4 “Smart” Credit Card Moves that are Actually Dumb

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Used wisely, credit cards can help build your credit score and earn you sweet perks. But to get smart about the plastic in your wallet, you have to shake free from common myths that can actually tank your score or cost you unnecessary money. 

1. YOU RELY EXCLUSIVELY ON A DEBIT CARD.

The perks of debit are clear: It’s harder to overspend than if you use a credit card, and you can’t work yourself into a mountain of debt. That debt aversion might explain why those of us who got our financial footing during the Great Recession are more leery of credit than other generations: According to a Bankrate survey, two-thirds of people ages 18 to 29 don’t have a credit card, compared with only one-third of people over 30.

“But it’s dangerous to assume that all plastic is treated the same way by credit reporting and scoring agencies,” says credit expert John Ulzheimer, who spent years at FICO and Equifax. “Only credit cards make it onto your credit report, so if you avoid them you’re really not doing anything to help your credit score or establish your credit report.”

Even if you don’t plan to apply for a car loan or mortgage anytime soon, when you are ready to apply, those lenders will factor the age of your credit report into their decision. Opening a credit card in your 20s will mean you have a more, ahem, mature credit report than if you open one in your 30s, which can help you get a better or bigger loan—even if your finances are otherwise unchanged.

The Truly Smart Move: Go ahead and apply for a credit card (free services like Credit Karma can help you determine the appropriate card). If you’re worried the new piece of plastic will tempt you to splurge beyond your means, don’t keep it in your wallet. 

2. YOU CARRY A SMALL BALANCE EACH MONTH.

Credit scoring agencies want to see that you’re using your credit cards regularly, because that signals that you can responsibly handle the credit available to you. But somehow that truth morphed into a widespread myth that you shouldn’t pay your bill in full.

“Carrying a balance from month to month will just cost you interest and won’t help your credit score,” says Bethy Hardeman, chief consumer advocate at Credit Karma. In fact, it could hurt it, because lenders look at how the amount of your current balances compares with your total credit card limits. The lower the balance, the better.

So how do you prove regular use and earn your financial brownie points? Relax—credit card companies do the work for you. When you swipe your way to a $200 balance on your Visa, the company reports that amount to the credit reporting agencies at the same time that it issues you a bill. You can then pay that balance (in full!). And keep in mind that regular use doesn’t mean you have to use the card monthly or hit a certain spend threshold. Modest use every couple of months works just fine.

The Truly Smart Move: Set a calendar reminder so you pay your balance in full and on time to avoid getting hit with late fees. And if you find that “regular use” is turning into “regular splurges,” use your card to set up auto-pay on a boring bill instead. It’s tougher to be tempted to go on an electricity spree.

3. YOU DECLINE A CREDIT LIMIT INCREASE.

When Visa mails you an offer to increase the credit limit on one of your cards, you demur. Time for a pat on the back, right? Not quite. When FICO determines your credit score, one of the biggest numbers it looks at is your revolving utilization. Also known as credit card usage percentage or balance-to-limit ratio, this is basically a fancy way of saying how much you owe on your credit cards compared with how much your total limits are. “If you owe $500 on a card with a $500 limit, you’ll have a lower score than someone who owes $500 on a card with a $5,000 limit,” says Ulzheimer. 

To calculate your current revolving utilization, divide your balance by the credit card limit and multiply by 100. Quick example: If you owe $1,000 on a card with a limit of $2,500, your revolving utilization of that card is 40 percent. While 40 percent might sound boss at first blush, consider that consumers with the highest credit scores tend to have revolving utilizations under 10 percent.

One way to better your revolving utilization is to pay down your balances. But another is to increase the credit limits on existing cards. So the next time MasterCard extends an offer, think twice before you decline.

The Truly Smart Move: Many credit card companies will reassess your limit every three years or so, when they reissue your credit cards. But you can also proactively ask for an increase. You’re more likely to secure a higher limit if you’re a low-risk consumer: You use your cards regularly and pay your bill on time. 

4. YOU CANCEL SOME OF YOUR CREDIT CARDS.

Maybe your wallet is crazy cluttered with a million cards and you’re looking to streamline. Or maybe you’re sick of all the temptation that comes with having multiple cards. Or maybe you think having one card is safer when it comes to identity theft. No matter what your motivation, closing a credit card will ding your credit score, because it reduces your revolving utilization.

“Never, ever close a credit card,” says Ulzheimer. “The only time a card should be considered for the chopping block is if it has a huge annual fee and you’re planning to never use it again.” It’s especially worth waiting, he says, if you plan to apply soon for any type of credit, including an auto loan or student loan.

As for identity theft, keep in mind that if your account info is somehow stolen, all four of the major credit card networks offer total fraud liability. That means, if you spot a suspicious charge on your statement and you report it to the credit card company, you’ll pay nada.

