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Credit cards play a vital role in building credit scores and creditworthiness. In addition, it earns you redeemable points, cashback, or miles. We all know how to swipe, tab, or dip the plastic money to pay for daily purchases, but how do credit cards work?

Knowing the credit card types and how they function help you become a responsible consumer. It’ll help you understand their purpose, maximize benefits and avoid debts and financial ruin.

What Is a Credit Card?

A credit card is the purchasing power of an individual, stored in plastic, metal, or digital card. It offers a revolving line of credit for making purchases. The issuer requires at least a minimum, if not total, payment on the card balance in each billing cycle. You’ll pay a fee based on the Annual Percentage Rate (APR) for carrying the balance to the next month.

Credit cards come with a ceiling on the line of credit, which limits your total purchasing power; hence are called a credit limit. Your monthly statement shows expense details and the balance you owe. As you pay off your balance, it releases your available credit.

In addition to providing a monthly interest-free loan, credit cards also offer rewards and benefits for you and your family. You can redeem points to cash or check or use it to buy gift cards. You’ll earn points as you utilize the card for payments.

You can use a credit card to make purchases, balance transfers, and cash advances. However, it would be best to refrain from withdrawing cash from a credit card. Any money taken out of the credit card as cash advances will start accruing hefty interest immediately.

How Do Credit Cards Work?

What seems like a simple purchase decision when you pay using a credit card undergoes a complex process. It involves a customer, his/ her issuing bank, Merchant, and the acquiring bank, along with a payment processor and payment network.

So, how do credit cards work exactly?

Regardless of whether you slide the magnetic strip against the card reader, insert a chip-enabled card or go contactless, the card reader receives your information and sends it to the Merchant’s bank. Merchant’s bank then requests payment authorization from the credit card issuer. Once authorized, the issuing bank sends the money through the payment network to the Merchant’s bank. The multi-step process happens seamlessly at lightning speed in the background.

How Different Types of Credit Cards Work

Besides big banks like Bank of America, Capital One, Citi, and Wells Fargo, many other banks and credit unions issue credit cards. Various products are available based on consumer types, credit history, reward structure, card network, and many other features. And hence, they function slightly differently, although they are generally the same.

How Do Secured Credit Cards Work?

Secured credit cards work like debit cards, where your credit limit depends on your security deposit. The security deposit acts as collateral for the credit. The card issuer will keep the security deposit if you stop paying your monthly balance.

You apply for secured credit cards just like any traditional credit card. Once approved, you must deposit cash as a security to use the card for purchases. And your credit limit is usually equal to the security deposit amount.

Secured credit cards are best for people that are building or improving their credit history. Banks and credit unions base their credit approval decision on the applicant’s income, credit risk, and history.

How Do Cashback Credit Cards Work?

Cashback credit cards provide cash back on every qualifying purchase. The credit card issuer determines the amount of cashback and qualifying purchases. Depending on the card, a general cashback ranges from 1% to 2%.

Credit cards may also offer bonus cash back at a higher rate in specific purchase categories with or without activation requirements. The final Cashbacks show up in your account at the end of every billing cycle.

Cashback credit cards usually have a higher Annual Percentage Rate (APR) and a potential annual cap on bonus cash back. Most bonus cashback requires enrollment requirements.

How Do Co-Branded Credit Cards Work?

Co-branded credit cards work similarly to traditional credit cards that banks or financial institutions offer. Besides regular cashback, miles, or points, they’ll have additional perks on purchases at the co-branded merchants. The co-branded card can be a hotel, an airline, or a store credit card.

Businesses offer co-branded credit cards to customers to maintain loyalty, grow, and save on interchange fees. The credit card issuing company has an opportunity to expand its customer base. And consumers unlock additional savings by being loyal to the brand. It’s a win-win for everyone.

How Do Travel Credit Cards Work?

