25:["$","$L26",null,{"category":"$27","relatedArticles":[{"id":"cG9zdDoxOTkzNQ==","databaseId":19935,"postId":19935,"author":{"node":{"id":"dXNlcjo0Mg==","databaseId":42,"userId":42,"avatar":{"url":"https://secure.gravatar.com/avatar/5785c5fbb3275f03109aed90fc085327?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Dan Rafter has been writing about personal finance for more than 15 years. He is an expert in mortgages, refinances and credit issues. Dan's written for the Washington Post, Chicago Tribune, Phoenix Magazine, Consumers Digest, Business 2.0 Magazine, BusinessWeek online and dozens of trade magazines.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Dan","fullName":"Dan Rafter","lastName":"Rafter","name":"Dan Rafter","postCount":{"pageInfo":{"offsetPagination":{"total":12,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"drafter","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5Mg==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":92,"categoryId":92,"link":"https://smartasset.com/credit-score/articles","name":"Credit Score","postCount":{"pageInfo":{"offsetPagination":{"total":96,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"credit-score","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$28","date":"2014-09-09T10:00:28","excerpt":"

Summer is over and travel deals abound. Maybe you’re planning a blow-out end-of-the-season international trip before the cold weather arrives. But before you head to the airport, make sure that you’ve completed your credit card prep. What Card is Best For Me? That’s right: Before you travel out of country, you need to take certain […]

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","

What Card is Best For Me?

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That’s right: Before you travel out of country, you need to take certain steps to protect yourself from credit card fraud or denied purchases. The good news? These steps are all simple ones that will pay off big while you travel.

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Decide Which Credit Cards to Take

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You probably won’t need all of your credit cards on your vacation. It’s best to leave behind those that you don’t plan on using. There is no reason to bring an entire wallet full of credit cards on your trip. The more cards you bring, the more hassle you’ll endure should you lose your wallet or fall victim to a pickpocket.

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What cards should you leave at home? The odds are that you won’t need any credit cards aligned with specific department stores or gas stations. It’s best to bring only all-purpose cards on your trip, cards that you can use at most locations. And be sure to bring those cards that generate the most valuable rewards points. If you’re spending big on your vacation — and it’s not always easy to stick to a budget when traveling — you might as well boost your rewards.

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Call Your Credit Card Issuers

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Before traveling out of the country, it’s a good idea to call your credit-card issuers to inform them of your travel plans. Many card issuers actively monitor your credit cards for fraud. If they notice several charges in Paris when you’re a resident of New York City, issuers might shut down your card, leaving you in the lurch when you need to use your cards for purchases.

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Before traveling, call the 800 number on the back of your card. Visa recommends that you tell an operator where you are traveling, when you are leaving and when you’re scheduled to return. This will prevent any unwelcome surprises when you’re ready to charge that expensive restaurant meal.

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Learn the Fees

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Many credit-card issuers charge hefty foreign-transaction fees. Be aware of these fees before you travel. You can either use other cards that don’t charge fees or build the transaction fees into your vacation budget.

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Also, before you leave for vacation, it might make sense to stock up on the currency used at your destination. This way, you can use cash for more purchases, eliminating those foreign transaction fees. You can order currency for many destinations at U.S. banks and credit unions. Just make sure to leave enough time; it can take a week or longer for many financial institutions to acquire certain foreign currencies.

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Restrictions

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Some card issuers might place daily spending or withdrawal restrictions on your cards. Before traveling call your card issuer and ask about these restrictions. You don’t want to accidentally trigger a shutdown of your card, especially if you’re short on cash during your trip.

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Store Your Numbers

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Wells Fargo recommends that international travelers store their financial information — including account numbers and toll-free customer-service phone numbers — on encrypted USB flash drives. This way, if travelers lose their cards or have their cards stolen, they can quickly report them missing.

