5 steps to trim a subprime car loan rate #chilton #auto #repair

#subprime auto loans

5 steps to trim a subprime car loan rate


  • A subprime car loan is for a buyer with a low credit score.
  • A consumer has the right to dispute any information on a credit report.
  • A down payment of 20 percent will improve your profile with a lender.

Despite the stigma of the word “subprime” when it’s attached to any kind of loan, subprime car loans are on the upswing as a share of overall auto financing. says Melinda Zabritski, director of automotive credit at the credit reporting bureau Experian.

A subprime car loan is for a buyer with a low credit score and a spotty credit history. As a percentage of total automotive financing, such loans represented almost 20 percent of all new-vehicle financing in 2010 from almost 17 percent in 2009, according to Experian. For Experian, a credit score of 670 or lower is considered subprime.

Steven Bowman, chief credit and risk officer at GM Financial, the financing arm for General Motors, says there isn’t much a consumer can do to significantly raise a credit score while negotiating with a dealer’s financing manager.

“It’s (done) over time and not a quick process,” he says.

Still, there are steps you can take in the short term to increase your chances of snagging financing and perhaps lowering the cost of a subprime car loan, even as you confront a lousy credit history.

Obtain your credit score

A key factor in determining creditworthiness and establishing a rate, your credit score is a snapshot of your credit status. Good or bad, it is information you should have before you go car shopping because even for consumers with good credit, their credit score can influence their rate.

You can obtain your credit score through any number of online sites. Some sources offer your score for free as a come-on for other consumer-finance services and others charge a small fee, usually $10 or less. The three national credit reporting bureaus — Experian, TransUnion and Equifax — provide credit scores and are a good place to begin your search.

Aquire your credit report

A credit score and credit report are two different pieces of evidence a creditor will scrutinize when considering a financing application. If your credit score is a snapshot of your creditworthiness, your credit report is its history.

Credit bureaus report the information creditors provide, which isn’t always correct. A consumer has the right to dispute any piece of information appearing on a credit report and should challenge anything that is incorrect. This is particularly true for someone seeking a subprime car loan and who needs to reduce the negative information on his or her credit report.


Moreover, each credit bureau issues its own report and these may differ from one another. Rod Griffin, Experian’s director of public education, suggests obtaining your report in advance of applying for financing to give yourself time to dispute any inaccuracies.

Once you know your credit situation, you can begin to look for ways to improve it. “You need to know exactly what your credit report says,” he says.

Low-Interest Rate Auto Loans and Refinancing #where #to #buy #used #cars

#auto refinance loans

Neighborhood Credit Union Auto Loans

Fuel your dreams with the lowest rate for your new, used or refinanced vehicle!

Take advantage of our 90 Days No Payments**  offer for a limited time, and make no payments on your Auto Loan until 2016 when you apply today! 

With vehicle loan rates starting as low as 2.25% APR *, Neighborhood Credit Union is the number one choice in the Dallas-Fort Worth metroplex for all your auto loans.

Take advantage of our competitive rates on new and used cars, trucks and other recreational vehicles, including boats, RVs and motorcycles for up to 120 months. Or refinance today to lower your monthly payments!

Extend the life of your vehicle and get protection from the unexpected! Our extended Warranty includes:

GAP Protection If your vehicle is declared a total loss by your insurance company due to accident, fire or theft, GAP pays up to 150% of the value of the vehicle.

Mechanical Breakdown Protection Benefits include: Roadside Assistance, Rental Vehicle Assistance, Tire Road Hazard Trip Interruption Reimbursement

Dent Guard Paintless Dent Repairs Automobile Deductible Reimbursement

Low Interest Rate Car Loans #auto #salvage #parts

#lowest auto loan rates

Buying a car is a great accomplishment of the American dream! But, high interest rates are making things difficult for the common man. It is for this reason that Rapidcarloans.net offers auto loans with guaranteed low rates. You can get instant approval even when you have bad credit or no credit history.

Rapid Car Loans cares for you and your wallet and ensures affordable loans. We offer auto loans at competitive interest rates and flexible repayment terms.

New or old – a car is very dear to its owner. Hence, we offer an extensive range of auto loans for used and new cars. Used cars have a low re-sale value and hence lenders consider it a risky proposition. But, Rapid Car Loans doesn’t judge anyone on a single factor. We consider several aspects for your approval. So, feel free to apply.

You need not to worry about your credit score. A large network of lenders allows us to approve car loans with bad credit score as well. Rapid Car Loans provides loans to borrowers with a past bankruptcy. So, don’t hesitate in filling the application form.