Unlike cashback credit cards, travel credit cards offer points or miles for all eligible purchases. The accumulated miles or points can offset travel-related expenses through a statement credit. They can also pay directly for travel arrangements like flight tickets, hotels, or car rentals through the credit card website. The points/ miles are also redeemable as cash or gift cards but with less value.

Travel credit cards can be co-branded cards like Delta SkyMiles credit cards, Hilton Honor credit cards, or unsecured cards offering travel benefits. Banks and financial institutions like Chase, CapitalOne, and American Express offer travel credit cards.

If you are a frequent traveler, premium travel credit cards offer the most benefits. They come with an annual fee, but the credit card benefits and savings are worth more than the fee. Some of the premium travel card benefits are:

No Foreign Transaction

Most premium credit cards don’t have a foreign transaction fee, meaning you don’t pay any costs if you swipe out of the United States. If you frequently travel internationally and use credit cards for payment, the foreign transaction fee alone can add up. Not having to worry about transaction fees saves money and headache.

Huge Signup Bonus

Premium credit cards have a high signup bonus. You only have to meet their minimum expenses requirements within the set time frame, usually two to three months. For example, the Capital one Venture card offers 75k if you spend 4k in 3 months. It is equivalent to $750 in points. It’s a sweet deal for a card with a $95 annual fee.

Travel Insurance

Everybody gets excited about their favorite travel plans and their joyous arrangements. Something going wrong on a trip is the last thing on our checklist. That’s where a credit card with travel insurance benefits can protect you against any unexpected events.

When you use a premium travel credit card to pay for your eligible travel expenses, they provide travel accident insurance, trip cancellation and interruption protection, delay reimbursement, rental car coverage, and many other benefits.

Lounge Access

Lounge access is one of the best premium travel credit cards. Most people dream of getting inside this private area which is accessible either through membership or buying your way in. Some premium travel credit cards offer a free priority pass select membership that gives you free access to the airport lounge. A few of the selected premium cards also offer multiple guests entry along with the cardholder.

TSA Precheck/ Global Entry Credit

TSA Precheck and global entry help you skip the busy airport lines and enter the terminal hassle free. It requires a detailed background check and an interview with the U.S. Customs and Border Protection(CBP) officer but once approved, you can skip the processing lines and paperwork. You can say goodbye to removing your belts, shoes, and electronic devices and quickly pass through security.

Transferable Reward Points

Most premium credit cards offer transferable reward points to hotels and airline loyalty programs. These cards have partner programs, and you can find the complete list on the card issuer’s website. The point transfer may not be 1:1, but sometimes, it’s cheaper to use points than booking through cash or card directly.

The Bottom Line

If you use credit cards responsibly, they work in your favor. The cards are slightly over 3 inches by 2 inches in size and can fit into your pocket. With virtual cards, you don’t even need to carry them. You can store them in your phone’s digital wallet. They are very convenient compared to carrying large sums of dollar bills.

Credit cards work as a revolving line of credit. You can make a purchase even though you don’t have the money upfront. And you’ll also earn rewards for using it. You just have to make sure to pay it off by the due date.This article originally appeared on Savoteur.

Is your current credit card balance less than $5,589? If so, you’re carrying a below-average amount of debt.

But no matter your balance, now is a great time to get started paying down that debt. With interest rates on the rise, outstanding credit card balances could start to have an even greater impact on your personal finances. The U.S. clocked a collective $824.8 billion in credit card debt in the first quarter (Q1) of 2022, according to Experian.

Debt can function as both a helpful tool and a burden for consumers. When used strategically, credit cards allow individuals and small businesses to responsibly make purchases that they otherwise might not be able to afford. Understanding how to stay on top of payments can help you build your credit history and make credit card debt manageable. An added bonus: Learning the ins and outs of credit card perks can offer you benefits like cashback, travel miles, and 0% introductory interest rates.

