Loan Pronto mortgage loan at a glance

• Conventional loans: Yes
• FHA loans: Yes
• VA loans: Yes
• Refinancing: Yes
• Jumbo loan: Yes
• Adjustable rates: Yes, rates not specified online
• Fixed rates: Yes, offered in 10-, 15-, 20-, 25- and 30-year increments

Loan Pronto is a lender with a streamlined digital mortgage process. It offers a wide range of mortgage loans, including conventional, FHA, jumbo, USDA, and VA loans, as well as refinancing options and HELOCs.

Pros

• Offers a variety of loans, including HELOCs
• It provides a mobile app, educational resources and calculators
• Preapproval is available online anytime

Cons

• Not available in many states
• Rates, points, and fees are not readily available online

5 things to know about a Loan Pronto mortgage

1. Offers a variety of loans and low down payment options

Loan Pronto offers conventional mortgages with fixed or adjustable rates as well as VA loans, USDA loans, FHA loans, jumbo loans, renovation/construction loans and refinancing with options to cash out.

Buyers with credit scores as low as 500 might be interested in the lender’s low credit financing, and self-employed borrowers can use monthly income instead of tax returns or pay stubs to qualify for bank statement loans. Loan Pronto’s debt service coverage ratio loans allow investors to qualify based on a property’s cash flow instead of personal income.

With Loan Pronto’s home equity line of credit, you can borrow up to 89.99% of your home’s value. The lender says that payment terms include interest for 10 to 15 years with another 10 to 15 years to pay off the loan.

2. Mobile app, calculators and educational resources available

You can apply for a loan online or through Loan Pronto’s mobile app, which is available on iPhones and Android devices. The app allows you to scan and upload documents from your phone, calculate payments, get updates about your loan application and message your loan officer.

The website also offers purchase, refinance and amortization calculators so you can see your estimated monthly payments, total principal, interest paid and payoff date. The refinance calculator lets you compare your current mortgage with one from Loan Pronto. And on Loan Pronto’s blog, you can find helpful information about current average mortgage rates, housing market updates and answers to common mortgage questions.

3. Fast preapproval and loan closing

Loan Pronto claims you can receive preapproval within 30 minutes of submitting your loan application. If you have any questions during the process, you can contact one of its qualified mortgage consultants.

Loan Pronto’s digital methods also allow for a short closing period. While closing a home loan can often take about 30 to 45 days, Loan Pronto says it takes an average of about two weeks to prepare a loan for closing.

4. Personalized rate and fee information not easy to access online

Though Loan Pronto’s website offers a free rate quote generator, you must provide your email and phone number to see your personalized quote. You can also get more information about rates and loan fees by speaking to a representative or registering with your email address through the online application portal.

Loan Pronto publishes updates about national average mortgage rates on its blog. But rates may change daily, and there’s no guarantee that borrowers can get these rates with Loan Pronto.

Who is a Loan Pronto mortgage good for?

If you’re a first-time homebuyer, you may consider Loan Pronto’s low down payment options and flexible credit requirements through its FHA, VA and USDA loans. The digital loan process is ideal for borrowers who dread in-person visits or back-and-forth phone calls with a mortgage lender, and its short closing period may be a good fit for people looking to buy a house quickly or take advantage of a temporary dip in interest rates.

If you decide to move forward, make sure to do your research to make sure a low down payment is the right option for you. You’ll also want to make sure you live in one of the states that Loan Pronto services.

How to apply for a Loan Pronto mortgage

Loan Pronto’s online process is relatively straightforward. You can start by filling out an online application, followed by a 15-minute consultation with a loan advisor. After choosing a loan program, you’ll get an email allowing you to e-sign your disclosures.

You’ll then need to upload the necessary documents for the underwriting process. Loan Pronto typically requires the following documents:

• Two pay stubs
• Last year’s W-2
• Statements for checking and savings accounts for the last 60 days
• Proof of gift funds or 401(k) if applicable
• Two months of statements for the account you plan to use for the down payment
• Proof of homeowners insurance
• Your state-issued ID or passport

Once you get an appraisal and Loan Pronto signs off on your loan, you’re ready to close, which you can do at home and outside of regular work hours.

Not sure if Loan Pronto is right for you? Consider these alternatives.

If you want to compare rates with several lenders or your application is denied, keep in mind that you have a window where multiple hard credit inquiries by lenders only count as one for your credit scores. You typically have 14 days — though it could be longer depending on the scoring model. Here are a couple of other options.

• Freedom Mortgage: If Loan Pronto isn’t available where you live, Freedom Mortgage offers a variety of home loans in all 50 states and Washington, D.C.
• Mr. Cooper: Mr. Cooper offers additional perks like a closing day guarantee.

Home equity is the market value of your home minus any debt you owe on it. For example, if your house is worth $300,000 and your mortgage balance is $50,000, then you have $250,000 of equity — as long as there are no other liens against your property.

