# The Gal Times: full text > Independent, plain-English guides on banking, credit and loans, retirement and investing, home buying and mortgages, and money at work, for readers in the United States. Educational content, not financial, legal or tax advice. 30 articles. Canonical pages: https://thegaltimes.com/ --- # When Buying a Home Beats Renting > Four circumstances in which buying a home is a better bet than renting: you value owning assets, plan to stay put, have the capital and could use a tax break. - URL: https://thegaltimes.com/home-mortgages/when-buying-beats-renting-a-home/ - Section: Home & Mortgages - Published: 2026-10-08 - Author: The Gal Times Editorial Team The house with a white picket fence is the epitome of the American dream. But the financial benefits of buying a home rather than renting have yo-yoed over the years. If you're sitting on the fence, here are four circumstances in which it may be [a better bet to buy](https://thegaltimes.com/home-mortgages/is-it-time-to-buy-a-home/). ## 1. You value owning assets Paying rent can feel like pouring money down the drain. But every payment you make on a mortgage increases your equity in your home and moves you closer to owning it outright. Homes can also appreciate in value, increasing your equity automatically. If you're looking for a way to invest your money even as you spend it on housing, buying can be a good move, especially with prices rising over the long term. And then there's the comforting idea of growing old in a (paid-for) family home that grandkids will one day visit. ## 2. You plan to stay put The length of time you plan to stay in a given location can make a big difference in determining whether to rent or buy. In some places, buying beats renting for cost efficiency only if you occupy the same house for at least a decade. If you intend to stay for the long haul, buying is usually best. Consider using an interactive rent-buy calculator to see the difference a few years can make. ## 3. You've got the capital Buying a home is a big commitment, so make sure your wallet can handle the costs. You'll need enough money upfront for a down payment, as well as to cover closing fees. A healthy place to start is 20% of the home's value, but you may need a minimum of at least 3% to 5%. On a $225,000 home, a 20% down payment is $45,000, while 5% is $11,250. Transaction costs involving a purchase can run from 3% to 6% of the price, so be prepared for those expenses as well. Don't just clean out your savings account, though. Leave enough set aside for an emergency fund and to keep other debts under control. Once you've bought a home, remember that you'll be responsible for all the fix-ups and maintenance that a landlord would have covered in a rental. You'll also be paying for property taxes and homeowners' insurance, which is considerably more expensive than renters' coverage. ## 4. You could use a tax break One benefit that comes with home ownership is the tax deduction you can get for the [mortgage interest](https://www.irs.gov/publications/p936) you pay. On a [30-year loan](https://thegaltimes.com/home-mortgages/fixed-vs-adjustable-rate-mortgage/) for $200,000 at 7% interest, for example, that amounts to nearly $14,000 in the first year. Interest costs can reduce your taxable income, but only if you itemize your deductions, and with the 2026 [standard deduction](https://www.irs.gov/credits-deductions/individuals/standard-deduction) at $16,100 for single filers and $32,200 for married couples filing jointly, many homeowners won't have enough deductions to itemize. After putting enough down, you may also be able to tap into the equity you hold to borrow for other major expenses such as home improvements or college tuition, using a home equity loan or line of credit. Your equity is the market value of your property minus what you owe on it. If buying makes more sense for you, get [preapproved](https://www.consumerfinance.gov/owning-a-home/) for the financing before you head out to house hunt. Having the financing in hand shows sellers you're serious when it comes to negotiating a price. *Editorial note: Tax deduction amounts are adjusted for inflation every year. The standard deduction figures are for tax year 2026.* ## Sources - [Publication 936, Home Mortgage Interest Deduction, IRS](https://www.irs.gov/publications/p936) - [Standard deduction, IRS](https://www.irs.gov/credits-deductions/individuals/standard-deduction) - [Owning a home, CFPB](https://www.consumerfinance.gov/owning-a-home/) --- # What Happens After You Write a Check? > How a paper check travels from your hands to the recipient's account today: scanning, clearing, holds, returns and what to do with the paper check afterward. - URL: https://thegaltimes.com/banking/what-happens-after-you-write-a-check/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team Check payments in the U.S. have been falling by about 7% a year, reaching 11.2 billion in 2021, according to the [Federal Reserve's 2022 payments study](https://www.federalreserve.gov/paymentsystems/fr-payments-study.htm), and the Fed's latest study shows checks still declining in both number and value. Consumers increasingly favor electronic payments and debit and credit cards for spending. Even so, billions of checks are still processed every year. That's a huge amount of paper transactions that go... somewhere. Here's what happens after you cut that check for your granddaughter, donate money to a nonprofit organization or pay your home repair contractor. ## Diagram of a check - The date you wrote the check. - Person or company receiving payment. - The amount of payment. - Total payment in words. - Memo (description of payment), optional. - Your signature. - Routing number (for electronic clearing). - Checking account number. - Check number (also in upper-right corner). ## Who receives the check matters What happens to a check after it's written depends in part on whether it's presented for payment to a business or an individual. Some businesses and individuals still deposit paper checks in person, but most checks today are processed electronically. Most items are sent through a scanning device that takes a picture of the front and back of the check, and then that image -- along with the metadata and account number -- is forwarded to the paying bank. The scanner, designed especially for checks, is equipped with optical character recognition, or OCR, technology, which reads the "[MICR line](https://en.wikipedia.org/wiki/Magnetic_ink_character_recognition)" on the bottom of the check and the handwritten or printed amount of the payment. ## What is a MICR line? Pronounced "mick-er," MICR is an acronym for "magnetic ink character readable," which refers to machine-readable text. The line is the row of numbers and symbols imprinted along the bottom of each check. Within the line are the bank [routing and transit numbers](https://thegaltimes.com/banking/routing-number-on-check-how-does-it-work/) and the customer account and check numbers. Small scanners can process about 45 checks per minute. Big ones can handle hundreds or even thousands that quickly. ## Your smartphone works the same Like a scanner, a [smartphone app](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/) also can be used to [turn a paper check into an electronic image](https://en.wikipedia.org/wiki/Remote_deposit_capture). The app uses the phone's camera to take pictures of the front and back of the check and then transmits those pictures to the bank when the check is deposited. ## Everything is now digital Once an electronic image is created, a check might be processed, or "cleared," through the Federal Reserve's national clearinghouse, a regional clearinghouse or a direct connection between 2 large financial institutions. In 2006, approximately 43% of interbank checks were processed electronically, at least in part, according to the Fed. By 2012, the process had become virtually 100% electronic. If payment can be made, the amount is credited to the recipient's account. If not, the check is returned, usually electronically, to the financial institution where it was deposited. In 2009, banks returned, or "bounced," more than 127 million checks; by 2012, just 66.4 million checks were returned unpaid. Banks don't always make funds available as fast as a check can be processed. Instead, the bank might release part of the money and place a hold on the rest. Federal regulations set different hold periods for U.S. Treasury checks, state or local government checks, cashier's, certified or teller's checks, redeposited checks and checks deposited to new checking accounts, among other situations. Under [Regulation CC](https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-229), since July 1, 2025, banks must make the first $275 of a check deposit available by the next business day, and new accounts and large deposits (over $6,725) can be held longer. ## Shredding checks The use of business-to-bank software and smartphone apps means fewer paper checks are deposited in person at banks. Regardless of where a check is deposited, the original eventually should be destroyed. There are no prescribed requirements for the amount of time a check needs to be stored. Rather, the time frame depends on the situation. What's most important is that banks, businesses and consumers have procedures in place to make sure checks that have been deposited once aren't deposited again. If, for some reason, the paper check fell into nefarious hands and was re-presented, it would come back through the system to the consumer who deposited it and be charged back to the consumer's account. The bank likely would charge the consumer a returned item fee. It's a good practice for the consumer to destroy the check once they confirm that they have received credit. *Editorial note: Regulation CC dollar thresholds are adjusted for inflation every five years; the current amounts took effect July 1, 2025. Payment-volume figures come from the Federal Reserve's periodic studies.* ## Sources - [Federal Reserve Payments Study, Federal Reserve](https://www.federalreserve.gov/paymentsystems/fr-payments-study.htm) - [2025 Payments Study initial findings, Federal Reserve](https://www.federalreserve.gov/newsevents/pressreleases/other20260701a.htm) - [Regulation CC dollar-amount adjustments, Federal Reserve](https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20240513a1.pdf) - [Regulation CC (12 CFR Part 229), eCFR](https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-229) - [Check 21 Act FAQ, Federal Reserve](https://www.federalreserve.gov/paymentsystems/regcc-faq-check21.htm) --- # Shopping for a Student Loan Without Hurting Your Credit > Applying to several private student lenders can add inquiries to your credit report. Learn how scoring treats them and nine steps to shop smart. - URL: https://thegaltimes.com/credit-loans/shopping-for-a-student-loan/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team To shop or not to shop? That's the question when it comes to private student loans. Every time you apply for credit, the potential lender pulls your [credit report](https://thegaltimes.com/credit-loans/how-to-read-your-credit-report/). That action can send your [FICO score](https://www.consumerfinance.gov/ask-cfpb/what-is-a-fico-score-en-1883/) down a few points on average. The idea is that when someone applies for credit, he is planning to increase his debt load, which makes him a "riskier borrower for the next couple of years." Multiple inquiries could signal that a consumer is applying for multiple lines of credit. But credit bureaus and score calculators make an exception for consumers applying for home, car and student loans, provided those applications fall within a set time frame. The rationale is that even if you've applied to five banks, you're only going to take out one student loan, so you get hit with one inquiry, not five. That treatment isn't universal, though, which is why you should be careful with private student loans. ## No consistency on inquiries With FICO scores, each bureau calculates its own version of your score, based on the information reported to it. Current FICO models count multiple student loan inquiries made within a short window as one: any 14-day span in older versions of the formula and any 45-day span in the newest. But each lender chooses which version it uses, so some scores will bundle your inquiries and others won't. The way the inquiry is coded determines how the FICO score treats the inquiry. In addition, for those who have spotty credit or little experience with credit, those inquiries may have more impact. But lenders aren't looking for a long credit history with student borrowers. With students, they're expecting a very thin file. What they would want to see is nothing adverse. Student loans aren't analogous to credit cards: People don't take out multiple student loan accounts the way they might take out multiple credit card accounts. Note, too, that federal borrowing has changed. Since July 1, 2026, [Grad PLUS loans are no longer available](https://studentaid.gov/) to new borrowers and new federal borrowing caps apply to graduate and professional students and to parents, which may push some borrowers toward private loans. ## The last to know College students are often so worried about getting enough money to cover school, room, board and books that credit concerns often come last on the list, if they are on the list at all. Finance, with regard to credit score, often isn't on the radar. But, since many private education loans involve a co-signer (usually a parent), students aren't the only ones who could feel the sting of lower scores. For students, who are often first-time borrowers, loan shopping is a really confusing process. It's confusing for students, and it's confusing for parents. ## Steps to minimize credit damage 1. Max out all of your options for [federally backed loans](https://studentaid.gov/understand-aid/types/loans) before you even consider private loans. Federal student loans for undergraduates don't require a credit check (everyone gets the same rate, regardless of credit), so they won't depress your score. Plus, the terms, fees, and repayment options are generally better. 2. Talk to your college. Your financial aid office can tell you which private lenders other students are using most, and the types of rates and fees they are seeing. They may even be able to tell you about the terms and fees on the loans they've seen. Some schools even have affinity programs with lenders, which can give students a better rate. Students are sometimes reluctant to use the aid office to their full advantage. And some parents may be wary because, in the past, some lenders and colleges were chastised for being too chummy. But, if you keep your eyes open and do your own research, colleges can be a great source of information you might not get anywhere else. While you're at it, find out if your college lends money (some do). 3. Don't let deadlines push you into private loans. 4. Investigate state and local money. Some states have financial aid agencies that lend college tuition money. While there are fewer of these than a few years ago, it's worth finding out if it's an option for you. 5. Hit the Web. Online comparison tools will help you research the range of rates that lenders are charging, along with some of the fees and terms. Use this data to narrow your list of lenders before you start making applications. And be careful about making assumptions based on best rate/worst rate information. Less than 10 percent of borrowers get the best rate, and two-thirds or more get the worst rate. 6. Pull your credit history. Get a [free copy of your credit report](https://www.annualcreditreport.com/) -- you can now check each of the three bureaus' reports for free every week -- and look up your credit score too. If your parents will be co-signing, have them do the same. When you talk with lenders, advise them of the [credit scores](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/), and ask what kind of rates and terms they can offer. Just how open and precise are they willing to be? 7. Check on the financial health of your lender. Worst case scenario: You shop around, find a great rate, and the company goes under or stops making new loans. Now you have to take your history and your score (which could be lower thanks to the first round of shopping), to a new lender, and you might not get as good a rate. Check your bank's rating first. 8. Research the loan before you apply. Since many of the same lenders broker both public and private money, it can be confusing to borrowers. A lot of people went for private loans thinking they were getting federal loans. Before you apply you need to know: What is the loan? How much will you receive? Who is the lender? What is its reputation? Is the loan private or government-backed? What is the range of rates? If the rate is variable, how is it calculated? Is there a cap on the rate? What are the fees? What are the repayment terms? 9. Shop carefully. After you narrow your list, limit the number of applications you file. The general rule of thumb is to keep your applications to three or no more than four. Keep those applications within a 14-day period, since that is the shortest window scoring models use. That way, if the bureau bundles them for the purpose of calculating your score, they'll count as one. And if it doesn't, since FICO ignores inquiries less than 30 days old, you'll have a couple of weeks to make your decision before your score is affected. And while the inquiries will be dropped from your credit report in two years, they will only affect your FICO score for one year. That means that when you apply for a loan next year, you should have a clean slate. *Editorial note: Federal student loan rules changed on July 1, 2026 (Grad PLUS ended for new borrowers; new borrowing caps apply). Confirm current limits and terms at studentaid.gov before borrowing.* ## Sources - [Types of federal student loans, studentaid.gov](https://studentaid.gov/understand-aid/types/loans) - [What is a FICO score? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-fico-score-en-1883/) - [Free credit reports, FTC](https://consumer.ftc.gov/articles/free-credit-reports) - [AnnualCreditReport.com](https://www.annualcreditreport.com/) --- # Secured vs. Unsecured Personal Loans: What's the Difference? > Secured and unsecured personal loans differ in collateral, interest rates and approval odds. Compare the pros and cons and choose the right one. - URL: https://thegaltimes.com/credit-loans/secured-vs-unsecured-personal-loans/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team If you're thinking of taking out a personal loan, you might feel like you're lost in a sea of options. If so, it's best to establish some background about this type of loan before moving forward with your research. One thing to keep in mind is that there are two basic types of personal loans: secured and unsecured. Not sure what the difference is and which one might be right for you? Take a look at the details below! ## What's the difference between a secured and an unsecured personal loan? You're probably interested in taking out a personal loan because you need to borrow money for a purpose that isn't neatly categorized by most banks. For instance, if you want to borrow money for a car, you would take out an auto loan. But if you need to borrow to fund a home improvement or a wedding or a [debt consolidation](https://thegaltimes.com/credit-loans/debt-consolidation-loans/), a personal loan fits the bill. Most people immediately think of unsecured personal loans when they're considering this product, meaning they're looking for a loan that isn't tied to any type of [collateral](https://en.wikipedia.org/wiki/Secured_loan). Conversely, a secured personal loan is one in which you put up something valuable (such as the equity in your car, for instance) to back the loan. In the event that you don't pay, the lender can seize your asset to recover its losses. ## Benefits and drawbacks to each type of personal loan When it comes to personal loans, there are benefits and drawbacks to each loan option. Let's take a look: Unsecured personal loans – The major advantage to choosing an unsecured personal loan is that you don't have to worry about something valuable being taken away from you if you don't pay on the loan. Undoubtedly, you intend on making your payments on time and in full, but it's almost always a good idea to avoid putting assets on the line whenever you can. However, the drawback to unsecured personal loans is that you'll likely pay a higher interest rate than you would with the secured version. Generally, all unsecured loans charge higher rates than loans with collateral attached – plus, you'll need a pretty good credit score to qualify. Banks are usually wary of giving unsecured loans to customers with poor credit, so if yours isn't in good shape, this type of personal loan might not be an option. Secured personal loans – There are a few distinct benefits to taking out a secured personal loan. The pros of a secured loan are that the rate on the loan is generally less than that charged by a lender for an unsecured loan. The pledging of the collateral makes the loan more appealing to the lender, and therefore lenders generally charge a lower interest rate than on an unsecured loan. It is generally easier to get a secured loan, especially if the borrower has had credit challenges. As for drawbacks to secured personal loans, the con is that if the borrower does not pay the loan as agreed, then the asset that was pledged as collateral would be repossessed by the lender. ## The bottom line: Which type of personal loan is right for you? Deciding between a secured and an unsecured personal loan might seem tricky. Ask yourself these questions to figure out which is right for you: - Do I have good credit? If your credit score is in poor shape, you may not qualify for an unsecured personal loan. In this case take steps to [improve your credit](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/), and start looking for secured personal loan options. - What kind of interest rate can I afford? Again, it's usually better not to put an asset on the line if you can avoid it. If you can afford to pay a higher interest rate on your personal loan, unsecured is a better bet. - Do I have any collateral to offer to a lender? If you're looking to avoid paying a high interest by putting up collateral, it's essential that you have collateral to put up. Otherwise, you'll need to opt for an unsecured personal loan. No matter which type of personal loan you ultimately decide is right for you, remember to do your due diligence and shop around. Be sure to check out big banks, local banks, [credit unions](https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/) and online lenders before signing on the dotted line – you never know who will offer the best terms until you look! ## Sources - [Secured loan (Wikipedia)](https://en.wikipedia.org/wiki/Secured_loan) - [Loan interest rate vs. APR, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) - [Consumer credit (G.19), Federal Reserve](https://www.federalreserve.gov/releases/g19/current/) --- # Routing Number on a Check: How Does It Work? > What a routing number is, where to find it, where it came from and how it helps checks and electronic payments reach the right bank. - URL: https://thegaltimes.com/banking/routing-number-on-check-how-does-it-work/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team In order to send and receive money from other financial institutions, [banks and credit unions](https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/) need a routing number. ## What is a routing number? It's a 9-digit number assigned to a bank or credit union so it can send and receive funds from other financial institutions. The routing number determines where your account was opened. It is also known as an [ABA (American Bankers Association) number](https://en.wikipedia.org/wiki/ABA_routing_transit_number), and as a routing transit number. Rather than reading a check to find out your bank's name and potentially confusing it with a bank of a similar name, routing numbers help bank staff and the machines that now process checks to know exactly where money is supposed to go. That way, checks intended for one bank never go to a bank with a similar name by mistake. One bank may have many routing numbers, depending on things like the location of the account or the task it's being used for, but no 2 banks will ever have the same routing number. Routing numbers are used for lots of everyday tasks: - Direct deposit. - Automatic bill payments. - Check processing. - Wire transfers. ## Where to find a routing number The routing number is part of the [magnetic ink character recognition](https://en.wikipedia.org/wiki/Magnetic_ink_character_recognition), or MICR, line at the bottom of your check, which also includes your account number. If you're trying to find out your bank's routing number, that's a good place to start. Alternatively, your bank's website may post its routing numbers online. That's