For some Americans, the past year of rising prices has forced greater reliance on credit cards to cover common expenses. In Q4 2021, the Federal Reserve Bank of New York reported the highest quarterly increase of credit card debt in its 22-year history of collecting this data. But when preparing for an economic downturn, like the one forecast to soon impact the U.S. economy, financial experts recommend paying down as much debt as possible.

Experian compiled this list of ways credit card debt can impact your life, and analyzed how credit card debt varies by state using data collected from account holders from across the country.

Basics of credit card debt

When a credit card is issued, it comes with a maximum allowed amount of debt, also known as a credit limit. The cardholder can swipe the credit card anywhere that accepts it and charge purchases up to the limit they’re approved for.

Each month, credit cards require a minimum amount to be paid toward the total debt. Paying off your credit card in full every month is considered good practice and helps you avoid paying interest.

But not everybody wants to, or is able to, pay off their credit card debt in full every month. If a cardholder only pays the minimum amount, they begin to accrue interest the following month on the remaining balance. If the cardholder doesn’t pay the minimum amount, they risk an increase in interest rates or having late fees tacked on to their accounts.

How does APR work?

APR—or annual percentage rate—is an additional cost a consumer pays each year for the privilege of borrowing a set amount of money, calculated as a percentage of the loan amount.

When you carry credit card debt from one month to the next, the APR determines how much additional interest is added to your balance to be paid. With credit cards, APR and interest rate are terms that can be used interchangeably. With other forms of debt, however, APR accounts for fees and other costs in addition to the credit product’s interest rate.

Some credit card issuers offer 0% APR for a set period of time; for example, the first 12 months after opening a new line of credit. If you haven’t yet paid off your purchases or balance transfers by the end of this promotional APR period, you’ll be charged interest on any remaining balance.

When the Fed raises interest rates, like the historic 75 basis point increases announced in June and July 2022, banks often adjust their interest rates to match. And when borrowing money becomes more expensive for banks due to higher interest rates, consumers eventually see the costs passed on to them.

Impact of credit card debt on personal finances

A credit card is by no means “free money” as some jokingly refer to it. How you use your credit cards can have considerable implications for your personal finances now and in the future—for better or worse.

Whether you carry debt from month to month is one of the factors used to calculate your credit score. This score is meant to assess how risky it is to lend money to a borrower by evaluating how likely they are to miss a debt payment in the near future. 

Consistently making on-time debt payments and keeping your credit card balances well within your limits are reliable ways to build or improve your credit score over time. On the other hand, late or missed credit card payments can bring down your score, which can flag you as a riskier borrower. That means lenders may charge higher interest rates on loans you want to take out in the future.

Average credit card debt per state

The District of Columbia and states of Alaska, Connecticut, New Jersey and Maryland are home to credit card holders with the most debt on average.

Meanwhile, residents of Iowa, Wisconsin, Kentucky, Mississippi and Idaho carried the least amount of credit card debt in the country. Some of the lowest average credit card debt balances are found in the Midwest, according to Experian data.

This story originally appeared on Experian and was produced and distributed in partnership with Stacker Studio.

In our fast-paced, constantly-connected world, it’s easy to get caught up in the habit of overthinking. We can overthink everything from what we wear to what we’re going to say in a meeting. And while there’s nothing wrong with being prepared, overthinking can lead to anxiety and even paralysis.

Another problem with overthinking is that it often leads us to focus on the negative. We worry about what could go wrong instead of what could go right. We dwell on our fears and doubts instead of staying positive and optimistic. As a result, overthinking can rob us of our joy and peace of mind.

The good news is that we can learn to control our thoughts and not let overthinking ruin our lives. If you’re ready to break the overthinking habit, these tips can help you get started.

What is Overthinking?

Overthinking is pretty much what it sounds like: thinking too much about something, good or bad, to the point where it interferes with your daily life. 

For some people, overthinking is a habitual way of processing information. Others may only overthink when they are focusing on a negative experience to try and understand it better. 

Unfortunately, ruminating excessively on an issue or situation can lead to stress, anxiety, depression, and other mental and physical health problems. 

