What The New FICO Credit Score Changes Mean

Fair Isaac, the giant credit score company, recently announced the biggest change since 2014 in how it determines its FICO credit scores. This new FICO 10 system — expected to go into effect by year’s end — could affect your home buying and credit borrowing in big ways, possibly for the worse and possibly for the better.

But there are a few things you can do to help prevent it from lowering your credit score.

Having good credit is especially important in retirement. It can save you thousands of dollars — with a lower interest rate on a mortgage, car loan or credit card — at a time of life when every penny really counts. And a high credit score could help you get a rewards credit card or a better interest rate with one, making travel in retirement less expensive. Insurance premiums, utility bills and apartment rents may also be more affordable when your credit is in good shape.

Conversely, having a poor credit score could keep you from getting a mortgage on a retirement home or raise your monthly expenses due to higher borrowing costs.


What the New FICO Credit Score Changes Will Do
According to FICO, about 40 million people could see their credit scores rise 20 points or more with the new system. But another 40 million could see their scores drop 20 points or more. And about 110 million people could see their credit scores go up or down by under 20 points.

What’s behind FICO 10? Something known as credit score inflation.

A few years ago, due to a legal settlement, the three major credit reporting agencies (Equifax, Experian and TransUnion) agreed to remove tax liens and judgments from credit reports. That caused millions of Americans to see a boost in their credit scores. The average FICO score climbed to an all-time high of 706 in 2019; scores typically range from 300 to 850.

But lenders weren’t thrilled with this development. Some argued the credit score increases weren’t deserved and could lead some people to get loans and credit cards they wouldn’t be able to pay on time.

According to FICO, a credit card issuer might be able to lower its number of defaults by up to 10% under the new scoring model, though. One reason: FICO 10 will put more weight on a borrower’s rising debt levels. So, if you switched from paying off your cards in full each month to carrying growing balances, you may well see a lower credit score.

3 Ways FICO 10 Could Hurt Your Credit Score
Here are three ways the FICO 10 changes could hurt your credit score:

1. Late payments could trigger a bigger credit score drop than before.

2. If you have a history of not paying off your credit card debt in full every month, your credit score may decline.

3. Personal loans might damage your credit score, especially if you use them to consolidate credit card debt, but then run up credit card balances.

That said, many of the general rules you’ve learned about earning a good credit score still apply under FICO 10. For example, it will still help to pay your bills on time, keep credit cards open and review your credit reports for errors often.

How to Change Your Credit Habits Due to FICO 10
But you may want to tweak your approach to credit management in light of the new scoring changes to come. Here’s how:

Be sure not to be late on your loan and credit card payments. Even the occasional late payment might be a bigger issue under FICO 10.

Make paying off credit cards a bigger priority. FICO 10T (an alternative version of the new scoring system) will look back at how you’ve managed your credit cards over the last 24 months. If you have a history of paying off card balances every month, this good habit should work in your favor.

Be careful how you use personal loans. Using a low-rate personal loan to consolidate credit card debt may still be a smart financial move. However, it will be more important than ever to avoid getting back into credit card debt because a personal loan consolidates your debt.

If you start following the good habits and steering clear of bad ones, you may be able to avoid potential credit score problems in retirement.

Easy Curb Appeal Updates For 2020

Does curb appeal matter if you are trying to flip a house? Yes it does! Research claims that buyers can decide if they would be willing to buy a house within the first eight seconds of seeing the property. What will potential homebuyers see in the first eight seconds after driving up to your property? If you’re listing a house soon and want to see immediate interest, give the below tips a try in order to update your curb appeal and get your home sold fast.

Tidy Up The Yard
You may not have the time or the money to invest in brand new landscaping, but that doesn’t mean that you can’t make the yard look clean. You can buy mulch in bulk at Home

Depot for cheap. Having mulch is the easiest way to transform your yard and make it look neat and fresh. Plant some new flowers in pots placed near your front door, and add a new welcome mat. Finally, Mow the lawn and trim branches.

Clear The Pathways

It's simple enough to get out the hose and spray away all leaves from sidewalks and walkways. Large piles of leaves in the backyard and front can be a turnoff to potential homebuyers because it may make them think that the yard is hard to take care of or that the home is unkempt.

Paint or Power Wash?
Take a walk around your home and inspect the exterior. Do you notice any peeling or chipped paint? It may be time to consider repainting the exterior. Check the walkways, windows, and smaller details that are looking drab. A fast power wash can help transform these areas without costing a fortune. You can easily rent a power washer if you don’t have one.

Add Color

Consider updating your front door for a fresh, new look. Add a pop of color by painting your front door if you don’t have the funds to update the whole house with a fresh paint. A new entry can return between 75–100% of your investment. Follow the above tips for some easy curb appeal fixes to sell your home quickly in 2020. Good luck!