The Truly Smart Move: The best way to kill both clutter and temptation—without wounding your credit score—is to shred the plastic you don’t want to use anymore. If you ever decide to start using that particular credit card again, you can put in a call to the company and have the card reissued at no expense.

11 Surprising Facts About Prince

BERTRAND GUAY/AFP/Getty Images
BERTRAND GUAY/AFP/Getty Images

It was three years ago today that legendary, genre-bending rocker Prince died at the age of 57. In addition to being a musical pioneer, the Minneapolis native dabbled in filmmaking, most successfully with 1984’s Purple Rain. While most people know about the singer’s infamous name change, here are 10 things you might not have known about the artist formerly known as The Artist Formerly Known as Prince.

1. His real name was Prince.

Born to two musical parents on June 7, 1958, Prince Rogers Nelson was named after his father's jazz combo.

2. He was a Jehovah's Witness.

Baptized in 2001, Prince was a devout Jehovah's Witness; he even went door-to-door. In October 2003, a woman in Eden Prairie, Minnesota opened her door to discover the famously shy artist and his bassist, former Sly and the Family Stone member Larry Graham, standing in front of her home. "My first thought is ‘Cool, cool, cool. He wants to use my house for a set. I’m glad! Demolish the whole thing! Start over!,'" the woman told The Star Tribune. "Then they start in on this Jehovah’s Witnesses stuff. I said, ‘You know what? You’ve walked into a Jewish household, and this is not something I’m interested in.’ He says, 'Can I just finish?' Then the other guy, Larry Graham, gets out his little Bible and starts reading scriptures about being Jewish and the land of Israel."

3. He wrote a lot of songs for other artists.

In addition to penning several hundred songs for himself, Prince also composed music for other artists, including "Manic Monday" for the Bangles, "I Feel For You" for Chaka Khan, and "Nothing Compares 2 U" for Sinéad O'Connor.

4. His symbol actually had a name.


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Even though the whole world referred to him as either "The Artist" or "The Artist Formerly Known as Prince," that weird symbol Prince used was actually known as "Love Symbol #2." It was copyrighted in 1997, but when Prince's contract with Warner Bros. expired at midnight on December 31, 1999, he announced that he was reclaiming his given name.

5. In 2017, Pantone gave him his own color.

A little over a year after Prince's death, global color authority Pantone created a royal shade of purple in honor of him, in conjunction with the late singer's estate. Appropriately, it is known as Love Symbol #2. The color was inspired by a Yamaha piano the musician was planning to take on tour with him. “The color purple was synonymous with who Prince was and will always be," Troy Carter, an advisor to Prince's estate, said. "This is an incredible way for his legacy to live on forever."

6. His sister sued him.

In 1987, Prince's half-sister, Lorna Nelson, sued him, claiming that she had written the lyrics to "U Got the Look," a song from "Sign '☮' the Times" that features pop artist Sheena Easton. In 1989, the court sided with Prince.

7. He ticked off a vice president's wife.

In 1984, after purchasing the Purple Rain soundtrack for her then-11-year-old daughter, Tipper Gore—ex-wife of former vice president Al Gore—became enraged over the explicit lyrics of "Darling Nikki," a song that references masturbation and other graphic sex acts. Gore felt that there should be some sort of warning on the label and in 1985 formed the Parents Music Resource Center, which pressured the recording industry to adopt a ratings system similar to the one employed in Hollywood. To Prince's credit, he didn't oppose the label system and became one of the first artists to release a "clean" version of explicit albums.

8. Prince took a promotional tip from Willy Wonka.

In 2006, Universal hid 14 purple tickets—seven in the U.S. and seven internationally—inside Prince's album, 3121. Fans who found a purple ticket were invited to attend a private performance at Prince's Los Angeles home.

9. He simultaneously held the number one spots for film, single, and album.

During the week of July 27, 1984, Prince's film Purple Rain hit number one at the box office. That same week, the film's soundtrack was the best-selling album and "When Doves Cry" was holding the top spot for singles.

10. He screwed up on SNL.

During Prince's first appearance on Saturday Night Live, he performed the song "Partyup" and sang the lyric, "Fightin' war is a such a f*ing bore." It went unnoticed at the time, but in the closing segment, Charles Rocket clearly said, "I'd like to know who the f* did it." This was the only episode of SNL where the f-bomb was dropped twice.

11. He scrapped an album released after having "a spiritual epiphany."

In 1987, Prince was due to release "The Black Album." However, just days before it was scheduled to drop, Prince scrapped the whole thing, calling it "dark and immortal." The musician claimed to have reached this decision following "a spiritual epiphany." Some reports say that it was actually an early experience with drug ecstasy, while others suggested The Artist just knew it would flop.