When stressed, our bodies go into “fight-or-flight” mode, which means our heart rate and blood pressure increase, and we breathe more quickly. These reactions are all part of the stress response, a natural mechanism our bodies use to protect us from danger.

However, sometimes we can get stuck in the stress response, especially when we’re exposed to stressors or if we’re worrying about things that might happen in the future. When this happens, it’s called “overthinking.”

Why Do People Overthink?

Everyone overthinks for different reasons. Perhaps you’re worried about something specific or are trying to get more control over your life. Maybe you’re afraid of making mistakes because you’re a perfectionist. Or you’ve been hurt in the past, and now you’re overthinking things to protect yourself.

We live in a society that is constantly bombarding us with information. This stimulus can make it difficult to focus on one thing at a time, making us feel overwhelmed. 

Additionally, we are taught to think critically and to question everything. While this is generally a good thing, it can also lead us to overthink things that don’t warrant it. We must find the right balance between overthinking and not thinking things through enough.

Overthinking can also happen because people are bored or they have too much time on their hands. They might start thinking about all the things that could go wrong in their life or everything they need to do. 

Sometimes, overthinking is just a habit. People might do it without even realizing it. 

Is Overthinking Bad for You?

Yes, overthinking can affect your mental and physical health. When you overthink, you are essentially putting your body under stress, leading to many health problems ranging from insomnia to cardiovascular disease.

For example, one study found that people who ruminate (i.e., overthink) a lot are more likely to develop gastrointestinal problems because chronic stress can lead to inflammation in the gut. Evidence also suggests that overthinking can weaken your immune system because your body releases cortisol when you’re constantly stressed, meaning you’re more likely to get sick.

Overthinking can also lead to increased levels of anxiety and depression. When someone overthinks, they tend to worry about things that might not even happen, which can cause them to feel stressed and anxious all the time. It can be exhausting to feel like your brain is constantly working overtime and won’t shut off. It can also lead us to make bad decisions, as we are not thinking clearly when we are anxious.

Depression is common in overthinkers because they believe they are not good enough or will never be happy. You might worry that people are judging you and you’re not measuring up. This constant self-doubt can lead to indecision and inaction, which can be disastrous in fast-paced situations requiring quick thinking and decisive action.

If you constantly doubt your decisions, you’ll never have the confidence to move forward. 

Signs You’re An Overthinker

You likely occasionally worry about things you can’t control, such as your job, your finances, or your relationships. But it’s probably not a problem if you can control how much you worry and it doesn’t interfere with your ability to function.

However, if you find yourself constantly worrying about what could go wrong or spending hours overanalyzing every decision you make, you’re likely an overthinker. 

You might also recognize some of these signs:

• You have a hard time making decisions, even simple ones.
• You overanalyze every situation and try to anticipate every possible outcome.
• You dwell on past mistakes and regrets.
• You doubt your abilities and question whether you’re good enough.
• You’re afraid of making mistakes or failing.
• You’re always second-guessing yourself.
• You’re indecisive and tend to procrastinate.
• You’re constantly worried and anxious.

If you’re an overthinker, know that you’re not alone. Many people struggle with this tendency. But there are ways to manage it and even overcome it. 

How To Stop Overthinking: 18 Simple Coping Strategies to Try

Overthinking can be a difficult habit to break, but it is possible. There are many different coping strategies, but what works for one person may not work for another. 

Some people may need professional help to deal with their overthinking, but there are also many things that someone can do on their own to help themselves. Experimenting with different techniques will help you find what works best for you. 

So how can you stop overthinking and start living? Here are a few ways to cope and let go of the need to control everything. 

1. Acknowledge that you’re overthinking

The first step to stopping overthinking is acknowledging that you’re doing it. While this can be difficult because it often happens automatically, it is important to catch yourself when you start dwelling on something. 

Take a step back and observe your thoughts. What is running through your mind? What are you worrying about? Once you’ve identified the source of your overthinking, you can start to address it.