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Don’t Make These 5 Credit Card Missteps

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Photo Credit: flickr

"],"experts":null,"link":"/credit-score/5-essentials-for-international-travel-with-credit-cards","published":{"datetime":"2014-9-9","readable":"September 9, 2014"},"shareInfo":{"title":"5 Essentials For International Travel With Credit Cards","origin":"/credit-score/5-essentials-for-international-travel-with-credit-cards"},"isNewsArticle":false},{"id":"cG9zdDoxMTA5MA==","databaseId":11090,"postId":11090,"author":{"node":{"id":"dXNlcjoyOA==","databaseId":28,"userId":28,"avatar":{"url":"https://secure.gravatar.com/avatar/c2129e3c852ac8063af4562fe9605e22?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She's worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children. Rebecca also holds the Certified Educator in Personal Finance (CEPF®) designation.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Rebecca","fullName":"Rebecca Lake, CEPF®","lastName":"Lake, CEPF®","name":"Rebecca Lake, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":1252,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"rlake","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5Mg==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":92,"categoryId":92,"link":"https://smartasset.com/credit-score/articles","name":"Credit Score","postCount":{"pageInfo":{"offsetPagination":{"total":96,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"credit-score","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$30","date":"2013-10-24T14:30:36","excerpt":"

You’ve done your best to keep up with your debt payments but find yourself falling further and further behind. Debt collectors are calling about unpaid bills and some are even threatening to sue. So what do you do? What credit card is best for me? Filing bankruptcy can wipe the slate clean and get your […]

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","

What credit card is best for me?

","

Filing bankruptcy can wipe the slate clean and get your creditors off your back but it comes at the expense of your credit. Settling your debts is one alternative but it does have some drawbacks. If you’re on the fence about which road to take, the following guide breaks down the basics.

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Filing Chapter 7 Bankruptcy

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You have two options when it comes to a bankruptcy filing and they both work differently. In a Chapter 7 bankruptcy, your debt is wiped out, regardless of how much you owe. The kinds of debts you can get rid of through Chapter 7 include medical bills, credit card bills and unsecured loans. Student loans generally can’t be discharged in either type of bankruptcy unless you’ve got a sustained financial hardship that keeps you from making your payments.

","

To file Chapter 7, you have to meet certain income guidelines under the means test. The guidelines are determined using Census Bureau data. They’re based on where you live and how many people are in your family. You have to be at or below the income limit established for your family size to qualify for Chapter 7, unless you can prove that you don’t have enough disposable income to pay a certain percentage of your debt each month.

","

One disadvantage of Chapter 7 is that you may have to give up some of your assets as a trade-off for eliminating your debt. These assets are turned over to the bankruptcy trustee overseeing your case, who’s responsible for liquidating them and using the proceeds to pay your creditors. Depending on where you live, you can claim federal or state exemptions to protect certain assets, like bank accounts, jewelry or vehicles. But there are limits to how much you can exempt.

","

How Chapter 13 Works

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Chapter 13 is also a way to clear your outstanding debts but the process is a little more involved. Typically, a Chapter 7 bankruptcy can be completed within six to nine months, but it can take up to five years to get a discharge in a Chapter 13 case. Unlike Chapter 7, there are limits to how much debt you can include in a Chapter 13 filing.

","

When you file, you have to agree to pay back some or all of your debts. The amount you have to pay back typically depends on the types of debt included in the bankruptcy and how much you owe. A Chapter 13 payment plan can last three or five years, based on your income. If you default on your payment plan, the case can be dismissed which leaves you open to collection actions and you won’t get back any of the money you paid in.

","

The upside of a Chapter 13 case compared to Chapter 7 is that you get to keep all of your assets. If you’re behind on your mortgage payments, you can also file Chapter 13 to get caught up if a foreclosure is pending. Depending on whether you’re upside down on your home, you could also use a Chapter 13 filing to get rid of a second mortgage.

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Debt Settlement Basics

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Settling a debt means asking your creditor to accept less than what’s owed to resolve the account. Generally, creditors will only settle a debt once your account falls significantly past due. The amount that you can settle a debt for depends on the creditor, but you may be able to settle for anywhere from 35 to 75 percent of the total balance.

","

There are companies that offer debt settlement services for a fee but it’s possible to settle a debt on your own. Once you decide how much you can afford to pay, you just call the creditor up to get the negotiations started. Typically, you have to be able to make one lump sum payment or several smaller payments if your offer is accepted, so you should only consider settlement if you have cash on-hand.

