According to Marriott, hackers have had unauthorized access to its Starwood guest reservation system since 2014, giving the attackers a view into sensitive data of up to 500 million people who booked a stay at a Starwood property.

For about 327 million guests, the exposed information includes some combination of their name, mailing address, email, date of birth, phone number, gender, certain travel information, communication preference and passport numbers. For some, the information also includes credit card numbers.

The hotel giant said Friday that it would begin emailing alerts to affected guests whose emails are in the Starwood guest reservation database. If you’ve received the email, or if you’ve stayed at a Starwood property in the past and are worried about your information, here are some steps you should consider taking to help protect yourself.

What can you do?

Explore Marriott’s resources

Marriott has set up a dedicated website to provide information about the breach. It also established a call center open seven days a week to field questions from concerned guests. Phone numbers for the call center are available at the link above.

You can use these resources to get answers to your biggest questions about what happened. The company also said it would provide free one-year access to WebWatcher, a tool that monitors internet sites that commonly share personal information and alerts you if it finds evidence that your information is on the site.

Change your passwords

Even if you’re not sure whether you were affected by this particular breach, it’s probably wise to go ahead and change your passwords on the Starwood and Marriott websites — and anywhere else you used the same email and password combination. When changing your passwords, make sure they’re strong and hard to guess. For example, use a mix of letters, numbers, cases and symbols. Avoid using the same password across multiple sites.

Worried you’ll have trouble remembering your various passwords? Try using a password manager to keep track of them.

Set up multifactor authentication

Unfortunately, having a strong password won’t cut it if the site doesn’t store it securely. For an added layer of protection, consider enabling two-factor authentication on any site or account that offers it.

Typically, this will involve entering in a code sent to you via a separate channel (think your email or phone number). This extra step requires you or anyone else trying to log in to your accounts to have more than just a username and password.

Freeze your credit, then set up fraud alerts

If you’re worried that your information may have been compromised in the Marriott data breach, you can ask the three major consumer credit bureaus — TransUnion, Experian and Equifax — to freeze or place a fraud alert on your credit reports.

Freezing your credit is free and makes it more difficult for fraudsters to open new financial accounts in your name. A credit freeze restricts access to your credit report.

Alternatively, you may want to consider a fraud alert, which gives potential lenders and creditors a heads-up that someone may try to fraudulently open an account or a new line of credit in your name.

You can also sign up for free credit monitoring with Credit Karma. We’ll notify you if we notice significant changes on your TransUnion® or Equifax® credit reports so you can check for suspicious activity.

Thanks mostly to job innovation brought on by new technology, large and heavily populated cities began pulling away economically from less-populated cities around the 1980s, creating a “spatial divergence,” or economic divide.

Fast forward to today. It’s been about a decade since the financial crisis and unemployment rates are at historic lows. But dig a little deeper and you see that the majority of job growth (72%) has occurred almost exclusively in American cities with populations topping 1 million, according to the Brookings report released last week.

On the other hand, the report says that smaller cities have seen only a fraction of the postrecession employment surge. Cities with populations between 50,000 and 250,000 (smaller metro areas) make up less than 6% of American employment growth since 2010. “Micro” towns and rural areas have seen even less growth, with many areas populated by less than 50,000 at below prerecession employment levels.

What’s the solution to bridging the “spatial divergence” gap? The authors of the report propose a few strategies for leaders and policymakers, including …

• Promoting policies that increase digital know-how in communities that are being “left behind”
• Increasing access to capital for small businesses in lagging communities
• Expanding internet access across the more rural and sprawling areas of the U.S.
• Identifying the most-promising midsize areas and working to give them an economic boost in the hopes that they’ll raise up the smaller communities around them
• Providing federal financial support to those who want to make long-distance moves or commute to areas with more economic opportunity

Whatever course of action U.S. policymakers take, the authors say, the solutions need to invest in both people and places to slow the widening gap.

“Inaction, after all, is no longer an option,” they say. “The costs of spatial divergence to American economic and political life are now too great to ignore.”

Here’s a bit of good news for retirement savers. A new report from Fidelity Investments reveals that balances for retirement accounts such as 401(k)s and IRAs hit an all-time high in the third quarter.