because, unlike your checking account or savings account number, it's not something you really need to keep secret. Most banks will post their routing numbers on their websites, because when people want to wire them money, they need that information. It becomes more sensitive when you have a routing number and an account number, because then you can actually have access to someone's individual account. You'll also want to make sure you have the right routing number for what you're trying to do. For example, the routing number on your checks may differ from the number you would use for doing a wire transfer. ## Where did routing numbers come from? Routing numbers were originally created by the ABA in 1910 as a way to make [check processing](https://thegaltimes.com/banking/what-happens-after-you-write-a-check/) easier and more secure. They needed a way to uniquely identify the paying bank -- in other words, the bank that was going to be responsible for actually honoring the check -- so this was kind of the first time that an identification number was used. This was back when there weren't any computers. The routing number helped a person taking a check be sure they would actually get the money the check promised from the payer's bank. After the Federal Reserve was founded and took on a large role in the processing of payments, a Federal Reserve number was added to each bank's routing number. That "Federal Reserve routing symbol," as it's officially known now, specifies the type of institution and the Federal Reserve district in which the account was opened. ## Check processing becomes nearly instantaneous The numbers would go on to be used in electronic check-cashing networks starting in the 1960s, which greatly sped up check processing. The passage of the [Check 21 Act](https://www.federalreserve.gov/paymentsystems/regcc-faq-check21.htm), and the ability of banks to make electronic copies of checks for transportation, rather than sending paper copies, has made processing almost instantaneous. In fact, routing numbers are part of the reason that the "check float" -- writing a check you don't have the money to cover in hopes that a deposit will come through to cover it before it is processed -- doesn't really work anymore. When you write a check, there's a chance the money's already been debited before the ink dries on the check if it's been remotely captured. Payments move at lightning speed. In other words, don't write checks that your bank can't cash instantaneously. ## Sources - [ABA routing transit number (Wikipedia)](https://en.wikipedia.org/wiki/ABA_routing_transit_number) - [Magnetic ink character recognition (Wikipedia)](https://en.wikipedia.org/wiki/Magnetic_ink_character_recognition) - [Check 21 Act FAQ, Federal Reserve](https://www.federalreserve.gov/paymentsystems/regcc-faq-check21.htm) - [Check 21 Act (Wikipedia)](https://en.wikipedia.org/wiki/Check_21_Act) --- # Roth IRA vs. Traditional IRA: How to Choose > Roth or traditional IRA? Compare tax benefits, 2026 contribution and income limits, early withdrawal rules and required distributions to pick the right account. - URL: https://thegaltimes.com/retirement-investing/roth-or-traditional-ira-account/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team Here's the drive-thru window answer to the "Should I contribute to a [Roth IRA](https://www.irs.gov/retirement-plans/roth-iras) or a [traditional IRA](https://www.irs.gov/retirement-plans/traditional-iras)?" question: A Roth IRA is a stronger choice if you expect your tax rate to be the same or higher in retirement, because withdrawals in retirement are not taxed. A traditional IRA makes more sense if you expect your tax rate to be lower in retirement, because contributions made now are deductible. Of course, there are a lot of details between the lines of our abridged Roth IRA vs. traditional IRA answer. We'll guide you through all of it — how much, if anything, the IRS will let you contribute to both types of IRAs, what's deductible and what's not, the rules about borrowing money before retirement and other important pros and cons. ## Roth vs. traditional IRA? How to choose - Consider the tax benefits of each. Consider a traditional IRA to get a tax break now, and a Roth IRA to reduce your taxes in the future. - Calculate your Roth IRA contribution amount. Find out how much you're eligible to contribute. - Calculate your traditional IRA contribution amount. Find out how much you can deduct. - Compare early withdrawal fees and penalties. The IRS has different rules for borrowing money or withdrawing cash from a Roth versus a traditional IRA before age 59½. - Consider benefits after retirement. Factor in how long you want your money to remain invested and how much you want to [leave to your heirs](https://thegaltimes.com/retirement-investing/naming-trust-ira-beneficiary/). ## Tax benefits of Roth and traditional IRAs The biggest difference between a Roth and a traditional IRA is how and when you get a tax break. - Traditional IRA: The benefit of a traditional IRA is that your contribution is tax deductible. Taxes come due in retirement when you take distributions, or make withdrawals, from the IRA. - Roth IRA: The benefit of a Roth IRA is that your withdrawals in retirement are not taxed. A Roth IRA operates in reverse of a traditional IRA: You pay taxes upfront, meaning your contributions are not deductible. One thing that Roth and traditional IRAs have in common is that in both accounts, earnings on your investments grow tax-free. ## CONSIDER YOUR CURRENT AND PROJECTED TAX BRACKET To help you figure out which tax setup will be most beneficial to you in the future, let's start with your present: What's your income tax bracket? If you're currently in a low tax bracket (the 22% bracket or lower), a Roth IRA is probably a good choice. This is more likely the case if you're in the early stages of your career, or you've changed careers and will be at a higher rung of the income ladder when you retire. Why a Roth? Withdrawals from a Roth IRA in retirement are not subject to income tax. So when your future flush self starts drawing income from your Roth IRA savings, you won't have to pony up income taxes to the IRS when your tax rate has gone up. If you're in a high tax bracket or close to retirement age, a traditional IRA makes the most sense. Why? A traditional IRA enables you to take a tax deduction when it benefits you most. After their 40s or mid- to late 50s, people tend to migrate to a lower tax bracket due to full- or semi-retirement, taking on lower-paying but more meaningful work, or simply needing to draw less income if expenses have gone down. And since withdrawals from a traditional IRA are taxable as income as long as they're taken after age 59½, by choosing a traditional IRA you save again on the backside because you're taking out that money when you're in a lower tax bracket. ## Calculate your Roth IRA contribution amount Both traditional and Roth IRAs come with eligibility rules and restrictions that determine how much you can contribute. Assuming you're eligible for both, you can contribute to a traditional and a Roth IRA during the same year, as long as the total amount does not exceed the maximum allowable contribution limit of $7,500 in 2026, or $8,600 if you're age 50 and over. The amount you're allowed to contribute to a Roth IRA isn't an all-or-nothing scenario — it's a "heck, yeah!," "sorta" and "sorry, not this year, cowboy" scenario. Roth IRA contribution limits are based on household income, and those at higher incomes often find themselves squeezed out of Roth eligibility either partially or completely. In 2026, the ability to contribute phases out between $153,000 and $168,000 of modified adjusted gross income for single filers and between $242,000 and $252,000 for married couples filing jointly. ## Tip Unlike a traditional IRA, the amount you make has no influence on Roth IRA deductibility. That sounds like good news, but please hold your confetti: It's actually moot news. Remember, contributions to a Roth IRA are not deductible in the first place. If you're eligible to contribute up to the full amount, you should be beaming. If you're allowed only a partial Roth IRA contribution, that's still something. Strive to contribute as much as the IRS allows since the Roth is a more flexible account than the traditional IRA. Then, go on and see if you qualify for a deductible traditional IRA and get an IRA twofer. If you don't meet the Roth IRA contribution limits, there are things you can do to close the gap between the Roth income limit and how much of your income is taxable. A few MAGI-lowering tricks: Contribute to your [workplace retirement plan](https://thegaltimes.com/retirement-investing/ira-vs-401k-retirement-accounts/) and/or an HSA, and be sure to take any and all deductions available to you, such as student loan interest. ## Backdoor Roth IRA Still don't qualify for a Roth after you've lowered your taxable income? It's time to sneak in through the back door. A backdoor Roth IRA is a way to indirectly invest in a Roth by making a traditional IRA contribution, even if it's fully taxable, and transferring the money into a Roth account. You'll owe taxes on any gains on your investments before the conversion is complete and any contributions that you did deduct when you funded the account, but if you do it quickly you can minimize the tax damage. ## Calculate your traditional IRA amount A Roth has income limits, but there are no such restrictions with traditional IRAs. Titans of industry and everyday workers alike are eligible to open and contribute up to the traditional IRA contribution limits allowed by the IRS. The "bad news" is that your income affects how much of your IRA contribution you're allowed to deduct from your taxes. In addition to the size of your paycheck, traditional IRA deductibility takes into account your relationship status, your work perks and how you represent to Uncle Sam each April. Or, in the words of the IRS: your income, tax filing status, and whether you and/or your spouse are covered by an employer's retirement plan. Keep in mind: Even if you're allowed to take the full deduction, this doesn't automatically mean that a traditional IRA is the best choice for you — it just means that you've got an IRA, sure thing. There are perks that come with a Roth that may be more meaningful to you than the immediate deductibility you get from a traditional IRA, and those perks should factor into your decision. If you're allowed only a partial IRA deduction, don't feel like you're being shortchanged. A deduction is a deduction. Even better, if you also qualify for a Roth IRA contribution, you can contribute to both types during the same year as long as you do not exceed the maximum allowable contribution limits. And if the IRS says you can't take any deduction at all, think of it as their way of saying, "We think you should use this time to explore other retirement savings opportunities." One of those opportunities might be funding a nondeductible IRA with after-tax dollars to get the benefit of having your investments grow tax-free. ## Compare early withdrawal fees and penalties It's generally not a good idea to withdraw money from an IRA early and the rules do a good job of deterring it: You must be at least age 59½ to avoid early withdrawal penalties and taxes. But sometimes dipping into your retirement savings is unavoidable. When you take money out of a traditional IRA before retirement, the IRS socks you with a hefty 10% early-withdrawal penalty and taxes the money you take out as income at your current tax rate. The Roth has better terms for borrowers: It allows you to withdraw contributions without having to pay income taxes or an early withdrawal penalty. However, dip into the earnings from your Roth IRA before age 59½, and the rules are different: That money will be subject to both income taxes and a 10% early-withdrawal penalty. The rules above apply to distributions, or withdrawals, that the IRS deems "unqualified," which pretty much includes all events and circumstances that aren't on the list of the following "qualified" distributions. ## PENALTY-FREE WITHDRAWALS In some instances you can avoid all the penalties of dipping into your retirement accounts early. The IRS rules for traditional IRA and for Roth IRA "qualified distributions" include: - First-time home purchase: You can withdraw up to $10,000 (a lifetime limit) penalty-free to buy, build or rebuild a first-time home. And if you're married and your spouse qualifies for a [first-time home purchase](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions), they can also make a $10,000 penalty-free withdrawal. - Higher education expenses: Included are tuition, fees, books, supplies and other costs of attending an eligible education institution for you, your spouse and the children and grandchildren of you or your spouse. - Medical expenses: There are several health-care and health-related situations where the IRS will waive the 10% early withdrawal requirement. They include withdrawing money to pay for unreimbursed medical expenses, health insurance premiums after 12 weeks of unemployment and if you become disabled before age 59½. - Birth or adoption: You can withdraw up to $5,000 per child penalty-free. - Personal emergency: You can take one penalty-free withdrawal per year of up to $1,000 for an emergency expense. - You've inherited an IRA: IRAs left to a beneficiary or an estate are exempt from the 10% penalty tax on early withdrawals, as long as you don't designate yourself as the account owner or roll it over into your IRA or other retirement plan. These exceptions waive only the 10% penalty; income tax generally still applies to pre-tax money you withdraw. Which IRA treats you better on qualified withdrawals? Even though both Roth and traditional IRAs waive the 10% early withdrawal penalty in these allowable circumstances, the Roth IRA also wins this round as long as any earnings you withdraw meet the Roth's five-year-minimum holding requirement. The [five-year rule](https://www.irs.gov/publications/p590b) states that earnings can be withdrawn tax-free only after the account has been open at least five years, counted from the first tax year you contributed. With a traditional IRA you're still required to pay income taxes on all withdrawals, which can take a sizable bite out of the amount you're left with. Since you already paid your income taxes on the contributions you made in a Roth IRA, the IRS can't double-dip and charge you taxes twice. ## Consider benefits after retirement It seems fitting that we end this article where we began: forecasting the future. Let's fast-forward to retirement. You'll be subject to [required minimum distributions](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs) from your traditional IRA starting at age 73 (age 75 if you were born in 1960 or later). Taking RMDs is not a big deal if you're retired and already living off your retirement savings. But if you're a sprightly and financially flush member of the silver-haired set who doesn't necessarily need to withdraw funds from the IRA, the requirement is less appealing. Not only will you have to interrupt the growth of what's in your account by making withdrawals, but you will owe income tax on them. You can keep contributing to a traditional IRA at any age as long as you have earned income. For those who live long and continue to prosper, the Roth is less stringent: It has no required minimum distribution rules during your lifetime. You're free to let your savings stay put in the account and continue to grow tax-free as long as you live. You're also allowed to continue contributing to a Roth at any age as long as you have earned income. If you're fortunate enough to not need to tap into the account for income right away and you want to pass on a larger account to your heirs, Roth is the way to go. *Editorial note: Contribution limits, income phase-outs and required-distribution ages are set by law and adjusted regularly. Figures here are for 2026.* ## Sources - [Roth IRAs, IRS](https://www.irs.gov/retirement-plans/roth-iras) - [Traditional IRAs, IRS](https://www.irs.gov/retirement-plans/traditional-iras) - [Exceptions to tax on early distributions, IRS](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions) - [Publication 590-B, IRS](https://www.irs.gov/publications/p590b) - [Required minimum distributions FAQs, IRS](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs) - [2026 contribution limits, IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) --- # Retirement Investing Through the Decades: What to Do in Your 20s, 30s, 40s, 50s and 60s > What to do with your retirement savings in each decade of life, with 2026 contribution limits, catch-up rules and asset allocation guidelines. - URL: https://thegaltimes.com/retirement-investing/retirement-investing-through-the-decades/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team ## Your 20s: Build an emergency fund, then start saving In this decade, you likely have your first job and can begin socking away some money for retirement. But before doing so, make sure you have enough cash to pay for 3 to 6 months' worth of living expenses, in case an emergency arises. If you set up a retirement account and then withdraw from it to pay for emergency expenses, you may be subject to taxes and a penalty payment. If your company offers a [401(k) plan](https://thegaltimes.com/retirement-investing/ira-vs-401k-retirement-accounts/), that should be your first choice, especially if your company matches some of your contributions. If you turn down the option to contribute to a 401(k) plan that matches, you're giving away free money. You can also open an [individual retirement account, or IRA](https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/). In 2026, you can contribute up to [$7,500](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500). If you can't save enough for both a 401(k) and an IRA, go for the 401(k) because contributions are automatic, pretax and subject to matching. ## Your 30s: Consider a Roth IRA and get asset allocation right If you open an IRA in your 20s or 30s, you'll want to consider a [Roth IRA](https://thegaltimes.com/retirement-investing/roth-or-traditional-ira-account/). Unlike a regular IRA, you don't receive a tax deduction for contributions to a Roth. But when you withdraw money from a Roth IRA during retirement, it's all tax-free. The money you withdraw from a regular IRA is taxed as regular income. So if your tax rate is likely to be higher when you withdraw money from your IRA than it is now, you're better off with a Roth IRA. When it comes to allocating your retirement investments, a common guideline is to put at least 60% in stocks during your 20s and 30s. But it all boils down to your risk tolerance. If you are unwilling to stomach losses, don't put everything in stocks when you're young. The worst thing you can do is buy stocks and then sell them for a big loss. ## Your 40s: Don't sacrifice retirement for a big home, kids' college education Many people purchase homes in their 30s and 40s. It's important to remember that your house is not part of your retirement plan. Few people buy a great home, sell it at 60 and then live off the profits. So don't spend so much money on a home that you can't afford to save for your retirement as well. You also must be realistic in providing for your children. Excessive spending on kids -- education, cars, etc. -- can leave retirement needs behind. You have to figure out what you need to retire and not give too much to your kids. Fund retirement plans ahead of your children's college funds. College tuition payments can come from a variety of sources, but retirement funds will have to come largely or exclusively from the parents of these college-bound youths. ## Your 50s: Capitalize on catch-up contributions The 50s are the peak earning years for most people, so saving is even more paramount. The government gives you some assistance, allowing increased contributions to IRAs and 401(k)s through [catch-up provisions](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions). For IRAs, people 50 and older can contribute an extra $1,100 this year -- $8,600 in total. For 401(k) plans, participants 50 and older can put in an extra $8,000 -- $32,500 in total. Workers ages 60 to 63 can put in a higher catch-up of $11,250 -- $35,750 in total. Starting in 2026, if your wages from your employer were more than $150,000 in the prior year, your 401(k) catch-up contributions must be made on a Roth (after-tax) basis. If you have kids who are now out of the house, you might have enough money to finance those catch-up payments. The 50s is a good decade to opt for more safety in your asset allocation. Somewhere in your 40s and 50s, you want to transfer to more conservative stocks, and make sure you aren't all in stocks. Start having 20% to 30% in bonds. Consider orienting your stock holdings toward dividend-paying blue chips. They offer both safety and income payments that you'll appreciate during retirement. ## Your 60s: Plan an income strategy This is the decade in which you may well retire. You'll be shifting from accumulation to distribution. Hopefully you have built your savings and have a realistic distribution plan for your money to last. The traditional rule of thumb is that you can cash out about 4% of your portfolio in the first year of retirement and adjust that amount for inflation after that. A lower starting rate may be more appropriate if you expect a long retirement. Ideally, you should have 2 years' worth of living expenses in cash to avoid having to dump your investments when markets are weak. In any case, if you retire at the [full retirement age of 67](https://www.ssa.gov/benefits/retirement/planner/agereduction.html), you may have another 20 to 30 years to live. As for asset allocation, your need for safety and income means bonds should account for a larger part of your portfolio. *Editorial note: Contribution limits are adjusted by the IRS every year. The figures in this article are the 2026 limits.* ## Sources - [2026 contribution limits, IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) - [Catch-up contributions, IRS](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions) - [Full retirement age, Social Security Administration](https://www.ssa.gov/benefits/retirement/planner/agereduction.html) - [Individual retirement account, Investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/individual-retirement-account-ira) - [Roth IRA (Wikipedia)](https://en.wikipedia.org/wiki/Roth_IRA) --- # Personal Loans for Borrowers With Limited Credit History > Some online lenders look beyond credit scores to approve borrowers with thin files. See how they decide, what they offer and who they suit. - URL: https://thegaltimes.com/credit-loans/personal-loans-for-limited-credit-history/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team If you make a steady income, pay your bills on time, and save for retirement, you might expect to borrow money at a low interest rate. But a limited credit history can outweigh these factors when you go shopping for an [unsecured personal loan](https://thegaltimes.com/credit-loans/secured-vs-unsecured-personal-loans/) — even if you have excellent [credit scores](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/). Some personal lenders think they have a way to identify trustworthy — if unestablished — borrowers like you and give them the same rates as other low-risk customers. If you're financially responsible, you should want someone to look at that and give you credit for it. Typically, a borrower at this kind of lender: - has a job - saves money on a regular basis - has enough income to cover expenses - has a [retirement savings account](https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/) These lenders say they don't weigh credit scores any more than other factors they consider. That's why borrowers with thin credit histories or lower credit scores can also qualify for low rates. ## What makes these lenders different They offer low [annual percentage rates](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) to the best-qualified borrowers. The lenders say they're able to do this because they collect and analyze a large number of data points about each prospective borrower. In a short online application, borrowers provide basic data about their education and employment histories. They also give the lender permission to scan their bank accounts. The lender's algorithm analyzes every transaction, payment, deposit and withdrawal and uses that to paint a picture of each applicant's financial habits. Some lenders say every loan decision is ultimately made by a human. Their personal loan products also offer flexibility. Once a borrower is approved, he or she can easily alter the monthly payment amount or payment schedule. There are no prepayment or origination fees, and the lender doesn't charge late fees. Instead, a customer support team works with individual borrowers to avoid default by setting up payment plans or adjusting loan terms. ## The bottom line If you have thin credit and manage your finances sensibly, but don't qualify for traditional alternatives like [0% interest credit cards](https://thegaltimes.com/credit-loans/debt-consolidation-loans/), then a flexible, low-interest personal loan from this kind of lender may be a good choice for you. ## Sources - [Loan interest rate vs. APR, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) - [What is a credit report? