to represent these creditors.

Threats of police action and verbal abuse are indicators of a fraudster According to the . It's not illegal to arrest someone on a debt and it's not a good idea to deceive consumers about the consequences of not paying debts. The legitimate debt collectors take their time in this area.

Another red flag is someone claiming as representing someone from the Internal Revenue Service and seeking immediate payment. The IRS, the tax collection agency of the federal government, will never demand that you make payment by phone or ask for a credit or debit card number. Both of these are indications of . However, be aware that the IRS in 2017 is a bit different.

As with any debt, ask for a validation letter -which is a document that details the details of the debt prior to taking any action.

What to do

Consider your options before you take action . However, you should take these specific steps if you believe that a caller is trying to fraud you.

Get information

Start by gathering information about the debt collector as well as the debt. Ask for a validation letter. The legitimate debt collectors must send you this information immediately without hesitation. Any hesitation might be a sign of a scammer.

Ask the caller for his name, as well as the name of his employer and phone number and street address. If the person calling you won't provide you these details, it's an indicator of trouble.

Protect your personal information

No matter how aggressively the debt collector you are considering asking for information, you should not divulge or provide information about your bank account, credit or debit card numbers, or Social Security number. Doing so could put you at risk of identity theft or let fraudsters steal money from your accounts.

Contact the original creditor

If you suspect that a fraudulent debt collector has called you to pay a debt you do owe you, inquire with the creditor who originally made the contact to confirm whether it sold the debt, as well as the contact information of the collection agency that manages it.

Ignore the calls

Refraining from receiving repeated calls is one of the best ways to get a scammer off your back. Do not hesitate to leave in the face of threats or harassment or threats, and do not answer calls. Because scammers want to make quick money off an easy subject, they're likely to keep you on their radar for long before they move away.

If you're in touch an authentic debt collector However, you'll need to make a plan to .

File a complaint

Don't be afraid to file a formal complaint with your state if a scam debt collector has called you. Find all the details you have and put the information as a formal complaint.

About the author: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His work has been published on The New York Times, USA Today and elsewhere.

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How to Start If You've Never had an Account with a Bank

Advertiser disclosure You're our first priority. Each time. We believe everyone should be able to make sound financial decisions without hesitation. While our website does not feature every business or financial product available on the market We're pleased that the advice we provide, the information we provide as well as the tools we design are independent, objective simple, and completely free. So how do we make money? Our partners compensate us. This could influence the types of products we write about (and the way they appear on the site) however it doesn't affect our recommendations or advice that are based on many hours of study. Our partners cannot be paid to ensure positive ratings of their goods or services. .

How to Start If You've Never had A Bank Account

By Spencer Tierney Senior Writer | Certificates of deposit ethics, ethical banking, bank deposits Spencer Tierney is a consumer banker at NerdWallet. He has written about personal finance since 2013, with a focus on certificate of deposit, as well as other banking subjects. The work he has written for him was covered by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. He is located in Berkeley, California.

Updated Aug 11, 2020 6:46AM PDT

Written by Carolyn Kimball Assigning Editor - Banking Los Angeles Times, San Jose Mercury News Carolyn has been employed in newsrooms across the country as a reporter and editor. Her interests include personal finance, sci-fi novels and groovy Broadway musicals.

Many or all of the products featured here come from our partners who compensate us. This impacts the types of products we write about and the location and manner in which the product is featured on a page. However, it does not affect our assessments. Our opinions are entirely our own. Here's a list and .

Controlling your finances without having a bank account is doable. But it can pose challenges - and the COVID-19 epidemic has only made it worse.

Your economic impact payment might've come in a few weeks or months later than others' did and was in the form of a check or prepaid debit cards, because you couldn't choose the faster payment option of direct deposit into a bank account. If you've visited the market recently you might have been requested to pay using a credit or debit card, or in exact change because of the widespread shortage of coins and worries about the transmission of germs.

An bank account can make life more convenient in these circumstances in many ways. To avoid any future problems Consider opening oneor revisiting when you've had a rejection previously. Here's a guide to getting going.

Review your financial needs

If you're one of the 14 million people without a bank account in the U.S. You may have a solution that works for you. Perhaps that means using alternative products such as pre-paid debit cards or checking cashing service. Financial advisor Brandy Baxter has worked with clients who have used check cashing services for practical reasons.