How to Make Your Valentine’s Flowers Last Longer

There is nothing quite like a floral display to add a touch of love and warmth to a room. Receiving a glorious bouquet of

flowers definitely puts a smile on our face and since it’s February, our thoughts turn to Valentine’s Day, romance and that special someone in our life. 

So when that special someone in your life gives you a big bunch of fabulous red roses this weekend and has that silly grin on their face that asks – "Did I do good?", you can give them a winsome smile and let them know how much you love and care for them. 

Try These Tips to Help Your Flowers Stay Fresh
The love that you receive on Valentine's Day can indeed last a lifetime. Don't you wish those romantic roses you receive did too? So when you receive your Valentine’s Day flowers, here are a few tips to keep them looking fresh and beautiful for as long as possible:

Before you start, make sure that your vase is clean. Then remove any leaves from the lower part of the stems that will be submerged in the water.

Trim about 1cm from the end of each stem, at a 45o angle and do this under water. This stops air getting into the stem and makes it easier for the flowers to draw fresh water into their stems.

Re-trim the ends of the stems every day or so, to keep the ends fresh.

Give your flowers the right nutrients to keep them fresh and healthy for longer. Some florists include little packets of flower food with each bouquet. Make sure to use it. Add one packet of flower food every time you refresh the water – either daily or every second day.

Lastly, add a few drops of bleach to the water to help keep the water clean. Remember, only a couple of drops or you will damage the flowers.

More Pro Tricks to Keep Valentine's Day Flowers Blooming

Fresh Flowers need just the right temperature to remain vibrant and blooming. Avoid placing your Valentine's day roses directly under the air conditioner, in direct sunlight, or near a heat source. Natural indoor lighting works just fine for your flowers as long as you're following the tips we've listed above.

Most important of all, make sure to wash the vase clean with soapy and dry it thoroughly each time you want to replace the water. This will help get rid of the bacterial growth and help your flowers stay fresh longer.

That’s the secret to keeping your Valentine’s Day flowers in tip top shape for as long as possible. Happy Valentine’s Day everyone!

U.S. Citizens Will Need to Register to Travel to Europe Starting in 2021

Do you like to travel?  Do you travel to Europe?  If so, you need to read this article...

Here’s what you need to know about the new ETIAS travel authorization requirements.

Europe is the most-visited region in the world, with countries like France, Spain, Italy, and Germany each welcoming more than 37 million international visitors in 2017 alone. In addition to offering some of the world’s best cuisine, museums, and architecture, Europe is a popular destination for U.S. travelers, who don’t need a tourist visa to visit most countries.

But the rules are about to change. Starting on January 1, 2021, all U.S. citizens who want to travel to the 26 members of Europe’s Schengen Zone will need to register with the European Travel Information and Authorization System (ETIAS) or risk being turned away at the border.

Here’s everything you need to know about the new process:

Why is the process changing?
With ongoing terrorism threats, the European Union decided to implement this new travel authorization program to protect and strengthen its borders. By requiring visitors to register, the EU will be able to identify any possible threats or risks associated with travelers coming into these countries before they arrive. U.S. citizens will still be able to enter Europe without registering until January 1, 2021.

Does this mean I need a visa to travel to Europe?
This isn't a visa. European Commission and U.S. State Department officials confirmed to the Washington Post that ETIAS is a travel authorization for visa-free visitors, similar to the U.S. Electronic System for Travel Authorization (ESTA).

According to a fact sheet the European Commission released in July 2018, “The ETIAS authorization is not a visa. Nationals of visa liberalization countries will continue to travel the EU without a visa but will simply be required to obtain a travel authorization via ETIAS prior to their travel.”

“An ETIAS travel authorization does not reintroduce visa-like obligations,” it continues. “There is no need to go to a consulate to make an application, no biometric data is collected and significantly less information is gathered than during a visa application procedure.”


Which European nations will require ETIAS authorization to visit?
The new travel authorization applies to those entering any member country of Europe’s Schengen Zone. Currently, that includes 22 countries that are also members of the EU, four non-EU countries, plus three European micro-states. That means that you’ll need to register starting in 2021 to enter Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland. The micro-states of San Marino, Vatican City, and Monaco will also require the registering.

While Romania, Bulgaria, Croatia, and Cyprus aren’t currently Schengen countries, they are in the process of joining and will be subject to the same requirements once they do.

However, there are still many European nations that aren’t part of the Schengen Zone, mostly in Eastern Europe. That means you’ll still be able to travel to Albania, Andorra, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Georgia, Kosovo, Macedonia, Moldova, Montenegro, Serbia, Turkey, and Ukraine without an ETIAS.

How long will an ETIAS take to process?
Once the ETIAS application is available online, it should only take about 10 minutes to fill out, according to schengenvisainfo.com. To apply, you’ll need a valid passport, an email address, and a debit or credit card to pay the nonrefundable €7 application fee (there are no other fees associated with the program). After you fill out your application online with the personal information on your passport, and answer a series of security and health-related questions, it should be approved and sent to your email address within a few hours after it is checked across security databases like Interpol and Europol. While children under the age of 18 will be required to have an ETIAS, they will not be charged the application fee.