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-report-en-309/) - [Free credit reports, FTC](https://consumer.ftc.gov/articles/free-credit-reports) --- # Personal Finance Lessons to Master by 40 > Budgeting, insurance, credit, uncertainty and saving: the money lessons worth learning before you turn 40. - URL: https://thegaltimes.com/money-work/personal-finance-lessons-to-master-by-40/ - Section: Money & Work - Published: 2026-10-08 - Author: The Gal Times Editorial Team Figure out your [net worth](https://en.wikipedia.org/wiki/Net_worth) and, after you get over the shock, have a recovery plan. You don't have to be wealthy, but you do have to have enough that you aren't a slave to the shortfall. After getting on a budget, a lot of people feel like they've gotten a raise even though their income hasn't changed. Some no-brainer personal finance lessons that most people can follow: Do a written budget every month before the month begins. Give every dollar of income a name so you know where it is going. Include a line for how much you want to save each month. Then, stick to the plan. ## No relationship is perfect Working it out is usually cheaper than calling it quits. Even after the relationship is long over, getting along with your ex is cheaper than fighting over the kids or whether or not both spouses are paying their share. Divorce isn't good for your pocketbook. It is a long, messy and expensive process. Research has found that, on average, divorce drops a person's wealth overall by 77%. Wealth starts declining well before the final decree, and after divorce, people don't suddenly start with a clean slate. In other words, it's cheaper to keep her (or him). ## You can't buy security Insurance can help, but it wasn't meant to pay routine costs. Its purpose is to cover devastating financial losses. Many people tend to purchase coverage with low deductibles, which can be costly. Because states have low liability limits, people think they should start there. But for most individuals, those limits are woefully inadequate, so they end up paying a lot for insurance that doesn't cover enough. Someone with lots to lose -- a home, a car and future income -- is better off picking a plan with high deductibles and planning only to claim when there is a devastating loss that the insured can't pay for otherwise. In other words, you collect when the house burns down or the car is totaled or the accident causes major injury. Assess what you can afford with high limits of loss and then add a [personal umbrella policy](https://en.wikipedia.org/wiki/Umbrella_insurance), which can be cost-effective and provide protection if you are faced with tens of thousands of dollars in losses. ## Becoming an expert at using credit will improve your life At this stage, you're likely dealing with a mortgage, car loans and children entering college. A healthy [credit score](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/) is vitally important to you. If you examine your credit score and you don't like what you see, chances are you haven't paid your bills on time. Paying on time counts for about 35% of your score. Committing to paying everything on time is the obvious solution to this problem. It also pays to check your [credit reports](https://thegaltimes.com/credit-loans/how-to-read-your-credit-report/) carefully for credit killers, such as identity theft or inaccurate reports. There are a lot of those problems out there. You can check your reports at all three bureaus for free every week at [annualcreditreport.com](https://www.annualcreditreport.com/). Finally, at your age, you ought to be working to pay off debt and keep balances low. Focus on power-paying those balances and getting rid of them as fast as possible. This will give you more credit flexibility if you really need to borrow because you have a health emergency, want to start a business or need to replace the roof. A solid-gold credit score will make borrowing for any of these easier. ## Keeping up with the Joneses is a no-win As the saying goes: Too many people spend money they haven't earned to buy things they don't want to impress people that they don't like. Envy was once considered one of the "7 deadly sins" and a route to hell. Yesterday, envy was a sin; today, it is one of the fundamentals of our consumer-driven society. People think the sky is the limit. When they get what they want, they want the next step up. People have never-ending desires, and they are never satisfied. Is that bad? It keeps our economy moving, but it doesn't make people any happier. ## You can count on uncertainty Trust us: [Jobs don't last forever](https://thegaltimes.com/money-work/regime-change-at-work/), and neither does excellent health. The best hedge against poor health, job loss or other unforeseen setbacks is a financial plan that will help you navigate the shoals until you get back on your feet. If you don't have a plan, you keep doing more of the same, and you never have anything to show for it. To get around this conundrum, you have to have an awareness of where you are now, an understanding of what it will take to get there and the determination to work your plan. ## Everybody needs an ace in the hole You need a financial plan B that doesn't count on another person -- not even the love of your life. It's not disloyal to figure out an answer to the question, "How will I support myself if X happens?" whether X is divorce, death, disability or something else. If you don't have a will, you're tempting fate. Having a will, savings and insurance matters. Anybody who is dependent on somebody else to make ends meet -- or even if you just depend on yourself -- needs a plan for what to do when that goes away. ## Working forever isn't a retirement plan Many people say they love what they do and plan to work forever. Ask yourself what you are going to do if your mind or your body won't allow you to keep working. Having a [retirement savings plan](https://thegaltimes.com/retirement-investing/retirement-investing-through-the-decades/) is key. The earlier you start, the longer your money works for you and the greater your chance of amassing a nice nest egg. It's a snowball effect. You start small and it builds. It is never too early or too late to start saving. ## Sources - [Net worth (Wikipedia)](https://en.wikipedia.org/wiki/Net_worth) - [Umbrella insurance (Wikipedia)](https://en.wikipedia.org/wiki/Umbrella_insurance) - [Free credit reports, FTC](https://consumer.ftc.gov/articles/free-credit-reports) - [AnnualCreditReport.com](https://www.annualcreditreport.com/) --- # Online Banking vs. Mobile Banking > Nearly half of U.S. banked households now rely on mobile banking first. Here is how online and mobile banking differ and why people use each. - URL: https://thegaltimes.com/banking/online-banking-vs-mobile-banking/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team Nearly half of banked U.S. households (48.3%) now use their smartphone as their primary way to access their bank accounts, according to a [2023 FDIC survey](https://fdic.gov/household-survey/2023-fdic-national-survey-unbanked-and-underbanked-households-report). Many mobile users still use apps mainly to view account balances, while a smaller share use their phones to make transactions -- transferring money between accounts, depositing checks using their phone's camera and paying bills, for example. More people are transacting on their phones as the technology has caught up. ## More of us will use our smartphones to bank The same survey showed that over the past decade: * Online banking on a computer has lost ground. The share of banked households using it as their primary method declined by more than a third. * Mobile banking is expanding -- the share of households using it as their primary method grew almost ninefold, while use of bank tellers fell by more than half. Even so, a large share of households have yet to make mobile their main way to bank. ## What is the difference? Online banking means using your bank's website in a web browser, usually on a computer. Mobile banking means using your bank's app, or its mobile website, on a phone or tablet. Both connect to the same accounts, so your balances and transactions are identical either way. What differs is how you use them. Mobile banking often adds features built around the phone itself: depositing a check by taking a photo of it, push alerts for account activity, and signing in with a fingerprint or face scan. Online banking on a computer is often easier for longer tasks, such as reviewing months of transactions, setting up bill payments, comparing statements or downloading records. Exactly what is available depends on your bank, so it is worth checking the features of the accounts you are considering. Our guide to [must-have checking account features](https://thegaltimes.com/banking/6-must-have-features-for-checking-accounts/) covers what to look for. ## Why people use each The top reason for banking online is being able to access account balances at any time of day. It is also a popular way to manage household finances and handle financial tasks without going to the bank. Notice that word "manage": online banking is used for doing things, not only for looking. Here, on the other hand, are common reasons why people use mobile banking: * I can access my bank account from anywhere. * It saves time. * I can access my bank account without a computer or visiting the bank. * It is very easy to use compared to other methods of paying bills. * I don't have to worry about using cash or cards at certain retailers. Notice that the most popular mobile reasons are about access and convenience: banking from anywhere, saving time and skipping a trip to a branch or a desk. They are less about any one task. ## Why some people still hold back That comfort level is not there for everyone. Some people prefer to talk to a person, some worry about security, and others simply find a larger screen and a keyboard easier to use. Depositing a check by phone, for example, is convenient for many, but it asks you to trust the process, and you can learn more about what happens to a deposited check in our guide to [what happens after you write a check](https://thegaltimes.com/banking/what-happens-after-you-write-a-check/). ## Staying safe on both The same habits protect you whichever way you bank: * Use a long, unique password and turn on two-factor authentication. * Install updates for your phone, browser and banking app promptly. * Avoid logging in to your bank on a shared computer or over public Wi-Fi. * Turn on account alerts so you notice unusual activity quickly. For more detail, see [online banking security made easy](https://thegaltimes.com/banking/online-banking-security-made-easy/). ## The bottom line Online and mobile banking are not rivals so much as two ways into the same account. Many people use both: the phone for quick checks, alerts and check deposits, the computer for longer tasks, and a branch for anything complicated. Choose whichever fits the task and the way you are comfortable working, and let your habits, not the trend, decide. Source: FDIC, [2023 National Survey of Unbanked and Underbanked Households](https://fdic.gov/household-survey/2023-fdic-national-survey-unbanked-and-underbanked-households-report). --- # Online Banking Security Made Easy > Malware keeps growing and most breaches start with human error. Four simple habits that make your online banking much harder to break into. - URL: https://thegaltimes.com/banking/online-banking-security-made-easy/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team [Malware](https://en.wikipedia.org/wiki/Malware) -- software produced for malicious purposes, such as theft of bank account information -- has grown to the point where security researchers now register more than [450,000 new malicious programs every day](https://www.av-test.org/en/statistics/malware/). This intensifies vulnerability for those conducting financial business on the Internet. The rise is driven by 3 principal factors: - The increasing number of people capable of writing software. - The proliferation of computer users. - The growing number of software kits that provide malicious software components. A programmer in a developing country may determine he'll make far more money writing malicious software than by any other occupation. Even organizations with substantial resources are not safe, as evidenced by the frequency of major breaches. One of the most notable was the 2015 hacking of the U.S. [Office of Personnel Management](https://en.wikipedia.org/wiki/Office_of_Personnel_Management_data_breach). That breach compromised the privacy of 21.5 million people who had undergone a background check by the federal government. In most of the recent break-ins, human error appears to have welcomed intruders. Following are some safety tips to enhance your [online banking security](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/). ## Download only trusted files There are 2 main ways for someone to gain access to your accounts: through your bank's computers or from your computer. This is almost always done by slipping a piece of software onto your computer, or to an administrative computer at a bank, giving the intruder full access. This access software is usually installed through a link to a malicious file that exists either on a website or in an email directed to you that appears to be safe. This software will typically feature remote access, enabling the criminal to download the files stored on a computer, as well as a [keystroke logger](https://en.wikipedia.org/wiki/Keystroke_logging), used to capture any login credentials typed but not stored. For this reason, you should never access accounts from a computer you haven't always controlled. Downloading untrusted software isn't terribly different from providing a complete stranger with a key to your house and hoping he doesn't show up with a moving van. ## Install operating system updates Updates to the software that runs your computer or phone, sent directly from the operating system's maker or the open-source community, are offered regularly and often fix newly found security holes. If a security update is being provided, it means the problem has been around long enough to have a solution. That means you're already at risk and should install the update immediately. Turning on automatic updates makes this easier. ## Use unique passwords and multi-factor authentication Hackers count on at least some people using the same passwords for their social media and online shopping accounts as they do for their credit card, checking and work accounts. Sites that don't contain sensitive information are less likely to spend resources protecting themselves from hacks. Therefore, they are more likely to be targeted, and passwords taken from those sites may be used to try to log in to your financial accounts. Never reuse a password, especially for online banking. A [password manager](https://www.cisa.gov/secure-our-world/use-strong-passwords) can generate and store a different password for every account, so you don't have to remember them or keep them anywhere an intruder could find them. Use long passwords or passphrases, as they can take longer for hacking software to guess. Also turn on [multi-factor authentication](https://www.cisa.gov/secure-our-world/turn-mfa) for your bank, preferably with an authenticator app, a security key or a passkey rather than a text-message code. Also, ensure that the answers to any account security questions that allow for a password reset can't be found by researching your profile online. In addition to avoiding untrusted files, diligently installing operating system updates and using unique passwords with multi-factor authentication, inquire whether your banks' employees have all been trained to do the same. Finally, pass along these Internet safety tips on online banking security to your friends, family and the banks you do business with so they're not left riding a broken mule into the Wild West. *Editorial note: Security guidance and malware counts change quickly. Figures and recommendations here reflect October 2026 sources; check current guidance from CISA and your bank.* ## Sources - [Malware statistics, AV-TEST](https://www.av-test.org/en/statistics/malware/) - [Use strong passwords, CISA](https://www.cisa.gov/secure-our-world/use-strong-passwords) - [Turn on multi-factor authentication, CISA](https://www.cisa.gov/secure-our-world/turn-mfa) - [Digital Identity Guidelines SP 800-63B, NIST](https://pages.nist.gov/800-63-4/sp800-63b.html) - [Office of Personnel Management data breach (Wikipedia)](https://en.wikipedia.org/wiki/Office_of_Personnel_Management_data_breach) --- # No-Credit-Check Installment Loans: Why to Avoid Them > No-credit-check installment loans are payday loans in disguise, with triple-digit rates and little regard for your ability to repay. Here are safer alternatives. - URL: https://thegaltimes.com/credit-loans/no-credit-check-installment-loan/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team Lenders that don't check your credit seem too good to be true. That's because they are. Those that offer products such as "no-credit-check loans" or "no-credit-check installment loans" are as predatory as [payday lenders](https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/). Lawmakers have cracked down on the harmful practices of payday lenders and car title lenders in recent years. That's why many lenders have moved into the business of "installment loans," which have a longer repayment term. But the shift to installment loans doesn't mean lenders have changed their ways. In fact, they are widely called "payday installment loans." These loans come with exorbitant interest rates, often higher than 200%, and lenders don't consider a borrower's ability to repay. A regular paycheck and a bank account are typically enough to qualify -- because lenders withdraw payments electronically, relentlessly, long past the point where the borrower might have stopped writing checks if the payments were under his own control. Consider the math: One lender advertises a $2,600, 18-month loan at 187% interest. That would mean a borrower would repay nearly $8,000 -- and that's far from the worst deal you'll encounter. It's no wonder many borrowers default or roll over into new loans, getting trapped in a cycle of debt for a long time. ## What is a no-credit-check installment loan? A no-credit-check installment loan lies somewhere between a payday loan and a [traditional personal loan](https://thegaltimes.com/credit-loans/secured-vs-unsecured-personal-loans/) from a bank, [credit union](https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/) or online lender. Unlike a payday loan, which is paid back as a lump sum on the borrower's next payday, the repayment period for an installment loan is usually spread out over months or years. The loan amounts range from $100 to several thousand dollars and borrowers typically make equal, fixed payments. Credit history is not taken into account, and the loans are usually sold with a promise of same-day or next-day delivery of funds. In a traditional personal loan, banks or credit unions check your credit and income and lend to you if they believe you can afford to pay them back. Interest rates for these kinds of installment loans are usually capped at 36% or less, a level that state regulators believe represents the practical upper limit of affordability. Approval may take a few days. ## What's the problem with no-credit-check installment loans? Borrowers usually have low incomes and limited access to traditional forms of credit, according to consumer research. These lenders prey on people who are desperate and who don't believe they have other options. When regulators close in, they move across state lines, open up another website under a different name, or call what they are doing a different type of loan. The fact that an installment loan is spread out over a longer period of time and has fixed payments may seem like a good thing, compared with payday loans. But the sky-high interest rate makes them harmful in the long run. (The rates are set high so that the lender profits even if the borrower defaults, as many do.) Just because it's marketed as an installment loan doesn't mean it's safe. Any loan that carries such high costs and is made on such unaffordable terms puts people in a worse financial situation. These installment loans have the same features that make payday loans a no-no: no credit check, no gauge of the ability to repay, and easy access to a borrower's bank account for automatic withdrawals. It might feel like the loan helps today, but you'll be in a worse position tomorrow. Some lenders tack on additional products like credit insurance or charge fees that drive up the cost of the loan even more, studies show. In Texas, where these lenders are known as "credit access businesses," the "CAB fee" on a $1,000 loan from one lender is $1,249, even though its nominal interest rate is just 10%. Expressed as an annual percentage rate to include interest and all fees, as the law requires, that loan weighs in at 429% APR. The growth of these predatory loans hasn't gone unnoticed. In 2015, the U.S. Defense Department expanded regulations to [cap the interest rate on all such loans at 36% for military members and their families](https://www.consumerfinance.gov/consumer-tools/military-financial-lifecycle/military-lending-act-mla/). ## Alternatives to no-credit-check installment loans If you're in need of cash, you may be able to find alternatives to payday loans or no-credit-check loans by talking to credit counselors, religious organizations and community nonprofits. Even if your credit is poor, your local credit union may be worth a shot. Most credit unions offer small-dollar loans of $500 and above, and they are often willing to work with you to make the payments affordable, even if your credit is poor. Many also have starter credit cards or loans to help you build a credit history. The interest rate charged by a federal credit union is [capped at 18%](https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/permissible-loan-interest-rate-ceiling-extended) (the federal ceiling has been extended through September 2027), and federal credit unions can also offer [payday alternative loans](https://mycreditunion.gov/manage-your-money/consumer-loans-credit-cards/payday-alternative-loans) of up to $2,000 with rates capped at 28%. Online lenders that consider credit also may be an option. Many will lend to borrowers with poor credit, even with scores below 600. Some will weigh factors like your job, education and income in their loan decisions. Even a 36% interest rate on a personal loan is better for your wallet than a high-interest installment loan. Consider the following example: Here are the monthly payments and the total cost for a $2,000, two-year loan calculated with a standard amortization schedule at three different rates. The first two are from lenders that consider credit; the last is from a no-credit-check lender. | APR | Monthly payment | Total repaid | Total interest | |---|---|---|---| | 12% | $94.15 | $2,260 | $260 | | 36% | $118.09 | $2,834 | $834 | | 187% | $321.62 | $7,719 | $5,719 | ## Break the cycle: Next time, give yourself some options You're probably looking for a no-credit-check loan because your credit is poor or you have no place to turn for emergency cash. If you don't need cash right away, there are steps you can take to understand and [improve your credit score](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/). A higher credit score will help you qualify for better rates and terms from lenders if the need arises again. You start by paying your bills on time and not using all of your available credit. An emergency fund is also helpful, so that you don't need to borrow money when something pops up. In the long term, you should try to save three to six months' worth of expenses, but even $500 in the bank will get you through many small crises. *Editorial note: The 18% federal credit union rate ceiling is set by the NCUA in temporary extensions, currently through September 2027. State lending laws vary.* ## Sources - [What is a payday loan? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/) - [Military Lending Act, CFPB](https://www.consumerfinance.gov/consumer-tools/military-financial-lifecycle/military-lending-act-mla/) - [Permissible loan interest rate ceiling extended, NCUA](https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/permissible-loan-interest-rate-ceiling-extended) - [Payday alternative loans, MyCreditUnion.gov](https://mycreditunion.gov/manage-your-money/consumer-loans-credit-cards/payday-alternative-loans) - [Payday loan (Wikipedia)](https://en.wikipedia.org/wiki/Payday_loan) --- # Naming a Trust as Your IRA Beneficiary: Do's and Don'ts > Naming a trust as an IRA beneficiary can trigger costly tax mistakes. Learn when it makes sense, how see-through trusts work and what changed under the 10-year rule. - URL: https://thegaltimes.com/retirement-investing/naming-trust-ira-beneficiary/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team Trusts and [individual retirement accounts](https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/) are complicated. When they converge -- for instance, when someone names a trust as a beneficiary to an IRA -- things can go very wrong, and that can be very expensive. The first thing to consider is whether to do it at all. Trusts as beneficiaries of IRAs can be very complicated, and if it is not done properly, immediate income tax consequences could result. Still considering naming a trust as the beneficiary of your IRA? Here are some do's and don'ts. ## Do have a good reason to leave your money in a trust Thinking of naming a trust as your IRA's primary beneficiary? Make sure you're doing it for the right reason. Leaving an IRA to a trust will likely not make things easier or save on taxes. There are some good reasons to leave IRA money to a trust: typically for the benefit of someone who can't be trusted with the money. That might be a minor child, a spendthrift or the spouse of a 2nd marriage. In the last instance, a trust is often set up for those who want to leave enough money for the care of their spouse and then direct any remaining funds to go to their children after the spouse passes. Trusts should be used in their full capacity as a protector and should not do more harm than simply leaving IRA money outright to a listed beneficiary. The trick is for trust preparers to insert proper IRA terms so the trust doesn't become legal fiction or conflict with IRS rules. ## Don't trust the job to just anyone Leaving an IRA to a trust is different from putting other assets into a trust after death. It's an area where you need specialized expertise. There is often no fix for these mistakes, and they can be multimillion-dollar mistakes with a trust. The improper knowledge can wipe out the trust faster than if you just named the person as the beneficiary. The attorney setting up the trust should be very familiar with terminology specific to inherited IRAs, such as "[see-through](https://www.irs.gov/publications/p590b)," "dropdown and out of trust procedure," "designated beneficiary" and "disregarded beneficiaries." If your trust adviser can't handle the proper definitions and explanations of just this short list of specialized terms, find another one. ## Do be sure the trust beneficiaries are clearly people When inheriting an IRA, one of the goals is to preserve the tax-advantaged status of the account for as long as possible. In order for the IRA to be distributed through a trust on a favorable schedule, the trust must have beneficiaries and they must be people. A charity doesn't count. An IRA is a stream of untaxed income, and the objective generally is to defer taxation of income as long as one possibly can. Since the [SECURE Act](https://en.wikipedia.org/wiki/SECURE_Act) took effect in 2020, though, most non-spouse beneficiaries, including most trusts, must empty an inherited IRA by the end of the 10th year after the owner's death. If the owner had already reached the age at which [required minimum distributions](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs) begin, annual distributions are generally required during those 10 years as well. Stretching distributions over a beneficiary's life expectancy is now limited to "[eligible designated beneficiaries](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary)": a surviving spouse, the owner's minor child, a disabled or chronically ill person, or someone not more than 10 years younger than the owner. To qualify as a "see-through" trust, the trust must be valid under state law, be irrevocable at the owner's death, have beneficiaries who can be identified from the trust document, and the trustee must give the IRA custodian the required documentation. The IRS then looks through the trust to the people who benefit from it, and distributions are made to the trust over the schedule that applies to those individuals. ## Don't overlook the benefits of a spousal rollover Where life expectancy still applies, the age of the oldest beneficiary is used to set the life expectancy on which the required minimum distributions from the inherited IRA will be based. If a spouse is going to be the first beneficiary of IRA money, it can be more advantageous to younger heirs if the IRA is initially passed on as a spousal rollover. A rollover lets the surviving spouse treat the IRA as his or her own, name new beneficiaries and delay distributions until his or her own required beginning age. After the surviving spouse dies, it can be left to younger heirs, who will generally have 10 years to empty the account, which preserves the tax benefit for as long as possible. By using the spousal rollover option, couples can keep the account growing tax-deferred for a long time. Smart estate-planning advisers use a cascading beneficiary system. Name a spouse as the primary beneficiary and the trust as a contingent beneficiary. This allows more flexibility, as the spouse can choose to roll over the assets or disclaim his or her position to the trust within 9 months. The trust then serves as the backup if the spouse disclaims. ## Do consider separate trusts for multiple beneficiaries People generally use trusts as IRA beneficiaries so they can defer distribution. Using separate trusts for each beneficiary can simplify things for everyone, and where life-expectancy payouts are still available, each individual beneficiary can use his or her own age for the purposes of determining the required minimum distributions. Oftentimes, it is easy to split the IRA into multiple IRAs if you have multiple beneficiaries, rather than use a trust. Sometimes, the easiest solution is the best, and that may mean skipping a trust altogether. *Editorial note: Inherited-IRA and trust rules are technical and have changed since 2020; the IRS continues to issue guidance. Have a tax or estate professional review any beneficiary designation.* ## Sources - [Retirement topics: Beneficiary, IRS](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary) - [Publication 590-B, Distributions from IRAs, IRS](https://www.irs.gov/publications/p590b) - [Required minimum distributions FAQs, IRS](https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs) - [SECURE Act (Wikipedia)](https://en.wikipedia.org/wiki/SECURE_Act) --- # Mortgage Refinance: When It Makes Sense and What It Costs > When refinancing a mortgage pays off, from lowering your rate to dropping PMI, plus cash-out refinancing, closing costs and prepayment penalties. - URL: https://thegaltimes.com/home-mortgages/refinance-mortgage/ - Section: Home & Mortgages - Published: 2026-10-08 - Author: The Gal Times Editorial Team In the simplest terms, when you refinance a mortgage you're restructuring a loan with a new, better mortgage rate and term of repayment. In essence, you're changing the way you pay for your mortgage. But it's not as simple as moving from a higher interest rate to a lower one; there can be significant costs associated with refinancing. In addition, it might not always be the best financial move. The decision whether to refinance a mortgage depends on each homeowner's specific financial situation. ## Why should you consider a mortgage refinance? Generally, if you plan to stay in your home for a while and have a long-term loan, refinancing can be an attractive prospect. Refinancing a mortgage makes sense under certain circumstances: - Refinance for a lower interest rate Lowering your mortgage interest rate can lower your monthly payment if the repayment term (duration) remains the same. However, keep in mind that a refinance can carry closing costs of roughly 2% to 5% of the loan balance. Using a mortgage refinance calculator can help you determine your monthly and lifetime savings, as well as estimate the [break-even point](https://thegaltimes.com/home-mortgages/apr-annual-percentage-rate/) — when your savings will start to exceed the costs of the refinance. Mortgage refinancing for a lower rate can make a lot of sense, especially if your [credit score has improved](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/). For example: You had a credit score in the "fair" range, say around 640-659, when you got your mortgage, but you've made all of your payments on time and your credit score has improved to 750 or higher. You might qualify for a significantly lower mortgage rate today, if interest rates haven't risen much since your first mortgage closing. With the average 30-year fixed rate near 7.3% in October 2026, a refinance for a lower rate only pays off if your current rate is meaningfully higher. You might want to check your credit score and history before you go any further. - Refinance to switch from an [adjustable-rate mortgage](https://thegaltimes.com/home-mortgages/fixed-vs-adjustable-rate-mortgage/) to a fixed rate An adjustable-rate mortgage typically comes with an initial period of a steady interest rate, and then resets to a floating rate for the rest of the loan. This is different from fixed-rate mortgages, which have the same interest rate for the entire loan. For example, with a 5/1 ARM, the loan's interest rate would remain the same for the first five years and adjust annually after that. If you keep the ARM after that initial rate period ends and interest rates rise, your payments could jump. Converting to a fixed mortgage from an ARM can be a wise financial decision, especially if you plan to stay in your home long-term. For example, if you have a 5/1 ARM, you could complete a refinance by the end of the fifth year and lock in a steady rate with a 30-year fixed-rate mortgage. There are times when choosing or sticking with an ARM makes sense. The interest rate during the fixed-rate period is typically much lower than other mortgages. An ARM could also work if you plan on living in your home for only a short period of time, or if you sell the home before the fixed-rate period ends. - Refinance to get rid of [private mortgage insurance](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/) Whenever you buy a home with less than 20% down, you typically are required to pay private mortgage insurance, which helps to protect the lender in case you default on the loan. PMI can be quite expensive; annual premiums can cost between 0.5% and 1.5% of the mortgage. For example, a $200,000 loan with 1% mortgage insurance premiums would cost the homeowner $2,000 a year, or $166.66 per month. Sometimes, homeowners are able to cancel mortgage insurance. By law, you can request cancellation once the balance on the mortgage falls to 80% of the home's original value, and the insurance must end automatically when the balance is scheduled to reach 78%. However, loans insured by the [Federal Housing Administration (FHA)](https://www.hud.gov/hud-partners/housing-premium-general-info) require mortgage insurance for the first 11 years if you put down at least 10%, and for the entire life of the loan if you put down less. If your loan doesn't allow you to cancel, you may still be able to get rid of PMI once you have 20% equity in your home by doing a mortgage refinance. You still should go over all the costs of refinancing to make sure the savings outweigh the costs. ## Traditional versus cash-out refinance There are two types of refinances. One is a regular refinance, where the interest rate and repayment term of the loan changes. The other is called a [cash-out refinancing](https://en.wikipedia.org/wiki/Refinancing). With a cash-out refinancing you are given a new loan, which is larger than the balance remaining on your mortgage. The extra money is paid directly to you. Since the lender in this situation is taking on a higher risk, interest rates will typically be higher than a standard mortgage refinance. Although a cash-out refinancing may be a tempting way to consolidate credit card debts and other higher-interest loans at the lower interest rate on a mortgage, the consequences of defaulting on your mortgage are far worse than defaulting on credit card payments: You could lose your home. And stretching out payment of your consumer debt over 15 to 30 years is not a wealth-building strategy. ## The costs of refinancing your mortgage Since you're considering refinancing, you've been through a mortgage procedure before. Refinancing your loan will be much the same as applying for the original loan. There will be closing costs to pay, and they may even be higher than the fees you paid the first time around, especially if the value of your home has risen or your creditworthiness has changed for the worse. Also, you may be getting a discount on property taxes if your home hasn't been assessed for a while; refinancing may trigger a new assessment, which might increase your tax bill. Some loans also have [prepayment penalties](https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/): If you repay your loan ahead of schedule, you might have to pay an additional charge. Federal rules limit these penalties: they can last no more than three years and are allowed only on certain fixed-rate qualified mortgages. If you have such a clause in your home loan, watch out for these fine-print charges that might cost you a significant chunk of money, and consider waiting until the prepayment period ends before refinancing. ## The bottom line Refinancing a mortgage takes a lot of time and serious consideration. Just because you see a lower interest rate doesn't necessarily mean that you should grab it. Rather than simply focusing on reducing your monthly payment, it's wiser to refinance when you can save money with a lower interest rate, without extending the payoff term. *Editorial note: Closing costs, FHA premium rules and mortgage rates vary by loan and change over time. The rate cited is the Freddie Mac 30-year average for early October 2026.* ## Sources - [What is private mortgage insurance? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/) - [Monthly mortgage insurance premiums, HUD](https://www.hud.gov/hud-partners/housing-premium-general-info) - [Prepayment penalties, CFPB](https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/) - [Primary Mortgage Market Survey, Freddie Mac](https://www.freddiemac.com/pmms) - [Refinancing (Wikipedia)](https://en.wikipedia.org/wiki/Refinancing) --- # Meet the New Boss: How to Handle Regime Change at Work > A management shakeup doesn't have to hurt your career. Here is how to read the situation and a 5-point strategy to protect your job. - URL: https://thegaltimes.com/money-work/regime-change-at-work/ - Section: Money & Work - Published: 2026-10-08 - Author: The Gal Times Editorial Team Big changes at the top of your company can be scary and unpleasant, but they don't have to be disastrous for you personally. With a little luck, a shakeup can even benefit you in the long run -- if you play your cards right. The first thing to understand is that living through a big management change is pretty much inevitable over the course of a career. It is not unusual. There will be shakeups, [mergers and acquisitions](https://en.wikipedia.org/wiki/Mergers_and_acquisitions), and you should expect and anticipate them. It's a normal part of having a career. ## Circumstances of shakeup make a big difference How much a management change filters down to the rank-and-file level can vary depending on the events that precipitated the change. For example, if the company is bought by an investment-oriented company such as a [private equity firm](https://en.wikipedia.org/wiki/Private_equity), the new owners may make a lot fewer staff changes than if a company is bought by a competitor. The overall condition of the business is also a factor. If a company is in bankruptcy or teetering on the edge and gets acquired by an outside buyer, it's probably smart to assume there are going to be a substantial number of layoffs to cut costs. On the other hand, a company that's fundamentally sound but has had issues with its management strategy may not experience much change -- at least at first. In those situations, the new regime doesn't want to break what isn't already broken by scaring away customers and top employees, so they tread carefully and try to learn as much as they can about how the business runs before acting. Change tends to start at the top with "C-level" executives, and then filter down as they replace managers and eventually rank-and-file workers who they don't think fit into the new management's strategy for the company. That usually leaves workers a "honeymoon period" to show they're effective at their jobs and buying in to the new strategy. Whether or not you get that honeymoon, here's a 5-point strategy to protect your career. ## 1. Don't bury your head in the sand. One of the worst things a worker can do during a management change is engage in denial and avoidance. Doing so can mean losing whatever chance you may have to shape your own future at the company, or, worse, being blindsided by a job loss should you be found to be nonessential by your new bosses. It is better to be informed than to be caught off guard if you lose your job during a reorganization. Beyond the emotional toll of being unexpectedly fired, there's a practical reason why being prepared is helpful: Finding a new job once you're unemployed is generally more difficult than if you still have a job. So if you can see a job loss coming and jump ship first, you'll probably be better off than if you huddle at your desk and hope for the best. ## 2. Stay informed. Staying informed about what's going on at your company is always important, but never more so when there's a shakeup going on. If you don't have a general idea of how your company is doing financially, it's time to get one fast. Doing some research online, checking out company financial disclosures and talking to knowledgeable people inside and outside the firm can turn up a surprising amount of information about your company. If you've managed to build a network of colleagues who are in the know, now is the time to access that knowledge. If you don't have such a network, start building one. Gather whatever information you possibly can about the merger, acquisition or shakeup, whatever it is, and get into the information loop. ## 3. Don't be afraid to ask questions. It's natural to want to step lightly when the ax is falling at work. But don't let that fear keep you from getting answers to these key questions: - What should I expect with my position? - Will I be retained? - Will my responsibilities stay the same, or will they change? - If there's going to be a layoff, what is the time frame? Of course, there's such a thing as being too aggressive. Constantly hounding your superiors for information may do more harm than good. You don't want to sound desperate and anxious. ## 4. Meet the new boss as soon as possible. If the shakeup happens to claim your boss, you'll want to get a face-to-face meeting with the new boss as soon as possible. Schedule an appointment or appointments right away to discuss their thinking, their priorities, their style, their needs and their preferences, and also to ask about your own status and future in your role. That information can give you a leg up on meeting the new boss' expectations right from the start, so if there is a honeymoon period, you can make the most of it. ## 5. Always be on the lookout for other work options. Like networking among coworkers, having other employment options on your radar is a good idea all the time, not just in times of uncertainty. You should always have options: keep your eyes and ears open for other opportunities, talk to recruiters when they call, and keep networking by going to career and networking events. Having an [exit plan](https://thegaltimes.com/money-work/personal-finance-lessons-to-master-by-40/) not only gives you more leverage, it can help keep you emotionally grounded during tough times at work. When there's a shakeup, instead of being panicked and feeling like you don't have any other options, you'll be able to tell yourself that it's not a good thing, but it's all right. ## Sources - [Mergers and acquisitions (Wikipedia)](https://en.wikipedia.org/wiki/Mergers_and_acquisitions) - [Private equity (Wikipedia)](https://en.wikipedia.org/wiki/Private_equity) - [Job Openings and Labor Turnover Survey, U.S. Bureau of Labor Statistics](https://www.bls.gov/jlt/) --- # Is It Time to Buy a Home? > With mortgage rates near 7.3% and prices still rising, how to decide whether it's the right time for you to buy, based on your finances, job and plans. - URL: https://thegaltimes.com/home-mortgages/is-it-time-to-buy-a-home/ - Section: Home & Mortgages - Published: 2026-10-08 - Author: The Gal Times Editorial Team With mortgage rates at their highest level in nearly three years and house prices still edging up, would-be buyers are hearing a mix of advice. How should the average buyer decide if it's time to take the plunge? The [average 30-year fixed mortgage rate](https://thegaltimes.com/home-mortgages/fixed-vs-adjustable-rate-mortgage/) was [7.28%](https://www.freddiemac.com/pmms) in early October 2026, the highest since late 2023, while the median existing-home price was about [$429,100](https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales) in August, up 1.6% from a year earlier. Inventory has also risen, giving buyers more choice than they had a year ago. But news stories, real estate pros and relatives urging would-be homeowners to buy, buy, buy -- or to wait -- can make for a lot of pressure. Even if the economic conditions are right, it's not a good idea to buy unless the decision makes sense for your financial, professional and personal situation. ## The time seems right, but… Plenty of renters feel like they should be buying. It feels like it's a good time to buy a house, but they're not 100% sure about that. That's understandable -- it's hard to say whether house prices are headed up or down. Interest rates are hard to predict, too: The [Federal Reserve raised its benchmark rate](https://www.federalreserve.gov/monetarypolicy/openmarket.htm) in September 2026 for the first time since 2023, and officials have signaled that more increases could follow, which could push borrowing costs higher. It can be hard for buyers to weigh economic factors like interest rates and market trends with personal circumstances -- such as a stable, good-paying job -- as well as location. The same house can cost two to three times as much in one city as in another, and choosing a good school district adds another challenge to the decision. It is better to get the right house for you than to rush into something. ## It's not an emergency A wait-and-see approach can be a good strategy -- but only for a little while, since waiting has costs when rates and prices are rising. Many buyers wish they had a crystal ball to predict whether house prices will go up or down in the near future. Are prices going to start skyrocketing over the next few years, and are you going to miss your window if you wait too long? It's a huge investment. It helps to remember the pressure of the last housing bubble, when many buyers rushed into real estate because they were afraid prices would continue to climb and low interest rates were about to expire. Lots of people bought houses in the 2000s, and then in 2007 (the recession) prices dropped and they had to let go of their houses. But you can't predict if prices are going to get too high. ## How to decide whether you're ready It's important to evaluate the financial, professional and emotional implications of buying a house. If you have [poor credit](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/) or haven't managed to save for a [down payment](https://thegaltimes.com/home-mortgages/when-buying-beats-renting-a-home/), it might be too much of a stretch to buy right now. Job stability is also important, not only because mortgage lenders prefer to see two years of steady employment with the same company, but also because you don't want to buy a house if you're likely to be forced to relocate for a new job within the next few years. There's also the question of whether you should buy a starter home or keep on saving until you can afford your dream home. Many buyers debate whether to buy a smaller house now and trade up later, or wait until they can afford a house their family can grow in. Even if economic conditions are perfect right now, buying a house before you're ready is a recipe for disaster. Any time you make a decision based on pressure, it's not a good decision. Nobody should ever jump into a house. *Editorial note: Market figures are as of early October 2026 (mortgage rate: week of October 1; home price: August 2026) and will change.