Just how high? Average balances for 401(k)s and individual retirement accounts have nearly doubled since the third quarter of 2008, when the U.S. was in the midst of the Great Recession.

The average 401(k) balance reached a high of $106,500 in the third quarter this year, according to the Fidelity report released Monday. That figure represents an 87% increase compared with the third quarter of 2008, when the average balance was $56,900. And the average IRA balance rose to $111,000, more than twice as much as the average IRA balance in the third quarter of 2008.

The report, which looked at more than 30 million retirement accounts, also found that the number of 401(k) and IRA millionaires — that is, people who have $1 million or more saved in these types of retirement accounts — saw double-digit growth compared with the same period a year ago. Fidelity estimates there are now 187,400 401(k) millionaires, up from 133,000 last year, and 170,400 IRA millionaires, up about 25% from the same period last year.

What’s more, Fidelity found significant gains for those who have saved consistently over the past five, 10 or 15 consecutive years in their work-sponsored 401(k) accounts. Most notably:

• The average 401(k) balance for millennials who have been saving for five years straight in the same employer-sponsored account topped $80,000 in the third quarter of this year, up from $20,600 five years ago.
• The average 401(k) balance for those who’ve saved 10 years in a row reached $305,400, or about five times the average balance for this group 10 years ago.
• For those who have continuously saved for 15 years (or since the third quarter of 2003), the average 401(k) balance increased to $400,300 in the third quarter of 2018. That’s more than eight times the average balance of $47,800 that same group had in the second quarter of 2003.

In the midst of a turbulent stock market, these gains may help encourage retirement savers.

“Most individuals will go through several periods of market volatility in their savings career, so it’s important to stay the course, not react to short-term market events and continue to take a long-term approach to retirement savings,” said Kevin Barry, president of workplace investing at Fidelity, in a press release.

“These groups of long-term savers are great examples of how a consistent approach to retirement savings can lead to significant financial gains over the long run,” he said.

With consumer spending and earnings steadily rising in the third quarter, the U.S. economy still appears to be performing well. But while some lenders are seeking to loosen borrowing standards in the current climate, others are looking to tighten up.

According to a report in The Wall Street Journal published Monday, two of the largest credit card issuers, Discover and Capital One, said they’ve begun to introduce credit limit restrictions for some new and existing customers.

Why the caution? Both issuers said in the report that there’s no indication consumers are any less able to pay off debt at this point, but there is concern about how long they can keep it up.

Want to learn more?

• What does this mean?
• How will this affect you?
• What can you do?

What does this mean?

In the years since the Great Recession, many banks and lenders have been focusing their business on consumers with better-than-average credit scores because doing business with them meant less risk.

Now that the economy seems solid, some lenders are looking for opportunities to grow their businesses beyond prime lending, but others — Capital One and Discover — seem more wary, making moves to pull back on lending instead.

On the company’s earnings call, Capital One CEO Richard Fairbank said that the company had been more cautious about the spending limits it approves for newly issued cards and raising credit limits for existing customers’ accounts.

Discover said it had reduced how many balance transfer offers it made to a certain higher risk group. Discover also has spent the last two years shutting down a number of inactive cards that totaled more than $30 billion in spending limits. Both these actions were part of an effort to discourage customers from maxing out their credit cards, according to the paper.

Some reasons the two issuers might be moving in a more cautious direction: American consumer debt is on the rise — and the Federal Reserve continues to raise interest rates, directly affecting things like credit card APRs. But it also comes down to a general apprehension about the economy and how long its current growth can continue.

As reported by the Journal, Discover CEO Roger Hochschild said, “It really is about reducing risk. By traditional measures we’re pretty late into an economic cycle.”

Fairbank’s thoughts on the current economy? “[I]n some ways, it almost feels too good to be true,” he said in the report.

How will this affect you?

If you’re thinking about applying for a credit card from either Discover or Capital One, you may want to lower your spending limit expectations — especially if your credit scores are lower than average.

If you already have a Discover or Capital One credit card and you want to ask for a credit increase, feel free — but you should realize that you might now be less likely to get approved for the amount you want.

The Journal also reported that Discover said it had cut back on its personal loan approvals, so the company may not be your best bet for those offerings.