You can further lower your interest rate with the help of co-signer loans. Generally, a co-signer is someone who has a good credit standing. If he/she co-signs your loan agreement, your credibility increases. This reduces the risk factor and also your interest rate.

Your information is secured using the SSL certificate. We ensure total confidentiality while handling your application. Once you fill the online application on the website, several competent lenders compete against each other. This helps us to offer you best car loan quotes .

Not only do you have access to several lenders, you also get the opportunity to compare quotes. This will help you choose the best loan terms which will fit your criteria effectively.

Students need a car to commute to college. But, availing car loans with a no credit history becomes extremely tough. This becomes a grave situation as lenders are unwilling to lend money. But, with our low interest car loans, students will not only avail loans, but will be able to build their credit score.

If you think you are paying exorbitantly high interest rates or are simply tired of your rigid loans terms, Rapid Car Loans’ refinancing program helps you get rid of your loan by offering competitive rates.

Rapid Car Loans is an effective online platform to help with your financial needs. One simple application form will open several new avenues for you.

Avail a free car loan quote today!

Auto Loan Rate Comparison Calculator #auto #parts #international

#auto loan interest rates

Auto Loan Rate Comparison Calculator

This calculator that will help you to compare monthly payments and interest costs of auto loans at up to five term and rate combinations simultaneously.

Choosing the Ideal Auto Loan Term

Buying a new vehicle is exciting, but paying for the vehicle can be another story. For those who don t have the cash to pay for the full cost of the vehicle upfront, getting an auto loan is necessary. Here are some tips for choosing the ideal auto loan term.

The Basics

An auto loan allows a consumer to borrow money to pay for a car. The money borrowed from a lender is called the loan principle. Because lenders need a financial incentive for the transaction, they charge interest.

When the consumer takes out the loan, a specific interest rate will be charged in addition to the original loan amount. The principal plus interest is typically due in monthly installments through the entire life of the loan.

Until the vehicle is completely paid off, the lender owns the vehicle, though the borrower is responsible for it. If the borrower misses loan payments, the lender will repossess the car. Once the loan is paid off, the vehicle s title is transferred to the borrower.

New or Used

Auto loan rates for new vehicles are generally better than rates for used cars. In most circumstances, the older the vehicle, the higher the rate. While dealerships sometimes offer zero percent financing for pre-owned stock, usually only new cars qualify for this low rate.

Term Length

Consumers would be wise to sign up for the shortest affordable term, as longer terms can cause consumers to owe more money over the term of the loan than the vehicle is worth. The average term for a loan on a new car is almost 64 months

Know Your Credit

Auto loans are largely effected by credit scores, so it s important for consumers to be aware of their credit score before applying for an auto loan. All U.S. citizens are eligible for a free credit report, which allows them to fix errors and correct bad habits.

Consumers who tend to pay bills late will have a lower credit score, and will often be seen as a risk to lenders, who are assessing whether the loan will be repaid.

Consumers with a less established credit history, particularly young people, may also be charged a higher loan rate as lenders may have difficulty judging how high a risk they are.

Know Your Price Range

Consumers who set a price range before shopping for a new vehicle are less likely to spend over their budget. Online calculators allow consumers to calculate monthly payments to ensure the loan will be affordable. Consumers should spend no more than 20 percent of take-home pay on all household vehicles combined. The 20 percent includes the down payment, principle and interest. Also take into account the costs of fuel, maintenance, repairs, as well as the taxes and fees to register the vehicle with the state.


The decline in a vehicle s value of the course of its life is called depreciation. According to Edmunds, a vehicle depreciates 11 percent the moment it is driven off the lot. The vehicle than depreciates an additional 15 to 25 percent a year. How quickly a vehicle depreciates is determined by mileage, certain extra features and vehicle make.


According to AutoMD.com, more people are keeping their vehicles longer. 78 percent of those polled said they keep their vehicles for more than 10 years.

  • 8 to 10 years: 15 percent
  • 6 to 7 years: 4 percent
  • 3 to 5 years: 3 percent

Whether it is the result of a down economy, the improvement of vehicles longevity or a culture that has turned toward social networking over face-to-face contact, owners are keeping their vehicles for longer. When choosing an auto loan term, consumers should consider how long they plan to own the vehicle, keeping in mind factors such as starting a new family or retiring.