2. Identify the triggers that cause you to overthink

What situations, people, or events tend to lead you to overthink? For example, is it being in a crowded place, or is it something that someone says to you? Knowing your triggers can help you be more aware and try to avoid them.

3. Challenge your thoughts

The next step is to challenge your thoughts to see them more realistically. Asking yourself these questions can help you to see your thoughts in a different light and start to let go of the ones that aren’t serving you:

• Are your thoughts based on fact or opinion?
• Are they helpful or harmful? 
• Are they realistic or unrealistic? 
• Are there other ways to look at the situation?
• Are you overreacting?

Try to examine your thoughts objectively. Are they really as bad as you’re making them out to be?

If not, try to replace your negative thoughts with more positive, realistic, and helpful ones.

4. Let go of perfectionism

One of the main reasons people overthink is because they try to control everything or strive for perfection. They want to make sure everything is perfect. But the truth is, you can’t control everything. So, let go of the need to control and accept that some things are out of your hands. Good enough is usually good enough!

5. Gather your information

If you’re overthinking because you’re unsure about a decision you have to make, try to gather as much information as possible. Once you have all the facts, you can weigh the pros and cons of each option and make a more informed decision.

6. Brainstorm the possible outcomes

Another way to stop overthinking when you’re anxious about an upcoming event is to start by brainstorming some possible outcomes. What is the worst that could happen? And how likely is it to happen? The worst-case scenario is not as likely to occur as you think.

7. Break choices down into smaller steps

Rather than obsessing over the “right” choice, focus on what the next step should be. Doing so can help you take action and progress rather than remain undecided.

8. Focus on the present moment

Don’t focus on what has happened in the past or what might happen in the future. Instead, focus on the here and now. Remember that the past is gone, and the future is not guaranteed. If you can focus on the present, you will be less likely to overthink things. It is the only thing you can control. 

9. Take action

Take action and make some changes in your life to reduce the amount of overthinking you do. 

For example, you might need to simplify your life and schedule some time for relaxation and self-care. You might also need to change how you think about and deal with difficult situations. 

Whatever action you take, the important thing is to keep moving forward and not get bogged down in negative thinking.

10. Step away from the situation

If you can, remove yourself from the situation. While this can be difficult to do if you’re overthinking a decision you have to make, it can be helpful to take a break from it and come back with fresh eyes. Sometimes, all it takes is a little distance to see things more clearly.

11. Take regular breaks 

On that same note, take breaks throughout your day. It can help you clear your head and return with a fresh perspective. 

12. Distract yourself

When you start to overthink, try to distract yourself with something else. Go for a walk, read a book, or call a friend. Doing something that takes your mind off whatever you’re overthinking can help break the cycle.

13. Keep busy

Another helpful tip is to keep busy. When overthinking something, it’s usually because we’re allowing our minds to wander and dwell on the problem. Keeping our minds occupied with other things can help to stop this. 

14. Find ways to relax

You’ll never be able to enjoy your life if you constantly worry about every little thing. Try to relax and take things one step at a time.

Some people find that yoga or meditation helps them relax and focus on the present moment. Others find that listening to calm music or nature sounds helps reduce anxiety. Relaxation techniques such as deep breathing can help to calm your mind and body, which can be helpful when you’re feeling overwhelmed by overthinking.

These activities can help quiet the mind and provide a space for greater self-awareness.

15. Keep a journal

Keeping a journal can help you track your thoughts and see patterns in your thinking. It can also help to write down what is causing you to overthink in the first place. Once you are aware of what is causing your overthinking, you can start to work on addressing those issues. 

16. Exercise 

Another thing that people can do to combat overthinking is to exercise. Exercise can help release endorphins, improve mood, and reduce stress. 

17. Talk to someone about your overthinking

Don’t hesitate to seek help if you find that your overthinking is impeding your life. It can be helpful to talk to someone else about your thoughts and get some outside perspective. 