What can you do?

Having a lower spending limit on a credit card isn’t necessarily a bad thing. If you apply for a card and are approved for a limit that’s less than you had hoped for, it might force you to pay more attention to the way you use your credit cards.

Set a budget and monitor your spending — remember, it’s good practice to keep your balances on all your credit cards at or below 30% of your overall credit limit. If you diligently track your purchases, getting a lower limit could actually help you use your card more responsibly.

You should also keep an eye on whether other credit card issuers decide to follow Discover’s and Capital One’s lead. As these two lenders noted, the economy is still strong, and they haven’t seen any signs that consumers are less likely to be able to pay down their debt. But other lenders might ultimately decide to take similar measures to protect themselves against potential losses.

Personal loan originations from the top 100 lenders are up 118% over the last four years with fintech companies driving the growth, Credit Karma data reveal.

Fintech personal loan originations increased more than 940% among the top 100 lenders from 2013 to 2017. That’s up about $11.7 billion in four years, according to an analysis of personal loan data for more than 15 million Credit Karma members in the U.S. (Learn more about our methodology.)

That’s compared to a 93% increase for bank originations and 42% for credit union originations in the same time period and within the same top 100 group.

What’s more, as fintech loan originations grew, storefront originations lost some ground, dropping 10% from 2016 to 2017.

Additional key findings

Fintech companies poised to maintain lead

Banks and storefronts led the top 100 personal loan origination space in 2013, according to Credit Karma’s analysis.

At that time, bank originations made up 33% of the top 100 personal loan market and storefront originations made up 43%. Fintech originations lagged behind, hovering at 7% of the market.

The landscape began to change from 2013 to 2014, and by 2015 fintech originations nearly matched those of banks. They eventually surpassed banks and storefronts in 2017 to move into the top spot for personal loan originations.

Fintech personal loan originations held a steady lead, ending 2017 with originations about 17% greater than banks and 32% greater than storefronts.

According to the analysis, the top 10 fintech companies leading the charge in 2017 were:

People turn to personal loans to help with credit card debt and unexpected costs

In an analysis of self-reported data, Credit Karma found that nearly 40% of its U.S. members seeking personal loans — from a fintech company or otherwise — wanted a loan for credit card refinancing. And 27% said they wanted a personal loan to help cover an unexpected cost.

Loan purposes were self-reported by approximately 1.5 million Credit Karma members in the U.S. who sought prequalification for a personal loan between January and March 2018.

The same analysis also found that approximately half of people who sought personal loans of $30,000 or more were looking to borrow an amount that represented more than 50% of their annual income.

Despite growth, personal loan debt is smallest piece of the full debt picture

When it comes to total debt, personal loans make up a small portion: Only 1% of the overall debt that Credit Karma members carry is personal loan debt, based on a June 2018 analysis of more than 60 million members in the U.S.

But even though personal loans represent a relatively insignificant piece of the total debt picture, a single personal loan can represent major debt in a person’s life.

Credit Karma found that among its analyzed members, millennials with personal loans have more than $5,400 in personal loan debt on average, while Gen Xers with personal loans have more than $8,200 on average in personal loan debt. Baby boomers average out at more than $7,900.

Gen X members also shoulder most of the personal loan debt burden, collectively holding 53% of all personal loan debt.

As for total debt, mortgage and student loan debt make up the majority of the puzzle, comprising 62% and 13% of members’ total debt, respectively.

Tips for smart personal loan use

• Before you borrow, make sure the lender is legitimate. Many fintech and online lenders have cropped up in recent years. If you’re not sure whether you can trust a lender, consider cross-checking the company’s name with the Consumer Financial Protection Bureau or Better Business Bureau before applying.
• Make sure a personal loan is your best option. Personal loans can certainly provide the cash you need for a handful of financially demanding scenarios. However, a personal loan may not necessarily be the best option for your situation. Make sure to shop around and consider your full suite of alternatives. For example, are you considering a personal loan to help alleviate your credit card debt? If you have good credit, you may qualify for a balance transfer credit card with a 0% intro APR (annual interest rate). If you can pay off that balance before the introductory rate ends and the interest rate goes up, a balance transfer card may be a better option.
• Know your APR and fees. Personal loan APRs and fees can vary from lender to lender, and the APR can make a big difference in how much you pay over the life of your loan. Before you sign on the dotted line, be sure you look for the best interest rate for you (APRs typically range from around 5% to 36% depending on your credit health and the lender). Also ask if the lender will charge an origination fee, and be aware of any prepayment penalties. That’s right, some lenders charge a fee if you pay off your loan early.