","

If the creditor is willing to work with you, they may try to make a counteroffer but you should only agree to what you can afford. Once an offer is accepted, you pay the creditor and the remaining balance is forgiven. The account will be reported as “Paid” or “Settled” on your credit and you won’t have to worry about any additional collection actions.

","

Debt settlement has advantages and disadvantages compared to bankruptcy. It allows you to get out of debt faster and it’s less damaging to your credit. In terms of the downsides, you may have to report canceled debt on your taxes, depending on how much is forgiven. If you can’t get all of your creditors to agree to a settlement, you may still end up having to file bankruptcy if one of them decides to sue.

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The Bottom Line

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Bankruptcy and debt settlement are just two options to consider when you’re trying to deal with the debt monster. If you’re strapped financially because of a job loss or unexpected illness, bankruptcy may be the only light at the end of the tunnel. Debt settlement, on the other hand, may be the better choice if you want to minimize the impact on your credit. Weighing the pros and cons of each option carefully can help you find the best fit for your situation.

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Update: Have more financial questions? SmartAsset can help. So many people reached out to us looking for tax and long-term financial planning help, we started our own matching service to help you find a financial advisor. The SmartAdvisor matching tool can help you find a person to work with to meet your needs. First you’ll answer a series of questions about your situation and goals. Then the program will narrow down your options from thousands of advisors to three fiduciaries who suit your needs. You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. This allows you to find a good fit while the program does much of the hard work for you.

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Photo Credit: RobertDentonAttorney

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Does divorce affect your credit score? No, not directly, but divorce often does affect your credit score based on the unpredictable costs and distribution of assets central to the process. The division of joint accounts missed payments, and potential increases in debt are common issues that arise. When managing shared financial obligations becomes contentious, the risk of late or missed payments grows, directly impacting your credit score. Additionally, the legal costs and the potential need for new housing or single-income budgeting can strain your financial stability, further influencing your creditworthiness.

","

For help with unique or complex financial issues, including saving for retirement or financially preparing for a divorce, consider talking to a financial advisor.

","

Impact of Divorce on Your Credit Score

","

Divorce itself does not directly affect your credit score, as marital status is not a factor considered by credit scoring models. However, the financial consequences that arise during and after a divorce can have a substantial impact. Here are things that might be impacted, which you should consider.

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Joint Accounts and Shared Debts

","

One of the most significant ways divorce can impact your credit score is through joint accounts and shared debts. When you and your spouse open joint accounts or co-sign for loans, both parties are equally responsible for the debt. Even if a divorce decree assigns responsibility for certain debts to one spouse, both names remain on the account unless the debt is refinanced or the account is closed.

","

If your ex-spouse fails to make timely payments on joint accounts, it can result in late payments or defaults that negatively affect your credit score. Similarly, if either party racks up significant debt on joint credit cards, it can increase your credit utilization ratio, which can also lower your credit score.

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Legal Fees and New Financial Obligations

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The costs associated with divorce, including legal fees and new living expenses, can strain your finances. These additional expenses might increase your credit utilization ratio if you rely on credit cards, potentially lowering your credit score. This can be an unexpected consequence of trying to financially keep up during the divorce process.

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It can be difficult to plan out how much you’ll need but you can try and estimate it with your legal counsel beforehand. Budgeting carefully can help manage these new financial challenges. The more you prepare, the better off you will be, especially if the amount ends up being more than you expected.

","

Changes in Income and Financial Stability

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Divorce often leads to changes in income and financial stability. You may go from a dual-income household to relying on a single income, which can make it more challenging to manage expenses and debt payments. Filing taxes after divorce can cause changes to your paycheck. Reduced financial stability can increase the risk of missed payments, higher credit card balances and difficulty obtaining new credit, all of which can negatively impact your credit score.

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How to Protect Your Credit Score During Divorce

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","

While divorce can present challenges to maintaining a healthy credit score, there are several steps you can take to protect your credit during a divorce and make sure you’re ready for your new financial life. Here are some of the most popular ways:

","$40","

These are just some steps you can take. You may want to work with a professional to help guide your unique situation during difficult financial situations like divorce.

