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Budget, Save, Even Win Money With Today's Prepaid Debit Cards

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Budget, Save, Even Earn Money With today's prepaid debit Cards

By Spencer Tierney Senior Writer | Certificates of Deposit ethics, ethical banking, bank deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has been writing about personal finance since 2013, with a focus on certificate of deposit as well as other banking-related subjects. He has had his work covered on The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Berkeley, California.

Updated September 19, 2017

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

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In 1999 the entrepreneur Steve Streit created the first retailer-sold prepaid debit card, later dubbed Green Dot to provide an option for young people to shop online for items.

Prepaid cards have evolved in the past, and now they go beyond helping consumers spend more money to assist them in the opposite direction budgeting and saving money. With budgeting options that can be customized, or innovative incentives to make money more efficient and save money, prepaid debit cards make it possible to manage your money smartly, without having to go through the banks.

If you're eager to look at different cards, take a look at our selection of .

Here's how prepaid debit cards can help you:

Get your budget under control

Prepaid debit cards bear the logo of the card network like Visa or Mastercard, work at merchants nearly everywhere and can be loaded with money regularly. Most don't require a credit check. But they're not for anyone. They are primarily for people who are looking for a new way to budget or need a replacement for a checking account.

The main benefit of prepaid cards is the lack of overdraft services and their associated fees traditionally found on checking accounts. The balance of a card is a standard spending limit -- a card will typically be declined with no fee, when it's not enough to cover the purchase or payment.

In addition, more prepaid debit cards come with tools to set budgets or goals than they did previously. Around 54% of the market for prepaid cards sampled had these tools in 2016, as compared to just 30 percent in 2014, as per to . The samples included 19 cards from 2014, and 21 in 2016 and each sample was a representation of 90% or more of the prepaid debit card market.

As bank accounts, many debit cards for prepaid use offer access online and via mobile to your accounts , using options like mobile check deposit and money transfers. But the more in-depth budgeting tools on some cards allow you to:

You can customize your spending limit. Budgets can be created with spending categories like apparel and entertainment.

Visualize the history of your purchases. Some cards have pie charts, or other graphic images which categorize your expenditure.

Set up email and text alerts to be notified whenever you spend more than a specific amount.

Use sub-accounts to manage different household costs. Designating one of your card's sub-accounts for a particular type of expense, like grocery shopping, will make it simpler to set an amount limit on the expenditure.

Bluebird from American Express and Akimbo are two cards that offer five to six sub-accounts that are connected to a master account but with separate balances for each account and physical cards.

They can function as a modern-day envelope system. Use one card for grocery shopping and another for dining out, a third for vacations and so on.

If you have kids, sub-accounts can allow them spending privileges with a set amount of money per card, which you decide.

Make the most of your savings (and possibly win money)

Budgeting is an effective way to manage money, but you might need an incentive to continue it.

"Budgeting for the sake of it isn't really effective," says Thea Garon who is the senior manager of the Center for Financial Services Innovation. When it comes to debit cards with prepaid cards, she adds, it's best "when the budgeting experience is linked to the financial experience, as well as aspirational objectives."

The Walmart MoneyCard that is offered from Green Dot Bank, has budgeting features such as account alerts, however it is distinguished by its savings program linked to prizes. In August, Wal-Mart as well as Green Dot added a monthly sweepstakes for the card's "vault." This vault functions as a savings account in that you can't spend funds from the balance, without moving it to the card's spending balance.

Saving money in the vault gives you chances to win prizes every month one dollar of savings equals one entry in a sweepstakes and you can win more than 500 chances to win. Each month, you can win 499 prizes who are awarded $25 and one who wins the jackpot, $1,000.

"Especially in an environment with low interest, the chance to win a little bit of money is exciting," says Mark Matthews who is the director of senior management at Walmart Services.

The real prize isn't in the sweepstakes- it's the incentive to save more and it's working. The average savings account balance was up by more than 35%, from $413 to $572 between the end of August until December. According to Walmart the number of people who had participated as of June, and usage on MoneyCard's Savings Vault on the MoneyCard has skyrocketed 233% over one year ago.

"The goal here is to provide a meaningful mechanism and incentive to accumulate an account over time in order to deal with emergencies," he adds. Matthews said that all savings are manually added to the account, as there is the inability to automate savings transfers on the MoneyCard.

Prepaid cards have exploded in popularity, but ...

For banking options as well as with more modern added features, prepaid cards have seen a surge in popularity since Streit's inspiration in 1999. The number of payments for prepaid debit cards grew by 34% from 2009 to 2012 and 5.6% from 2012 to 2015, based on the Federal Reserve Payments Study in the year 2016. Although growth slowed recently but the cards still hold the place of thousands of Americans' purses.

The cards are also relatively secure to use, and they are becoming safer: NerdWallet recently looked at 44 cards across the market, including major issuers and upstarts, and found all the cards are insured. Prepaid cards will take effect in April 2018.

However, that doesn't mean that you should always use prepaid debit cards as the best choice. Here are a few reasons they might not be right for you:

They don't help make credit. If you want to improve your credit score, consider a .

It's not the best way to budget. A lot of cards charge monthly charges -- the average from the NerdWallet analysis was $4.67. You can see a few of the below.

Certain bank accounts offer better rewards to help save. Some savings accounts on the internet have rates of interest in excess of 1percent annual percentage. There are new banks like Chime that reward you for saving. Your debit card purchases get rounded by the closest dollar, and those cents automatically go to a savings account. At the end of every week, you'll earn a 10% bonus on the total amount of cents rounded up that you earn, up to $500 in a year.

Explore alternatives and compare interest rates

The author's bio: Spencer Tierney is a writer, and NerdWallet's expert on certificates of deposit. His work has been highlighted by USA Today and the Los Angeles Times.