This story has been updated for 2019.

17 Delicious Facts About Peeps

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Getty Images

You know whether you prefer chicks to bunnies, fresh to stale, or plain to chocolate-covered. But there’s a lot you may not know about Peeps, everyone’s favorite (non-chocolate) Easter candy.

1. It used to take 27 hours to make a Peep.

A candy Peep being made
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That was in 1953, when Sam Born acquired the Rodda Candy Company and its line of marshmallow chicks. Back then, each chick was handmade with a pastry tube. Just Born quickly set about automating the process, so that it now takes just six minutes to make a Peep.

2. An average of 5.5 million Peeps are made every day.

Peeps candies being made
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All of them at the Just Born factory in Bethlehem, Pennsylvania. In one year, the company makes enough peeps to circle the earth—twice!

3. Yellow chicks are the original Peep, and still the favorite.

Boxes of yellow chick Peeps
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Yellow bunnies are the second most popular color/shape combination. Pink is the second best-selling color.

4. The recipe has stayed pretty much the same.

Cooking up a batch of Peeps
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The recipe begins with a boiling batch of granulated sugar, liquid sugar, and corn syrup, to which gelatin and vanilla extract are later added. 

5. The equipment has also (mostly) stayed the same.

Peeps candies being made
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Since Just Born turned Peeps-making into an automated process, the chicks have been carefully formed by a top-secret machine known as The Depositor. Created by Sam Born’s son, Bob, The Depositor could manufacture six rows of five Peeps apiece in a fraction of the time it took workers to form them by hand. And that same machine that Bob built has been keeping the Peeps flowing ever since. Until rather recently …

In 2014, the company announced that it was planning to renovate its manufacturing plant, including The Depositor. “It’s a little sad,” vice president of sales and marketing Matthew Pye told Candy Industry Magazine at the time. “Bob Born made it from scratch in 1954 and it allowed us to distribute and grow the brand nationally." 

6. The updated equipment means new Peeps innovations could be coming.

Making Peeps at the Just Born factory
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“The investment in our marshmallow making process will allow for more efficiency, more consistency, improved quality, and additional innovation capabilities,” co-CEO Ross Born told Candy Industry magazine about the new depositor, which will be able to produce a wider variety of Peeps in all sizes. “The [old] Peeps line did one thing and one thing very well—cranking out chicks day in and day out. Five clusters, just in different colors,” Born said.

7. Peeps used to have wings.

They were clipped in 1955, two years after the first marshmallow chicks hatched, to give the candy a sleeker, more “modern” look.

8. The eyes are the final touch.

A close up of a yellow chick Peep
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The final flourish for all of these squishy balls of sweetness is adding the eyes, which are made of carnauba—a non-toxic edible wax (that is also found in some shoe polishes and car waxes, plus many other candies).

9. Peeps may be destructible, but their eyes are not.

Making Peeps at the Just Born factory
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In 1999, a pair of scientists at Emory University—dubbed “Peeps Investigators”—decided to test the theory that Peeps are an indestructible food. In addition to a microwave, the pair tested the candy’s vulnerability to tap water, boiling water, acetone, and sulfuric acid (they survived them all). When they upped the ante with some Phenol, the only things that didn’t disappear were the eyes. 

10. They really are everyone's favorite non-chocolate Easter candy.

For more than 20 years now, no other non-chocolate Easter candy has been able to compete with the power of Peeps. With more than 1.5 billion of them consumed each spring, Peeps have topped the list of most popular Easter treats for more than two decades.

11. There are sugar-free Peeps.

Counterintuitive, we know. But in 2007, the first line of sugar-free Peeps hit store shelves.

12. There are also chocolate-covered Peeps.

Chocolate-covered Peeps hit the market in 2010. Today there’s a full line of them for every occasion.

13. Peeps come in a variety of flavors.

Color and shape (i.e. yellow chick) are no longer the only ways to categorize a Peep. They now come in an array of flavors, including fruit punch, sour watermelon, lemon sherbet, blueberry, and pancakes and syrup.

14. Peeps lip balm is a thing.

Yep.

15. On New Year's Eve, a giant Peep is dropped in Bethlehem, Pennsylvania.


PEEPS®

The drop is done with a traditional chick that flashes different colors at midnight.

16. Believe it or not, Peeps are not Just Born's best-selling brand.

That honor belongs to Mike and Ike. (Sorry, Peepsters.)

17. They're a boon to a creativity.

Blue chick Peeps
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All over the country, Peeps have become the preferred media for a number of highly anticipated annual art contests. (You can check out some of the coolest creations from Westminster, Maryland's PEEPshow here.)

Updated for 2019.

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