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Rebuilding Your Credit After Divorce

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If your credit score is negatively impacted by your divorce, it is important to take proactive steps to rebuild your credit. Rebuilding your credit can take time, but with consistent effort, you can improve your credit score and achieve financial stability.

","$41","

Again, creating a long-term financial plan might be key to your financial success post-divorce. A financial advisor is uniquely equipped to help set you up with those types of long-term planning solutions.

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Bottom Line

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","

Divorce does have an impact on your credit score that is both indirect and profound due to shared debts, changes in financial stability and increased expenses. While the process itself does not directly influence your credit score, the financial repercussions that follow can be significant. By taking proactive steps such as closing joint accounts, monitoring your credit report and establishing individual credit, you can better protect your credit score during a divorce.

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Financial Planning Tips

","$42","

"],"experts":null,"link":"/credit-score/how-a-divorce-can-affect-your-credit-score","published":{"datetime":"2024-7-12","readable":"July 12, 2024"},"shareInfo":{"title":"How a Divorce Can Affect Your Credit Score","origin":"/credit-score/how-a-divorce-can-affect-your-credit-score"},"isNewsArticle":false},{"id":"cG9zdDo0MTAwMw==","databaseId":41003,"postId":41003,"author":{"node":{"id":"dXNlcjoyOA==","databaseId":28,"userId":28,"avatar":{"url":"https://secure.gravatar.com/avatar/c2129e3c852ac8063af4562fe9605e22?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She's worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children. Rebecca also holds the Certified Educator in Personal Finance (CEPF®) designation.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Rebecca","fullName":"Rebecca Lake, CEPF®","lastName":"Lake, CEPF®","name":"Rebecca Lake, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":1252,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"rlake","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5Mg==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":92,"categoryId":92,"link":"https://smartasset.com/credit-score/articles","name":"Credit Score","postCount":{"pageInfo":{"offsetPagination":{"total":96,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"credit-score","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$43","date":"2015-11-20T13:00:10","excerpt":"

Achieving a perfect credit score is an impressive feat. But only a tiny percentage of consumers ever hit the 850 mark. Getting a perfect score requires a lot of hard work. And while it’ll make you a shoo-in for a loan, a perfect score isn’t necessary to qualify for financing. If you’re focused on nailing that elusive […]

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Check out our budget calculator.

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You Don’t Need a Perfect Score to Get the Best Rates

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One thing people incorrectly assume about having a perfect score is that it’s what you need to get the lowest interest rates. The reality is that when it comes to rates, lenders don’t distinguish between someone who has an 850 score and someone whose score is in the upper 700s or the low 800 range.

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Once you get past a certain point, which for most lenders ranges from 750 to 780, you fall into the best credit risk category. That means that even though you don’t have a perfect score, you’re still going to qualify for the best rates. In short, someone who has an 850 score doesn’t have an edge over someone whose score is 770 or 780.

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Related Article: What’s a Good Credit Score These Days?

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Your Score Can Change Overnight

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Credit scores aren’t fixed and they can change in the blink of an eye. Under the FICO scoring model, the factors that have the most impact on your score are your payment history and the amount of debt you carry.

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If you happen to slip up and miss a payment or you run up a high balance on one of your cards, that can lead swiftly to a dip in your score. Even something as small as applying for a new credit card or loan can knock a few points off that 850 score you’ve worked so hard for.

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Also, the reality is that you have more than one credit score. All three credit reporting bureaus -Equifax, Experian and TransUnion – issue their own version of the FICO score, so yours can vary pretty widely. The odds of pinning down a perfect score with all three at the same time are relatively slim.

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Check out our credit card calculator.

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Good Financial Habits Are More Important

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Your credit score is more than just a number – it’s also a partial reflection of how good you are at managing your money and handling debt. Ultimately, a lender’s goal is not to cherry-pick borrowers who have perfect scores but to find the ones who are most likely to pay back their debts.

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Paying your bills on time, keeping your credit card balances low and using a mix of different types of debt responsibly all show that you’re a good candidate for a loan. Instead of zeroing in on reaching that perfect-score milestone, why not focus on establishing a history as a reliable borrower? Obsessing over getting that perfect 850 is only going to be a source of stress and frustration if you can’t hit your goal.

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