On a similar note...

Find a savings account that is more efficient

Check out NerdWallet's recommendations for the most high-yielding savings accounts online.

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Common car refinancing mistakes to avoid Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial choices by providing you with interactive tools and financial calculators as well as publishing reliable and original content. We also allow users to conduct research and compare information for free to help you make sound financial decisions. Bankrate has agreements with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are advertised on this website are provided by companies that pay us. This compensation may impact how and where products are displayed on the site, such as for instance, the order in which they appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home loan products. But this compensation does have no impact on the information we publish, or the reviews you see on this site. We do not cover the entire universe of businesses or financial deals that might be accessible to you. Tom Werner/Getty Images

3 min read . Published February 24, 2023

Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in helping readers with the details of taking out loans to purchase cars. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to take control of their finances with clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces. The Bankrate promises

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At Bankrate we are committed to helping you make better financial decisions. While we are committed to strict journalistic integrity ,

this post may contain references to products from our partners. Here's an explanation for how we make money . The Bankrate promise

In 1976, Bankrate was founded. Bankrate has a long record of helping people make smart financial choices.

We've earned this name for over four decades by making financial decisions easy to understand

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so you can trust that we're putting your interests first. All of our content was authored with and edited

They ensure that what we write ensures that everything we publish is accurate, objective and reliable. We have loans reporter and editor concentrate on the points consumers care about most -- various types of loans available and the most competitive rates, the most reliable lenders, ways to repay debt and much more. So you'll be able to feel secure when making a decision about your investment. Editorial integrity

Bankrate has a strict policy and rigorous policy, so you can rest assured that we put your interests first. Our award-winning editors and reporters provide honest and trustworthy content that will aid you in making the best financial choices. Our main principles are that we appreciate your trust. Our goal is to provide readers with truthful and impartial information, and we have established editorial standards to ensure that happens. Our reporters and editors thoroughly fact-check editorial content to ensure that what you read is correct. We have a strict separation between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence Bankrate's team of editors writes for YOU the reader. Our goal is to give you the best advice that will help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not in any way influenced by advertising. Our editorial staff receives no any compensation directly from advertisers and our content is verified to guarantee its accuracy. So, whether you're reading an article or a review you can be sure that you're getting reliable and reliable information. How we make money

If you have questions about money. Bankrate can help. Our experts have helped you understand your finances for over four decades. We are constantly striving to provide consumers with the expert advice and tools needed to be successful throughout their financial journey. Bankrate follows a strict , so you can trust that our content is truthful and precise. Our award-winning editors and journalists create honest and accurate information to assist you in making the right financial decisions. Our content produced by our editorial team is truthful, impartial and uninfluenced by our advertisers. We're honest regarding how we're capable of bringing high-quality content, competitive rates, and useful tools to our customers by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products andservices or when you click on certain links posted on our site. This compensation could influence the manner, place and in what order items are listed and categories, unless it is prohibited by law for our mortgage or home equity products, as well as other home loan products. Other factors, like our own website rules and whether or not a product is available within your region or within your self-selected credit score range may also influence the manner in which products are featured on this site. Although we try to offer the most diverse selection of products, Bankrate does not include the details of every credit or financial products or services. If you're having difficulty making your current loan payments, -- changing the current auto loan by a fresh one the best method to save money and remain behind the wheel of your car. However, there are some typical mistakes to avoid to ensure you don't find yourself in yet another precarious financial spot. Top 7 car refinancing mistakes Avoid these common mistakes when refinancing your car loan. 1. Do not check refinancing requirements. Lenders hold specific regarding refinancing. Keep an eye out for requirements pertaining to the car's age, miles and even the remaining balance in the loan. For example, lenders often require at least six months' worth of payments for your loan and a remaining amount of $3,000-$5,000 to refinance. Bankrate tip

You can find specific refinancing requirements from banks' websites as well as Bankrate's .

2. Don't contact your current lender first While your current lender might not have the lowest rates, it is still the most effective place to begin. Before looking into refinancing alternatives outside the current lender it is advisable to approach them and tell them about your situation to see if they can help. Some lenders offer , which changes the terms, the due date for payments or interest rate , to give borrowers financial relief. Bankrate tip

Even if you don't follow through with refinancing the loan, it is possible that they will offer a better deal than an existing lender might.

3. Extending your loan time too much. Refinancing is a way to reduce costs, however if you extend your loan too much and you are spending more money over its lifetime. While a will mean lower monthly payments, you will also pay more interest. Tip from Bankrate

Before adjusting your term, take advantage of an auto refinance to ensure you save money.

4. Not considering your credit Like most situations with loans, the credit score is used as the main factor for approval. Therefore, you must improve your credit and before changing your loan. You're more likely to be eligible for the loan and leave with more money in the end. loan overall. If your credit score is 670 or higher usually qualifies for borrowers with the most favorable interest rates. Tip from Bankrate

Check your credit ahead of loan applications by using AnnualCreditReport.com.

5. Shopping with just only one lender Similar to when you are shopping for your first auto loan We suggest comparing at least three different lenders. While deciding on the initial loan offer might be appealing, not all loans are created equally. The lower your interest rate the less you'll pay for your car payment. It is important to make sure you're getting the most competitive rate out there. Bankrate tip

Compare the current rates offered by a range of lenders. Be aware of the approval requirements, repayment options, and how it compares to what you currently have on your loan.

6. Insolvency on your loan Before refinancing, check where the equity of your vehicle is by comparing it to the help of . Equity is the amount by which the vehicle's value exceeds the amount you have to pay on the auto loan. If you have debt that is greater than your car is worth, or hold negative equity refinancing is not a good idea. Tips from Bankrate

Don't make a deal to refinance a vehicle that you aren't able to afford. Find out where you may be overextending and calculate expected costs prior to signing the new loan.