"They preferred to walk in, walk out with cash in hand," says Baxter the accredited financial counselor and financial coach who runs the company Living Abundantly in the Dallas-Fort Worth region.

Check cashing stores like Check 'n Go and ACE Cash Express may operate extended hours than bank and have simple approval processes for cash in a short time. But this comes with an expensive fee that could be anywhere from 1% to 6%, or more, of the check amount.

Bank accounts can fulfill money needs beyond what prepaid cards and check cashing services are able to. For instance, their fraud security can restrict the amount you'll be charged in the event of being victimized, and many accounts allow you to lock your debit cards remotely in the event of theft.

>> Tips on spotting fraud and scams How to spot scams and frauds:

And once you've begun a relationship with a bank, there are other options are available: Credit cards as well as small or auto loans and cheaper alternatives to payday loans might be in your reach.

Checking accounts "don't only help you save costs; they're the first step to using various financial instruments," says David Rothstein, principal at Cities for Financial Empowerment Fund which manages BankOn, a national platform which encourages financial inclusion.

Choose a lender that fits you

If you find banks intimidating or you've had difficulty obtaining an account in the past you can open a bank account, community banks and credit unions are generally more friendly than national banks. They tend to be mission-driven, for instance, they are focused on the financial wellbeing of their communities.

"We're extremely lenient when it comes to offering people a second chance to try again," says Pedro Murillo the area branch manager for the San Francisco Bay Area for Self-Help Federal Credit Union. "If someone comes in to apply for an loan and doesn't have pay stubs to show, do they have anything else (can they) provide us? Perhaps a letter sent by (their) company? We're not going to surrender."

Like other credit unions, Self-Help will require a person to open a savings account to be a member. The minimum to open an account is usually only a few dollars. Members can then apply for other services including a credit-building loan.

You can look up the word "CDFI" -- which stands for Community Development Financial Institution - to . Some require that those who join to be in the same area or state where the credit union or bank has branches.

What to learn about applying

To create an account, you'll typically require your Social Security number, one or two forms of identification and money for the first deposit.

It's typical to apply for two bank accounts at once: a checking and a savings account. The checking account gives access to debit cards and bill payment system as well as other services, while the savings account lets you set money aside and, ideally, grow by accruing interest.

Banks generally screen potential applicants using ChexSystems, a federal reporting agency that keeps records of accounts closed against a person's will. If you've lost access to an bank account in the past, you might be rejected by other banks until you settle the ChexSystems account. This could include paying off debts to the bank or disputing mistakes in the records.

Once you're cleared, consider what banks typically refer to as a or a BankOn-approved checking account. A lot of them don't charge fees for overdrafts. These occur if you attempt paying for something that will make your account negative.

Opening the correct bank account involves some effort. Once you've been approved, having a safe place for your money as well as a greater likelihood of getting low-cost loans could be worth it.

"To have an account in a checking... can be the foundation of any financial empowerment program," Rothstein says.

The article was written by NerdWallet and was first printed by The Associated Press.

The author's bio: Spencer Tierney is a writer, and NerdWallet's expert for certificates of deposit. He has had his work featured by USA Today and the Los Angeles Times.

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Find a savings account that is more efficient

See NerdWallet's picks for the most high-yielding online savings accounts.

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Is Your Debt Too Many Debts?

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able to make financial decisions without hesitation. While our website doesn't include every financial or company product that is available however, we're confident that the advice we provide and the information we offer and the tools we develop are objective, independent, straightforward -- and cost-free. How do we earn money? Our partners compensate us. This may influence which products we write about (and the way they appear on the site), but it in no way affects our suggestions or recommendations, which are grounded in hundreds of hours of study. Our partners are not able to be paid to ensure positive reviews of their products or services. .

Are You In Too Many Debts?

Add up certain types of debt and compare the amount to income to determine if there's a problem and how to proceed.

Through The Nerdwallet contributors are experts in their fields, who come from various backgrounds including journalism, finance and consulting. Our editorial standards are the highest standards of editorial to ensure that our readers are provided with the information that they need to make decisions about their finances with confidence. Find out more about the services we offer.

Last updated Aug 5, 2021 11:28AM PDT

Editor: Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, debt and money management Kathy Hinson leads the Core Personal Finance team at NerdWallet. Previously, she spent 18 years with The Oregonian in Portland in positions such as copy desk chief and team director of design and editing. Prior experience includes news and copy editing at many Southern California newspapers, including the Los Angeles Times. She earned a bachelor's degree in journalism and mass communications at Iowa's University of Iowa.