Methodology

To compare growth of personal loan originations over time, Credit Karma analyzed personal loan origination data contained in credit report data from 2013 to 2017 for more than 15 million Credit Karma members in the U.S. who are currently enrolled in Credit Karma credit monitoring services and have opened a personal loan since 2013. To determine the top 100 lenders, Credit Karma narrowed its analysis to look at the 100 lenders with the most personal loan originations for each year. The top 100 lenders comprised 63% of the total personal loan originations for 2013-2017. To determine how to classify each lender — bank, storefront, credit union, fintech or other — Credit Karma developed definitions for each lender type based on industry terms and definitions, then sorted each of the top 100 lenders into its respective category based on its adherence to each category’s definition.

To determine how much debt and the type of debt members carry, Credit Karma analyzed June 2018 credit report data for more than 60 million Credit Karma members in the U.S.

To determine why people apply for personal loans, we drew on information provided by approximately 1.5 million U.S. Credit Karma members who sought prequalification for a personal loan through Credit Karma’s website or mobile app between Jan. 1 and March 26, 2018. In the prequalification process, members self-report individual annual income and their reason for seeking a personal loan. Prequalification applicants may or may not have applied for and received approval for a personal loan through one of Credit Karma’s marketing partners.

The percentages reported in this article have been rounded to the nearest whole percent.

It’s only October but the holiday season is already upon us.

A new Credit Karma survey of more than 1,000 U.S. consumers found that 45% percent of Americans have already started holiday shopping this year, with some beginning as early as January.

Why the head start? Many respondents cited convenience, saving money and wanting to avoid stress around the holidays as a few reasons they started shopping early.

And with consulting firm Deloitte predicting a robust holiday shopping season, retailers have good reason to expect big sales through the end of the year.

In fact, our survey finds Americans intend to spend hundreds, if not thousands, of dollars during the 2018 holiday season (even if they haven’t started already). Forty-three percent of all U.S. consumers plan to spend $500 or more on holiday gifts this year. Nearly 20% plan to spend more than $1,000. (Learn about our methodology.)

Key survey findings

Christmas in June: The bulk of early holiday shopping began mid-year

According to our survey, most of the pre-holiday shopping so far this year happened between June and September. But at least some U.S. consumers began their 2018 holiday shopping as early as January.

Source: Credit Karma

The desire to avoid holiday stress is driving some to shop early

Our survey found a few reasons nearly half of Americans have started holiday shopping more than 6 months — or in some cases almost a year — before December or late November.

Some of the top responses related to avoiding typical holiday stressors like waiting in lines, being around large crowds, or spending a lot of money.

And the top response — “because I like to feel prepared” — could really mean that many Americans shop early to avoid the stress of feeling unprepared.

Credit cards will be the preferred method of payment during the holidays

Many U.S. consumers plan to spend hundreds of dollars, or in some cases thousands, on gifts this holiday season. Our survey found that 93% of Americans plan to holiday shop this year. And of those, about 43% plan to spend more than $500 on gifts, with nearly 20% planning to spend more than $1,000.

And when it comes to purchasing those gifts, U.S. consumers are most likely to charge it to credit cards.

Thirty-nine percent of respondents said they would use a credit card to pay for holiday presents, compared to 29% who said they would use debit cards and 22% who said they would use cash.

On the other end of the spectrum, hardly any Americans plan to take advantage of layaway (3%) or financing (1%) this year — a big shift from last year when a Deloitte study found 13% of Americans planned to use layaway services during the holiday season.

Tips for staying within your budget this holiday season

Whether you’ve already started shopping for gifts this year or plan to wait until the last minute, holiday shopping can be stressful — especially if you end up spending more than you intend.