7. Don't give up after the first rejection Auto loan refinancing requirements differ between lender to lender Therefore, the fact that you've been rejected by one lender doesn't mean you'll be rejected by all. If you're thinking, "Why can't I refinance my vehicle?" you have the right to ask your lender in accordance with the (ECOA). They must explain to you the reason your application was denied. Bankrate tip

Knowing why you were denied will help improve your chances of being approved later on. For example, if you have a credit score that is too low, you can work towards improving it before you apply next time.

The bottom line: While refinancing your car loan is not without risk but it's a great way to lower your monthly cost and continue affording your vehicle. Be aware of these mistakes common to all in mind and stay up-to-date with current information so that you can walk away with the most suitable loan to meet your needs.

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This article is written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the details of borrowing money to purchase a car. Edited 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 take control of their finances through providing clear, well-researched information that breaks down otherwise complex subjects into bite-sized pieces.

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Similar Articles: Auto Loans 5 min read January 12 2023 Mortgages 6 minutes read Dec 12 2022 Auto Loans five minutes read November 16 2022 Mortgages 4 min read September 23, 2019

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Chapter 7 Bankruptcy: What it is and How to File

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Chapter 7 Bankruptcy: What is it is and How to File

Chapter 7 can wipe out the debt that is overwhelming, with some notable exceptions like student loans.

by Sean Pyles Senior Writer | Personal finance and debt Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet's "Smart Money" podcast. In "Smart Money" Sean talks with Nerds from NerdWallet's NerdWallet Content team to answer questions from listeners regarding their personal finances. With a focus on shrewd and practical money tips, Sean provides real-world guidance that will help consumers improve their financial lives. In addition to answering listeners' financial concerns on "Smart Money" Sean also interviews guests outside of NerdWallet and also creates special segments on topics like the racial wealth gap as well as how to get started investing and the background of college loans.

Before Sean took over podcasting for NerdWallet the company, he also wrote about topics concerning consumer debt. His writing has been featured in USA Today, The New York Times and elsewhere. When when he's not writing about personal finance, Sean can be found digging around his garden, going for runs , and walking his dog for long walks. Sean is located in Ocean Shores, Washington.

Updated on Aug 6, 2021 3:31PM PDT

Written by Hanah Cho. Cho is Vice President Personal finance Hanah Cho is Vice President of Content. She managed multiple NerdWallet teams that were focused on personal finances before being promoted to director and deputy director. She first began her career at NerdWallet as a journalist, covering small businesses. Prior to that, she wrote about business and startups at The Dallas Morning News, and was previously a business writer for The Baltimore Sun. She was also treasurer for The Texas Chapter of the Asian American Journalists Association.

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Table of Contents

Table of Contents

Chapter 7 bankruptcy can wipe out many forms of debt that are overwhelming with the help of the federal court. You may have to sell some of your assets, such as a costly vehicle or jewelry, however, the vast majority of filers do not. Chapter 7 bankruptcy is the most efficient and popular type of bankruptcy.

Chapter 7 bankruptcy erases most unsecure debts, which is, debts without collateral such as medical bills, credit card debt and personal loans. However, some forms of debt, like tax owed, court judgments, alimony and child support, as well as student loans generally don't qualify for. Chapter 7 bankruptcy will leave an indelible impression on your credit report for 10 years. During this time you'll likely be unable to obtain credit. Even so, you'll probably notice your credit scores begin to recover in the months after you file.

Read on to learn about how you can qualify for Chapter 7 bankruptcy, how to file, whether this debt relief option is the right one for you, and how to get back on track after bankruptcy.

Are you eligible for Chapter 7 bankruptcy?

To qualify for Chapter 7 bankruptcy you:

Must pass the , which examines your earnings assets, expenses and income.

It is not possible to have completed a Chapter 7 in the or within the last six years.

Do not have to have filed bankruptcy papers (Chapter 7, 13) within the last 180 days, and it was dismissed because you failed to attend court or adhere to order of the courts, or have voluntarily withdrawn your own bankruptcy filing due to creditors seeking court relief to reclaim their property that they were able to levy on.

How do you apply for Chapter 7 bankruptcy?

It is possible to complete the process within six months. It is necessary to follow several steps.

You must attend pre-filing bankruptcy counseling from a qualified non-profit credit counseling agency within 180 days of making the filing.

Before diving into the various documents required to complete Chapter 7, find a certified bankruptcy attorney who can assist. It's difficult to know when you need to get rid of debt and this isn't an issue you can tackle yourself. Incorrectly or incompletely filled out paperwork could result in your case being thrown out or having some debts eliminated.

File paperwork The attorney you hire will assist in filing your petition and other paperwork. It's your responsibility to gather all necessary evidence of the assets you have, your income and financial obligations. An automatic stay goes into effect at this point and means that the majority of creditors can't sue you, garnish your wages or call you to demand payment.

Trustee assumes the responsibility: After your petition is filed, the bankruptcy trustee appointed by the court will take over the management of the bankruptcy process.

Meeting of creditors The trustee will schedule a meeting between you, your lawyer along with your lenders. You'll have to answer any questions brought up by the trustee as well as creditors about your bankruptcy forms and financial situation.

Your eligibility will be determined After reviewing your application, the trustee will confirm whether you're eligible for Chapter 7.

Property that is not exempt from taxation handled by the trustee decides if assets that aren't exempt from selling and the proceeds are then distributed to creditors. It could include jewelry, or the equity in your home or car if it's higher than the state's exemption limits. The majority of individuals Chapter 7 cases, however they are "no asset" situations where there are no nonexempt items to liquidate.