* ## Sources - [Primary Mortgage Market Survey, Freddie Mac](https://www.freddiemac.com/pmms) - [Existing-home sales, National Association of Realtors](https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales) - [Open Market Operations / FOMC, Federal Reserve](https://www.federalreserve.gov/monetarypolicy/openmarket.htm) - [Owning a home, CFPB](https://www.consumerfinance.gov/owning-a-home/) --- # IRA vs. 401(k): Which Retirement Account Should You Fund First? > A step-by-step order for funding a 401(k) and an IRA, with 2026 contribution limits, catch-up rules, tax treatment and a side-by-side comparison. - URL: https://thegaltimes.com/retirement-investing/ira-vs-401k-retirement-accounts/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team What'll it be: a 401(k) or IRA? Given the choice between putting money in an employer-sponsored retirement account such as a 401(k) or a self-directed savings vehicle like a Roth or traditional IRA, the ideal answer is "all of the above." Not everyone can afford to divert that much paycheck into retirement savings accounts. Maxing out a 401(k) and an individual retirement account up to the [2026 IRS contribution limits](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) for each would mean earmarking $32,000 — or up to $41,100 for those 50 and older — for [your future self](https://thegaltimes.com/retirement-investing/retirement-investing-through-the-decades/). (If you can swing it, your future self will be really grateful. So grateful they'll probably come back and tell your present-day self in person as soon as someone invents time travel.) Until — or even if — contributing to "all of the above" is an option, maximize your retirement savings dollars according to this general 401(k) versus IRA pecking order: 1. If your employer offers any company match, first fund your 401(k) up to the point where you get the maximum matching dollars. 2. Direct your next investing dollars to an IRA — a [traditional IRA for the upfront tax deduction](https://thegaltimes.com/retirement-investing/roth-or-traditional-ira-account/) or a [Roth IRA](https://www.irs.gov/retirement-plans/roth-iras) to collect a tax break in retirement when you start making withdrawals. 3. After maxing out an IRA, return to your 401(k) plan because it offers a higher current-year income tax break. 4. If your company does not offer a 401(k) match, skip it at first and max out an IRA, then … 5. After contributing to an IRA up to the limit the IRS allows, based on your income, filing status and other factors, fund your 401(k) for the pre-tax benefit it offers. And now, here's all of that in more detail. Short on time? Jump to the comparison tables to see how the accounts differ. ## How to max out your retirement accounts in 2026 The IRS' maximum allowable contributions for 2026 are: | | 401(k) | Roth IRA | Traditional IRA | |---|---|---|---| | Standard limit | $24,500 | $7,500 | $7,500 | | Catch-up provision (age 50 and older) | $8,000 | $1,100 | $1,100 | | Total allowable contribution (age 50 and older) | $32,500 | $8,600 | $8,600 | Workers ages 60 to 63 can make a higher 401(k) [catch-up contribution](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions) of $11,250, for a total of $35,750. If you can save enough to max out both your 401(k) and an IRA in 2026, your name deserves to be engraved on a Retirement Saver of the Year plaque. (If you qualify for both a Roth and a traditional IRA, you can split the difference. The IRS allows you to contribute to both a Roth and traditional IRA in a single tax year as long as your total contribution does not exceed the $7,500 ceiling for those under age 50 and $8,600 for savers 50 and up.) As you rev up your retirement savings engine, let's look at a detailed IRA versus 401(k) investing road map to guide the decision about which type of retirement account to choose, in what order and to what extent you should contribute. ## 1. If your employer offers any company match, start by funding your 401(k) Check your employee benefits handbook. If you see that your employer matches any portion of the money you contribute to the company 401(k) plan, do not pass go without stopping here first to collect your free money. (If your company does not offer any matching funds, proceed directly to step four. In most cases where a company does not kick in any free money, it's better to fund an IRA before contributing to a 401(k).) A company matching program is one of the biggest benefits of a 401(k). It means that your employer contributes money to your account based on the amount of money you save, up to a limit. A common arrangement is for an employer to match the amount you save dollar for dollar up to the first 6% of your gross earnings. If you earn $50,000 and contribute $3,000 (6% of your gross salary) to your 401(k), your employer will also add $3,000 to your account. Another way some companies determine matching contributions is on a percentage basis, with an employer matching 50 cents on each dollar contributed up to a limit, for example. Even if a 401(k) has limited investment choices or higher-than-average fees, carve out enough money from your paycheck to get the full company match, aka a guaranteed return on those investment dollars. Note that employer contributions don't count toward the 401(k) annual contribution limit, which in 2026 is $24,500 if you're under 50 and $32,500 if you're 50 or older. Starting in 2026, if your wages from your employer were more than $150,000 in the prior year, your catch-up contributions must be made on a Roth (after-tax) basis. ## 2. Next, contribute as much as you're allowed to an IRA You've collected the company match on your 401(k). Now it's time direct your retirement dollars to an IRA. Like a 401(k) plan, investments in an IRA grow tax-free. Depending on which type of IRA you choose — a Roth or traditional — you can get your tax break now or down the road when you start withdrawing funds for retirement. - A traditional IRA is often the preferred choice for those close to retirement age and in a higher tax bracket now than they expect to be when they start making withdrawals. The benefit of a traditional IRA is that it gives you the same tax-deferral benefit as a 401(k), meaning contributions may be deductible from your current-year income taxes — though to what extent is based on income, tax filing status and other eligibility factors. - A Roth IRA is a good choice if you're in a lower tax bracket now than you think you'll be in the future. A Roth operates in the reverse of a traditional IRA or 401(k) in that you pay taxes upfront because you make contributions with after-tax income. The benefit of a Roth IRA is that withdrawals from the account in retirement are tax-free. ## 3. After maxing out an IRA, revisit your 401(k) plan Even after you've gotten the employer match — and even if your investment choices are limited, which is one of the main drawbacks of workplace retirement plans — a 401(k) is still beneficial. 401(k)s have higher contribution limits than IRAs: $24,500 versus $7,500 for those under 50; $32,500 versus $8,600 for those 50 and older. Plus, the money you contribute to the plan will lower your taxable income for the year dollar for dollar. And don't forget about the added benefit of tax-free growth on investment gains, which, if you squint your eyes really hard, can sorta make you believe that you're getting one over on the IRS. (It's perfectly legal, so you're not actually outmaneuvering Uncle Sam, but you can still pretend like you are.) ## 4. If your company doesn't offer a 401(k) match, pick an IRA first Not all companies match even a portion of employee retirement account contributions (boo, hiss). When that's the case, choosing an IRA — and contributing up to whatever amount IRS rules allow for your situation — is generally a better first option. And it's certainly no consolation prize. One of the biggest benefits of an IRA is that it offers access to a virtually unlimited number and type of investments, giving you much more control over your retirement savings destiny: You can bargain-shop for low-cost index mutual funds and ETFs instead of being restricted to the offerings in a workplace retirement account, and you can avoid paying the administrative fees that many 401(k) plans charge. It's like the difference between shopping for household necessities at a warehouse club versus an airport kiosk. ## 5. After maxing out IRA benefits, then start contributing to your 401(k) Here again, the tax deferral benefit of a company-sponsored plan and the fact that investments within the account grow tax-free are two good reasons to direct dollars into a 401(k) after you've funded an IRA. Only in the worst cases — a retirement account with truly crummy, high-fee investment choices and high administrative costs — would it be advisable to completely avoid your company plan. If that's the case, or close to it, consider funding a nondeductible IRA. Although you won't get the deductibility benefit, you'll have free rein to choose investments, and the money will grow tax-free in the account until you start making retirement withdrawals. ## 401(k) vs. traditional IRA vs. Roth IRA: Key differences The main thing 401(k)s and IRAs — both Roth and traditional — have in common is that they offer an incentive for people to save money for retirements: a tax break. The key differences between a 401(k) and an IRA are: - **Contribution limits:** They're higher in a 401(k) plan. - **Investment options:** They're unlimited in a self-managed IRA. - **Tax treatment:** 401(k)s and traditional IRAs offer an upfront tax break with qualified distributions in retirement taxed as regular income; Roth IRA contributions are not deductible, but qualified distributions are not taxed. Here's a side-by-side comparison of retirement plans: ## 401(k) vs. Traditional IRA vs. Roth IRA comparison | | **401(k)** | **Traditional IRA** | **Roth IRA** | |---|---|---|---| | Setup and funding | Via automated payroll deduction. | Set up and funded by you through a financial institution. | Set up and funded by you through a financial institution. | | 2026 maximum allowable contribution | $24,500 for those under age 50; $32,500 for those age 50 and above ($35,750 for ages 60 to 63). | $7,500; $8,600 for those age 50 and above. | $7,500; $8,600 for those age 50 and above. | | Tax treatment of contributions | Contributions made with pre-tax dollars, which reduces your taxable income on a dollar-for-dollar basis. | Deductibility based on income, tax filing status and availability of a workplace retirement account (for you or your spouse, if married filing jointly). | Nondeductible | | Investment options | A pre-selected list of investments, mainly mutual funds. Some plans have a brokerage option with access to investments outside of the plan. | Any investment available through your account provider (stocks, bonds, mutual funds, etc.). | Any investment available through your account provider (stocks, bonds, mutual funds, etc.). | | How taxes work before you retire | Contributions reduce taxable income. Investments in the account grow tax-free. | Contributions may be tax deductible, depending on income and tax filing status. Investments in the account grow tax-free. | Contributions are taxable. Investments in the account grow tax-free. | | How qualified withdrawals in retirement (after age 59 ½) are taxed | Income taxes due on distributions at your ordinary income tax rate. | Income taxes due on distributions at your ordinary income tax rate. | Qualified distributions (after age 59 ½, from an account open at least five years) are tax-free. | | How early withdrawals (before age 59 ½) work | Withdrawals of contributions and earnings are subject to a 10% early withdrawal penalty and taxed as regular income. The IRS allows penalty-free early withdrawals in certain circumstances. | Withdrawals of contributions and earnings are subject to a 10% early withdrawal penalty and taxed as regular income. The 10% early withdrawal penalty is waived if certain conditions are met. | Withdrawals of contributions are always tax- and penalty-free. Earnings withdrawn before age 59 ½ and before the account has been open five years are subject to a 10% early withdrawal penalty and income taxes. Penalty-free withdrawals allowed on certain qualified distributions. | *Source: IRS.gov* ## Pros and cons of IRAs and 401(k)s Not that this is a beauty competition, but if it were, the retirement savings judges would probably favor IRAs — the Roth, in particular — over 401(k) plans. An employer match and higher contribution and deductibility limits are certainly standout features of employer-sponsored retirement accounts. Beyond that, IRAs offer more choice and flexibility. Here's the breakdown of pros and cons: | | 401(k) plans | Traditional IRAs | Roth IRAs | |---|---|---|---| | Main advantages compared with other retirement savings options | Employer may match a portion of your contributions (aka free money). Contributions lower your taxable income for the year to a greater extent than traditional IRA contributions ($24,500 or $32,500 versus $7,500 or $8,600 maximum allowable IRA contributions). Eligibility to contribute the maximum is not hindered by income or tax filing status. Offers more protection from creditors and lawsuits than IRAs. | The choice of investments is extensive compared with a typical 401(k) plan. Contributions lower your taxable income. A high household income does not disallow contributions, although it does affect deductibility eligibility. Money in an IRA can be moved to another brokerage firm at any time. | The choice of investments is extensive compared with a typical 401(k) plan. Withdrawals in retirement are tax-free. Offers more flexibility than a 401(k) and traditional IRA in terms of penalty-free early withdrawals. Money in an IRA can be moved to another brokerage firm at any time. | | Main disadvantages compared with other retirement savings options | Limited investment choices. Plan fees and investment expenses are out of your control and can erode your investment returns. If you borrow money from your plan, even for qualified early distributions, you must reimburse the plan in full if you leave the company or pay a 10% early withdrawal penalty and income taxes on the full amount. Assets in a 401(k) must remain in the plan account for as long as you work at the company. | Qualifying for a full, partial or any upfront deduction benefit may be limited by your income, tax filing status and if you or your spouse have access to a workplace retirement account. Contribution limits are lower than in a 401(k). Early withdrawals are subject to stricter tax rules than with a Roth IRA. | Offers no immediate tax break, since contributions are made with post-tax dollars. Roth eligibility is based on income, which limits how much, if anything, the IRS allows you to contribute (in 2026, the phase-out begins at $153,000 for single filers and $242,000 for married couples filing jointly). Contribution limits are lower than in a 401(k). | *Source: IRS.gov* Like we said in the beginning, [investing in a 401(k) or an IRA](https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/) — or, ideally, both — is a great way to build your retirement nest egg and save money on taxes. And the ideal investing strategy in one sentence: Start with a 401(k) up to the company match, next fund an IRA — Roth or regular — then back to the 401(k) to get an additional tax break. *Editorial note: Limits are adjusted every year, and since 2026 higher earners must make 401(k) catch-up contributions on a Roth basis. Figures here are for 2026.* ## Sources - [2026 contribution limits, IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) - [Catch-up contributions, IRS](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions) - [Roth IRAs, IRS](https://www.irs.gov/retirement-plans/roth-iras) - [Traditional IRAs, IRS](https://www.irs.gov/retirement-plans/traditional-iras) - [401(k) (Wikipedia)](https://en.wikipedia.org/wiki/401%28k%29) --- # How to Write a Check > A step-by-step guide to filling out a personal check correctly: date, payee, amount, memo and signature. - URL: https://thegaltimes.com/banking/how-to-write-a-check/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team In today's world of [online banking](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/), direct debits and payment apps, who still needs to write a paper check, right? Well, you might. If you lose electronic access to your checking account while you're completing a purchase, making your rent payment or settling up with the Internal Revenue Service, you might need to write out a personal check. So you'd better know the correct way to do it. Familiarize yourself with the [anatomy of a check](https://en.wikipedia.org/wiki/Cheque). The numbers on the bottom include your [routing number](https://thegaltimes.com/banking/routing-number-on-check-how-does-it-work/), which identifies your bank, and to the right of that, your account number, followed by the check number. The rest of the blank spaces are the areas you need to complete with all of the relevant information. ## 1. Fill in the date In the top right corner, there's a line that's labeled, "Date." Fill out the month, day and year, using all numbers or by writing the date out completely. For example, 6/1/26 or June 1, 2026. ## 2. Write the recipient's name The recipient's name goes on the line in the center of the check that's labeled "Pay to the order of." Use the full name of the person or the official name of the business to be sure the payment goes through. ## 3. Write in the amount of the check Fill in the numbers representing the dollar amount of the check in the small box to the right of the line for the recipient's name. On the line directly below the recipient's name, you write out the value of the check. For example, if you want to write a check for $110.50, place the numerals in the box. On the line under the recipient's name, you would write, "One hundred and ten and 50/100." ## 4. Write a memo This optional line in the lower left-hand corner of your personal check is a useful spot to add your account number if you're paying a bill or a little note to remind yourself of the purpose of the check. For example, if a relative made a loan to you and you're writing a check to pay it back, you could add, "Loan payoff." ## 5. Sign on the line Finally, you need to sign your full name on the line in the lower right-hand corner of the check. Without your signature, the recipient cannot cash or deposit the check. ## Sources - [Cheque (Wikipedia)](https://en.wikipedia.org/wiki/Cheque) - [ABA routing transit number (Wikipedia)](https://en.wikipedia.org/wiki/ABA_routing_transit_number) - [Magnetic ink character recognition (Wikipedia)](https://en.wikipedia.org/wiki/Magnetic_ink_character_recognition) --- # How to Read Your Credit Report > A section-by-section guide to your credit report: what each part means, what to check for errors and how to dispute an inaccurate item. - URL: https://thegaltimes.com/credit-loans/how-to-read-your-credit-report/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team It's smart to pull each of your three credit reports — Experian, Equifax, and TransUnion — regularly. However, what many people don't know is what to do after they receive them. Learning how to read your credit reports will help you identify any inaccuracies. Let's discuss the different items on your reports and what they mean. ## Why should you pull your credit reports and how do you do this? Credit reports aren't immune to inaccuracies. As there are three different credit reporting bureaus, you need to check all three of your reports for errors. The information on your reports is used to calculate your [credit score](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/), so these errors can keep you from obtaining credit or getting favorable credit terms. To request your credit reports, which you can do for free, just go to [AnnualCreditReport.com](https://www.annualcreditreport.com/). The three bureaus now make a free report available to you every week. You'll need to enter your personal information and answer a few basic questions to verify your identity. ## What's on your credit report and what should you be paying attention to? Getting your credit report is easy, but understanding the data reported can be tricky. Below, you'll see a summary of each of the basic sections, as well as an explanation of any terms that may not be straightforward. Each of the three reports is organized differently, so the sections may fall in a different order, but all of your reports have the same basic information. ## Report Summary Depending on the credit bureau, your report might have a summary, which is just a basic listing of what you can expect to see on your credit report. It will list the number of potentially negative items and the number of accounts in good standing. Note: Your credit score isn't reported on your credit report. ## Personal Information Your personal information will include a record of your name, current and previous addresses, types of residences, year of birth, current and previous employers, and current and previous telephone numbers. If there are a few different spellings of your name, or one or more of your employers or telephone numbers are missing, it's not a big deal. You won't have to dispute this information. The important thing is it has your information, and not someone else's. ## Accounts in Good Standing The "accounts in good standing" section, also referred to as "open and closed accounts" or "satisfactory accounts" section, lists all of your current accounts that haven't gone to collections or been defaulted on. Ideally, each of your accounts will be in good standing. This is the meat of your credit report, and you'll likely see the following items for each of your credit accounts: The name and address of the creditor, the account number, the status of the account, and the status details, are typically the first items listed. The status of your account will say whether the account is open or closed, whether it has been transferred, and whether you've had late payments. The status details will tell you when the account is scheduled to be removed from your credit report. This only applies to closed or transferred accounts. You'll notice the date it's scheduled to be removed is 10 years after it was last reported. Next on the "accounts in good standing" section is the date the account was opened, the date the account has been reported since, the date of the current status, and the date the account was last reported on your credit report. This is followed by the type of account (credit card, student loan, etc.), the terms of the loan, the monthly payment, and the responsible party for paying off the account. Responsibility will indicate whether you're an individual or joint owner of the account, or simply an authorized user. The balance and payment information comes next. Remember, this will include the amounts last reported to the credit bureau and may not reflect your balance as of today. For example, if you charge all of your expenses to a credit card and pay it off each month, you may see a balance because your card activity was reported mid-reporting period. This information includes your credit limit or original amount of the installment loan, the highest balance on the account, the most recently reported balance, and the most recently reported payment. This is followed by any comments (such as transfer information), your payment history, and balance history. When examining the "accounts in good standing" section, you'll want to make sure each of your current accounts are listed and your payment history shows all on-time payments, provided you've made all of your payments in a timely manner. You'll also want to make sure your account limits are correct, as this can affect your [credit utilization ratio](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/). ## Potentially Negative Items The negative information on your credit report will include negative accounts, collections, and public records. Each of these will generally stay on your credit report for seven years, with the exception of Chapter 7 bankruptcies, which stay on your report for 10 years. Negative accounts haven't been paid as agreed. Collections include any accounts sold to a collection agency after the original creditor wasn't able to collect. Public records include bankruptcies, liens, or judgments, and are reported by federal, state, and county courts. This section only includes financial public records, not arrests or any other non-financial record. In this section, you'll want to make sure any negative information is accurate. If there are incorrect accounts or collections, you'll want to [dispute them immediately](https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/) to have them removed from your report. ## Record of Requests In the "record of requests" section, also referred to as "inquiries", you'll find both inquiries shared with others and inquiries shared only with you. Inquiries shared with others are hard inquiries, or those which you authorized a potential creditor to make. These will affect your credit score for the period of one year and stay on your credit report for two years. Inquiries shared only with you are soft inquiries, which don't affect your credit score. Examples of this would be requesting your own credit score or report. Both types of inquiries will include the name and address of the organization that inquired, as well as the date of request. In this section, you'll want to make sure all hard inquiries were authorized by you. You'll likely see any inquiries for new credit or limit increases, as well as inquiries by your apartment management or utility companies. ## What should you do if you need to dispute an item? If there are any relevant inaccuracies on your report, dispute them. After you find an error, get documentation to back up your claim and put your dispute in writing. If your dispute hasn't been answered within 30 days, follow up and continue to monitor your reports. Pull your credit reports regularly to make sure they're all correct. Inaccuracies may lower your credit score and keep you from obtaining credit when you need it. If you find any mistakes, dispute them immediately to keep your credit in good standing. *Editorial note: The free weekly credit reports are a voluntary program run by the three bureaus; the legal entitlement is one free report per bureau every 12 months.