Your equity generally increases as you pay down your mortgage or if your home value goes up. Let’s take a closer look at how you may be able to increase your home equity and potentially use it to build wealth.

• Building equity over time by paying your mortgage
• Taking out home equity to pay off debt
• Using home equity to invest
• Tapping into home equity for home improvements
• Using home equity to start a business
• Taking out home equity for a real estate investment property
• FAQs about using home equity to build wealth

Building equity over time by paying your mortgage

The equity you accrue in your home adds to your overall wealth or net worth, calculated as your assets minus your debts. When buying a home, you can give yourself a head start on building equity by making a large down payment. You’ll grow your equity over time by making your mortgage payments.

If you pay monthly private mortgage insurance (or PMI), contact your lender when your equity reaches 20% to see if you can cancel that premium. You may be able to then put that extra cash toward your mortgage principal each month and build equity more quickly.

Once you’ve built up a significant amount of equity in your home, you may be able to use it to build wealth in other ways, using a home equity loan, home equity line of credit (or HELOC), cash-out refinance or a reverse mortgage (if you’re 62 or older).

Taking out home equity to pay off debt

If you have high-interest debt, student loans, personal loans or auto loans, you may be able to use home equity to pay it off. If your new equity-based loan has a lower interest rate, it should help you save money in the long run.

Before borrowing against your home equity, use a loan amortization calculator and debt repayment calculator to compare the costs of borrowing against your home versus paying your existing debt, just to make sure it’s worth it. Remember to consider your new loan’s closing costs, too.

Using home equity to invest

Taking out home equity when interest rates are low and using the funds to invest in stocks, ETFs, mutual funds or bonds with higher returns could potentially help you build wealth over time.

But these investments also carry a certain amount of risk, especially if you decide to sell when the market is down. This strategy isn’t for everyone, so be sure to talk to a financial advisor first since you’ll want to make sure that the potential return would be higher than what the loan would cost.

Tapping into home equity for home improvements

You might be able to increase your home’s value by making strategic improvements. Before taking out equity to invest in home upgrades, research how much those projects cost and how much they would affect your home’s resale value. You may find that some projects sound exciting but wouldn’t yield a high enough return or make up for what you’d pay on your new loan.

Using home equity to start a business

Thinking of starting a business? You could look into a business loan, but some companies aren’t eligible for loans backed by the U.S. Small Business Administration, including real estate investment firms, lending firms, and charities or nonprofits.

If you have a considerable amount of equity in your home, though, you may be able to use it to fund your new venture. A word of caution — according to the U.S. Bureau of Labor Statistics, more than 20% of new businesses fail within the first two years. Be sure to weigh your options and research your market carefully as funding your business with home equity could be a risky endeavor.

Taking out home equity for a real estate investment property

If you’re interested in buying a rental property, flipping houses or purchasing a vacation home, you may be able to use your primary home’s equity for the down payment. Investing in real estate can be risky, so make sure you thoroughly research your loan options, the type of property you’d like to buy, and the conditions of the home you’d like to purchase.  

FAQs about using home equity to build wealth

Next steps

Using home equity to build wealth may be a good strategy for some people, but to find out if it makes sense for you, be sure to investigate how much an equity-based loan will cost you in interest and fees. Also, watch out for investment fraud, get-rich-quick schemes and testimonials you can’t verify. If someone is pressuring you to take out home equity to invest in a strategy that sounds too good to be true, it’s likely a scam.

When is the best time to take equity out of your home?

Your kid is ready to go off to college. You need to replace your roof. Or maybe it’s time to pay off several high-interest credit cards. If you’re facing a major expense, you might be considering tapping into your home equity. After all, loans that use your home as collateral tend to have lower interest rates than unsecured personal loans, making them a more affordable option in some cases.

But how do you take equity out of your home, and when is the best time to do it?

Generally, it’s best to wait until you’ve built up a significant amount of equity, but a more exact answer will depend on your financial situation and stage of life.

Let’s take a closer look at several options, including home equity loans, HELOCs, cash-out refinancing, reverse mortgages and home sales.

• Home equity loan
• HELOC
• Cash-out refinance
• Reverse mortgage
• Selling your home
• FAQs: Taking equity out of your home

Home equity loan

A home equity loan allows you to borrow against your equity, receive the funds as a lump sum, and repay them within a certain time frame. Home equity loans typically have fixed interest rates, which makes your monthly payments predictable.

You typically can’t borrow more than 85% of your total home equity, which is the value of your house minus any debts against it, including your mortgage.

You might consider a home equity loan if … you prefer steady payments each month, have a sizable amount of equity, and want to borrow a lump sum. You’ll have to pay closing costs and you could lose your house if you default on the loan, so it’s important to budget for the payments before taking out a home equity loan.