Secured debts: To resolve your secured debts, the property that is used as collateral could be return to your creditor. Or you may be able to either redeem the collateral (you pay the debtor what you think it's worth) or renew the credit (arrange to keep the debt out from bankruptcy, and continue to repay it).

Education course: Before your case is discharged, you'll be required to attend a financial education course at a reputable non-profit credit counseling agency.

Discharge In the three to six months after filing your petition, your case will be discharged, meaning that any debts that are eligible are paid. Then, shortly after, the case is closed.

Is Chapter 7 bankruptcy right for you?

Make sure you know the difference between Chapter 7 makes sense in the following situations:

You don't have a lot of assets.

Your debts that are causing problems total more than 50% of your annual income.

The debts you are struggling with could be wiped out, or forgiven, by Chapter 7. This can include things like medical bills, credit card debt and personal and payday loans.

It could require five or more years to repay your debts even if you take extreme measures.

Certain types of debt aren't removed in bankruptcy, like recent tax bills or child support, as well as student loans. Bankruptcy still may be an option though, if erasing other types of debt could make enough money available to pay off the debts that cannot be eliminated.

The other common form of consumer bankruptcy, Chapter 13, may be more appropriate if you have higher assets and secured debts, and you are able to pay some or all you have to pay.

are available, too, such as the debt management program offered by an agency. You can also take advantage of the initial free advice credit counselors and many bankruptcy attorneys offer before deciding to take a decision.

Rebuilding after bankruptcy

Your financial life -- particularly your credit score -requires some care after , but having many debts remediated is a good starting point.

Take two steps to :

Create a financial plan Create an annual budget, establish financial goals, and think about using the free assistance of a nonprofit credit counselor to help you along the route.

Restore your credit: Make all payments on time, maintain your balances on credit low, and .

Frequently asked questions Will filing for bankruptcy damage my credit?

If you're about to file bankruptcy, your credit files likely have a few dings from discharged or late-paying accounts. After a bankruptcy discharge, however your credit score is likely to improve within six months.

What about filing for bankruptcy on my own?

You must consult with an attorney prior to applying for bankruptcy. This is because there are numerous moving parts, and one small error in a clerical record could result in your case being dismissed.

How long will the process take for filing bankruptcy?

There are a variety of steps to take in filing bankruptcy however with the assistance of a qualified bankruptcy lawyer you will be able to complete the process in just six months.

Do bankruptcy filings ruin my credit?

When you're ready to file bankruptcy, you'll find that your credit files may have a few scratches from discharged or late-paying accounts. Following a bankruptcy discharge however, your credit scores are expected to improve within six months.

How do I file for bankruptcy on my own?

It is recommended to hire an attorney when filing for bankruptcy. This is because there are numerous moving parts, and one small error in a clerical record could lead to your case being dismissed.

How long does it take to file bankruptcy?

There are many steps involved when filing for bankruptcy and, with the help of a certified bankruptcy lawyer you should be able to finish the process in just six months.

The author's bio: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has appeared in The New York Times, USA Today and elsewhere.

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Fewer black-owned banks are able to Fill Vital Financial Needs

Advertiser disclosure You're our first priority. Every time. We believe that every person should be able make financial decisions with confidence. While our website doesn't feature every company or financial product that is available on the market however, we're confident of the guidance we provide, the information we provide as well as the tools we design are objective, independent easy to use and free. How do we earn money? Our partners pay us. This may influence which products we write about (and where they are featured on the website) However, it in no way affects our suggestions or recommendations that are based on many hours of research. Our partners are not able to promise us favorable reviews of their products or services. .

Fewer Black-Owned Banks Survive to meet the financial needs of vital people

The article was written by Alice Holbrook Assigning Editor | Banking, savings, and homebuying services Alice Holbrook edits homebuying content at NerdWallet. She has covered personal finance topics for almost a decade and previously worked for NerdWallet's banking as well as insurance teams and also did a stint on the copy desk. She is based in Ann Arbor, Michigan.

Updated Feb 6, 2018

Editor: Tony Armstrong Lead Assigning Editor | Banking Tony Armstrong leads the banking team at NerdWallet. He has been writing about personal finance for nearly 10 years. Tony began his NerdWallet career as a writer , and then moved up to assistant assigning editor and later to lead assigning editor. His writing has been highlighted on The Los Angeles Times, MarketWatch, Mashable, Nasdaq.com, USA Today and VentureBeat. Tony is a resident of Minneapolis, Minnesota.

A majority of the products we feature are from our partners who pay us. This influences which products we feature and where and how the product appears on the page. However, this doesn't influence our opinions. Our opinions are our own. Here's a list and .

The hashtag #BankBlack sparked a flood of interest in black-owned banks after it became a viral topic in the middle of 2016 -- but two and two and a half years later, a lot of these institutions have balance sheets that are moving in the wrong direction.

The hashtag was inspired by a calling on individuals to open accounts with black-owned banks. The rapper's preferred favorite bank -the Atlanta-based Citizens Trust Bank -- is one of those that has grown since #BankBlack began. However, for the majority of black-owned banks, the picture is less rosy, with decreased assets, and sometimes even closings.

"The cost of operating [and] the regulatory costs make it difficult to operate a successful community-based bank" claims Kim Saunders, president of the National Bankers Association. The issue isn't exclusive to black-owned banks, says Saunders -- it's a problem that all smaller banks face. "Scale matters."

However, on Twitter, people continue to hashtag their support and plans to transfer their funds. Here's why advocates say black-owned banks are worth taking advantage of.

>> MORE:

Black-owned banks offer needed access

African-Americans as a population are underserved by financial institutions. Nearly half of them are unbanked or underbanked. This means they supplement your bank account with often-costly alternatives such as check cashers and payday lenders. This is nearly twice the proportion of the population as a whole as per a report from the year 2018. Federal Deposit Insurance Corp. report.