* ## Sources - [What is a credit report? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-report-en-309/) - [How do I dispute an error on my credit report? CFPB](https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/) - [Free weekly credit reports, FTC](https://consumer.ftc.gov/consumer-alerts/2023/10/you-now-have-permanent-access-free-weekly-credit-reports) - [AnnualCreditReport.com](https://www.annualcreditreport.com/) - [Credit score in the United States (Wikipedia)](https://en.wikipedia.org/wiki/Credit_score_in_the_United_States) --- # How and Where to Open an IRA > A step-by-step guide to opening an IRA: where to open one, what to look for in a provider, how much you can contribute in 2026 and how to invest it. - URL: https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team [IRAs](https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras) are important tools for saving for retirement. They're also befuddling to many investors, with their rules on contribution limits and counting contributions as a tax deduction. Many people mistakenly think an IRA is an investment itself; it's not, but rather an account that holds your investments. Even the process of opening an IRA can be confusing, though in many ways it's similar to opening a bank account. We're here to walk you through it, step by step. ## Where to open an IRA We're assuming two things: One, you either don't have a 401(k), or you've already contributed enough to grab any matching dollars offered by your employer -- a [401(k) with match](https://thegaltimes.com/retirement-investing/ira-vs-401k-retirement-accounts/) should be your first priority. And two, that you've already decided which kind of IRA account you want -- [traditional or Roth](https://thegaltimes.com/retirement-investing/roth-or-traditional-ira-account/). If you haven't, do that now. Although we focus on traditional IRAs in this post, the process is similar for both. First thing: Figure out where to open the account, which means selecting an online broker or other account provider. In general, you want to look for an account provider that: - Has low or no account fees. - Offers a wide selection of no-transaction-fee mutual funds and commission-free exchange-traded funds. - Provides solid customer service support and investor education resources, especially if you're a new investor. - Has low account minimums and fund minimums. These are two separate things: Some online brokers have a $0 initial deposit minimum for IRAs, but their mutual funds require minimum investments of $1,000 or more. Until you build up to that level, your money may sit in a cash account. Look for a broker that will allow you to get started investing right away with the money you have available. You might also consider other factors: - Are you looking for a managed account? If so, a [robo-advisor](https://en.wikipedia.org/wiki/Robo-advisor), which uses a computer algorithm to manage your investments according to your goals, might be a good choice. You'll pay a small management fee — generally 0.25% or less — but you can sit back and know your investments are in good hands. - Are you interested in a [target-date fund](https://en.wikipedia.org/wiki/Target_date_fund)? These mutual funds are another relatively hands-off option, as they automatically rebalance as you get closer to your retirement age. A target-date fund is a "single fund": You put all of your money in it, and it is diversified among different asset classes. Many IRA account providers offer these, but their expense ratios will vary widely. If this will be your investment of choice, you'll want to look for a broker with low-cost funds. - Do you plan to [trade stocks](https://thegaltimes.com/retirement-investing/beginners-tips-evaluating-stock-performance/)? You should pay attention to commissions and other trading fees. Most major online brokers now charge no commission on online stock and ETF trades, but costs can still add up elsewhere. - Does the provider offer an IRA promotion or bonus for funding a new account? This shouldn't be the sole reason you choose that broker, but it can be a good tie-breaker. ## How to open an IRA Once you've decided where to open your account, the process of opening an IRA will vary slightly by account provider. But in general: - Head to the provider's website. - Fill in some personal information. The provider will ask for your Social Security number, date of birth, contact information and employment information. - Select how you want to fund the account — often by transferring funds from a bank account, transferring existing IRA assets, or by rolling over a 401(k). If you're transferring from a bank or brokerage account, you'll need the account number and sometimes the routing number. ## How to fund your IRA going forward IRAs have annual contribution limits: [In 2026, you can contribute up to $7,500](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) if you're under age 50 or $8,600 if you're 50 or older. These limits cover multiple accounts, so if you have both a Roth and a traditional account, you'll need to keep your total contributions at or under the maximum. Traditional IRAs do not have income limits for eligibility, though deductibility of contributions may be limited if you also participate in a workplace retirement plan. If you're just starting out, it may be helpful to set up automatic transfers — in other words, you'll ask your bank to transfer funds into your IRA on a regular basis. Automatic transfers are the way to go for a few reasons: You get to be lazy and save without clicking any buttons. (No shame in that.) You can set up the transfer for the beginning of the month, before you have a chance to change your mind and, say, do a little late-night infomercial shopping instead. (Maybe a little shame in that.) And perhaps the biggest: Many brokers waive their minimum investment requirements if you agree to automatic deposits of a smaller amount, like $100 or $200 a month. This can help you get in the investing door without a lot of money. Because of that contribution limit, it takes some math to make sure you're contributing enough, but not too much. If you want to spread that $7,500 over a year, contribute $625 a month or $144.23 a week. If you're 50 or older and your limit is $8,600, you can contribute $716.67 a month, or $165.38 a week. ## How to invest your IRA As we noted above, an IRA is not an investment in and of itself. If you do nothing beyond putting money in the account, you're not investing — you're saving. The aforementioned robo-advisors and target-date funds are a good way to get diversification if you want as little involvement as possible, though they'll cost you a bit more than building a portfolio yourself. If you want to get a little hands-on, consider building a portfolio out of index funds and ETFs. To do that, you'll want to first decide on an asset allocation, or the amount of your portfolio you'd like to divide between riskier investments (like stock funds) and safer, income-producing investments (like bond funds and cash). The younger you are, the more you're able to weather market turbulence, which means you have the ability to take more risk with stocks. Note, that's different from having the stomach for that risk, which should also be a consideration — within reason. A virtually unlimited investment selection is one good thing about IRAs compared with 401(k)s, which are tightly curated and typically only offer 20 or so fund choices. Once you've decided on a stock/bond/cash allocation, you can select specific funds to fulfill that. Many brokers have fund screeners to help you, and you can sort by expense ratio, asset class or any number of other features. One quick hack to building a portfolio: Check out the portfolios used by robo-advisors (often displayed on their websites) and target-date funds, then mimic them. Just remember that you'll have to rebalance if things get out of line over time. ## Online brokers: good overall for most IRA investors An online broker is a popular choice for IRA account holders and beginner investors alike for several reasons: helpful customer service, a $0 minimum balance requirement and a large selection of commission-free exchange-traded funds (ETFs) and no-transaction-fee mutual funds. Advanced, active traders also gravitate to brokers with strong trading platforms, research and data. The downside to watch for: trading commissions and other fees that vary from provider to provider. ## Robo-advisors: good for hands-off investors A robo-advisor is a great option for IRA account holders who are looking for investment management, particularly beginners. Many charge an annual management fee of about 0.25% or less of your balance, and some waive it on small balances or require no minimum investment. They invest your money in a portfolio of ETFs with modest expense ratios, and some offer goal-based tools to help you save more for retirement. *Editorial note: IRA contribution limits are adjusted by the IRS every year. The figures here are the 2026 limits.* ## Sources - [Individual retirement arrangements, IRS](https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras) - [2026 contribution limits, IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) - [Individual retirement account, Investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/individual-retirement-account-ira) - [Individual retirement account (Wikipedia)](https://en.wikipedia.org/wiki/Individual_retirement_account) - [Robo-advisor (Wikipedia)](https://en.wikipedia.org/wiki/Robo-advisor) --- # Fixed-Rate vs. Adjustable-Rate Mortgage: Which Should You Choose? > Fixed-rate or adjustable-rate mortgage? How each works, how ARM caps and indexes like SOFR set your payment, and who should pick which. - URL: https://thegaltimes.com/home-mortgages/fixed-vs-adjustable-rate-mortgage/ - Section: Home & Mortgages - Published: 2026-10-08 - Author: The Gal Times Editorial Team After going through the multiple options of which home is right for you, and [shopping for mortgage offers](https://thegaltimes.com/home-mortgages/apr-annual-percentage-rate/), there is still one very important choice you have to make: deciding between a [fixed-rate mortgage](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-fixed-rate-and-adjustable-rate-mortgage-arm-loan-en-100/) and an adjustable-rate mortgage (ARM). A fixed-rate mortgage is a type of loan where the interest rate and monthly mortgage payments stay the same throughout the life of the loan. Conversely, like the name implies, an adjustable-rate mortgage has an interest rate that starts out lower, but can fluctuate with the housing index rate. ## What's a fixed-rate mortgage? A fixed-rate mortgage is always the more secure and conservative choice of the two. The interest rate is higher than what an adjustable-rate mortgage starts out at, but there is the possibility that it could end up being lower than what an ARM will end up being after the introductory rate has elapsed. Fixed rate repayment terms for a loan are typically 15, 20 or 30 years. Since fixed rate loans are usually sold to a secondary market, there isn't really any wiggle room as far as customizing the loan. If I have a fixed-rate mortgage, will my monthly payments be the same throughout the loan? Not necessarily. Your monthly payment includes a number of costs – the mortgage payment itself, mortgage interest, taxes, and insurance, commonly known as PITI, for payment, interest, taxes and insurance. While the payment + interest portion of your monthly payment will stay the same throughout the life of the loan, your taxes may rise, you may need to pay more or less in homeowner's insurance, and if you started off paying [mortgage insurance](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/), you may not need to pay for the entire term. ## What's an adjustable-rate mortgage? An adjustable-rate mortgage can be considered a bit of a gamble. Your interest rate stays the same for an introductory period (it's usually a lower rate than you'd get with a fixed-rate loan), but then fluctuates according to a predetermined index such as the [Secured Overnight Financing Rate (SOFR)](https://en.wikipedia.org/wiki/Secured_Overnight_Financing_Rate), the National Average Contract Mortgage Rate or the prime rate. (Many older ARMs used the London Interbank Offered Rate, or LIBOR, which was retired in 2023 and replaced by SOFR for most new loans.) This means that your monthly mortgage payments will change after the introductory period. Let's say you have a 5/1 ARM with a 4/2/7 cap, and the interest rate is determined by the SOFR plus 2%. That's a lot of numbers – the interpretation isn't as straightforward as, say, a 30-year fixed loan. But it tells you most of what you need to know: when and how much your interest rate will change. (introductory period in years) / (adjustment period) ARM with an (initial adjustment) / (subsequent adjustment) / (lifetime adjustment) cap We can then interpret this loan in the following manner: - 5 (introductory period): Your interest rate will stay the same for the first 5 years. - 1 (adjustment period): After 5 years, your interest rate will change every year. - 4 (initial adjustment cap): The first adjustment, which comes when the 5-year introductory period ends, cannot be more than 4%. - 2 (subsequent adjustment cap): After the first adjustment, your interest rate cannot rise more than 2% with any single adjustment. - 7 (lifetime cap): Your interest rate will never increase more than 7% over your initial rate. - SOFR + 2%: When your rate is adjusted, it will be calculated by taking the SOFR and adding 2%. Many newer ARMs adjust every six months after the introductory period (a 5/6 ARM, for example), and [the most common cap structures](https://www.consumerfinance.gov/ask-cfpb/with-an-adjustable-rate-mortgage-arm-what-are-rate-caps-and-how-do-they-work-en-1951/) are an initial cap of 2% or 5%, a periodic cap of 2% and a lifetime cap of 5%. The upside of an adjustable-rate mortgage is that your initial rate is usually lower, and if the index rate falls, you'll enjoy lower borrowing costs than someone with a fixed-rate mortgage. The downside is that you might find your rate increasing substantially if the index rate rises over the loan term. ## Who should consider an adjustable-rate mortgage? If you plan to hold the mortgage for a very short time (particularly if you plan to sell during the intro period), you'll be protected against rate increases. If you think that interest rates will fall (the average 30-year fixed rate was [7.28%](https://www.freddiemac.com/pmms) in early October 2026, its highest level since late 2023) and can handle a potentially larger payment, you may save money by gambling on lower rates downstream. Sometimes an ARM can be attractive to first-time homeowners because the loan amounts are usually higher, and they start out being cheaper. However, they can also be more confusing and volatile, which can make them a hardship as well. ## Who should stick with a fixed-rate mortgage? The longer you stay in your house (and thus keep your mortgage) the more uncertainty there is in predicting future interest rates. If you're going to stick around for 30 years, you're more vulnerable to substantial rate hikes than someone who's holding the mortgage for only one year past the intro period. If you can't afford your monthly payments if the interest rate goes up sharply, you should avoid the temptation of a lower initial rate. If you think that rates will rise in the future, it doesn't make sense to bet otherwise. If you are planning on staying in the same home for a longer period of time, or even the rest of your life, a fixed-rate mortgage is a much safer bet. With fixed rates high, an ARM's lower starting rate can be tempting, but the savings only last if you sell or refinance before the rate adjusts. And if you already have a fixed-rate mortgage and rates fall, you may be tempted to [refinance your loan](https://thegaltimes.com/home-mortgages/refinance-mortgage/) to get the lower rate. This can end up being extremely costly since you will have to pay closing fees all over again. *Editorial note: Mortgage rates change weekly. The 7.28% figure is the Freddie Mac 30-year average for the week of October 1, 2026.* ## Sources - [Fixed-rate vs. adjustable-rate mortgage, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-fixed-rate-and-adjustable-rate-mortgage-arm-loan-en-100/) - [ARM rate caps, CFPB](https://www.consumerfinance.gov/ask-cfpb/with-an-adjustable-rate-mortgage-arm-what-are-rate-caps-and-how-do-they-work-en-1951/) - [Primary Mortgage Market Survey, Freddie Mac](https://www.freddiemac.com/pmms) - [Adjustable-rate mortgage (Wikipedia)](https://en.wikipedia.org/wiki/Adjustable-rate_mortgage) - [Secured Overnight Financing Rate (Wikipedia)](https://en.wikipedia.org/wiki/Secured_Overnight_Financing_Rate) --- # Does Anyone Still Keep 'Banker's Hours'? > Traditional banker's hours are long gone at many banks, but plenty still keep 9-to-5 branches. Here is what to expect and what to know about deposit cutoff times. - URL: https://thegaltimes.com/banking/does-anyone-still-keep-bankers-hours/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team For many, the phrase "banker's hours" probably conjures up visions of harried workers rushing to deposit their paychecks before the tellers close their windows, or rushing to a bank during a lunch hour to try to resolve some problem because they can never get there otherwise. With many Americans expected to answer work emails around the clock, are banker's hours still a thing? ## Banker's hours long gone If you're going by the historic meaning -- opening around 10 a.m. and closing up shop between 3 p.m. and 4 p.m. -- "bankers' hours," like decent-sized seats in coach, are long gone. You can see the last vestiges in places like U.S. stock exchanges, which trade from 9:30 a.m. to 4 p.m. Eastern time. The minimum hours you can expect to see at a bank these days are generally 9 a.m. to 5 p.m., 5 days a week, but many banks are open longer. Many banks have extended their traditional branch hours, with Saturday hours being common, and have opened in-store branches with even more flexible hours in places like supermarkets so people can bank where and when it's convenient for them. ## Plenty of banks still do 9 to 5 Still, a substantial number of banks have held on to 9-to-5 hours at traditional branches. There are 2 big reasons for this: - Extending bank hours is expensive. - In many cases, longer hours probably don't generate additional transactions compared to standard hours. People who still bank in branches are used to the hours, and not really clamoring for change. Another factor: The people who habitually use branches are probably more concerned about the location of branches than how long they're open. Where you've really seen an expansion is call center and online support, including through social media channels and through online chats on banks' websites. [Mobile and online banking](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/) are available around the clock. Through a combination of hiring more staff and contracting with outside customer service providers, many banks have rapidly expanded the hours you can reach someone remotely, even as their in-branch hours have stayed steady. So if you're willing to call, chat or message a bank customer service rep, rather than talk to them face-to-face, there's a good chance you can reach a real person long past when a traditional bank would be done for the day. ## Hours depend on focus Banks that depend heavily on consumer banking are particularly likely to extend their hours in order to attract and keep customers who like to bank at a branch but can't make it between 9 and 5. Those that specialize in catering to businesses? Not so much. The bigger the retail focus, the more banks expand hours, because commercial customers don't need that. One thing to note: The transactions you make during a branch's extended hours [may not post the same day](https://thegaltimes.com/banking/what-happens-after-you-write-a-check/). [Cutoff times](https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-229) are required to be published in a bank's deposit agreement. Though cutoff times and branch hours could be the same, they aren't required to be and may vary bank to bank. If you're not familiar with your bank's specific policy, be sure to contact your bank. ## Sources - [Regulation CC (12 CFR Part 229), eCFR](https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-229) - [Regulation CC dollar-amount adjustments, Federal Reserve](https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20240513a1.pdf) - [Online banking (Wikipedia)](https://en.wikipedia.org/wiki/Online_banking) --- # Debt Consolidation Loans: How They Work and What to Look For > A debt consolidation loan can simplify payments and cut interest, but fees and discipline matter. See when a loan beats a 0% card and which lender features to look for. - URL: https://thegaltimes.com/credit-loans/debt-consolidation-loans/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team Paying off debt is the first step toward a healthy financial life. A [debt consolidation loan](https://en.wikipedia.org/wiki/Debt_consolidation) may help you take that step. With a debt consolidation loan, a lender issues you a single [personal loan](https://thegaltimes.com/credit-loans/secured-vs-unsecured-personal-loans/) that you use to pay off your other debts, such as medical bills or balances on high-interest credit cards. You'll pay fixed, monthly installments to the lender for a set time period, typically two to five years. The interest rate you receive depends on your individual credit profile, and it usually does not change for the life of the loan. If you're having a hard time keeping up with multiple payments, it's a strategy worth considering. [Taking out a personal loan is not the only way to simplify your finances](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/), however, and it may be more expensive than other options. If you decide to take out a debt consolidation loan, look closely at the fees a lender will charge, what kind of support it offers (such as financial education or payment flexibility) and whether you can use a co-signer to get a lower interest rate. Below are the kinds of lenders that make debt consolidation easier. ## A loan vs. a credit card to consolidate debt If your credit is good, you can apply for a 0% interest credit card, which could save you quite a bit of money if you pay off your debt within the promotional period. But a personal loan offers some advantages of its own. The big advantage to a personal loan is that it forces you to pay off your debt over time. If you're disciplined enough to pay off that low-rate card before the teaser rate expires, that's one thing. If you're not sure you can, though, the personal loan may be the better bet. In addition, a personal loan may [improve your credit score](https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/) by moving credit-card debt over to the installment loan column. The way credit scores are figured, borrowers who use all or most of the available credit on their cards get hit with a significant penalty. ## Why not to choose a personal loan A personal loan to consolidate debt makes sense only if you receive a lower interest rate than you have on your existing debt or if it helps you pay off your debt faster. Otherwise, taking on a new loan to wipe out an old one is postponing the inevitable. Personal loans also frequently carry origination fees, usually from 1% to 10% of the loan amount, though some lenders charge more. You may pay less by simply tackling your existing debts in a systematic way, rather than consolidating. Lastly, the best rates for personal loans will go to those with impeccable credit. If you have [limited credit history](https://thegaltimes.com/credit-loans/personal-loans-for-limited-credit-history/) or a poor credit score, expect to pay rates at the higher end of the ranges shown. ## Lenders that don't charge an origination fee As noted above, many online lenders charge an origination fee. The fee depends on your credit profile and is baked into the [annual percentage rate (APR)](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) that you receive when you qualify for a loan. If you're already in the hole, every penny matters. Some lenders don't charge an origination fee on their loans, have competitive rates and offer other advantages: - Some lenders stand out because they have no minimum credit score requirement and charge no fees, including for late or unsuccessful payments. They often have some of the lowest APR ranges on the market and let borrowers change their monthly payment amounts at any time, which can be helpful when you're managing your cash flow to pay down debt. But they aren't for borrowers on the ragged edge. These lenders typically approve those who have high incomes and are responsible with their finances, so if you're in debt for being careless with your money, you may receive a higher interest rate or not qualify at all. In addition to the state of your credit, they may consider nontraditional data such as your college major and profession to make a loan decision. - Others have a modest minimum credit score requirement and provide next-day funding. They cater to those whose credit isn't great, and they have competitive interest rates for those who are well qualified. If you fall behind on payments, they may charge a late fee, but that fee can sometimes be refunded if you make three consecutive on-time payments. - Some have no minimum credit score and offer large loans to borrowers with high incomes or earning potential. They offer low fixed and variable interest rates. Borrowers typically have solid credit histories and enough cash flow to cover their loan payments. If you are in a position to qualify for such a loan, you are also likely to qualify for a 0% interest card or a cheaper secured loan, so consider all your options to pay down debt. - Others set a higher minimum credit score and offer loans starting from a few thousand dollars, aimed at those who want to consolidate debt. Their borrowers tend to have high credit scores and high incomes, so they aren't ideal for borrowers with bad credit. They often offer some flexibility around payment dates. ## Lenders for financial discipline Installment loans demand more discipline than credit cards. Some lenders take that discipline a step further: They accept only borrowers who are paying off credit card debt, set a minimum credit score and a maximum debt-to-income ratio, and charge an origination fee but no late fee. Each borrower is assigned a point person who will learn the customer's financial habits and guide him or her out of credit card debt. ## Lenders that allow co-signers Some lenders are a smart choice if you have bad credit but also have people willing to help you pay down debt. They reward borrowers who have multiple sponsors on a loan by giving them lower rates or allowing them to borrow more money. Sponsors can back borrowers for as little as $100. The number and credit quality of sponsors determines the rate reduction or loan amount the borrower receives. Borrowers can keep adding sponsors during the life of the loan. Other lenders typically allow a single co-signer. *Editorial note: Origination fees and rates vary widely by lender and credit profile; compare current offers before borrowing.