Analyzing opportunity cost to save or make money

Opportunity cost is the potential gain that you could achieve by doing one thing over another. Let’s consider the following about a $50,000 automobile that you plan on purchasing: You have $50,000 in cash that you won’t need access to for at least 7 years You’re offered an automobile loan with an interest rate of 1% You have a savings account that pays 3% in annual interest How would you choose to choose to handle the purchase of this automobile? Read below for the answer. If you said that you would finance …

Important things to do before applying for a credit card

Because credit card issuers all have their own policies, it’s important that you get familiar with your card issuer’s policies before applying for a credit card. What’s the credit card’s grace period? Some consumers probably just assume that when they get their credit card bill, they will have at least three weeks before their payment will be due and the same three weeks before interest will start accruing. In most cases, they would be correct as this a grace period of at least three weeks is very common. However, there are credit cards that don’t offer …

Private health insurers to cover at-home COVID-19 testing kits

Beginning January 15, 2022, private health insurers will be required to help those that they insure the costs of at-home COVID-19 testing kits, according to White House Secretary, Press Secretary, Jen Psaki. Medicaid and CHIP (Children’s Health Insurance Program) are already required to cover COVID-19 testing to their members. The new mandate: Only applies to people insured by a private health insurance provider Only covers testing kits purchased on or after January 15, 2022 Only covers select FDA-approved COVID testing kits Covers up to eight testing kits per month for each insured person Provides …

The importance of understanding your grace period

A grace period has different meanings, but it typically refers to the amount of time that you have before something (usually negative) occurs. For instance, if you have an auto loan that is typically due on the first day of every month, your finance company may have a 15-day grace period. This means that although your payment is due on the first day of each month, you will have 15 days to make your payment before you incur any penalties, which could include late fees. Be sure to reach out to your lender about the specific …

There’s no substantial proof that antibacterial soap is more effective than regular soap

Deciding whether to purchase antibacterial soap or dishwashing liquid? While the antibacterial versions of soap or dishwashing liquid typically cost more than the regular versions, the FDA (The United States Food and Drug Administration), as of 2021, maintains their stance that there isn’t any substantial proof that anti-bacterial soap is more effective at killing germs than regular soap or dishwashing liquid. In fact, in 2019, the FDA ruled that manufacturers of certain anti-bacterial soaps can no longer market anti-bacterial soaps containing the active ingredients. According to the FDA, “the manufacturers had not proven that those ingredients …

Reasons to avoid paying your student loan with a credit card

Using your credit card to pay your federal or private student loan can earn you credit card rewards or sign-up bonuses. You can also extend your payment time by utilizing your credit card’s grace period. But, there are things to consider before making student loan payments with your credit card. Drawbacks of paying your student loan with a credit card Processing fees There may be a processing fee imposed by the party accepting your student loan payment. Companies that accept credit card sometimes charge processing fees to help recoup the cost for them to accept …

Why credit card interest rates aren’t always important

When shopping for a credit card, you may be put off by the card’s interest rate (also known as APR, or Annual Percentage Rate). However, in some cases, you shouldn’t let the credit card interest rate sway your decision. What type of customer are you? If you’re a transactor, you pay your credit card bill in full each month. In this case, the interest rate shouldn’t be a factor in your deciding on a credit card. If you’re a revolver, you pay do not pay your credit card bill in full each month. In …

How to locate your student loan servicer for private loans

To view the servicer of your federal student loan, you can view our guide on locating your federal student loan servicer. Student borrowers who have loans owned by the Department of Education (ED) can easily track the lifecycle of their current and past federally-backed loans. Students who were issued loans through private lenders will need to do some of the legwork to locate their loan servicer Check your mail, email, and phone, and browser records If the loan was recently issued, you can wait until the lender provide you with information on your loan. …