Black-owned banks have a crucial role to play in improving these figures.

For example, 67% of their mortgage loans go to African-Americans in 2013, according to remarks by Martin Gruenberg, former chair of the FDIC. In banks that aren't owned by blacks, fewer than one percent of mortgages are given to African-Americans. Residents of the communities the banks serve tend to have low to moderate incomes.

Saunders describes the strategy as "compassionate credit." "We're will be with our clients] during both the good and tough times" she says.

OneUnited, the country's largest black-owned bank in terms of assets, offers second-chance checking for customers who've had their accounts denied in the past secured credit cards for people who are rebuilding credit after damage as well as training for those who are first-time home buyers.

"The cities we support are predominantly brown and black," said Teri Williams, OneUnited's president as well as chief operating officer in a recent interview "and on the income side, there are many those who are struggling. There are people in their 50s and 60s who tell us they've never set foot in the bank. They didn't feel welcome. They didn't believe that banking was for them."

After being victimized by check-cashing fraud, Travion Jackson couldn't open an account at his family's bank. He eventually tried OneUnited in hopes of opening another account. "But they said that I was fine. I opened a new accounts," Jackson said in the year of 2018. "That helped me get it done."

Jacqueline Boles, director of retail banking at Industrial Bank, says expanded access, particularly to small-scale business loans, will lead to more secure communities. "Small enterprises in our communities will hire people who look like them. Now, these individuals have an opportunity to make enough money to live," she says.

• Find out about the U.S.

Black-owned banks can be a political force

Jackson's adoptive mom, Amy McCabe Heibel, and her husband switched to OneUnited after they saw an increase in media and social media coverage of banks owned by blacks. "For us as a family of biracial origin, it was important for us to place our money where our priorities have been," she said in the year 2018.

That's not just "having money in a location that invests in black communities," but those aren't the only benefits, McCabe Heibel said. "The images are of people that look like the people we know," she added, and "communication is open and transparent. It's not full of financial industry doublespeak."

McCabe Heibel isn't alone in one who chooses a bank owned by blacks because of ethical concerns. "A very diverse group of people are visiting the bank to help us grow," Williams said. "They appreciate the fact that their dollars are supporting community development."

Many black-owned banks, including Industrial and Industrial Community Development Financial Institutions. This means they invest 60 percent of their assets into low- or moderate-income communities, as per Boles.

If they do make the switch, they are likely to receive similar services to the ones they find at other banks. For OneUnited, this includes online and mobile banking, bill pay and remote deposit for check.

Saunders encourages all to think about an institution that is black owned. "Not only do we want to be successful when we can however, we're also trying to do good, and I believe that this should resonate with everybody," she says.

>> Want to do more? Find out more about

Where Black-owned banks stand

Black-owned banks were created in the era of segregation, when a lot of African Americans didn't have access to capital, as per Saunders.

There were 44 banks with the majority owned by African Americans in 2007, before the recession. However, as the communities these banks served experienced higher-than-average job loss and home foreclosure rates, the banks suffered, too. Most recent FDIC data show 23 black-owned and black-managed banks which is down from 24 at the close of 2016, shortly after #BankBlack went viral.

Of the remaining banks, about half report fewer assets than they did at the close of 2015, prior to #BankBlack. Banks that had more than $100 million of capital were more likely to gain than smaller ones, but larger banks weren't immune to problems with finances. New York-based Carver Federal Savings Bank falls just behind OneUnited in terms of assets. However, it had more than $135 million less in assets in September 2018 than in December 2015.

For some banks, #BankBlack could have actually been a money-losing strategy, as per Industrial Banks' Boles. "We make money from comprehensive relationships with customers," the bank's CEO says. referring to loans as well as credit card. Checking and savings accounts, particularly those that are not used are financial liabilities because they require banks to purchase online banking as well as other services with little of a return -- meaning customers of #BankBlack should transfer their larger finances, too.

Other banks -- such as OneUnited and Industrial -- have flourished after #BankBlack. OneUnited currently has assets of around $649 million, as per the most recent FDIC data.

Industrial, too, has witnessed rapid growth. On an average week, Boles explained, they've got approximately 150 online application for accounts pending. Following #BankBlack, she said, "We had up to 2,000 [applications] in the queue." Bank needed to call in additional assistance to manage the increase in applications and continues to see spikes in interest now and again.

"The community is starting to realize the power of its dollars" Williams said, "and the need to be more strategic when it comes to how it makes use of the money."

If you're looking to #BankBlack, take a look at these alternatives

Jeanne Lee contributed to this report.

Author bios: Alice Holbrook joined NerdWallet in 2013 and is now an editor on the home/mortgages team. Her work has been highlighted in USA Today, MarketWatch, Newsweek and The Washington Post.

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How to get a lien lifted from a used car Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by providing you with interactive financial calculators and financial tools that provide objective and original content. We also allow users to conduct research and compare information for free - so that you can make sound financial decisions. Bankrate has agreements with issuers such as, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies who pay us. This compensation could affect how and when products are featured on this website, for example for instance, the order in which they be listed within the categories of listing, except where prohibited by law. Our mortgage or home equity, and also other home loan products. However, this compensation will have no impact on the information we provide, or the reviews that you see on this site. We do not cover the vast array of companies or financial deals that could be accessible to you.

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3 min read . Published January 19, 2023

Writen by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the ways and pitfalls of taking out loans to buy the car they want.

Edited by Rhys Subitch Edited by Auto loans editor

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In 1976, Bankrate was founded. Bankrate has a long record of helping people make smart financial choices.