HELOC

With a home equity line of credit, also called a HELOC, you can borrow multiple times against your equity during the draw period. Based on your finances, debt-to-income ratio and credit health, your lender will allow you to borrow up to an approved credit limit. After the draw period, you’ll need to pay the money back right away or within a certain time frame.

You might consider a HELOC if … you’re not sure exactly how much you’ll need to borrow or if you need to draw multiple times for various expenses. Because HELOC interest rates are usually variable, your monthly payments could change. You may also have to pay a set-up fee and annual fees, as well as withdrawal fees each time you borrow.

Cash-out refinance

A cash-out refinance allows you to take equity out of your home by replacing your current mortgage with a new, bigger mortgage. You then receive the difference in cash.

You might consider a cash-out refi if … you can get a lower interest rate or more-favorable loan terms.

But unless you need to borrow a large sum, a cash-out refinance may cost more than it’s worth. After all, you’ll need to pay closing costs on the loan, and since you’re increasing your overall loan amount, your monthly payments and DTI could go up.

Reverse mortgage

A reverse mortgage is another way to borrow money using your home as collateral. But instead of making monthly payments to your lender, your lender pays you each month, increasing the loan amount with each payment you receive.

You repay the loan plus interest and fees when you move out or sell the house. To qualify, you generally must be 62 or older, your home must be in good condition, and you need to have a significant amount of equity.

You might consider a reverse mortgage if … you need help paying for living expenses in retirement and want to keep your home. However, instead of inheriting your house, your beneficiaries would have to sell it after your death to satisfy the loan.

Selling your home

Selling your house may be a good way to take equity out of your home. The more equity you have, the more profit you can make, since you’ll likely need to use part of the proceeds to pay off your existing mortgage and any other debts against the property.

You might consider selling your home if … you’re already planning on moving. However, selling your house does come with expenses. Seller closing costs often include the real estate agent commission, around 6% of the home sale price. You may also have to pay for presale inspections, home repairs, cleaning, home staging and, in some cases, capital gains tax.

FAQs: Taking equity out of your home

Next steps

Taking equity out of your home isn’t a decision to make lightly. Research your options thoroughly and see if there are more affordable or less risky ways to pay for major expenses.

If you decide to take out a loan, it’s a good idea to ask for quotes from various lenders to ensure you get the best deal possible. Look at lender reviews, too, and beware of fraudulent and unrealistic claims about the benefits of tapping into your home equity.

Who is an Embrace Home Loans mortgage good for?

In general, the company is worth considering for first-time and experienced homebuyers.

Embrace Home Loans may also be a good fit for those who prefer a larger lender that’s available nationwide or those looking to consolidate high-interest debts from credit cards, car loans and medical bills. But if you’re looking to take out a HELOC, you’ll need to go with another lender.

Don’t have enough savings to cover closing costs? Sometimes you can include closing costs in the loan, but you’ll likely end up paying more for the loan in the long run.

On top of a down payment, taxes, lender fees and points, closing costs can add thousands of dollars to the cost of a mortgage loan. If you’re looking to avoid paying these fees upfront, it may be possible to roll them into the loan itself.

Some lenders will waive closing costs or let you fold them into the loan — this is sometimes called a no-closing-cost mortgage. But doing this can increase your APR and overall loan amount, which means you may pay even more in the end.

• What are closing costs?
• Common closing costs for a buyer
• How to estimate closing costs
• Can you include closing costs in a new mortgage?
• Can you include closing costs in a mortgage refinance?
• Is it a good idea to include closing costs in your loan?
• Lenders that include closing costs in a mortgage

What are closing costs?

Closing costs are fees your lender charges on top of your down payment when you close a mortgage loan. They’re usually about 2% to 5% of the home’s purchase price. As the buyer, you typically pay all closing costs, but the seller may cover some of them depending on your state’s laws and how you negotiate the contract.

Some government-backed loans approach closing fees differently. FHA loan closing costs, for example, are typically 3% to 4% of the purchase price, and HUD may cover many of them, depending on your situation. VA loans require the seller to cover real estate commissions, brokerage fees, buyer broker fees and a termite report, while the buyer is responsible for the VA funding fee and any other required closing costs.

Common closing costs for a buyer

At least three days before closing, your lender will send you a document listing the closing costs you’ll need to pay. This list is called a Closing Disclosure or a final loan estimate. Your Closing Disclosure might break up your expected closing costs into two categories: loan costs and other related closing fees.

Loan costs often include the origination or application fee, underwriting fees, discount points, attorney fees, appraisal fees, title-related costs and credit report expenses. You’ll likely pay property taxes, homeowners insurance, recording fees, transfer tax, HOA fees and flood insurance if needed.

How to estimate closing costs

Your closing costs can vary based on your lender, your loan type and terms, the amount you’re borrowing, your down payment, your interest rate, where you live and the homeowners insurance you purchase. You can use Credit Karma’s closing costs calculator to estimate the fees and taxes you’ll need to pay at closing.