* ## Sources - [Credit counseling, debt settlement, debt consolidation, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/) - [Loan interest rate vs. APR, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) - [Consumer credit (G.19), Federal Reserve](https://www.federalreserve.gov/releases/g19/current/) - [Debt consolidation (Wikipedia)](https://en.wikipedia.org/wiki/Debt_consolidation) --- # Credit Unions and Banks: What's the Difference? > Banks and credit unions look alike but differ in ownership, access, service, fees, rates and technology. Here is how to choose between them. - URL: https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team Banks and credit unions look a lot alike. They both offer [checking accounts](https://thegaltimes.com/banking/6-must-have-features-for-checking-accounts/), savings accounts and ATMs. They both make loans. But there are some big differences consumers need to keep in mind when choosing which type of institution they're going to entrust with their hard-earned money. ## Different bones The differences between banks and credit unions run deep -- all the way down to their fundamental structure and purpose. ## Banks - For-profit enterprises held by private owners or stockholders. - Account holders are called "customers," and the bank uses their money to make consumer loans and other investments. - Any revenue left over after the bank covers all its costs goes to its owners as profit. - Other than their ability to pick up and move their accounts, customers don't have much say in what goes on at their bank, since the institution is expressly run for the benefit of the owners, not them. ## Credit unions - Nonprofit enterprises (and thus exempt from most taxes). - Account holders are called "members," and they all have an ownership stake in the credit union. - Like a bank, the credit union uses account holders' money to make loans, but unlike a bank, any "profits" go back to members in some form. - The structure of credit unions generally gives members much more say over how the institution is run than customers at banks have. Those dissimilarities can ultimately make a big difference to the consumer. A credit union is not for profit, so if there are any profits, they're usually returned to the members in the form of discounted lending, higher deposit rates and servicing the accounts. ## Limited access Another big difference: Not just anyone can join a credit union. Practically anyone is free to open an account or get a loan from a bank. There aren't many membership requirements, whereas credit unions are there for a specific group of people who share some commonality, and you need to be able to meet that requirement in order to join. That "[common bond](https://mycreditunion.gov/about-credit-unions/credit-union-different-than-a-bank)," as it's known to regulators, could be anything from working for the same company or industry, to residing in the same town, to having family members who are eligible to join. But with more than 146 million members at federally insured credit unions in the U.S. alone, according to the [National Credit Union Administration](https://ncua.gov/files/publications/analysis/quarterly-data-summary-2026-Q2.pdf), most people who live in a reasonably populated area are probably in at least one credit union's "field of membership." Still, that's one reason credit unions tend to be smaller than banks -- the largest U.S. bank alone holds roughly twice the assets of all the credit unions in the country put together. ## Customer service If you care about being treated like a human being when dealing with your financial institution, rejoice: Both banks and credit unions are capable of offering good customer service. In fact, getting good treatment from your financial institution is more about size than it is about whether it's a bank or credit union. In a 2025 national customer satisfaction survey, credit unions averaged 79 out of a possible 100 points for overall satisfaction, nearly level with banks overall at 80. Regional and community banks scored highest at 83, while national banks came in at 79. Customer service tends to be better the smaller you go down the chain. It's about that local feel and personalized attention. Of course, that small size can come at a cost: convenience. National banks generally have an edge over both smaller banks and credit unions when it comes to the availability of ATMs. That's despite the fact that credit unions often band together to share branches and ATMs to try and gain a larger footprint. ## Fees and interest rates Surveys have consistently found that a larger share of checking accounts at credit unions are free, meaning there's no minimum balance requirement to avoid a monthly maintenance fee, than at banks. And while a credit union will charge you an overdraft fee, just like your bank will, if you spend more than the balance in your checking account, the fee will probably be less. Overdraft fees at banks typically run roughly $27 to $35 per overdraft, depending on the survey. Interest rates are another area where credit unions have an advantage on some products. Basically, banks, being for-profit businesses, pay as little interest on deposits as they can get away with because their obligation is to make as much money as possible for their owners. Credit unions, on the other hand, generally pay as much interest as they can afford to without losing money. (Yes, losing money is bad, even if you're a nonprofit.) That translates to credit unions paying higher rates on some savings products. According to the National Credit Union Administration, [at the end of 2025](https://ncua.gov/analysis/cuso-economic-data/credit-union-bank-rates/credit-union-and-bank-rates-2025-q4) credit unions paid an average of 0.74% on money market accounts, or MMAs, versus 0.52% at banks, and 2.95% versus 2.29% on one-year certificates of deposit. Banks paid slightly more on regular savings and interest checking. Of course, getting 0.74% on an MMA over 0.52% probably isn't going to make a huge difference to you financially, but if getting the best rates on your deposits is important to you, you're more likely to find them on money market accounts and CDs at a credit union than at a bank. ## Technology While they're generally equivalent to banks of similar size, credit unions typically lag behind the largest banks when it comes to fancy technology, mostly because they just don't have the size or scale to compete with a behemoth. There's a huge difference, even within the banking industry. The technical capabilities of the larger operators simply take away any opportunities for smaller banks to compete. Ultimately, dollars buy technology and allow more things to happen, and in the banking industry, they're not always prepared to spend the dollars. That money pays off in [mobile apps and websites](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/) with more features, more modern design and other perks for customers. The funny thing is, a lot of consumers don't seem to notice. Still, if you're the kind of person who wants to get the latest tech features first, you're more likely to find that at a larger bank. They've simply got the resources. *Editorial note: Membership totals, deposit rates and customer-satisfaction scores are updated by their publishers every quarter or year. Figures reflect the latest data available in October 2026.* ## Sources - [Quarterly data summary, Q2 2026, NCUA](https://ncua.gov/files/publications/analysis/quarterly-data-summary-2026-Q2.pdf) - [Credit union and bank rates, Q4 2025, NCUA](https://ncua.gov/analysis/cuso-economic-data/credit-union-bank-rates/credit-union-and-bank-rates-2025-q4) - [How is a credit union different than a bank? MyCreditUnion.gov](https://mycreditunion.gov/about-credit-unions/credit-union-different-than-a-bank) - [Credit union (Wikipedia)](https://en.wikipedia.org/wiki/Credit_union) - [ACSI Finance Study 2025](https://theacsi.org/news-and-resources/press-releases/2025/02/25/press-release-finance-study-2025) --- # Could a Bank Run Like the One in Greece Happen Here? > What a bank run is, why deposit insurance and supervision mostly prevent them in the U.S., and the cases where runs still happened. - URL: https://thegaltimes.com/banking/could-a-bank-run-like-the-one-in-greece-happen-here/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team Imagine waking up to news that your bank is closed for the week, your daily cash withdrawals are limited to less than $70, and your savings might be converted to a new currency before you have a chance to access your account again. That's exactly what happened in Greece in 2015, as citizens faced new restrictions designed to prevent a nationwide [bank run](https://en.wikipedia.org/wiki/Bank_run). The [capital controls](https://en.wikipedia.org/wiki/Capital_controls_in_Greece) stayed in place for more than four years and were fully lifted on September 1, 2019. ## Birth of a bank run In late June 2015, Greek leaders failed to reach a deal with their country's creditors, instead announcing a referendum on all the concessions the country would have to make to extend its long-running bailout. Greek account holders, worried their Euro-denominated savings would be endangered by an exit from the eurozone, flocked to ATMs, which were quickly emptied out. On June 28, Greek regulators announced the country's banks would remain closed until July 6 to avoid a full-scale bank run, and that transfers of cash out of the country would be limited. But what is a bank run? And could something similar happen here? ## A less fun version of musical chairs A bank run is when a large number of a bank's account holders show up at branches -- or, today, log in to their banking apps -- usually spooked by some negative news and fearing the bank is going under, and try to withdraw all their money at once. Bank runs often escalate quickly; seeing a run start often leads more panicked account holders to demand their money, which further depletes the bank's reserves and further stokes panic. Account holders think they'd better take out their money, too, because money is going to be doled out on a first-come, first-served basis. Think of it as a less fun, high-stakes version of musical chairs for account holders, except instead of ending up without a chair, you end up without your life savings. ## Bank runs are contagious and hard to stop Even worse, bank runs can be contagious, quickly spreading from truly broke banks to banks that are perfectly solvent. During panics like the Wall Street crash of 1929, healthy and shaky institutions alike were besieged by account holders demanding their money back. The problem with bank runs is that they can cause a breakdown of the entire banking system, even though there's no hard evidence of a bank being insolvent. You can have a perfectly solvent situation, everything is going OK, and for some reason people get nervous, and all of a sudden the system can come crashing down. Once a bank run gets going, even a healthy bank can have a hard time stopping it because just giving everyone their money right then and there usually isn't an option. Banks don't keep everyone's money sitting in a giant vault somewhere ready to hand out when depositors ask for it. Instead, they're taking consumers' deposits and using them to make longer-term investments, such as loans to consumers and businesses, so they can make money -- and pay depositors interest. Many depositors line up to take out their savings from a bank, but the bank, as it normally does, makes investments that cannot be turned into cash quickly enough to satisfy all of those savers immediately. ## Deposit insurance mostly stops the runs Thankfully, bank runs are rare in the U.S. these days. Even runs on individual banks are very rare because of the deposit insurance offered by the [Federal Deposit Insurance Corp.](https://www.fdic.gov/resources/deposit-insurance/), or FDIC, which covers up to $250,000 per depositor, per insured bank, per ownership category. The [National Credit Union Administration](https://ncua.gov/consumers/share-insurance-coverage), or NCUA, offers the same level of deposit insurance for many [credit unions](https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/). Backed by the "full faith and credit of the U.S. government," that insurance pays back account holders when their bank or credit union can't. To the extent that people are confident in the government, even if their bank is insolvent, they don't feel any rush to go take out their money. Another reason we don't have many bank runs is heavy supervision of banks. Bank regulators such as the Office of the Comptroller of the Currency, or OCC, and the Federal Reserve are constantly monitoring banks' financial condition, ready to step in if they start to look too shaky. When that happens, the chartering authority -- the OCC or individual states -- will close a bank and appoint the FDIC as receiver. ## Runs still happen from time to time There were some incidents during the financial crisis that could be called bank runs, depending on your perspective. For instance, there was a run on money market mutual funds, or MMFs, that ended with the federal government stepping in to guarantee their value. While MMFs aren't technically deposits, and have never been covered by FDIC deposit insurance, they were often used as a safe and convenient place to stash excess cash, similar to a savings account. And then there was the case of a Pasadena, California, bank that had an old-school bank run in 2008, complete with dwindling piles of physical cash and long lines around the block. The run began after a U.S. senator wrote a letter criticizing the bank's lending practices and questioning the bank's solvency. Depositors responded by withdrawing more than $1.3 billion within 11 business days after the letter went public. More recently, in March 2023, a California bank that served mainly technology companies saw depositors try to withdraw about [$42 billion](https://www.federalreserve.gov/publications/review-of-the-federal-reserves-supervision-and-regulation-of-silicon-valley-bank.htm) in a single day, a run fueled by mobile banking and social media. Most of its deposits were above the $250,000 insurance limit. Regulators closed the bank the next day and then moved to protect all of its depositors. Incidents like these are why regulators keep the list of struggling banks secret -- if the list was made public, it might spur runs on those institutions. In fact, account holders don't typically find out their bank is insolvent until after it's been taken over by the FDIC, usually after business hours on a Friday. The branches typically reopen on Monday under new ownership, while ATMs and online services remain available through the transition. *Editorial note: The standard deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category, as of October 2026. Coverage rules are set by law and can change.* ## Sources - [Deposit insurance, FDIC](https://www.fdic.gov/resources/deposit-insurance/) - [Share insurance coverage, NCUA](https://ncua.gov/consumers/share-insurance-coverage) - [Review of the Federal Reserve's supervision of Silicon Valley Bank, Federal Reserve](https://www.federalreserve.gov/publications/review-of-the-federal-reserves-supervision-and-regulation-of-silicon-valley-bank.htm) - [Bank run (Wikipedia)](https://en.wikipedia.org/wiki/Bank_run) - [Greek government-debt crisis (Wikipedia)](https://en.wikipedia.org/wiki/Greek_government-debt_crisis) --- # Can You Discharge Student Loans in Bankruptcy? > Student loans can be discharged in bankruptcy, but only if you prove undue hardship. Learn the Brunner test, the newer federal attestation process, and the costs. - URL: https://thegaltimes.com/credit-loans/student-loans-bankruptcy/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team Bankruptcy can be a way to get your finances back on track, but it isn't for the faint of heart: It'll be on your [credit history for seven to 10 years](https://thegaltimes.com/credit-loans/how-to-read-your-credit-report/), which will make it more difficult for you to qualify for a mortgage or auto loan or get a lease on an apartment. When it comes to student loans, you might have heard that they can never be discharged in bankruptcy -- but that's a common misconception. This belief might explain why only 0.1% of debtors attempted to have their student loans forgiven, or "discharged," through bankruptcy in 2007, according to a study on bankruptcy filings. But of those who tried, 39% got at least partial discharge. Since the Justice and Education departments issued new guidance in November 2022, attempts have increased, though they remain a small share of bankruptcy filings. So although it's hardly a shoo-in, there is some possibility. First, talk to your loan servicer about your circumstances and take advantage of other repayment options, including deferment and forbearance. Federal repayment options are also changing: a new [Repayment Assistance Plan](https://studentaid.gov/) became available on July 1, 2026, and older income-driven plans are scheduled to be phased out by 2028. Exploring these options will both help ease your burden and increase your chances of finding student loan relief through bankruptcy. If you decide to go ahead, you'll most likely file for one of the two main types of personal bankruptcy protection: [Chapter 7 (liquidation)](https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics) or [Chapter 13 (reorganization)](https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics). Both carry the opportunity to reduce or eliminate your student debt. And, in either case, all wage garnishments and collection attempts, such as phone calls and letters, will stop while your case is open. ## How it works Like a few other types of debt, student loans are initially exempt from discharge when you file for bankruptcy. That doesn't mean they can't be discharged at all -- but it will require an extra step in your Chapter 7 filing known as adversary proceedings. That's when you take your loan holder to court within your bankruptcy filing. For federal Direct Loans held by the Department of Education, you complete an [attestation form](https://www.justice.gov/civil/file/1553726/dl) that the Justice Department uses to decide whether to agree that repayment would be an undue hardship. If it does, it recommends discharge to the court, which isn't bound by that recommendation. This process doesn't cover [private loans](https://thegaltimes.com/credit-loans/shopping-for-a-student-loan/) or most older federal loans unless they were consolidated into Direct Loans. Once you've started that process, there are a couple of tests the courts use to determine whether your payments would pose an "undue hardship." The more common test is called the Brunner Test, named after the 1987 Brunner v. New York State Higher Education Services Corp. case. It has three parts: - You must prove that your payments would keep you from maintaining a "minimal" standard of living. - You must prove that additional circumstances, like disability or other health issues, will keep you from making your payments for a significant portion of the remaining repayment period on your loan. - You must prove that you've made good-faith efforts to repay your loans, like changing your payment plan or contacting your student loan servicer. Congress has never defined "undue hardship" in the bankruptcy code, so there's a lot of room for interpretation. That means your outcome will depend heavily on external factors, such as who oversees your case and what state you're in. Generally, though, good bets for discharge usually include loans for fraudulent schools and individuals with permanently debilitating medical issues that would make it impossible to earn a living. Chapter 7 cases take four to six months to complete and stay on your credit history for 10 years, but those with a steady income may not qualify for it. If you don't qualify or you're not able to prove undue hardship, you may be able to opt for Chapter 13, which sets you up on a payment plan for all your major debts. Chapter 13 is useful for people who have fallen behind on the more serious debts, like taxes, house or car payments. It lets them repay those debts over a period of time. The biggest upside to Chapter 13 is that the court, not your student loan holder or servicer, dictates how much you'll pay each month. However, if you aren't able to stick to those payments for the three to five years Chapter 13 cases usually take, your case will be dismissed and your accounts will go back into collections. After you come out of Chapter 13 bankruptcy, which stays on your credit history for seven years, you'll have to start making regular payments on any remaining debts. ## Financing your bankruptcy Filing for bankruptcy can be expensive in itself, costing anywhere from hundreds to thousands of dollars. Court filing fees alone are $338 for Chapter 7 and $313 for Chapter 13, and adding adversary proceedings to your list will increase the cost. With Chapter 7 bankruptcy, you'll have to pay your attorney upfront. That's because the debts that would be erased would have to include your lawyer's fees. In Chapter 13 bankruptcy, you can work out a payment plan with your lawyer. However, since Chapter 13 takes so much longer and requires more billable time from your lawyer, it'll likely end up costing much more than filing for Chapter 7. First, meet with the attorney and talk about the best ways to pay for it. Maybe you don't want to take another job because it could change your income level. A better approach may be to stop paying certain bills and start hoarding up that money for a few months. If bankruptcy appears to be your only option, it is possible to get relief that way. But you can probably expect to get more relief from other debts, such as medical expenses and credit cards, than from student loans. The mindset you want to have is that this is a very, very difficult thing to get. But that doesn't mean that you can't get relief in bankruptcy court from other debts. *Editorial note: Federal student loan repayment plans are changing through 2028, and court fees and Justice Department procedures can be updated. Check current rules before filing and consult a bankruptcy attorney.