Money and Banking Questions, Answered

On the FICO scale, 670 to 739 counts as good. Scores of 740 and up sit in the very good and exceptional bands.

Lenders set their own cutoffs, though. A good score helps, but it doesn't guarantee an approval or a specific rate.

The highest base FICO Score is 850. Most widely used scores run from 300 to 850, according to the CFPB.

You don't need a perfect score to get approved. Each lender sets its own cutoffs and pricing.

Yes. A 700 falls inside FICO's good band of 670 to 739.

It sits one band below very good, which starts at 740. Each lender sets its own cutoffs, so terms can still vary.

Only on certain industry scores. FICO's auto and bankcard versions run from 250 to 900. The base FICO Score most people see tops out at 850.

So a 900 can appear on a score built for car lenders or card issuers. It won't show up on a standard 300 to 850 score.

You don't start with a score. Scores are calculated from your credit reports, so with no reported history, there's nothing to score yet.

Your first score appears after a lender reports an account, such as a card or loan. Where it lands depends on how that account is handled.

Scores usually fall for one of a few reasons:

• Late payment: a missed bill reported to the bureaus.
• Higher balances: using more of your available credit.
• New applications: a hard inquiry from a recent loan or card.
• Closed or new accounts: changes to your account mix or average age.
• Collections: a debt sent to collection, or a foreclosure or bankruptcy.

Check your reports to see which one applies. A short dip from one inquiry often fades.

Different apps often use different scoring models, versions, or bureaus. The CFPB notes you don't have just one credit score.

Each bureau can hold slightly different data, and scores refresh on different days. So two apps can both be right and still show different numbers.

No. Checking your own score is a soft inquiry, and it doesn't affect your FICO Score.

Hard inquiries are different. They happen when you apply for credit. They can lower your score for up to a year.

A hard inquiry affects your FICO Score for one year. It stays on your credit report for up to two years, according to myFICO.

After 12 months it still shows on the report, but FICO no longer counts it.

Focus on the habits scoring models weigh most. Payment history and amounts owed make up about 65% of a typical FICO Score.

• Pay on time: set up autopay for at least the minimum.
• Lower your balances: keep card use well under your limits.
• Apply sparingly: each application can add a hard inquiry.
• Check your reports: dispute errors with the credit bureau.

The full breakdown of how credit scores work covers each factor.

It's a savings account with a higher annual percentage yield, or APY, than most.

It works like any other savings account. Your deposits earn interest, and you can withdraw when you need to. The rate is usually variable, so it can change.

Yes, if it's at an FDIC-insured bank or an NCUA-insured credit union. Both insure deposits up to $250,000.

The coverage applies per depositor, per insured institution, for each ownership category. Always confirm the bank's insurance before you open an account.

Your insured deposits are protected. The FDIC began in 1933. It says no depositor has lost a penny of insured funds since.

Money above the $250,000 limit, or in products the FDIC doesn't insure, can be at risk. Stocks, bonds, mutual funds, and crypto aren't covered, even if you bought them through a bank.

The FDIC covers $250,000 per depositor, per insured bank, for each account ownership category. Credit unions get the same $250,000 limit through the NCUA.

You can be covered for more in a few ways:

• Different banks: each insured bank has its own limit.
• Different ownership categories: single and joint accounts are insured separately.
• Joint accounts: each co-owner's share has its own coverage.

Not by federal rule anymore. In April 2020, the Federal Reserve removed the six-per-month limit on convenient transfers from savings accounts.

Some banks still set their own limits or fees. Check your account terms if you move money often.

Most savings rates are variable. Banks can raise or lower them as market rates and their own funding needs change.

So the APY you see today is a snapshot, not a promise. A CD is different, because it usually locks a rate for a set term.

APY stands for annual percentage yield. It shows the yearly return on a deposit after compounding.

Federal rules require banks to state savings returns as an APY. That lets you compare accounts on the same basis. Read more on what APY means.

The interest rate ignores compounding, while APY includes it. That's why APY can sit slightly above the rate.

These are Fin Loom calculations. The full breakdown of APY vs interest rate shows why the gap grows with bigger balances.

Both are insured deposit accounts that pay interest. A money market account may add some transaction features, and some need a minimum deposit.

Rates on both are usually variable. A money market fund is different. It's an investment, and the FDIC doesn't insure it.

At a 5% APY, $10,000 earns about $500 in a year. That assumes the balance and rate stay put.

Add $500 a month for five years at 5% APY, and the balance could reach about $46,670. These are Fin Loom calculations. Try your own numbers in the savings interest calculator.

Emergency money usually needs to be safe and quick to reach. Insured savings and money market accounts meet both needs.

The tradeoff is simple. Cash you might need next month shouldn't swing in value like stocks can. The comparison of saving vs investing walks through how time horizon changes that choice.

Inflation is a general rise in prices across the economy over time. As it happens, each dollar buys a little less.

The most cited U.S. gauge is the Consumer Price Index, or CPI. The Bureau of Labor Statistics publishes it monthly.

The BLS tracks the prices of a broad basket of goods and services each month. The change in that index is the CPI inflation rate.

The Federal Reserve's 2% goal uses a different gauge. It's the Personal Consumption Expenditures index, or PCE. The two measures often differ.

Consumer prices rose 3.7% in the 12 months to September 2026, based on the BLS CPI. Core prices, which leave out food and energy, rose 2.6%.

Energy prices rose 20.4% over the same year. The next CPI report is due November 10, 2026.

Core inflation is the price change for everything except food and energy. Those two categories swing a lot, so leaving them out shows the underlying trend more clearly.

Core CPI rose 2.6% in the year to September 2026, while headline CPI rose 3.7%.

No. Lower inflation means prices are rising more slowly. They're still going up.

Falling prices are called deflation, and they're rare in the U.S. Prices that jumped in 2021 and 2022 mostly stayed higher, even as inflation cooled.

Deflation is a broad drop in prices. The U.S. last had a yearly drop in 2009, when the annual average CPI fell 0.4%.

It sounds like good news for shoppers. But the 2009 drop came during a severe recession.

Several pressures hit at once after the pandemic recession. Supply chains broke down, demand shifted fast, and energy prices spiked.

Annual inflation climbed from 1.2% in 2020 to 4.7% in 2021 and 8.0% in 2022. The 12-month rate peaked at 9.1% in June 2022.

Annual average inflation reached 13.5% in 1980. The recent peak was 8.0% in 2022.

Monthly readings tell a different story. The 12-month rate hit 9.1% in June 2022. Check which measure a headline uses before comparing years. The full table is in our inflation rate year by year.

If your savings earn less than inflation, your money loses buying power, even as the balance grows.

Say $10,000 earns 1% while prices rise 3%. After a year, it buys what about $9,806 bought before. That's a Fin Loom illustration, not a forecast.

About $195.67 in September 2026 dollars, based on the BLS CPI-U. Prices nearly doubled over that span, an average of about 2.6% a year.

Try any amount and any pair of years in our inflation calculator.