Can you include closing costs in a new mortgage?

Sometimes you can roll your closing costs into the mortgage loan itself, depending on the lender and the loan product. But even though you won’t pay these fees at closing, you’ll end up paying them — and perhaps extra — over the life of the loan. Generally, lenders make up for “no closing costs” by adding these fees to the total loan amount or charging a higher interest rate.

Some lenders may offer you lender credits to cover some or all of your closing costs, but once again, accepting these lender credits typically raises your interest rate or increases your loan amount.

Can you include closing costs in a mortgage refinance?

Some lenders also offer no-closing-cost refinance loans. Like no-closing-cost mortgage loans, lenders often cover these fees by rolling them into your loan amount, offering lender credits or raising your APR.

Before folding your closing costs into a refinance loan, you may want to check how this would affect your debt-to-income ratio, which is your total monthly debts divided by your total monthly income. If your DTI is too high, it can affect the quality of your loan terms and chances of home loan approval.

Also, check how including closing costs would affect your loan-to-value ratio, which is your loan balance divided by the appraised value of your home. Generally, you can’t take out more than 80% of your LTV with a cash-out refinance. And if your LTV is above a certain amount, you may need to pay private mortgage insurance, which increases your monthly mortgage payments.

Is it a good idea to include closing costs in your loan?

Rolling your closing costs into your loan may make sense if you don’t want to pay a hefty lump sum at closing and can afford a higher monthly mortgage payment. A no-closing-cost refinance could also be viable if you want to take advantage of lower interest rates. If rates are significantly lower than the current terms on your loan, you may be able to save money despite a higher loan amount.

The disadvantage of folding closing costs into your loan is that you’ll pay more in the long run because of higher interest rates or a larger loan balance. You may want to pay closing costs upfront if you have enough savings and aren’t planning on selling your home for a while.

Also, if the no-closing-cost loan includes a prepayment penalty, your lender will charge you a fee if you refinance or sell your house within the timeframe it has set.

Lenders that include closing costs in a mortgage

U.S. Bank

The Smart Refinance loan from U.S. Bank allows you to refinance without upfront closing costs, origination fees, application processing fees or prepayment penalties. You also have the option to cash out and change your loan term to five, 10, 15 or 20 years.

CapCenter

CapCenter — a lender and realty team that services six states in the Southeast and Washington, D.C. — waives or covers many of the traditional closing costs for its home purchase and refinance loans with fixed or adjustable rates. But its Zero Closing Cost loans don’t cover home inspection costs, homeowners insurance premiums, property taxes, or any required taxes or fees to record the purchase deed.

Nutter

Licensed in all 50 states, Nutter offers mortgage refinancing options without upfront closing costs. The lender claims to have successfully closed 100,000 no-closing-cost loans, and it offers fixed and adjustable rates.

What’s next?

Though there are some situations where it may be helpful to fold closing costs into a loan, you typically pay more in the long run. So before making a decision, it’s a good idea to crunch the numbers to figure out how a no-closing-cost loan would affect your short- and long-term financial goals.

And remember, while shopping for a loan, you can ask lenders to send you estimates for a zero-closing-cost loan and a loan with upfront closing fees so you can compare your options.

If you’re looking to get a new mortgage or borrow against your home equity, you might be wondering how many times you can refinance.

While a lender may not limit how many times you can refinance your mortgage. But some lenders might have a waiting period between when you close on a loan and refinance to a new one. In this article, you’ll learn about some of the pros and cons of refinancing multiple times — along with how it can affect your credit, when refinancing would make sense and what costs you should consider first.

• How often can you refinance your mortgage?
• Does refinancing hurt your credit?
• When refinancing makes sense
• Costs to consider: Is it OK to refinance multiple times?

How often can you refinance your mortgage?

Refinancing involves paying off your original mortgage and creating a new one. Legally speaking, there’s no limit to how many times you can refinance your mortgage, so you can refinance as often as it makes financial sense for you. Depending on your lender and the type of loan, though, you might encounter a waiting period — also called a seasoning requirement.

Here’s how long you might have to wait based on your loan type.

• Conventional loan — You typically don’t have to wait to refinance, though some lenders may enforce a six-month waiting period.
• Cash-out refinance — There’s generally a six-month waiting period.
• Government-backed loan — FHA streamline refinances require you to wait at least six months since your first payment due date and 210 days from your closing date. You must also make at least six mortgage payments. For USDA loans, you have to wait 12 months after your original loan’s closing. VA streamline refinances require a waiting period of 210 days after the first mortgage payment was due.

Does refinancing hurt your credit?

The refinancing process can have a temporary negative impact on your credit for a couple of reasons.

First, potential lenders will likely check your credit reports with a hard inquiry, which could temporarily lower your credit scores by a few points. But there are actions you can take to manage the impact.