Look at the Total Cost of Interest

A low down payment might seem like a great deal at first, but it could mean more money paid over the loan s term. If not careful, consumers could easily end up upside-down on the car, where more money is owed on the car than the car is worth. A loan amortization calculator will show how much will be spent on interest and what will be owed throughout the life of the loan.


Having disability and life insurance could potentially save money on an auto loan. Some lenders like to know they will be repaid in the event something happens to the borrower.

Don’t Settle

Consumers do not have to go through the dealership to get a loan for their vehicle. Often dealerships do not offer the best rates. Credit unions, banks and online lenders also offer auto loans, and shopping around may turn up a better deal, or provide bargaining power when working with the dealership.

It is best to arrive at the dealership with an approved loan application from another source, so they can know if they are being offered a good financing deal.

Loan applications request income, expenses, debts and employment history. Consumers should be honest in filling out the applications, as all information will be verified and misleading or false information can get the applicant in trouble.

Watch out for Prepayment Penalties

Consumers should read the loan s fine print to be sure they won t be penalized for making extra payments or paying off the entire loan early. Even if it s doubtful the loan will be paid off early, circumstances can change down the road, and what may not be an option at the time of the loan may become possible later.

Facing Rejection

Rather than reapplying for a loan after an application has been rejected, consumers should determine the cause of the rejection to try to remedy the problem. Because lenders primarily look at credit scores for approving loans, consumers should take steps to improve their credit scores before reapplying for an auto loan.

Mortgages & Home Loans – Refinance & Interest Rate Calculators, mortgage rate va loan.#Mortgage #rate #va #loan




American homeowners are tapping their home equity again, with the cash-out share of refinances rising to its highest rate since 2008, according to data from Bla.

Mortgage Calculator

Find out your estimated monthly payment.

Refinance Calculator

Should you refinance your mortgage? Figure your monthly savings. Compare your principal balance in years with and without refinancing.

Loan Calculator

Is home ownership the right path for you? Analyze the total cost to rent versus the total cost to own for a specific period of time.

Mortgage Payment Calculator

Tool to help home buyers estimate the cost of monthly mortgage payments.


Mortgage 101 Daily Rate Averages are collected for standard mortgage programs from over 700 companies in 50 states and the Disctrict of Columbia.

More Rates


Applying for a Mortgage after a Bankruptcy

By understanding the requirements to get a mortgage after a bankruptcy and by carefully rebuilding your credit standing, you can apply for a loan and buy a home.

What Are Typical Mortgage Down Payments?

Traditional mortgage down payments have always been 10 to 25 percent of the total purchase price of the property.

3 Warning Signs of Loan Modification Scams

Loan modification has become very popular in recent years with mortgage lenders. It has been used in a variety of different ways to change the existing terms of mortgages that they hold. While sometimes loan modification can be to your advantage, many times it is not. There are many loan modification scams out there that you should be aware of. Here are a few warning signs to watch out for with loan modification.

The content on this site is provided for informational purposes only and is not legal or professional advice. Advertised rates on this site are provided by the third party advertiser and not by us. We do not guarantee that the loan terms or rates listed on this site are the best terms or lowest rates available in the market. All lending decisions are determined by the lender and we do not guarantee approval, rates or terms for any lender or loan program. Not all applicants will be approved and individual loan terms may vary. Users are encouraged to use their best judgment in evaluating any third party services or advertisers on this site before submitting any information to any third party.

Mortgage rate va loan

Whole Life Insurance with No Medical Exam #getting #a #whole #life #policy #without #a #medical #exam,life #insurance #rate,life #insurance #rates,rates #on #life #insurance


Getting a Whole Life Policy Without a Medical Exam

Nobody wants to spend too much time thinking about the end of their life. However, leaving loved ones in a financial bind is not a good thought either. While it would be ideal if you could save money throughout your life for these expenses, most people need what they make to live on. It’s not at all uncommon for a couple to hit retirement and have no real plan in place for end-of-life expenses. Luckily, there is still the option of no medical exam whole life insurance. Getting life insurance without a medical exam is ideal for many situations, but you need to shop carefully and understand what these policies offer and, perhaps most importantly, what skipping a medical exam could cost you.

The Benefits of Skipping a Medical Exam

There are several benefits to obtaining a no medical exam whole life insurance policy. One of the main reasons that so many people favor no exam whole life policies is because there is no exclusions when it comes to existing health conditions. Many life insurance carriers will refuse to issue a policy for people who have been diagnosed with cancer, have a history of heart problems or even have been smokers throughout their life. With a whole life insurance no exam policy, you can get coverage no matter what your circumstances or your current medical conditions. If you pass away during the period where the policy is active, your dependents will get a lump-sum payment that can be applied to funeral expenses or helping them maintain their current lifestyle while they make other arrangements. In addition, all whole life policies have a cash value and do not expire, unlike term life plans. In short, if you currently have medical conditions that would normally prevent you from getting a policy, this particular type of screening is ideal for the whole life insurance product.