* ## Sources - [Guidance on student loan dischargeability proceedings, U.S. Department of Justice](https://www.justice.gov/civil/file/1553726/dl) - [Chapter 7 bankruptcy basics, U.S. Courts](https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics) - [Chapter 13 bankruptcy basics, U.S. Courts](https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics) - [Federal Student Aid](https://studentaid.gov/) - [Bankruptcy in the United States (Wikipedia)](https://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States) --- # Beginner's Tips for Evaluating Stock Performance > How new investors can research stocks: know the business, check earnings and P/E ratios, avoid common trading traps and keep costs low. - URL: https://thegaltimes.com/retirement-investing/beginners-tips-evaluating-stock-performance/ - Section: Retirement & Investing - Published: 2026-10-08 - Author: The Gal Times Editorial Team There are thousands of U.S. stocks traded on the major exchanges. In order to narrow that massive list down to build an effective portfolio of investments, you'll need to do a little research, a bit of math, and keep a careful eye on industry and market developments. Of course, any [well diversified portfolio](https://thegaltimes.com/retirement-investing/retirement-investing-through-the-decades/) will include not only equities, but bonds and international investments, as well as cash and near-cash (short-term bonds). And though there is always risk involved, a wise investor follows a prudent path to profits. That begins with a careful assessment of stock value and performance. ## Know what a company does best A common recommendation is that investors buy stocks of companies they know and like. The challenge is, as consumers, many times we only "know" a limited amount about our favorite brands – and may only have a handful of companies that we are really loyal to. A diversified portfolio can mean having a dozen or more stock holdings. Having a deep familiarity right off the bat with that many companies is unlikely, but still, doing research into your favorite brands in order to determine if they would be a good fit for your portfolio is a great place to start. Then, as you round-out your investment holdings, you can research and learn about other companies that deserve your ownership stake. ## Consider earnings: past and future When it comes to investing in stocks, it's all about earnings. Some companies may be good at raising capital, commanding social media buzz and grabbing headlines — but rarely make a profit. When it comes to giving an investor a return on their money, it usually means finding companies with solid corporate earnings. As you narrow down your list of prospective stock investments, look for [earnings per share](https://en.wikipedia.org/wiki/Earnings_per_share). Most any stock profile page will have it listed. It may be followed by (ttm), which means "trailing twelve months." Now you want to research what the historical earnings growth rate has been – and what analysts are predicting the growth rate to be going forward. All of the popular financial sites will also have this information listed as a part of a stock profile, often under "analyst estimates." Stocks that have a solid history of growing profits and have an optimistic outlook for continued earnings expansion can be good candidates for your portfolio. Companies that pay out dividends to investors may deserve even additional consideration. ## Compare P/E ratios Dividing the company's stock price by its current earnings per share will also reveal another critical piece of information: the [price to earnings (P/E) ratio](https://en.wikipedia.org/wiki/Price%E2%80%93earnings_ratio). In fact, you don't even have to do this simple math, either. The P/E ratio is included on web stock profiles as well. Comparing a company's P/E with its competitors, its industry and the market as a whole can give you a good idea of its value, though there is no "perfect" P/E. A company with strong prospects for earnings growth along with a P/E that is lower than its competitors may be a capable contender for your stock portfolio. ## Trading tips As a new stock investor, stay ahead of the game and try not to fall for these common trading traps: - Trading too often. Trading costs can add up quickly, considering commissions, fees and taxes. Invest for the long-term by buying stocks that you feel comfortable with holding for years. - Falling for "hot tips." Resist buying a stock that you haven't thoroughly researched. - Going too deep into one stock. [Diversify your holdings](https://en.wikipedia.org/wiki/Diversification_%28finance%29) with exposure to different industries, countries and company sizes. - Trading on fear or greed. Remember, you want to buy stocks on sale and remember to trim your winners now and then to protect your profits. ## Minimize expenses We've only barely scratched the surface to the process of evaluating stock performance. Digging deeper to find great stocks to invest in can involve tracking industry trends, considering a company's assets, liabilities and much more. So many books, websites, television networks and advanced courses are dedicated to the topic. It all begins with finding a company you love, doing proper due diligence and monitoring your investment's progress. Real stock wonks enjoy reading corporate annual reports, balance sheets, stock charts and analyst opinions. Minimizing expenses is also important. Finding a [brokerage firm](https://thegaltimes.com/retirement-investing/how-and-where-to-open-an-ira/) that can offer you an affordable stock trading account along with ample research resources is a critical part of investing success. Most major online brokers now charge no commission on online U.S. stock trades, so compare their other fees and the research they provide. ## Sources - [Stocks, Investor.gov](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks) - [Price-to-earnings ratio, Investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/price-earnings-ratio) - [Price-earnings ratio (Wikipedia)](https://en.wikipedia.org/wiki/Price%E2%80%93earnings_ratio) - [Earnings per share (Wikipedia)](https://en.wikipedia.org/wiki/Earnings_per_share) --- # APR: What Annual Percentage Rate Means and How to Use It > APR, interest rate, nominal and effective rates explained with worked examples, plus why total cost beats APR when you may move or refinance. - URL: https://thegaltimes.com/home-mortgages/apr-annual-percentage-rate/ - Section: Home & Mortgages - Published: 2026-10-08 - Author: The Gal Times Editorial Team If you've ever applied for a loan or paid off a credit card bill, chances are you've come across the term APR, or [annual percentage rate](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/). But the difference between nominal and effective rates, APR and interest, can stymie anyone. We'll break down how APR is calculated, and how you can use it to evaluate a loan. ## Compounding: More powerful than Superman and ninjas combined When you see a loan, you'll typically see the "rate" -- that's actually the nominal APR, or the amount that your loan balance is charged every month, multiplied by 12. If your rate is 4.8%, you'll be charged 0.4% of your remaining balance every month (4.8% / 12). But this doesn't take into account compounding, where the charges get added back into the loan balance, thus accruing interest, thus adding to your loan balance...in the end, you'll owe a lot more than 12 months * 0.4% monthly interest * your balance. Consider: if you were to borrow $1,000 from a friend at a monthly interest rate of 0.5%, how much would you actually pay them back at the end of the year? At first glance, it may seem like the answer would be $1060 (12 months * 0.5% * $1,000), but that wouldn't take into account the effects of compound interest. Instead of being charged 6% one time, the $1,000 loan is accruing 0.5% interest a month, and the interest gets added back into the outstanding loan balance, so at the end of month one, the amount will be $1,005. At the end of the next month, the 0.5% interest rate is applied to $1,005, not the original amount, so your outstanding balance would be $1,010.03. Finally, at the end of 12 months, you'll have to pay back $1,061.68, for an effective interest rate of 6.168%. This might seem like a marginal difference, but with six-figure loans and decades on the line, it adds up quickly. ## APR, interest rate, tomato, to-mah-to? There are actually four terms you'll need to know: - Nominal interest rate, or the amount that's charged on your loan balance in a given period of time - Nominal APR, or the nominal interest rate multiplied by the number of periods in a year - Effective interest rate, which is expressed annually and accounts for compounding, but not fees - Effective APR, which typically accounts for both compounding and any fees charged on the loan Note that effective APR usually also accounts for fees charged on the loan. With a mortgage, where you pay most fees upfront and they aren't added to the loan balance, you add up the fees paid and divide by the total loan term. Let's go back to the example of a $1,000 loan with a 6% nominal interest rate. We'll further say that your friend charges a $50 upfront fee that isn't added to your balance. To review, the interest rate is the rate used to calculate the amount of interest charged each period. When multiplied by the number of periods in the year, you get your nominal APR. The effective interest rate includes compounding, while the effective APR includes both compounding and fees. ## Using APR to evaluate mortgages What do all these numbers have to do with evaluating your mortgage or other similar loans? Well, unlike a $1,000 one-year loan, mortgages are generally 15-30 year loans for hundreds of thousands of dollars, and the effects of compound interest can mean that the difference between 3.75% and 3.85% will add up over the years. Generally speaking, the higher the APR, the higher the payments over the course of the loan. Let's look at two loans and see how the numbers play out over the course of the loans. Note that both of these are fixed rate, and not variable rate, mortgages. The first is a 30-year, $300,000 mortgage with a 6% APR. Your monthly payment would be $1,798.65. Over the course of 30 years, the total interest paid would be $347,514, for a total payment amount of $647,514. If, however, we were to take out the same mortgage with a 4% APR and $40,000 in one-time fees paid upfront, we would end up paying $1,432.25 for 360 regular payments. At the end of 30 years, you'd pay $215,610 in interest, for a total cost of $255,610. Three decades on, paying the upfront fee was clearly a good idea. But what happens if, after 5 years, you decide to sell your house and move across the country? Is the lower APR, one-time fee mortgage still the best deal? Because of the amortization schedule of a mortgage, your first 20 years of payments could be going primarily to interest. Using the example above, a couple looking to sell their house and move after 5 years still has $279,163 and $271,342 left on the 6% and 4% mortgages, respectively. Adding up the remaining balance, the payments already made and the upfront fees, the 6% loan would cost $387,082, and the 4% loan would cost $397,277. If you plan to stay in your home less than the full loan term, using APR isn't the best way to gauge the total cost. ## So how do you compare two home loans? When considering mortgages, be sure to make sure that you're looking at both the interest rate and the effective APR, as well as any fees and your own plans to move. Run your own calculations based on when you plan to move. Use an amortization calculator to calculate your monthly payment given the rate and loan balance, and to find what the outstanding loan balance will be when you're ready to move. Multiply the monthly payment by the months you'll be in the house, add the remaining balance and any upfront fees, and you'll arrive at the [personalized total loan cost](https://thegaltimes.com/home-mortgages/refinance-mortgage/). Use this figure, rather than interest rate or APR, to evaluate mortgages. One last note -- [adjustable-rate mortgages](https://thegaltimes.com/home-mortgages/fixed-vs-adjustable-rate-mortgage/) are a whole different ball game. Be especially careful when considering these types of loans, as the initial interest rate is often low, but can expose you to much higher rates later on. If you take out an adjustable-rate mortgage, be prepared for much higher monthly payments down the line. ## Sources - [Mortgage interest rate vs. APR, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/) - [Loan interest rate vs. APR, CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/) - [Regulation Z, Content of disclosures (APR), CFPB](https://www.consumerfinance.gov/rules-policy/regulations/1026/18/) - [Annual percentage rate (Wikipedia)](https://en.wikipedia.org/wiki/Annual_percentage_rate) - [Compound interest (Wikipedia)](https://en.wikipedia.org/wiki/Compound_interest) --- # 6 Must-Have Features for Checking Accounts > No minimums, few fees, online bill pay, mobile banking, free ATMs and fraud alerts: what to look for when you shop for a checking account. - URL: https://thegaltimes.com/banking/6-must-have-features-for-checking-accounts/ - Section: Banking - Published: 2026-10-08 - Author: The Gal Times Editorial Team In 2001, [paper checks](https://thegaltimes.com/banking/what-happens-after-you-write-a-check/) accounted for 60 percent of noncash payments. By 2011, they were only 20 percent, and the decline has continued: the Federal Reserve's latest payments study shows checks still falling in both number and value. So as the U.S. moves deeper into the cashless economy, checking account features like [mobile banking and online bill pay](https://thegaltimes.com/banking/online-banking-vs-mobile-banking/) are becoming must-haves. Don't get caught up in the features race when choosing a checking account. Having accounts in one spot and getting [good security](https://thegaltimes.com/banking/online-banking-security-made-easy/) are important, too. Tried-and-true features like free checking and being able to access lots of free ATMs also still rule. When shopping for a new checking account, put these six features on your must-haves list. ## Look for no minimum balance requirements Near the top of the must-haves list is a checking account with no minimum balances. Tying up money in checking accounts is inefficient. You could be earning higher interest elsewhere. For now, [credit unions](https://thegaltimes.com/banking/credit-unions-and-banks-whats-the-difference/) are still a good place to look for accounts without minimum balance requirements. However, some banks still sock you with high minimums or monthly fees if you go below them. Interest-bearing accounts also often carry high minimum balances, yet the yield is measly: according to the [National Credit Union Administration](https://ncua.gov/analysis/cuso-economic-data/credit-union-bank-rates/credit-union-and-bank-rates-2025-q4), the national average rate on interest checking was about 0.15% at credit unions and 0.20% at banks at the end of 2025. For these reasons, treat your checking account like a gas tank. Keep the account's dollar amount within a constant range. Then add to your emergency reserve with any overage. ## Search for accounts with no -- or avoidable -- fees There are still lots of free checking accounts, and they're worth looking into. Look at online banks, community banks and credit unions when hunting for fee-free checking accounts. A Consumer Financial Protection Bureau study shows that big banks generally charge higher fees. However, many credit unions still offer free checking, and online banks also often offer free checking. And there's one more alternative: Bank accounts that aren't free can become free with direct deposit. ## Free online banking and bill pay are available As banks hit the digital highway, online banking and bill pay are must-haves. Using these digital perks, you can bank from anywhere and check up on recent transactions. Even better, many banks and credit unions offer this service for free, including bill pay that lets you pay bills online and even receive e-bills. Free online bill pay helps consumers save money on stamps, and online banking helps save time by making basic transactions. Some banks also offer valuable tools for managing money so you don't get overdrawn. For example, some offer a cash-flow forecast that warns you when you're about to overdraw your account, and others track your spending and set up budget goals. ## Catch this growing trend -- mobile banking Americans are turning to mobile banking in droves. Nearly half of banked U.S. households (48.3%) used mobile banking as their primary way to access their accounts in 2023, according to a [federal survey](https://www.fdic.gov/analysis/household-survey/index.html). A common use is to check account balances or recent transactions. Consumers merely download a free app to tap into mobile banking features. Also, most banks, and many credit unions, now offer [mobile deposits](https://en.wikipedia.org/wiki/Remote_deposit_capture), where you simply take a picture of the check to deposit it. In the old days, the bank lobby would be packed on Fridays with people trying to cash checks. Now, mobile banking is becoming a bank branch. ## Free ATMs are readily available Free ATMs are readily available nationwide. A number of smaller community banks belong to large ATM alliances that offer surcharge-free ATMs around the country and in other countries. Some statewide credit unions also have banded together, and credit unions nationwide have formed networks of fee-free ATMs. There's good reason to avoid fees. The average ATM surcharge has risen to $3.22, according to a 2025 survey, so ATMs with surcharges can quickly add up. When you tack on out-of-network fees, the total charge averages $4.86 per withdrawal. ## Protecting your money is the first line of defense So, make sure your bank has good security. One must-have is the fraud alert that your bank sends, so consumers are notified when there's fraud activity. Other alerts, such as ones that notify you if your balance goes under $50, also are valuable. You can choose to be contacted by text, email or phone. One more security tip: Only download bank apps from an official app store, or from your financial institution. There's a ton of malware in apps, so be careful. *Editorial note: Fees, rates and ATM costs change often. ATM fee averages come from a 2025 survey; compare current terms before opening an account.* ## Sources - [Credit union and bank rates, NCUA](https://ncua.gov/analysis/cuso-economic-data/credit-union-bank-rates/credit-union-and-bank-rates-2025-q4) - [National Survey of Unbanked and Underbanked Households, FDIC](https://www.fdic.gov/analysis/household-survey/index.html) - [Federal Reserve Payments Study](https://www.federalreserve.gov/paymentsystems/fr-payments-study.htm) - [Remote deposit capture (Wikipedia)](https://en.wikipedia.org/wiki/Remote_deposit_capture) --- # 5 Steps to Improving Your Credit Score > Five proven strategies to raise your credit score: check all three reports, pay down cards, shop for credit smartly, pay on time and be patient. - URL: https://thegaltimes.com/credit-loans/5-steps-improving-credit-score/ - Section: Credit & Loans - Published: 2026-10-08 - Author: The Gal Times Editorial Team In the world of personal finance, a lot of things are uncertain: should you pay off debt or save? Purchase a home or rent? Invest in your company's 401(k) or go it alone with an IRA? Sometimes it certainly seems like there are more questions than answers! However, there is one thing that's very clear about our financial lives: our [credit scores matter](https://en.wikipedia.org/wiki/Credit_score_in_the_United_States). In fact, your credit score is undoubtedly one of the most important digits attached to your name. After all, it impacts your ability to purchase a home, the interest rate you'll get on a loan, and possibly even your job prospects. Not to put too fine a point on it, but keeping your credit in tip top shape is one of the best money moves you can make. Unfortunately, though, many of us have made a money mistake (or two) in the past, and our credit scores aren't in the pristine condition they should be. If this sounds familiar, you're probably on the look-out for some tips to boost your score. Well, look no further than these five proven strategies for putting your past financial missteps to bed and waking up to a brighter fiscal future! ## 1. Cull Your Credit Reports – All Three According to a [Federal Trade Commission](https://consumer.ftc.gov/articles/free-credit-reports) study, one in five Americans has an error on at least one of their three [credit reports](https://thegaltimes.com/credit-loans/how-to-read-your-credit-report/). The three major credit reporting agencies – Experian, TransUnion, and Equifax – each keep a record of how you've handled credit in the past, and mistakes on any of those reports could result in a ding to your credit score. This is why it's very important to regularly look over your credit reports and make sure each is accurate. You're entitled to free reports from each of the three credit reporting agencies, and they now make them available every week – go to [annualcreditreport.com](https://www.annualcreditreport.com/) for more information. ## 2. Pay Down Your Credit Cards A whole 30% of your credit score is determined by how much outstanding debt you have so it's important to prioritize reducing the amount you owe. High credit card balances are particularly damaging to your credit score, so throwing as much extra cash as you can at your cards will serve to boost your credit score quickly. ## 3. Shop For New Credit Strategically If you're looking for a new car or home loan, be careful about how you shop for credit. Ten percent of your credit score is determined by how much new credit you've obtained; the scoring models recognize several credit inquiries in a short period of time as an attempt to find a single loan. If you spread your inquiries out too much, they will be interpreted as several different attempts at obtaining new credit, which will damage your score. So if you're in the market for a loan, limit your search to a 14-day period of time, since some scoring models use a window that short. ## 4. Pay Your Bills On Time And In Full The largest factor impacting your credit score, at about 35%, is your past history with making loan and other credit payments on time. If you find yourself forgetting to pay bills by their due dates, this is probably dragging your credit score down quite a bit. To prevent yourself from continuing to pay bills late, buy a calendar and map out the due dates for all your monthly payments. Or alternatively, set an alarm on your phone to alert you pay your bills in a timely fashion. Either way, keeping up with your bills is essential to repairing a poor credit score. ## 5. Be Patient While there are certain moves that will boost your credit score faster than others (like paying down your credit cards; see above), the truth is that it will take several months before your improved financial habits will be reflected in your credit score. Just remember to be patient and keep up with your newfound money skills. Your discipline will pay off in no time! The bottom line: Improving your credit score might seem daunting, but it can be done. Making just a few of the changes above can have a big impact on your score, so jump on the path to credit-worthiness today! *Editorial note: Scoring models and the free weekly report program are set by FICO, VantageScore and the credit bureaus and can change. Percentages reflect the standard FICO weighting.* ## Sources - [Free credit reports, FTC](https://consumer.ftc.gov/articles/free-credit-reports) - [Free weekly credit reports, FTC](https://consumer.ftc.gov/consumer-alerts/2023/10/you-now-have-permanent-access-free-weekly-credit-reports) - [AnnualCreditReport.com](https://www.annualcreditreport.com/) - [What is a FICO score? CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-fico-score-en-1883/) - [Credit score in the United States (Wikipedia)](https://en.wikipedia.org/wiki/Credit_score_in_the_United_States)