If you’re shopping around for a mortgage, you have a window of time where multiple credit inquiries are only counted as one for your credit scores. You typically have 14 days — though it could be longer.

While lenders can rely on scoring models that give you more time to shop without incurring an additional hard inquiry, you may want to get your rate quotes within those 14 days since you typically won’t know which scoring model your lender is using.

Secondly, bureaus generally consider older loans indicative of a proven track record of making payments, which is good for your credit. But refinancing causes your mortgage to become “new” debt, which can hurt your credit. Keep in mind that this impact is only temporary. As you make on-time payments each month, refinancing may actually benefit your credit in the long run.

When refinancing makes sense

If you’re considering refinancing, crunch the numbers and make sure it’s a good move for you financially. You can estimate your potential savings using Credit Karma’s free mortgage refinance calculator.

Here are a few potential benefits to refinancing.

Lowering your interest rate

If interest rates are lower than what you currently have or if your credit has improved in recent years, refinancing may help you lock in a lower interest rate and, as a result, lower your monthly mortgage payments. Refinancing with a lower rate may also help you build equity in your home more quickly.

Changing your loan term

Do you need more time to pay off your mortgage? Or would you prefer to pay it off more quickly? Refinancing may allow you to change the term of your mortgage. A longer loan term can lower your monthly mortgage payment, but it’ll take longer to pay off the loan and at a higher cost. A shorter term, on the other hand, will likely increase your monthly payment, but you’ll typically pay less in interest over the long run.

Keep in mind, though, that you don’t have to refinance to change your loan term. You could shorten it yourself simply by putting extra money toward the principal each month.

Removing private mortgage insurance

If you originally put down less than 20% on your conventional loan, your lender likely required you to pay private mortgage insurance, or PMI. Many lenders require PMI to protect themselves in case you can’t make your mortgage payments. PMI premiums depend on a variety of factors, but you can expect to pay about $30 to $70 a month per $100,000 you borrow, according to Freddie Mac. Refinancing may make sense if it allows you to remove this expense.

Avoiding a payment jump in an adjustable-rate mortgage

With an adjustable-rate mortgage, or ARM, your interest rate can increase or decrease, which affects your monthly payment. If you know your interest rate is about to go up, refinancing may allow you switch to a fixed-rate mortgage, which means your interest rate would remain stable along with your monthly payments. Or you can choose to refinance with a new ARM that has a lower starting rate, smaller rate changes or lower interest caps.

Borrowing against the equity in your home

If you want to tap into your home equity, you might consider a cash-out refinance. This involves paying off your existing mortgage, replacing it with a larger one and taking the difference in cash. But if you don’t want to restart your loan term or if a seasoning requirement is standing in your way, you could look into a home equity loan or a home equity line of credit (HELOC) to see if one of those options would make financial sense for you.

Costs to consider: Is it OK to refinance multiple times?

There are several expenses to be aware of when refinancing your mortgage. For example, you’ll need to pay closing costs again, which can amount to about 3% to 6% of your remaining loan balance. If you refinance multiple times, those closing costs can quickly add up. Let’s take a closer look at a few common closing fees for refinance loans.

Origination fee

Lenders charge an origination fee to process your application and underwrite your loan. This fee often adds up to about 1% of your total loan amount.

Appraisal fee

Before approving your loan, most lenders will require an appraiser to inspect your house and determine its value. Appraisals usually cost around $300 to $700, but the exact price can vary based on where you live and what type of home you have.

Inspection fee

Most lenders require a licensed home inspector to make sure there are no major problems with your property. They typically check for structural damage, plumbing issues and signs of a pest infestation. You can expect to pay around $175 to $350 for a home inspection.

Title search and insurance

During the loan application process, your lender will have a title search done to uncover any potential legal claims against your home, including liens. You’ll also pay for title insurance, which protects your lender in case it misses anything in the title search. These fees can cost you anywhere between $700 and $900.

Discount points

When you’re refinancing, your lender may let you pay discount points at closing in exchange for a lower interest rate. Each point represents 1% of the total loan amount. For example, one point for a $200,000 loan would cost you $2,000. Generally, borrowers pay anywhere from zero to three points at closing.

Prepayment penalty

Depending on your lender, you might have to pay a fee if you pay off your loan early or refinance. In general, prepayment penalties add up to one to six months’ worth of your mortgage interest. Not all lenders charge a prepayment penalty, though, so be sure to ask your current lender if you’ll end up paying this fee if you refinance.

What’s next?

There are some situations where it might be worth it to refinance again, especially if you’re not planning to sell your home for a while. For example, you may be able to take advantage of lower interest rates, change your loan term or borrow against your home equity. But before making a decision, it’s a good idea to ask yourself key questions, including …

• How would refinancing again affect my monthly mortgage payments, loan terms and credit?
• How much would it cost me at closing?
• Would it be worth it in the long run?