What a No Exam Policy Will Cost You

Forgoing a medical exam is not without a price. It’s important to realize that most no medical exam whole life insurance policies probably have limitations and exceptions to coverage. It’s very common for this type of coverage to have an exclusion period, often as long as two years, sometimes longer depending on the provider. This means that if any of the policy holders die from natural causes or disease during this time their beneficiaries may be left with a reduced settlement or no payout at all; being involved in an accident may or may not apply to this limitation. In addition, buying a whole life insurance no exam policy can be very expensive – often significantly more than a comparable plan where the insured undergoes an examination. Since costs can be as much as double that of a policy issued without an exam, you should try to exhaust that option first. If you’re absolutely sure that an examination would preclude you from a policy (or you just don’t want to subject yourself to a medical exam) we can help. We work with the nation’s top providers of no medical exam whole life insurance, so use the form at the top of this page to view current rates and select the provider that best-fits your current situation.

2017 www.lifeinsurancerates.com
925 Peachtree Street NE Ste 615
Atlanta, GA 30309
Call Center (877) 407-6153

All other trademarks and copyrights are the property of their respective holders.

LifeInsuranceRates.com is not a covered entity for the purposes of the Health Insurance Portability and Accountability Act of 1996 (“HIPPA”). In turn, the additional privacy and security protections provided to individuals under HIPPA do not apply. There are certain state laws which may offer additional rights with regard to disclosure of information. If you are covered under these laws, you may have additional rights and some or all of the above disclaimers, exclusions and restrictions may not apply to you. LifeInsuranceRates.com is an insurance provider referral service and not a life insurance broker or provider. Not all insurers can or will offer you a quote. Rates and fees will vary between insurers and may be dependent on the state in which you live so be sure to compare the associated costs. You may receive a call from a LifeInsuranceRates.com affiliate to determine which policy will offer you the best coverage. None of the companies and/or brands referenced on this website either sponsor, endorse or are in any way affiliated with our company.

Soma Oral: Uses, Side Effects, Interactions, Pictures, Warnings – Dosing #soma #oral, #effectiveness, #satisfaction, #ease #of #use, #medication, #medications, #medicine, #drug, #drugs, #prescription #drugs, #user #ratings, #drug #ratings, #drug #reviews, #rate #a #drug, #treatment, #side #effects, #drug #interactions, #drug #information, #medical #information, #medical #advice, #warnings, #overdose, #drug #images, #over #the #counter, #indications, #precautions, #webmd



Carisoprodol is used short-term to treat muscle pain and discomfort. It is usually used along with rest, physical therapy, and other treatments. It works by helping to relax the muscles.

How to use Soma

Take this medication by mouth with or without food as directed by your doctor, usually 4 times a day.

The dosage is based on your medical condition and response to treatment. This medication should only be used short-term (for 3 weeks or less) unless directed by your doctor. Do not increase your dose or use this drug more often or for longer than prescribed. Your condition will not improve any faster, and your risk of side effects will increase.

This medication may cause withdrawal reactions, especially if it has been used regularly for a long time or in high doses. In such cases, withdrawal symptoms (such as stomach cramps. trouble sleeping. headache. nausea ) may occur if you suddenly stop using this medication. To prevent withdrawal reactions, your doctor may reduce your dose gradually. Consult your doctor or pharmacist for more details, and report any withdrawal reactions right away.

Along with its benefits, this medication may rarely cause abnormal drug-seeking behavior (addiction ). This risk may be increased if you have abused alcohol or drugs in the past. Take this medication exactly as prescribed to lessen the risk of addiction.

Tell your doctor if your condition persists after 2 to 3 weeks or if it worsens.

Side Effects

Dizziness. drowsiness, or headache may occur. If any of these effects persist or worsen, tell your doctor or pharmacist promptly.

Remember that your doctor has prescribed this medication because he or she has judged that the benefit to you is greater than the risk of side effects. Many people using this medication do not have serious side effects.

Tell your doctor right away if you have any serious side effects, including: confusion.