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who ensure everything we publish ensures that everything we publish is accurate, objective and trustworthy. Our loans reporters and editors focus on the things that consumers care about the most -- different kinds of loans available as well as the most favorable rates, the top lenders, how to pay off debt and much more. So you'll be able to feel secure when making your investment.

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Bankrate follows a strict and rigorous policy, so you can rest assured that we'll put your needs first. Our award-winning editors and journalists create honest and accurate information to assist you in making the right financial choices. Our main principles are that we value your trust. Our mission is to provide our readers with accurate and unbiased information. We have editorial standards in place to ensure that happens. Our reporters and editors thoroughly verify the truthfulness of content in order to make sure that the information you're reading is true. We have a strict separation between advertisers as well as our editorial staff. Our editorial team doesn't receive compensation directly through our sponsors. Editorial Independence Bankrate's team of editors writes for YOU - the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We adhere to strict guidelines in order to make sure that the content we publish isn't in any way influenced by advertising. Our editorial team is not paid direct compensation from advertisers, and our content is checked for accuracy to ensure its truthfulness. If you're reading an article or a review, you can be sure that you're getting reliable and dependable information.

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If you have questions about money. Bankrate has answers. Our experts have helped you understand your finances for more than four decades. We strive to continuously give our customers the right advice and tools needed to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , therefore you can be confident that our information is trustworthy and reliable. Our award-winning editors and journalists create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is factual, accurate and is not influenced by our advertisers. We're transparent regarding how we're able to bring quality content, competitive rates, and useful tools for our customers by explaining how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or through you clicking specific links on our site. This compensation could impact how, where and in what order products are displayed within the categories of listing and categories, unless it is prohibited by law for our credit, mortgage and other home loan products. Other factors, such as our own proprietary website rules and whether the product is available within your region or within your own personal credit score may also influence the way and place products are listed on this site. Although we try to offer a wide range offers, Bankrate does not include details about every credit or financial product or service.

A lien is, at its most basic, an insurance policy that is used by a lender employs to safeguard itself in the event of a default by a borrower on a financed vehicle. A lien is the legal right of the lender to the vehicle and remains in force until the loan is paid in full. If you have recently taken out a title, take these steps to put yourself in a less precarious financial situation. What exactly is a car lien? While the thought of a lien on your vehicle could be intimidating but it's not unheard of. Vehicles financed with a loan are generally placed in a lien till the loan is paid off. This "insurance policy" set up by the lender allows it to have the legal right to hold the title of the vehicle until the remaining balance due to the loan is paid off. A lot of drivers don't understand how a lien works until they are attempting to understand it and discover that they are not able to. If a lien is in place on a vehicle it is possible for creditors or lenders to be able to claim the loan has not been paid off or falls into default. In addition to affecting the capacity to sell a vehicle it also affects the price of . What can you tell if a car is under the sway of a lien? When purchasing an used vehicle, it's always best to ask the seller to provide the buyer with a written confirmation from the lender which states that their lien was lifted. If the seller provides you with the title, make sure you check with the nearest Department of Motor Vehicles first to confirm that there isn't a lien. In some cases, you may be able to use the DMV website to search online for a lien using the 17-digit (VIN). This number is usually found in various places such as the lower left of the vehicle's windshield. When you are issued a title to the car you've used it is likely that the lien was fully paid -- but it hasn't been issued in the proper way. This can happen because of an error in the bank or be lost in the chaos of a merger . Be aware of these issues when working with the sellers. How to locate lien information Lien information is available in several ways including: Department of Motor Vehicles Utilizing the vehicle's identification number you can check the lien status of your vehicle through the Department of Motor Vehicles. In many places, you can do a lien search online using the DMV website. You might also be able to contact the local DMV to inquire about lien information. Report on vehicle history: Many websites online offer vehicle history reports at a cost. They include VIN Smart and AutoCheck, offer full reports on the history of your vehicle along with the information about lien. How to remove a lien from a car title Buying an used vehicle should not come with any obligations that are attached, especially not the lien. Although it may require some effort and possibly a few weeks, you can probably solve your problem for a minimal or no cost. Contact the seller before purchasing a used car through the dealer, make certain to ask the salesperson whether there is a lien attached to the vehicle. In these cases the dealership usually handles clearing up the lien. If you're financing your purchase with an loan the lender will become the . If so, you should request for proof that the car loan was paid in full by means of the canceled check or a full-payment letter. It is the responsibility of the seller to repay the loan to be able to transfer the title to the vehicle. This requirement can be included in your purchase contract. It's an excellent idea to contact the lender directly yourself and check the lien status. You even can do so before finalizing the purchase. Find out the amount to be paid to clear the vehicle as and other conditions that could affect the sale. Request a lien cancellation if the bank that holds the lien is one that failed (or is a subsidiary of one) Contact FDIC Federal Deposit Insurance Corp. directly for a request of a release letter. The FDIC can help you obtain a lien if you have verified that the failed bank was placed under FDIC receivership. The FDIC has a search function that allows users to check the database of such banks. The FDIC also keeps a separate list of failed banks , including information on what happened to the banks that were bought by a different financial institution. When you have all the paperwork that you need, you'll be able to submit it to the DMV and . The main point is it's difficult to enjoy your new ride when there's an obligation on it. Make sure the previous owner pays off any debts owed so that the car is fully yours -- rather than the lender's.

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Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ways and pitfalls of taking out loans to purchase an automobile.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers gain the confidence to manage their finances through providing concise, well-researched and well-researched content that break down complex topics into digestible chunks.

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Disability and Credit Access: Why Scores Are Key in a Crisis

A good credit score can help you get low-interest loans as well as credit card that can help you cover your bills in an emergency. This is how to start.

by Caitlin Mims Content Management Specialist Credit scores, credit cards Caitlin Mims is a management specialist on the credit cards team at NerdWallet. Prior to joining NerdWallet, she was the editor of CreditCards.com and Bankrate. Caitlin wrote about personal finance for seven years and has written about credit cards, the credit score, retirement planning , and the financial issues women have to face. She is based in Denver, Colorado.