Also, if you’re looking into a cash-out refinance, you may want to avoid using the funds to pay off unsecured or short-term debts, such as credit cards or car loans. Be sure to consult with a financial professional and look into other debt-consolidation methods first.

Greenlight debit cards at a glance

Greenlight is a financial technology company that offers debit cards for kids and an app with kid-friendly educational information, savings tools and investing options. With Greenlight, parents can oversee their kids’ money habits, set spending limits and restrict certain spending categories.

Is the Greenlight debit card good?

Greenlight is a good option for parents looking for comprehensive benefits like customizable debit cards, financial education for kids and saving and investing options.

Parents who want more oversight over their kids’ spending habits may also appreciate the app’s various control features. You can turn your kid’s card on or off from the app, receive notifications when your child spends money and block unsafe spending categories.

If you’re looking for a low-cost kids’ debit card, though, you can find less-expensive options elsewhere.

A typical debit card doesn’t help build credit — it draws on your own money instead of a line of credit from a lender. Credit involves borrowing money — often through a loan or credit card — that you pay back later as agreed, usually with interest.

These days, you’ll see some new accounts that claim to be debit cards that build credit. There are also other ways to help establish your credit history or improve your overall credit. We’ll go over these newer cards, plus some traditional ways to build credit, in this article.

• Can a debit card build credit?
• How to build credit
• How to establish healthy credit habits

Can a debit card build credit?

There are new products coming out that are advertised as debit cards that build credit. Like traditional debit cards, these new cards are linked to your bank account.

But instead of pulling funds immediately from your account after a purchase, the card issuer covers the cost and then pulls the money from your bank account the next day. It’ll report these transactions as repayments to the credit bureaus. This may allow you to build credit without taking on large debts.

These types of accounts can help you build credit. And even though they’re not traditional debit cards, typically the money to pay for your purchases will come from your bank account, so you’ll be limited to spending what you have.

Here are a few examples of these cards.

• Extra — The Extra card is a line of credit linked to your bank account that helps you build credit and earn rewards.
• Sesame Cash Mastercard® Prepaid Debit Card — You can use Credit Sesame’s debit card alongside a secured line of credit to build credit with the card.
• Fizz — Designed specifically for college students, Fizz sets a credit limit based on your linked bank account, at a number aimed to “prevent overspending.”

How to build credit

Let’s look at several other options that may help you build credit if you’re starting out with limited or no credit history.

Open a secured credit card

If your lack of credit history makes opening a regular credit card difficult, consider opening a secured credit card instead. Although the application process is similar to a traditional credit card, secured cards require you to deposit money into a separate account — typically around $50 to $300. You then get a credit line to borrow from, up to the amount of your deposit. As long as the card’s issuer reports your positive payment history to the credit bureaus, a secured card can help you build credit.

Many secured cards allow you to transition later to a traditional credit card. So before opening a card, it may be worth asking your provider if this is an option.

Get a co-signer

If you’re building your credit from scratch, you might need a co-signer to open a traditional credit card or take out a loan. Applying with a co-signer who already has healthy credit may make your application more attractive to lenders and credit card companies.

Bear in mind that adding a co-signer makes them equally responsible for your debt. So you should make sure that the other person thoroughly understands the responsibilities of being a co-signer before making a decision.

Become an authorized user

Another way to help build credit is becoming an authorized user on someone else’s credit card. It’s best to do this with a trusted friend or family member who already has a solid credit history. After all, if the person misses a payment, that information can be reported as a part of your credit history.

Being an authorized user allows you to get a credit card in your name that’s associated with the main cardholder’s account. Some credit card companies will then include your name when reporting the main account’s information to the credit bureaus. Not all companies do this, though, so research the issuer before becoming an authorized user.

Try credit-builder loans

Another option to build credit is to take out a credit-builder loan. According to a 2020 Consumer Financial Protection Bureau study, borrowers who didn’t have any debt experienced the biggest benefits from using this type of credit-building product.

While traditional loans typically allow you to access the money you borrow upfront, credit-builder loans require you to pay a certain amount — or pay in full — before using the borrowed funds. Usually, these loans are smaller than traditional loans, and you may still have to pay interest on these funds, but the benefit is that you can start building your credit history.

Credit Karma’s Credit Builder plan helps you save money and build credit at the same time. Once you determine how much you want to save, the money is deposited into a locked account and you make monthly payments. You can spend the money once you’ve hit at least $500 saved.

Use rent-reporting services

Adding alternative data to your credit profile can also help build credit. Rent-reporting services like LevelCredit can help get your rent payment information to the credit bureaus — although some programs don’t report your payments to all three bureaus.

Keep in mind, this strategy only helps if you regularly pay your rent on time. Missed payments could have an opposite effect on your credit.