A very serious allergic reaction to this drug is rare. However, get medical help right away if you notice any symptoms of a serious allergic reaction. including: rash. itching /swelling (especially of the face/tongue /throat), severe dizziness, trouble breathing .

This is not a complete list of possible side effects. If you notice other effects not listed above, contact your doctor or pharmacist.

Call your doctor for medical advice about side effects. You may report side effects to FDA at 1-800-FDA-1088 or at www.fda.gov/medwatch.

In Canada – Call your doctor for medical advice about side effects. You may report side effects to Health Canada at 1-866-234-2345.


Before taking carisoprodol. tell your doctor or pharmacist if you are allergic to it; or to meprobamate. tybamate, or mebutamate; or if you have any other allergies. This product may contain inactive ingredients, which can cause allergic reactions or other problems. Talk to your pharmacist for more details.

Before using this medication. tell your doctor or pharmacist your medical history, especially of: a certain blood disorder (acute intermittent porphyria ), kidney disease. liver disease, seizure. personal or family history of regular use/abuse of drugs/alcohol.

This drug may make you dizzy or drowsy. Do not drive, use machinery, or do any activity that requires alertness until you are sure you can perform such activities safely. Avoid alcoholic beverages.

Before having surgery, tell your doctor or dentist about all the products you use (including prescription drugs. nonprescription drugs, and herbal products).

Older adults may be more sensitive to the side effects of this drug, especially drowsiness, or confusion. These side effects can increase the risk of falling.

This medication is not recommended for use during the first 3 months of pregnancy. It may harm an unborn baby. During the last 6 months of pregnancy. this medication should be used only when clearly needed. Discuss the risks and benefits with your doctor.

This medication passes into breast milk and may have undesirable effects on a nursing infant. Consult your doctor before breast -feeding.


Drug interactions may change how your medications work or increase your risk for serious side effects. This document does not contain all possible drug interactions. Keep a list of all the products you use (including prescription/nonprescription drugs and herbal products) and share it with your doctor and pharmacist. Do not start, stop, or change the dosage of any medicines without your doctor’s approval.

Check the labels on all your medicines (such as allergy or cough -and-cold products) because they may contain ingredients that cause drowsiness. Ask your pharmacist about using those products safely.


If someone has overdosed and has serious symptoms such as passing out or trouble breathing. call 911. Otherwise, call a poison control center right away. US residents can call their local poison control center at 1-800-222-1222. Canada residents can call a provincial poison control center. Symptoms of overdose may include: severe drowsiness/dizziness. seizures. slow/shallow breathing, mental/mood changes (such as confusion, hallucinations ), inability to move your legs/arms, shaky/unsteady movement, vision changes (such as blurred vision ).


Do not share this medication with others. It is against the law.

This medication has been prescribed for your current condition only. Do not use it later for another condition unless your doctor directs you to do so. A different medication may be necessary in that case.

Missed Dose

If you miss a dose, take it as soon as you remember. If it is near the time of the next dose, skip themissed dose and resume your usual dosing schedule. Do not double the dose to catch up.


Store at room temperature away from light and moisture. Do not store in the bathroom. Keep all medications away from children and pets.

Do not flush medications down the toilet or pour them into a drain unless instructed to do so. Properly discard this product when it is expired or no longer needed. Consult your pharmacist or local waste disposal company.Information last revised November 2016. Copyright(c) 2016 First Databank, Inc.


Firestone Complete Auto Care Employer Wages, Hourly Wage Rate #car #classifieds

#firestone auto

Average Hourly Rate for Firestone Complete Auto Care Employees

Years of Experience

Average pay is $14.44 per hour for those with five to nine years of experience. Overall, the greater share of Firestone Complete Auto Care folks have one to four years of experience and earn an average approximately $12.09 per hour.


When it comes to location, the highest average paycheck ($18.00 per hour) can be spotted in Phoenix, Ariz.; Miami, Fla. ($14.48), Orlando, Fla. (about $14.03), and Atlanta, Ga. (around $13.00) are the next top-paying cities. Sacramento, Calif. is near the bottom for pay at about $10.50. By state, the highest pay levels are found in North Carolina, where the average Firestone Complete Auto Care employee makes approximately $14.25 per hour.


Trainee Managers represent the higher end of the earnings spectrum — in fact, median pay for this job is the highest at $15.75 per hour — though Automotive Service Managers, Automotive Technicians, and Automobile Mechanics also do fairly well at around $15.02, $14.21, and $12.50, respectively. Near the bottom at Firestone Complete Auto Care are Retail Sales Associates, pulling in an average of just $10.00.