The majority or all of the items featured on this page are from our partners who compensate us. This impacts the types of products we review as well as the place and way the product appears on a page. But, it doesn't affect our opinions. Our views are our own. Here is a list of and .

Wondering if you have excessive debt? Looking into your debt-to-income ratio can help answer your question. Add up your monthly obligations to pay (things such as auto loans as well as housing and credit card debts) and divide it by your monthly gross income. A debt load that is higher than 36% of your DTI is difficult to pay back and can make accessing credit more challenging.

If you're struggling to keep up with your bills or are experiencing anxiety or insomnia If so, it's the time to come up with a strategy to consider or research .

Watch your debts dwindle

Create an account to link your credit cards, loans and accounts to keep them all in one place.

Figure out your debt load

Utilize the calculator below to figure out whether is problematic. The calculator can also provide recommendations for what to do next.

Enter all debts -- for example, credit card bills and medical bills -- and your income to this tool. Students loans and mortgages are typically less troublesome forms of debt, therefore, set them aside for the moment.

Check your results for these riskier types of debt with regard to possible solutions:

If it's lower than 36%, your debt load is within the limits of being reasonable based on your earnings.

If the number is between 36% and 42% , consider DIY methods like or

If your debt is between 43% to 50%, you should take steps to reduce your debt load Consultation with a lawyer could be beneficial. If you're at 50% or more, your debt load is high risk; consider seeking advice from an attorney.

Think of those guidelines as a general rule of thumb. "There is no set rule for credit," says David Nash who is a certified Financial Planner working at Magister Wealth in San Antonio, Texas. However, he adds "If your debt is increasing in proportion to your income, it means some tougher tradeoffs need to be considered."

The difference between good and bad debt

It's crucial to differentiate between the good from the bad, and the harmful. A mortgage with an annual percentage rate of 3.5 percent, for instance is a different consideration as a credit card with 20% APR.

What's a good loan?

If you have an interest rate that is fixed and low, as well as you take out the loan will be utilized to purchase something that appreciates in value, such as an investment property, a business or college education. It's also beneficial if the interest is tax-deductible like the majority of student and mortgage loan interest.

What's bad debt?

The loans are characterized by high or variable interest rates that are used to buy things that lose value or get used up. Examples include high-interest personal loans for purchases that are discretionary, such as vacations, auto loans stretching up to five years, or high-interest with increasing amount.

What's toxic debt?

No-credit-check and with APRs above 36%, loans so long you are paying more than what the item is worth or loans requiring collateral you can't afford to lose, such as your vehicle.

Bad debt has crushing interest costs and limits your savings, cash flow and the ability to borrow for goals like buying a home according to Erika Safran, a certified financial planner with Safran Wealth Advisors in New York City.

However, a mortgage with low interest that you can comfortably afford shouldn't keep you up at night.

Common warning signs of problem in the area of debt

Your debt balance is not going down despite regular payments.

You're living paycheck-to-paycheck without a dime at the at the end of the month.

There's no reason to contribute money into a retirement plan that's sponsored by your employer because you need the money.

It's impossible to create an at least $500 buffer against financial unexpected events.

You're using credit cards to make cash advances.

Are my other types of debt a problem?

The following guidelines give you an idea of how much is considered to be too much in these categories of debt and how to handle it if you're overloaded:

Housing

Guideline: When buying a house, keep your mortgage expenses to . This calculator will help you understand .

How to handle an overwhelming situation: Think about the possibility of downsizing your home and moving into a cheaper region. If you're refinancing or changing homes in your 40s or 50s, choose a , in order to have no mortgage by retirement.

Student loans

The rule of thumb is to not borrow more to complete your degree than the amount you anticipate earning in your first year in the workforce. If you expect a starting salary of $40,000, for instance, you should restrict your loans to $10,000 annually for a degree that is four years long. is a major regret for students loan recipients, as per NerdWallet's research.

How to handle an overflow: Look into your alternatives, including income-driven repayment programs and refinancing.

Car loans

The guideline is that experts say your auto expenses -- including -- must be included in your take-home pay. Car loans should be for at least four years, and ideally with 20% down. This way, you won't end up spending years owing more than the car's worth.