How to establish healthy credit habits

When building your credit, one of the first things you want to do is read your credit reports and regularly check for any errors. You can request your credit reports free of charge every 12 months at annualcreditreport.com. And don’t worry, this doesn’t hurt your credit.

Here are some other steps you can take to build your credit history and credit health.

1. Make payments on time. Your payment history is a major factor in your credit scores and overall credit health. It’s a good idea to have a system in place — such as marking due dates in your calendar or setting reminders on your phone — to help you pay your bills on time. Remember, just because an account isn’t reported to the credit bureaus doesn’t mean it can’t affect your credit. If an overdue bill is sent to a collections agency, that can hurt your credit, too.
2. Keep your credit utilization low. Your credit utilization is the amount of your available credit that you’re using and is another important factor in determining your credit scores. In general, people who get too close to their credit limit or surpass it may have a harder time with repayment in the future. So try to use only a small amount of your available credit — preferably less than 30%.  
3. Avoid opening multiple credit accounts back to back. Having a mix of accounts can help build your credit history and improve your credit health, but opening too many in a short amount of time can actually negatively affect your scores.
4. Keep your credit accounts open. Although the length of your credit history doesn’t have as much of an impact on your scores as your payment history or your credit utilization, it’s still an important factor to be aware of. Your credit history length includes how long you’ve been using credit as well as how long you’ve kept specific accounts open.

Next steps

In general, debit cards don’t build credit — although there are new types of debit cards coming out that claim they can. However, these cards are still relatively new.

For people with no credit history, it may make more sense to start building credit by getting a secured credit card, taking out a credit-builder loan, or becoming an authorized user on someone else’s card.

Keep in mind before signing up for any credit-building product or service, it’s a good idea to do research to avoid unpleasant fees, hidden penalties or scams.

Federal banks — and many private banks — are closed on federal holidays, which can delay transactions and limit in-person services. But even if your local branch is closed, you may still have options to get your banking done.

If a bank is closed for a holiday, any transactions you make — including deposits, bill payments and bank-to-bank transfers — likely won’t process until the next business day. You won’t be able to use in-person services, and depending on the bank, customer service might also be limited.

In this article, we’ll go over the bank holidays and what you can do if your bank is closed.

• What is a bank holiday?
• What are the U.S. federal holidays?
• What to do if your bank is closed
• Paying bills on a bank holiday

What is a bank holiday?

Bank holidays are business days when financial institutions close, usually to observe a federal holiday. This includes all federal banks and branches as well as some private banks.

Whenever a federal holiday falls on a Saturday, Federal Reserve banks and branches are typically open the Friday before. But if a holiday falls on a Sunday, they’ll usually be closed the following Monday.

Private banks can choose to close on federal holidays. If you aren’t sure if your bank will be closed on a particular day, you can try calling ahead or checking online. Some banks also provide a holiday schedule on their website for customers to reference.

What are the U.S. federal holidays?

The Federal Reserve System observes 11 federal holidays each year. Five of these holidays — Martin Luther King Jr. Day, Memorial Day, Labor Day, Washington’s Birthday (Presidents Day) and Columbus Day — are always observed on a Monday, so their exact date varies year by year. The date for Thanksgiving also varies because it’s always observed on the fourth Thursday of November.

Federal bank holidays for 2023

What to do if your bank is closed

First, it’s a good idea to mark bank holidays on your calendar as a reminder to take care of any urgent or in-person banking in advance. This can save you the frustration of a wasted trip to your local branch and help you avoid late payment fees.

But what if doing your banking before or after a holiday won’t work for you? Let’s take a look at some of your other options.

• Use an ATM. Even on bank holidays, you should be able to use an ATM to check your account balance or withdraw cash. Many banks — such as Wells Fargo, Chase and Bank of America — offer ATMs that are open 24 hours.
• Bank online. You may be able to accomplish some banking, like opening a new account or scheduling a transfer, via your bank’s website or mobile app. Be careful though — even some online banks don’t process transactions on federal holidays.
• Try a payment app. Apps like Venmo or Paypal allow you to send and receive money from peers and shop online or in stores. Other ways to send money online when your bank may not be an option include Cash App, Apple Pay and Western Union — though you may still experience some delays.

Paying bills on a bank holiday

When a bill payment’s processing date falls on a bank holiday, it won’t be processed until the next day, which can lead to extra fees.

Thankfully, many banks allow you to set up recurring automated payments. If you go this route, consider setting each bill payment’s processing date a few days before it’s due. This will give you some cushion in case a due date falls on a federal holiday.

What’s next?

It can be frustrating when you need to make an important transaction but your bank is closed for a holiday. Thankfully, there are ways to prepare.

Before you drive to your bank, you may want to give your local branch a call to make sure it’s open. You can also try using a 24-hour ATM, setting up automated payments (maybe a few days early just to be safe), using mobile banking or simply doing your banking ahead of time to avoid any day-of issues.