Certifications and Degrees

ASE Master Technicians have significantly higher pay than non-accredited workers at about $18.93 per hour. Firestone Complete Auto Care compensates Associate’s Degree-holders the most at $16.13 per hour.


When it comes to skills, Troubleshooting seems to bolster pay the most; employees who claim proficiency also enjoy a median income of around $14.89 per hour. One of the more prevalent skills at Firestone Complete Auto Care is Automotive Engine Repair, with the larger part considering it a key competency. Key skills also include Maintenance, Electronic Troubleshooting, and System Repair.


Firestone Complete Auto Care’s employees who answered the questionnaire are largely male (the male-to-female ratio is more than 3 to 1).

Benefits and Perks

Paid time off is hard to come by at Firestone Complete Auto Care; the company rewards only one in four employees with paid vacation time and only one in seven workers with sick leave. A strong majority of survey participants allocate some part of their earnings to the company-sponsored 401(k) savings plan. Health insurance comes as part of the deal for a strong majority of respondents, and a majority of survey participants report receiving dental coverage as well. A few more workplace perks are tuition reimbursement, 401(a), and life insurance.

Roth IRA #roth #ira #rate


Roth IRA


Similar to other individual retirement plan accounts, the money invested within the Roth IRA grows tax free. Other defining characteristics of a Roth:

  • Contributions can continue to be made once the taxpayer is past the age of 70½, as long as he or she has earned income .
  • The taxpayer can maintain the Roth IRA indefinitely; there is no required minimum distribution (RMD) .
  • Eligibility for a Roth account depends on income.

Establishing a Roth IRA

A Roth IRA must be established with an institution that has received IRS approval to offer IRAs. These include banks, brokerage companies, federally insured credit unions and savings loan associations.

A Roth IRA can be established at any time. However, contributions for a tax year must be made by the IRA owner’s tax-filing deadline, which is generally April 15 of the following year. Tax-filing extensions do not apply.

There are two basic documents that must be provided to the IRA owner when an IRA is established:

These provide an explanation of the rules and regulations under which the Roth IRA must operate, and establish an agreement between the IRA owner and the IRA custodians/trustee.

IRAs fall under a different insurance category than conventional deposit accounts. Therefore, coverage for IRA accounts is less. The Federal Deposit Insurance Corporation (FDIC) still offers insurance protection up to $250,000 for traditional or Roth IRA accounts, but account balances are combined rather than viewed individually. For example, if the same banking customer has a certificate of deposit held within a traditional IRA with a value of $200,000 and a Roth IRA held in a savings account with a value of $100,000 at the same institution, the account holder has $50,000 of vulnerable assets without FDIC coverage.

Not all financial institutions are created equal. Some IRA providers have an expansive list of investment options, while others are more restrictive. Almost every institution has a different fee structure for your Roth IRA, which can have a significant impact on your investment returns.

Your risk tolerance and investment preferences are going to play a role in choosing a Roth IRA provider. If you plan on being an active investor and making lots of trades, you want to find a provider that has lower trading costs. Certain providers even charge you an account inactivity fee if you leave your investments alone for too long. Some providers have more diverse stock or exchange-traded fund offerings than others; it all depends on the type of investments you want in your account.

Pay attention to the specific account requirements as well. Some providers have higher minimum account balances than others. If you plan on banking with the same institution, see if your Roth IRA account comes with additional banking products.

Compensation Defined

For individuals working for an employer, compensation that is eligible to fund a Roth IRA includes wages, salaries, commissions, bonuses and other amounts paid to the individual for services the individual performs for an employer. At a high level, eligible compensation is any amount shown in Box 1 of the individual’s Form W-2 .

For a self-employed individual or a partner in a partnership, compensation is the individual’s net earnings from his or her business, less any deduction allowed for contributions made to retirement plans on the individual’s behalf, and further reduced by 50% of the individual’s self-employment taxes.

Other compensation eligible for the purposes of making a regular contribution to a Roth IRA includes taxable amounts received by the individual as a result of a divorce decree.

The following sources of income are not eligible compensation for the purposes of making contributions to a Roth IRA:

  • rental income or other profits from property maintenance
  • interest and dividends
  • other amounts generally excluded from taxable income

Contributing to a Roth IRA

In 2016, an individual may make an annual contribution of up to $5,500 to a Roth IRA.

Individuals who are age 50 and older by the end of the year for which the contribution applies can make additional catch-up contributions (up to $1,000 in 2016). For instance, an individual who is under age 50 may contribute up to $5,500 for tax year 2016, but an individual who reached age 50 by year-end 2016 may contribute up to $6,500.