How to handle an overloaded vehicle: If you have an , consider or trading your car in for a less expensive one.

(image: https://greendayonline.com/wp-content/uploads/2016/12/065e16157780f9b36e815af6455f2aeb.png)Medical debt

Guideline: Medical debt is an exceptional circumstance because medical expenses are often beyond consumers are able to control. This kind of debt usually has no interest, but the amounts involved can be overwhelming.

How to deal with an overload: Try negotiating with the billing office to reduce the amount to be paid or arrange the most affordable plan for payment. on your own if possible, but you may need to investigate .

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Why Are Credit Card Interest Rates So High?

Advertiser disclosure You're our first priority. Every time. We believe that everyone should be able to make financial decisions without hesitation. And while our site doesn't include every business or financial product in the marketplace however, we're confident of the advice we provide, the information we provide as well as the tools we design are independent, objective simple, and completely free. So how do we make money? Our partners compensate us. This could influence which products we write about (and the places they are featured on our website) however it does not affect our advice or suggestions that are based on hundreds of hours of research. Our partners do not be paid to ensure positive review of their services or products. .

Why Are Credit Card Interest Rates so high?

Card issuers are in the business of making a profit however, it is a matter of the financial risk they're taking.

The article was written by Gregory Karp Senior Writer | Credit cards, personal finance score on credit Gregory Karp is a former NerdWallet writer and an expert on personal finance and credit cards. As a journalist for over 30 years, he's been a newspaper reporter as well as an editor, authored two books on personal finance and developed his own "Spending Smart" syndicated newspaper column. His awards include national recognition several times from The Society for Advancing Business Editing and Writing.

Updated Nov 9th, 2022 at 1:12PM PST

Editor: Kenley Young, the Assigning Editor Credit scores, credit cards Kenley Young is the director of daily credit card coverage for NerdWallet. Prior to that, he worked as an editor on the homepage as well as a digital content producer at Fox Sports, and before that , a front page editor for Yahoo. He has years of experience in digital and print media, including times as a copy desk chief, a wire editor and metro editor of the McClatchy newspaper chain.

A majority of the items featured on this page come from our partners who pay us. This influences which products we write about as well as the place and way the product appears on a page. However, this does not affect our assessments. Our views are our own. Here's a list of and .

A LOT LIKE THIS

Interest rates on credit cards may seem outrageous, some stretching over a percentage rate. This is far more than those for mortgages and auto loans.

The motive behind the higher rates go beyond corporate profit or greed The reason is that it's about risk for the lender. If you fail to pay the mortgage, or your auto loan the bank could seize your home or vehicle. If you do not pay your credit card debt, the card issuer's options are very limited. An issuer can wreck your credit score and suffer the expense and hassle of suing you, but there's no guarantee it will be able to recover its funds.

In finance, generally , the higher the risk you accept, the better potential payoff you're hoping for. For banks and other card issuers credit cards are extremely risky because lots of people make payments late or never pay at all. So issuers charge high rates of interest to cover that risk.

A balance that is not paid off is a loan

For consumers, the high interest rates on credit cards are irrelevant if they don't have a balance, or use cash advances. If they do, however, have a monthly balance that they revolve, make no mistake, that's the definition of a loan. As with any loan, the lender is expecting to be paid interest.

Why are rates so high?

Unsecured loan Credit cards are typically unsecured, meaning there's no collateral -- no property that the lender can take if the borrower fails to pay. That's as opposed to the aforementioned , which requires an upfront deposit as collateral, or loan for a house or car, that can be repossessed by a lender is able to take back and sell to get some of the money back. This is why banks don't give you an official title for your car for instance, until you finish paying for the car loan. And unsecured credit card balances are not backed by anybody other than their promise to pay, such as the federal government backing certain student loans.

Nerdy Tip

Credit card defaults, also known as charge-offs are the time when a bank gives up trying to collect on the debt. Charge-offs ranged from 3% to 4% range from 2012 to 2019, but spiked past 10% in 2009 and 2010 following recession, as per data provided by the Federal Reserve Bank.

Uncertainty: Unlike other types of loans, credit card issuers don't inquire about why you need the money. It can be used to pay for medical bills or car repair , or play casino blackjack or buy bobblehead dolls. And banks don't know exactly how much you'll be borrowing. It could be zero or even your maximum credit line. The uncertainty could pose an opportunity for the lender.