Will you have to reapply for each trip to Europe?
No. After you apply for the first time, your ETIAS will be valid for three years—or until your passport expires, whichever comes first. Because the ETIAS is valid for short-term stays of up to 90 days for both leisure and business travelers, you’ll be able to re-enter Europe multiple times within that three-year period without renewing it, as long as your stay doesn’t exceed 90 days within a 180-day period. Those who want to study or work in Europe will need to apply for a proper visa.

Who else will need ETIAS authorization?
This new program isn’t limited to U.S. citizens. In fact, there are 62 countries whose citizens will be required to have an ETIAS when visiting countries in the Schengen Zone. The list of ETIAS-eligible countries includes Canada, Mexico, Australia, and many more.

Six Key Buying Strategies

Is 2020 the year you finally decide to buy your first home? How much practical, valuable real estate advice did you ignore in 2019? What’s your intent for 2020?


Here are Six Key Buying Strategies to consider when deciding on your first-home buying strategy. This is the thinking to do before you zero in on decor “must haves” like dream kitchens and spa-like bathrooms.  

1. Location, location, location is no joke
Location is the most permanent aspect of real estate; buildings can always be changed. Buy the best location you can afford. Do your homework and talk to real estate professionals to fully understand what location means in the communities and neighborhoods you’re considering for your first home.

Buy at the low end in the best location to ensure your real estate appreciates in value. The most expensive house on a street or in a neighborhood usually has its value suppressed by lesser homes near it. Buy the “least house” on a street or one in the mid-value range and your home may be bumped up in value as high-end homeowners continue to up-grade their castles.

2. Don’t buy your “forever home” too soon
If you are determined that your first home will be your “forever home,” you may be taking on too much. First homes should be financial stepping stones to that ultimate lifestyle realization. Wisely buy and sell two or three homes over many years—building equity as you go—to solidify your financial stability. If you start with a “forever home” and skip this progression, you are searching for a home and a neighborhood to spend 60 or more years in. Really? In a world that changes so rapidly each year, each month, each day, how can you be so sure of what you’ll need and enjoy decades down the road? Buy a very large home for the many kids you want to have and you may overspend for the family you have now or be forced to move out of your too-big, too-much-work “forever home” when the kids leave.

If you’re thinking long term, search out stable economic areas and homes that can be easily modified to add and convert income-generating units. Flexibility of lifestyle and income is what survives over time.

3. Buy in moderation
Maxing out financially on your first home may not be the best real estate strategy. “House rich, cash poor” is not the ideal state to live in to fully enjoy your first home. Spending to the limit leaves no room to improve the home and increase its value. Being cash stretched may put you at financial risk if a big repair like a leaky roof or failed furnace pops up.

Because you qualify for a big mortgage does not mean you have to borrow or spend to the limit. Because you like the expensive home more, does not mean that’s the one you should buy. Is keeping monthly payments manageable more valuable to you than impressing visitors?

Consider your first home as the first financial stepping stone on the way to a mortgage-free forever home. Ask your real estate professional to share a range of financial options with you instead of directing them to “buy as much as I can.”

4. Stop waiting til Spring
Retail shopping has trained shoppers to think seasonally. With real estate, “now” may be the best time to buy. When you’re ready, go. Search and purchase when the masses are not and you may get a terrific buy from a seller who must move immediately and can’t wait for Spring.

Wintery weather may mean less traffic through builders’ sales centers and more attention paid to you. You may even find a few buying incentives thrown in. Wait until Spring and you may pay more and feel very pressured in the process.

5. Buying the country
Can you see beyond idyllic stereotypes of country living when considering "the big move" to cheaper, non-urban real estate? Moving into the suburbs or out into the country may mean you get a bigger house for your budget. If square footage is what matters most now and in the future, away you go.

However, if lifestyle, career opportunities, education choices, internet access, health services, and appreciating real estate value are key considerations, look closely at what you gain and give up by moving out of an urban neighborhood. How many urban problems will you really leave behind? Small town and rural homeowners face many of the challenges city owners do: rising food and fuel costs, rising taxes, and environmental challenges. Which rural concerns like water quality, black outs, less convenience, and scarcity of services may significantly affect your home and lifestyle?

6. What’s your buying style?
If your search for a new home or cottage uses criteria set by “what's on trend," you are following the herd rather than leading yourself. For instance, open concept living space is "in," but not without compromises. If you're not aware what you give up to get "open concept," you have not explored all the options open to you.

Wanting housing similar to or better than your peers may be a sign of compatibility, but make sure you’re not extending yourself financially for superficial reasons. Showing off is not a sound investment strategy. Learn where those you follow originally got the ideas that define their lives. Their reasons for acting may not match yours.

Everyone has to discover what real estate styles and ownership type are right for them. As you learn, be ready to get in there and explore all your options, not just the trendy ones.