All regular Roth IRA contributions must be made in cash (which includes checks); regular Roth IRA contributions cannot be made in the form of securities. However, a variety of investment options exist within a Roth IRA, once the funds are contributed, including mutual funds. stocks, bonds, ETFs. CDs and money market funds .

A Roth IRA can be funded from several sources:

The Spousal Roth IRA

An individual may establish and fund a Roth IRA on behalf of his/her spouse who makes little or no income. Spousal Roth IRA contributions are subject to the same rules and limits as that of regular Roth IRA contributions. The spousal Roth IRA must be held separately from the Roth IRA of the individual making the contribution, as Roth IRAs cannot be held as joint accounts.

In order for an individual to be eligible to make a spousal Roth IRA contribution, the following requirements must be met:

  • The couple must be married and file a joint tax return
  • The individual making the spousal Roth IRA contribution must have eligible compensation
  • The total contribution for both spouses must not exceed the taxable compensation reported on their joint tax return
  • Contributions to one Roth IRA cannot exceed the contribution limits

Eligibility Requirements

Anyone who has taxable income can contribute to a Roth IRA – as long as he or she meets certain requirements concerning filing status and modified adjusted gross income (MAGI). Those whose annual income is above a certain amount, which the IRS adjusts periodically, become ineligible to contribute.

For 2016, the income maximums are:

  • $194,000 for individuals who are married and file a joint tax return
  • $10,000 for individuals who are married, lived with their spouses at anytime during the year and file a separate tax return
  • $132,000 for individuals who file as single, head of household, or married filing separately and did not live with their spouses at any time during the year

The IRS sets income limits that reduce or “phase out” the amount of money one is allowed to contribute. Here is a chart outlining the ranges for each tax-filing category in 2016:

Income Range for 2016

Married and filing a joint tax return

Make Sure High-Yield Checking Matches Your Needs #high #interest #rate #checking


Make sure high-yield checking matches your needs

Bankrate s latest high-yield checking survey finds that account holders can expect to make a few hundred dollars worth of interest on many accounts, provided they have the cash necessary and meet a few basic conditions.

What is a high-yield checking account ?

A rewards checking account that offers an unusually high interest rate on your checking deposits as long as you meet certain conditions every month. Any month you don t meet those conditions, you ll earn a much lower interest rate.

The promise of higher interest with little hassle and no additional risk is exactly what attracted Lou Panacciulli, a teacher who lives in Nassau County, New York, to high-yield checking. Panacciulli was recently offered a high-yield checking account at his credit union.

An easy decision

After taking a close look at the terms, he signed up for a Go Green Checking account at the Nassau Educators Federal Credit Union which, in most months, pays him an interest rate of 3%.

It just looked like one of those deals you can t pass up, he says. It just seemed like an easy decision.

So far, he has no complaints. He already had a mortgage through NEFCU, so meeting the conditions to earn the highest rewards rate, which include keeping a minimum balance and making $250 a month in debit card purchases, hasn t been a problem, Panacciulli says.

My financial adviser always told me, make sure you have a few months salary in the bank just for emergencies, Panacciulli says. I enjoy great interest, I have financial security because I know I have cash on hand. What could be better?

In the few months when his balance has dipped below the threshold needed to earn the top rate, he has still earned a good rate of return compared with other accounts, he says. And while the account does require Panacciulli to get e-statements, he says he prefers to do his banking online anyway because he finds it more convenient.

Substantial earnings from a checking account?

Consistent with Panacciulli s experience, our survey finds that the right kind of account holder can earn interest that far exceeds the few fractions of a point most savings accounts are offering these days. For example, if you keep $10,000 in a Consumers Credit Union Free Rewards Checking account in good ol Waukegan, Illinois, and earn the rewards rate, you ll rack up $309 a year in interest.

The average yield on high-yield checking accounts in our survey was 1.65%, down a tick from 1.66% we found last year.

That may not seem like much, but at a time when you d be hard-pressed to make enough off a $10,000 savings account balance at a major bank to buy a burrito at Chipotle (sorry, no guac) during the year, it s not bad. And if you were going to keep that money in a conventional, non-interest-bearing checking account anyway, it s essentially free money.

A caveat about balances

Most banks cap the account balance you can earn that high rate on, with caps ranging from as little as $500 to $25,000, the most common limit. (Overall, the average balance cap was $16,336, down from $16,639 last year.)