Profit: The majority of card issuers are in business to make money for shareholders or, in the case of credit unions, funnel profit into advantages for members. Interest earned from credit cards helps increase bottom line profits and helps pay for the lucrative advantages of and 0% time periods of .

Are rates really that high?

It's all about the comparison. Rates are high compared with car loans and mortgages, which we're accustomed to seeing in the single digits for those with credit scores that are good. But credit card rates are not as high as rates that can be well over 100% APR.

In the first half 2019 the average credit card interest rate was around 17%, among accounts assessed interest in accordance with the Federal Reserve. NerdWallet's research found that rates have risen 35% in the past five years.

How come rates can vary?

Credit score In essence, consumer credit ratings are supposed to indicate the likelihood of repaying a loan or credit card balance. The people with higher credit scores like those with better credit scores, get lower rates since their chance of default is much lower. This is the reason the reason why interest rates on credit cards are expressed as a range to reflect rates that are charged to those with good, average, and bad credit.

If banks believe in you more, they think their risk is less and charge you at a lower cost.

You can get your from NerdWallet.

Market conditions The market for credit cards is competitive, which is why the rates charged for finance charges are generally comparable across major issuers. Also, they generally move in sync with current interest rates, usually tied to a benchmark known as"the prime rate. Rates for cards are usually the prime rate and a fixed number of percentage points. If the prime rate is 5%, and your card is charging prime plus 10 percentage points Your APR is 15 percent.

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What you can do to reduce the risk of high interest rates

Make sure you pay off the balance If you don't have any monthly bills, you don't have to worry about what rate your card issuer will charge you.

>> MORE:

Reduce your rate It is possible to use a variety of strategies to , including negotiating the rate down, using credit cards that allow balance transfers or, over the longer time, . Credit unions are an excellent option to search for credit cards with low-interest interest rates.

Author bio Greg Karp is a former NerdWallet writer and an expert in personal finance and credit cards. He was previously employed by Chicago Tribune. Chicago Tribune and wrote two money books.

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5 minutes read. Published 15 September 2022

Written by Allison Martin Written by

Allison Martin's career began more than 10 years prior to that as a digital content strategist, and she's since been featured in a variety of top financial publications such as The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are committed to helping readers gain the confidence to control their finances by providing precise, well-researched and detailed data that break complicated subjects into digestible pieces.