It doesn’t have to be, though. Follow our tips to stay within your budget this year and save yourself a whole lot of anxiety and buyer’s remorse.

Start early

Yes, we’re recommending you join the ranks of the many Americans who have already begun holiday shopping this year. Starting early can help give you the mental space you need to think carefully about what to buy. If you start now, you can be strategic — actually drawing up a budget and planning out what kind of gifts will fit within it. Waiting until the last minute can lead to rushed decisions and stress-spending.

Consider using cash

One way you can keep yourself from spending too much over the holidays is to replace the credit card (or cards) in your wallet with cash. That way, each time you go to pay for something, you’ll have to pull out real, paper money and watch it go into the register. It may just make you think twice before spending. But if you’re one of the 39% of Americans who does plan to use a credit card over the holidays, just make sure you don’t spend more than you have, and remember to pay back on time and in full. This could even provide a healthy little boost to your scores.

Step away for a moment

Before you rush to the register with your gifts, try leaving the store and walking around outside for a bit. Studies show retailers understand the various factors that make people want to spend money. Whether it’s through sight, smell or sound, retailers know what senses to manipulate to make you buy. So stepping away from a store and out of its environment for a few minutes can help you clear your mind and better evaluate how you’re about to spend your money.

Methodology

On behalf of Credit Karma, Qualtrics conducted an online survey in September 2018 of more than 1,000 Americans 18 or older to find out whether they’ve begun holiday shopping and why. All percentages in this article are rounded to the nearest whole percent.

The average FICO® credit score in the U.S. hit a record high of 704 in April, according to a report published Monday.

This comes nearly a decade after the average FICO® credit score in the U.S. bottomed out at 686 in October 2009 closely following the Great Recession. Since the dip in 2009, Americans have steadily regained credit health, with the average FICO® credit score — which typically ranges from 300 to 850 — consistently climbing over the last eight years.

The reason, according to FICO: Fewer Americans have credit scores in the lowest bracket and fewer accounts have ended up in collections, perhaps signaling an economy that’s picking itself back up after the recession.

But the report also highlights a few troubling trends that borrowers and lenders should begin to monitor.

Want to learn more?

• What’s the background?
• Why does this matter?
• What can you do?

What’s the background?

There are a few reasons that could explain why credit scores have hit a record high this year.

First, there are fewer Americans with scores in the lowest score range (550 or lower). With fewer scores at the bottom of the scale, the overall average credit score has risen. Additionally, more people have reached the coveted 800-plus range, according to FICO, with 21.8% of consumers included in the 800 to 850 band, up from 20.7% last year.

Second, U.S. credit reports are looking cleaner on the whole. According to the FICO® report, the percentage of Americans with one or more collections accounts on their file has fallen to 23% in April 2018 from 25.8% at the same time last year.

Payment history makes up a large portion of what determines your scores, so this drop in reported collections accounts could account for the upswing. What’s more, scoring changes made by the three major credit reporting agencies through the National Consumer Assistance Plan may have helped improve the credit health of consumers with lower scores.

Last, Americans are applying for fewer credit lines overall. According to the FICO® report, the percentage of the population with one or more hard inquiries hit a four-year low of 42.2% in April compared with 43.7% in April 2014. While a hard inquiry doesn’t affect your scores as much as your payment history, fewer of these credit checks could account for some of the uptick in the national average score.

Why does this matter?

With U.S. jobless claims at a near 50-year low and household wealth continuing to rise, a record-setting national average credit score might further signal an economy that’s getting back up on its feet after the recession.

Higher average credit scores could mean people are seeking to understand the credit system more fully and using their credit more wisely. It could also mean that lenders, in the wake of the Great Recession, are more cautious about who they lend to and are therefore choosing borrowers who are more likely to make consistent payments. Either way, a high average credit score is one sign that American borrowers and lenders are being more thoughtful.

But it’s not all good news: The FICO® report also reveals that delinquencies — that is, payments that are 90 or more days late on a bank card — are also on the rise (at 8.2% in April 2018, up from 7.7% at the same time last year).

This increase in delinquencies could be happening as a result of the overall credit score uptick.