Is TD Bank a good bank?

TD Bank claims to be “America’s most convenient bank.” With many physical locations, extended business hours, curbside debit card replacement, fraud alerts and mobile banking options, it’d seem the case. But even with its wide range of banking, lending and investment products, it’s limited availability by location is a drawback. 

If you’re looking for a bank that’s available across the nation or a checking account with fewer fees that also earns interest, TD Bank may not be the best fit.

A contactless payment method like Google Pay can be a quick and convenient alternative to cash or credit cards, but it’s primarily for Android users.

Google Pay allows you to make in-app, in-store and online purchases as well as pay and receive payments from others with your smartphone. It also provides multiple layers of security to protect card and bank account data and guard against phishing and malware.

Updated July 1, 2024

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Jenny Rose Spaudo

GO Mortgage loans at a glance

• Conventional loans: Yes
• FHA loans: Yes
• VA loans: Yes
• Refinancing: Yes
• Jumbo loans: Yes
• Adjustable rates: Yes (specific ARM terms not listed)
• Fixed rates: Yes (specific rate terms not listed)

GO Mortgage is an independent mortgage bank with a wide variety of home loan options, including conventional loans, jumbo loans and a selection of single-close construction loans. GO Mortgage is licensed in 42 states and Washington, D.C.

Pros

• Wide variety of loans
• Offers cash-out and traditional refinance options
• Mobile payments available

Cons

• Not licensed in all states
• Rate info not available online
• Fees not disclosed online

3 things to know about a GO Mortgage loan

1. Wide selection of loan products

GO Mortgage offers a variety of loan options, including conventional purchase, conventional refinance, cash-out refinance, FHA, VA, USDA, jumbo loans and a selection of single-close construction loans. Their loans have fixed-rate and adjustable-rate terms available as well as options for no closing costs.

2. Cash-out and traditional refinancing

If you’re looking to lock in a lower interest rate or change your type of mortgage, refinancing can be helpful. GO Mortgage offers two types: traditional refinancing and cash-out refinancing.

Both options allow you to pay off your existing mortgage and set up a new one with different terms. And if you have at least 20% equity in your home, you won’t have to keep your mortgage insurance.

Although GO Mortgage doesn’t offer traditional home equity loans or home equity lines of credit (or HELOCs), their cash-out refinancing loan allows you to tap into your equity to borrow cash. Homeowners can use the money to finance bigger purchases — such as renovations or a down payment for another home — or to pay off high-interest debt.

3. Rate and fee information isn’t available online

Unfortunately, GO Mortgage doesn’t display any specific information on their website regarding rates and loan fees. Instead, you’ll have to contact them to learn more, either by calling or filling out an online form.

Who is a GO Mortgage loan good for?

To get a better picture of how GO Mortgage loans compare to other lenders’, you’ll need to contact them directly. In general, though, GO Mortgage’s conventional, FHA, USDA and VA loan options may be worth considering for new homebuyers. If you’re buying a fixer-upper, their FHA 203(k) renovation loan covers the home purchase as well as repair costs. 

GO Mortgage’s cash-out refinancing loan could be a helpful option for real estate investors looking to buy another property or homeowners who want to renovate. And their jumbo loan of to up to $4 million could potentially be a good fit for someone looking to borrow for a more expensive home.

Keep in mind that GO Mortgage isn’t licensed in Alaska, Hawaii, Nevada, New Hampshire, New York, North Dakota, Rhode Island or Vermont. So if you’re looking to buy a home there, you’ll need to go with another lender.

How to apply for a GO Mortgage loan

• Contact a GO Mortgage representative. To get information on rates and start the mortgage preapproval process, you’ll need to either call or fill out an online form.
• Provide basic information. When filling out the form, you’ll answer questions like where you’re planning to buy, what type of property you’re interested in, your credit score range and how GO Mortgage can contact you.
• Review your finances. A GO Mortgage advisor can help you determine what kind of home you can afford based on your down payment, loan term length and the interest rate you qualify for. They also recommend considering costs like your monthly mortgage payment amount, property taxes, insurance and maintenance.

Not sure if GO Mortgage is right for you? Consider these alternatives.

If you want to compare rates with several lenders or if your application is denied, keep in mind that you have a window of time where multiple hard credit inquiries by lenders only count as one for your credit scores. You typically have 14 days — though it could be longer depending on the scoring model. Here are a couple other options.

• Mutual of Omaha: You can find a range of loan programs at Mutual of Omaha, and you can apply on the go with their mobile app.
• Truist: Truist also offers a variety of mortgage types and plenty of resources to help you understand your options and the loan process in general.

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About the author: Jenny Rose Spaudo is a freelance writer and content strategist specializing in finance, technology and real estate. Her writing has appeared in Business Insider, Credit Karma, GOBankingRates and more. Visit jennyroses… Read more.
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