That means if you re shopping for high-yield checking, you have to make sure your account balance won t exceed the cap, says Greg McBride, CFA, chief financial analyst for Bankrate.

You re not compensated for staying above that balance cap, McBride says, which can significantly affect what you ultimately take home. For example, he says, among the accounts we surveyed, if you re looking to deposit $25,000, the best account is actually only the 12th-highest APY.

Frequent debit-card use pays off

To earn that high interest rate, the most typical requirement is frequent debit-card usage.

Of the accounts we surveyed, 93% required you to make a certain number of debit card transactions to get the maximum annual percentage yield, or APY, and about 14% required those transactions to be the sign and swipe type, rather than the PIN type.

The most common number of transactions required to meet that monthly requirement is 10, but it ranged as high as 15.

If you re a credit card rewards junkie, that may not work for you, says McBride. But many Americans, especially millennials, aren t exactly crazy about credit cards (In a 2015 Bankrate poll. 64% of those age 18 to 29 said they didn t have a major credit card).

For them, making 10 debit transactions in a month probably isn t a big deal, especially as average monthly debit transactions have grown.

You re seeing average (monthly) debit card transactions probably close to 20, says David Giesen, a managing director with Navigant Transaction Advisory Services. a bank consulting firm. That makes monthly targets at most banks fairly easy to hit, Giesen says.

For the bank, those debit transactions serve multiple purposes, Giesen says: keeping customers engaged, generating interchange fees charged to merchants, which help finance the high interest rate, and discouraging account holders from writing paper checks.

You don t have paper issues the way you would with checks, Giesen says. With debit, he says, you re not scanning and moving paper; you re just watching the signal go back and forth.

Mostly electronic access

In order to pay you that nice, fat interest rate, banks have to keep their expenses low on these accounts. The debit card requirement helps accomplish that through a number of cost-saving requirements, including receiving electronic statements. A whopping 98% of the high-yield checking accounts we surveyed require you to get your statements electronically to earn the rewards interest rate.

It s a behavior-changing approach to pricing, says Jay Coakley, a banking consultant and president of Coakley Strategic Solutions. The bank is saying, We ll pay you a higher interest rate if you ll conduct business in a way that will save us money.

You ll also likely need to sign up for either an automatic bill pay or a direct deposit to earn the rewards rate. Among those accounts we surveyed, 80% require you to pick one or the other.

One sticking point may be ATMs, says McBride. Unless the bank is part of a larger ATM network, or provides a monthly allowance for ATM charges, you may end up seeing ATM fees eat away at your balance, McBride says.

Lower default rate awaits some

If you fail to meet the conditions to earn that high rewards rate, you ll earn a paltry default APY that ranges from 0% to .25%, with the most common being .05% (although more than you d likely have earned in a conventional checking account).

Banks that offer high-yield checking accounts know that a certain percentage of account holders won t meet conditions each month to control costs says Coakley.

While you may see a high-yield checking rate that looks unaffordably high from the bank s perspective, the effective rate was about half that, because about 50% of the people don t qualify, Coakley says.

Basically, non-qualifying account holders end up helping to subsidize the larger interest earnings of qualifying account holders; the trick is making sure you fit into the 2nd category, rather than the 1st.

Still, even the default rate on these accounts may be better than what you re getting on your savings. According to Bankrate s weekly survey, the average APY for a money-market account in the U.S. is 0.11%, lower than the default rates of 6 of the high-yield checking accounts we surveyed.

Not available at your friendly neighborhood megabank

Of the accounts we surveyed, less than half were offered nationwide, with many requiring account holders to reside in a certain area to be eligible.

That s in part because many of these accounts are being offered by smaller banks and credit unions trying to grow their deposit base in their core area of operation, says Giesen.

If I m a bank in Duluth, Minnesota, for example, do I really want core customers in Albuquerque, New Mexico? Probably not, he says. It s a function, in some ways, of where a bank is trying to market, where a bank is trying to cross-sell, where it s trying to grow its deposit base.

If you can find an account that fits your location and profile, though, you may find it getting more appealing as time goes on. It s likely that high-yield checking accounts will be among the first to increase interest payouts as the Federal Reserve raises rates, McBride says.

What limited rate hikes we see on deposit products over the next year are going to be on some of these accounts and the top-yielding online savings accounts, McBride says.

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Claes Bell, CFA

Claes Bell, CFA, is the data and automation editor for Bankrate.com. In 2014, he earned the right to use a Chartered Financial Analyst designation from the CFA Institute.