Updated August 15, 2022 at 7:33 PM PDT.

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Since Erin Noon Kay was little, her mom taught her to manage money. This is a good practice for any parent to learn, but for Noon Kay, it was essential. Her birthmark was cerebral palsy. Along with regular budgeting she had to be able to navigate the complex government benefits system.

Noon Kay -- who co-founded Claiming Disability, a company that advocates for people with disabilities via outreach and media representation -- explained that a lot of disabled people don't handle their own finances. Instead their finances are handled by a non-profit or by their family members, which means they don't learn the skills for managing their own finances.

"I believe we're not providing disabled people with a benefit when we try to shelter [them] from the reality of their own lives," says Noon Kay, 33. "Like the way my mother would have sheltered me from all the realities of life that would have been a huge shock."

A frequently overlooked area of financial management is the credit. Having good credit ( of at least 690) is having options available in an emergency -- in the event that, for instance it happens that you are fired or are in a position where you are unable to work.

However, people who are disabled are less likely to be employed in full-time jobs and make less than those without disabilities, says Tom Foley, executive director of the National Disability Institute, or NDI. Foley also suggests that the disability community is one of the biggest groups, which makes the management of emergencies more difficult.

For some, entering in debt may be the sole choice

After all, the solution may not be as simple as cutting back on expenses when you suffer from disabilities, certain expenses which are often viewed as luxuries are absolute necessities.

Foley gave the example of someone's air conditioning going out during the summer. If you're disabled and you live in Georgia and need to fix it, this isn't an option; it's likely to be essential for your survival. If you have bad credit (FICO scores of 629 or lower) then your options for covering such are limited.

"It's all of these things that are conspiring to place people in a vulnerable economic situation, which makes it much more difficult to manage any kind of debt," says Foley.

The 2017 NDI analysis of data collected from the Financial Industry Regulatory Authority, or FINRA It found that people who are disabled are less likely to utilize credit cards than the general population, and are more likely to struggle with financial burdens and also to utilize "alternative credit services" such as pawnshops or payday loans. Payday loans can come with APRs of up to 300%..

If you have bad credit, or no credit whatsoever, the chances are many options for you to repay. However, those with credit are able to take advantage of better options including low-interest loans and zero-introductory APR credit cards.

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How to start building your credit

Building your credit can be a challenge if you're in financial trouble. But it's not difficult. It's all down to learning how to manage any debt you acquire. In actual fact, Noon Kay credits her mother's financial knowledge with the credit she enjoys today.

Here's how you can get started:

Open an account that gets reported to the credit bureaus

Most credit scoring models don't keep records of utility or rent payments, but credit cards as well as loans are generally disclosed to . The use of a credit card is one of the easiest ways you can be sure that your account will actually improve your credit score There are other options for those with weak or weak credit. (More about that below.)

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Pay on time

If you've got an account that is reported to the credit bureaus, ensure that you pay your bills on time because that's among the most important factors in your credit score. If you've got a credit card, you don't even have to pay the total balance. If you make your minimum monthly payment and you'll be able to secure your credit.

Remember to pay the minimum amount . The interest on credit cards will likely be less than an payday loan however the APR is likely to remain in the double-digits.

If you're struggling to pay your minimum payment take the initiative to contact your credit card issuer first. The issuer might have a to help lower the amount of your monthly payment and maintain the credit card in good condition.

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Credit cards can be helpful.

If your credit is poor You may have issues getting approved for a variety of credit cards, including most rewards cards. However, you still have several options:

Secured credit cards

In contrast to other credit cards, you must make a cash deposit prior to. When you have closed the account in good standing or you can change it to a conventional credit card that is secured by responsible usage over time -- you'll get the money back. Large issuers like Capital One and Discover offer secured credit cards.

Because the deposit lowers the risk for card issuers this makes it easier for those with bad or no credit to be accepted. It's actually possible to get secured cards that are bank account -- although such products may have other negatives, such as annual fee or no upgrade options to higher-end cards.

"Alternative" credit cards

Based on your credit scores depending on your credit score, you may be able to get an unsecured that can use nontraditional underwriting standards in order to decide on approval. The cards will still examine your credit history however, they'll also take into consideration other factors like income, employment as well as banking details.

This isn't going to be the most suitable option for everyone. If you're on a you might have some trouble getting approval. However, it's an option to consider if your credit history is less than the rest of your financial history.

Become an authorized user

You can also establish credit by becoming an on another credit card account. You'll want to ask someone with excellent financial practices and who makes each payment on time, as you're building credit by piggybacking off of their account.

If you are an authorized user, you'll be able to get an actual card to purchase with it, although that's not required. Your credit may be able to reap benefits without needing to utilize the card.

However, authorized users don't generally have the ability to make any changes to the account or be accountable for making payments on it. This responsibility falls to the account's owner, meaning it's wise to both of you to set rules and expectations in advance. If you rack up costs that your primary account owner can't pay back both of you could suffer negative impacts to your credit score.

About the author: Caitlin Mims is a content management specialist at NerdWallet which covers credit cards. Previously, she was an editor at CreditCards.com.

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Find the perfect credit card for your needs. Whether you want to pay lower interest or earn rewards, the right card's out there. Just answer a few questions and we'll narrow down the results for you.