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Although the price tag of a car can guide you towards the model and model that's right for you, it's not all you need to consider prior to making the purchase. The cost of maintenance and repairs, fuel, auto insurance and annual registration renewals must also be considered when deciding which vehicle best suits your requirements and budget. How can you estimate the real cost of owning a car To determine the true costs of owning a car, you'll need to consider various factors, such as maintenance and repairs , gas expenses and registration fees. You also have to consider taxes, and fees as well as depreciation. If you do your research ahead of time so that you don't get sucked by the plethora of charges and will be able to determine that you're able to pay for the car you drive off the lot. Maintenance and repairs scheduled maintenance will cost you less than $100 per visit however, the cost will increase with older cars. can help you determine average costs according to your vehicle's make, model and mileage. Although modern cars can travel 5,000 miles or more between regularly scheduled maintenance visits It's not a good idea to delay servicing to save some money on the cost of car maintenance. It is recommended to adhere to the manufacturer's maintenance schedule in the owner's guide to get maximum life out of your car . Also, make sure that the manufacturer won't cancel your new car warranty. Insurance for cars Although the majority of states do not require drivers to buy car insurance, for most drivers it is an important consideration when calculating the true cost of car ownership. Car insurance can provide you with many millions of dollars in the case of collision and the average motorist pays . The most efficient method of determining your auto insurance costs is by comparison of quotes from various firms. The cost of insurance can differ depending on your age, history of accidents, yearly mileage as well as gender, the type of vehicle you own and many more. Gas expenses The cost at the gas pump varies depending on demand, tax rates and even the location. However, as a prospective car buyer you can plan for the cost expected by looking at your car's fuel efficiency on . The "good" gas mileage for cars that are not hybrids is between 20 and 30 miles per gallon. However, hybrids and electric vehicles could achieve 50-100 miles per gallon or more, according to . It is also important to think about the fuel octane and type of fuel needed. A vehicle that is highly-performing will require higher-octane premium gasoline that could affect your budget monthly. But, you can still save on gas by comparing the best prices prior to filling up at the pump. Taxes, registration, and fees when you purchase a vehicle there will be a variety of fees charges to be paid after you're ready make the purchase. The main three are the vehicle registration fee, documentation fee along with sales tax. The cost of registration varies from state to state. In some states, the registration cost is under $100 per year, however, other states cost closer to $200. The cost of registration can be determined by the price and age of your vehicle. The documentation fee is for the paperwork that comes with a new vehicle purchase. Dealers often use this as a way to earn extra cash. Certain states have a documentation fee that ranges from $100 to $200, but most states do not regulate the documentation fee. Make sure you check the rules of your state prior to time so that you are ready to negotiate in case that number is too steep. Taxes on sales also differ according to state. The residents of California can expect to pay 10.25 per cent tax rate on their vehicle while those who purchase a car in Michigan have taxes capped at 6 percent. Calculating the tax rate of your car can help you avoid surprises when signing the contract. Depreciation Your is the rate at which the value of your car decreases over time. It shows the difference between the value of your vehicle now compared to when you first purchased it. It's an important factor because you could be losing money if you own a vehicle with an extremely high rate of depreciation. This will help you estimate the rate of depreciation for potential vehicles over a period of five years, since some cars depreciate faster than others. The general rule is that new cars depreciate faster than used cars. How can you reduce your car's expenses Along with doing your homework before signing an agreement, there are many day-to-day ways to minimize your car's expenses once you own the vehicle: Don't drive too fast and accelerate too fast: Speeding, speedy acceleration and sudden braking all decrease your car's gas mileage. Limiting your speed to the limitor a little less than it -- can help you save money at the gas pump. Select a reliable mechanic Check out a few mechanics and read online reviews before choosing one. A relationship with a trustworthy mechanic will guarantee fair prices. Keep to the maintenance schedule: It's tempting to avoid regular maintenance and service appointments, but following the manufacturer's recommended schedule will prevent your car from failing. Additionally, you could get rid of costly repairs. Take a defensive driving course: Many insurance companies provide discounts to drivers who successfully complete online defensive driving training. Don't overdo the air conditioning using your car's air conditioning when it's not necessary could significantly impact the efficiency. When it's possible, roll down the windows instead of cranking up the temperature. Look around for insurance options for your car Certain providers provide lower rates for auto insurance than other providers. Take your time and look around for the option for you. Consolidate your route: Mapping your routes ahead helps minimize unnecessary trips and lowers the cost of fuel. Earn rewards for gas Utilize loyalty reward programs offered through certain credit card issuers as well as gas stations. Experts advise that you spend less than 10 to 15 percent of your take-home salary for an auto loan. Also, you must consider the cost of maintaining the car, which should not be more than 7 percent, bringing the total to between 17 and 21 percent of take-home salary. How to save on your car loan Shopping around to find that will aid in reducing your car ownership costs. Before you begin your search, look over your credit score to determine what your standing is as lenders will use it to decide what rate to offer you. In the event that your score isn't to standards, obtain a copy of your credit report from the three largest credit bureaus including Experian, TransUnion and Equifax Review the details. Make a dispute if you notice mistakes and pinpoint any areas of your credit report you must work on which could be dragging your credit score down. If your score isn't quite at par and you're in need of an auto loan right now, it's possible to consider this. The next step is to look up rate quotes to discover the best rates on financing. A lot of lenders allow online financing without impacting your credit score. Additionally, you can also utilize these rates as leverage when you negotiate the purchase price at the dealership. If you're ready to apply for an loan make sure you choose the lender that has the most favorable terms to seal the deal. Remember that the longer the loan period, the greater cost of interest you'll be paying regardless of whether you receive a more affordable monthly payment. The end result is that car maintenance costs, insurance , and other fees can put you in a tough financial spot if you're not prepared for them. Plan ahead and review your budget to ensure that you can afford the vehicle you're looking to purchase. Make sure you do your research before applying for a loan to ensure you get the best rate on financing. Learn more

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Written by

Allison Martin's work began over 10 years ago as a digital content strategist. Since then, she's been featured in a variety of top financial media outlets including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain confidence to take control of their finances with clear, well-researched information that is broken down into complex topics into manageable bites.

Auto loans editor

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