Ethan Dornhelm, vice president of scores and analytics at FICO, said in an interview with Bloomberg that it could be a “reflection that lenders started loosening underwriting criteria a bit, so [they] are bringing in a near-prime population that is more likely to default.”

It’s not reason for major concern now, but consumers and lenders should continue to keep an eye on the trend.

What can you do?

Whether through your own efforts or because of National Consumer Assistance Plan-related efforts by the major credit bureaus, we hope you’ve seen a boost in your credit scores.

If your scores haven’t gone up (or you don’t have credit scores), there’s no need to worry. There are ways you can work to build your credit, such as applying for a secured credit card and making sure you pay your balances on time and in full each month.

If you find yourself 90 or more days late on a credit card payment, understand your options and work to make those payments as soon as you can.

More broadly, it’s important to keep an eye on the economy. Even though we’re seeing many positive developments almost a decade after the recession, there are some troubling indicators cropping up — including record-high household debt, the increasing length of time it’s taking consumers to pay off certain debt (like auto loans), and a declining ratio of personal savings to disposable personal income. These economic factors could lead to credit score changes and other issues down the line.

According to new Credit Karma analysis, more than 105 million American adults have a password that could be found on the dark web.

Affecting nearly 42% of the total U.S. adult population, this is no small problem.

And it seems people with higher credit scores might be more at risk. Based on the analysis, about 62% of exposed passwords belong to Americans with scores of 660 or higher.

Additional key findings

The full breakdown

Of the more than 105 million people who could have passwords exposed on the dark web:

• 3% have credit scores below 500
• 18% have credit scores between 500 and 579
• 17% have credit scores between 580 and 659
• 32% have credit scores between 660 and 759
• 30% have credit scores of 760 or above

What is the dark web?

Think of the dark web as the “unseen internet,” accessible only to those who have special software and a desire to move about online anonymously, without being traced.

If it sounds like a hotbed for criminal activity, that’s because it (mostly) is.

For sale on the dark web, you might find credit card numbers, hacked Netflix accounts, fake college diplomas, fake IDs, counterfeit money and, of course, people’s passwords and login credentials.

If that freaks you out, you’re not alone. ID theft is a top crime concern among people in the U.S. and the No. 2 highest reported crime.

And based on Credit Karma’s analysis, if you’re older than 18 and living in the U.S., there’s almost a 1 in 2 chance that one of your passwords is exposed on the dark web.

What you can do?

Is it time to panic? Not quite.

Even though the dark web sounds like a scary place (it’s even been used as the basis for horror movies), there are steps consumers can take to protect themselves and their information.

• Create a strong password for each of your accounts. Ideally, you’d create one that uses random alphanumeric and special characters. On top of that, generally the longer your password is, the better. Using between eight and 15 characters (or more) can help. Also consider using a password manager, a secure tool that saves your passwords for you so you don’t have to remember them.

• Check your financial accounts for suspicious activity. Regularly checking for any errors and suspicious transactions on your accounts is crucial to reducing the impact of ID theft. Review you credit reports, bank and credit card statements often. If you find any evidence of fraud, reach out right away to the appropriate financial institution and credit reporting bureau (or bureaus) to let them know what you found.

• Enroll in an identity monitoring service. Consider enabling our free identity monitoring tool. With this tool, Credit Karma scans more than 13 billion breach records, both public and from the dark web, on behalf of our members.

• Place a fraud alert on your credit reports. It’s free to place a fraud alert on your credit reports, and people can do this even if they only suspect their information has been compromised. You’ll only have to contact one of the major consumer credit reporting bureaus for a fraud alert; that bureau is required to contact the others with your request.

Methodology

To arrive at a total U.S. figure for passwords exposed on the dark web, Credit Karma began by analyzing dark web password exposure for a majority of U.S. Credit Karma members by credit score range. Since not every American is a member of Credit Karma, we extrapolated the data of affected Credit Karma members to represent the wider U.S. population. Given Credit Karma’s large member base of more than 80 million, we made the assumption that the proportion of individuals who have a password exposed on the dark web is the same for both Credit Karma members and the broader U.S. population. We took each percentage of affected Credit Karma members by score band and multiplied it by the total number of Americans within that score band, based on a combination of data. All percentages have been rounded to the nearest whole percent.