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How to negotiate the best price on a car Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by offering you interactive financial calculators and tools that provide original and reliable content. This allows you to conduct your own research and compare information at no cost - so that you can make sound financial decisions. Bankrate has partnerships with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site come from companies that pay us. This compensation could affect how and when products are listed on this site, including, for example, the order in which they may appear within the listing categories and other categories, unless prohibited by law. This applies to our mortgage, home equity and other home loan products. However, this compensation will have no impact on the content we publish or the reviews appear on this website. We do not include the vast array of companies or financial deals that could be accessible to you.

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4 min read published September 20th, 2022.

Authored by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers with the ways and pitfalls of using loans to buy an automobile.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are passionate about helping readers gain confidence to take control of their finances with concise, well-researched, and well-studied information that breaks down complex topics into manageable bites.

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In 1976, Bankrate was founded. Bankrate has a long record of helping people make informed financial decisions.

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We make sure that everything we publish ensures that everything we publish is accurate, objective and reliable. Our loans journalists and editors are focused on the areas that consumers are concerned about most -- the different types of lending options, the best rates, the most reliable lenders, ways to pay off debt , and many more. So you'll be able to feel secure when investing your money.

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Buying a new car is exciting , however, negotiating the lowest price may be intimidating. Prepare yourself to having confidence and pushing for the price you deserve. 7 steps for negotiating the price of your car. Make yourself more successful in negotiations by exploring your options. These steps should help you feel more prepared for negotiations with the seller and ensure to negotiate a deal that fits your budget. 1. Determine the most important aspects before negotiation can begin consider the kind of vehicle you'd like to own. If you don't already have your ideal set of wheels take a look at your requirements and the way you live. Are you likely to drive long distances or through heavy traffic and need an energy-efficient vehicle? Are you only traveling with your partner, or do you need something larger to transport your children and family members? Are any of the features negotiable? These are only some of the questions to consider before deciding on which models and models to choose . Also, run the numbers to determine the approximate amount . Utilize the auto loan calculator to estimate a monthly payment Be sure to think about the other aspect when deciding on a budget. Decide on the amount you want to spend and keep it in mind when you negotiate. 2. Get preapproved for financing The next thing to consider is financing. Consider getting for financing before going to a dealership to buy a car. Many car dealerships offer in-house financing, but it's not . Dealerships often raise their loan rates so they can gain. You will find better offers from banks, credit unions and online lenders. So, compare the offers online and in person. A credit line will allow you to remain firm. You will know exactly the amount you'll need to pay, which means less temptation toward upgrades and costly accessories. Plus, preapproval gives the buyer the ability to negotiate - dealers might offer to beat or match other offers you get to earn your business. Check out what monthly payments may be like at various rates and loan conditions. 3. Research the car's value Do some research to determine the value of your car and write down the following figures: Manufacturer Suggested Retail Price (MSRP) : The suggested sales price per the automaker, sometimes referred to as the "sticker" price. Invoice price : The amount that the dealer is paid by the manufacturer to purchase the car. Fair market value : The cost that other people pay for the same or comparable vehicle . Find your MSRP in the pricing sheet that's attached to the window of the car. It is possible to determine your invoice's price as well as its fair market value by conducting online research or with the aid of a tool. If you want a new car, consider the price of your invoice as your starting base. Ideally, the price you settle on should be between that MSRP and this amount. If you're purchasing a used vehicle or a used vehicle, you'll negotiate with more freedom, depending on the vehicle's make, model mileage, and condition. 4. Check out dealerships. Even if the dealership offers good deals on the cars you want, it may not be the best choice. Beware of dealerships that charge excessive dealer costs or have bad reputations. Review online reviews to gain insights from customers who have been there. Also, inquire about dealer costs before you start shopping for a new ride. 5. If you don't have a clear idea of the automobile you're looking to buy, right up to the manufacturer models, VIN and model, shop for a while. Take a look at the dealerships within your local area in the span of a few weeks. Learn about what cars are available and then speak to a few different sales representatives. Create a shortlist of the top three options. Then study the MSRP, invoice price and the fair market value. It can be used to ease the process. You'll have the information you need to get the best price and the seller will know that you've done your homework. It's harder to bargain -- and more difficult to overpay -- for a car in the event that you rush through the purchase process. 6. Find out about tips for negotiation People are expecting you to negotiate the cost of your car. Don't feel bad asking, but make sure you have an idea of what you want to achieve. Be prepared with price reports or comparison sheets. Check websites like and . If you know what the fair cost for the vehicle is, or the dealership you are considering offers the best price, then share that information. It will give you a leg up in negotiating. Be firm. Even if you are nervous about seeking a better price, try not to show it. Be confident and tell them what you're willing to pay. It also implies faith in knowing what you deserve. For example, if you believe you have credit that is good make use of this advantage when discussing financing with a dealership. Prepare yourself for the long run. It's not uncommon that the process of negotiation to take a long time. Prepare for an extended stay at the dealership by staying healthy and well-rested. This will reduce the chance of becoming irritable or rushing because of thirst, hunger or any other distractions. If you're not able to get the price you desire, don't be afraid to leave. You may find another car and a better deal elsewhere, or you may go back to the dealership for a second time and bargain again. By leaving, you show that you are serious about getting a good deal. 7. Alternate salesperson if you're working with a pushy salesperson who's creating a negative impression, look for someone else to assist. It could be best to take your business to a different dealership to ensure that you are treated with respect in the process of shopping and negotiating the most favorable price for a vehicle. Next steps Buying a car requires effort, but when you are spending this much money it is important to make certain that you get the car you desire at the price you desire before you close the deal. Make time prior to leaving the dealership to prepare to bargain with confidence and be knowledgeable about the price you will spend. Don't be afraid of request the price you'd like and leave if needed. Learn more

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Writen by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the ins and outs of securely taking out loans to purchase the car they want.

Editor: 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 the confidence to take control of their finances with precise, well-studied information that breaks down complicated topics into bite-sized pieces.

Auto loans editor

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