Sometimes, confiding in a friend or family member will do the trick. Be sure to choose someone you trust who will listen to you without judgment.

Otherwise, a therapist, counselor, or mental health professional can help you to understand your thoughts and feelings and work on ways to change your thinking patterns. Overthinking can indicate an underlying mental health condition, such as anxiety or depression. Treatment can help you learn to manage your overthinking and improve your quality of life. 

You are getting the support you need to stop overthinking by talking to someone.

18. Be kind to yourself 

Remember, everyone makes mistakes, and no one is perfect. Try to cut yourself some slack and enjoy life, even if it means making a few mistakes along the way.

The most important thing is to find a coping strategy that works for you. If you are still overthinking after trying one or more of these strategies, it may be helpful to talk to a mental health professional. 

The Benefits Of Stopping Overthinking

Although overthinking can be good if it helps you find creative solutions to problems or see the world differently, it has many drawbacks. 

Overthinking can significantly hinder productivity, creativity, and general well-being. When we overthink, we get stuck in our heads, ruminating on past mistakes or worrying about future problems. You may find it difficult to relax and sleep.

Stopping overthinking can improve your mental and physical health, boost productivity, and tap into your creativity. You can also find greater peace of mind and enjoyment in life. 

So if you find yourself stuck in a cycle of overthinking, know you’re not alone. There is a way out.

Remember that overthinking is often just our minds trying to protect us. In many cases, the thing we’re overthinking is actually not a big deal. It’s important to remind ourselves of this and not get too caught up in the stress and anxiety that overthinking can cause.

By recognizing the signs, we can catch ourselves in the act and take steps to nip it in the bud. We can also practice mindfulness and other relaxation techniques to calm our minds and help us focus on the present moment. 

With a little effort, you can learn to control your thoughts and live a happier, healthier life.

This article originally appeared on Hello Sensible.

Since the pandemic, the job market, how we work, and ultimately how we get interviewed have all changed.

To make the best interview impression possible, you need to be well-informed about the company and its products, know how to tackle tricky interview questions, and come across as confident and qualified.

The following 36 job interview preparation tips will help you make a great impression and ace your next interview, whether in person, online or over the phone.

Without further ado, let’s get to the list!

How to Prepare for an Interview

1. Research the Company

Do your research ahead of time. It’s essential to know as much as possible about the company, its products, its mission, and its values.

Not only will this help you answer interview questions more confidently, but it will also show that you’re genuinely interested in the role.

As you do your research, ask yourself: Is this a company I want to join? Why? Already being invested in the company will show through in your interview.

Don’t just use the company website and its social media accounts, as they will only have the information they want in the public domain. Use your network of industry friends and colleagues to find out what you can.

Check out the “Stocks” app on your phone if the company trades on the stock market. Once you click on them, the last six stories about them will pop up, giving you some great insights.

2. Try the Product or Service

While this may not always be possible depending on the company, try out the products or services if you can.

It’s a great way to equip yourself with knowledge, show interest in the company, help you come up with questions, and connect with the interviewers.

3. Research the Job Role

Hopefully, the advertisement or recruiter has provided a detailed job description. But it often pays to think about this a little more as you start your interview preparation. Try to identify the essential requirements the role needs. Think through what this job might require. Is there something else you could bring or add to it? How can you help them be successful?

4. Interview Format

It’s essential to know who will conduct the job interview. If you expect a one-on-one interview but walk into a room of 5 people facing you like some kind of inquisition – it might throw you off your A game.

Of course, many post-pandemic interviews will occur online as people travel less and have hybrid or remote working. Your interviewer might not even be in the same country as you or your future workplace.

Try to establish things like the number of interviews and interviewers.

Also assess:

• Any practical interview elements
• Any tests needed
• Is it face-to-face?
• Is it by video or phone or is it a combination of all 3?

5. Interviewers

As you establish the interview format, understanding who will interview you will help your preparations. Often it’s more than one person – maybe the hiring manager or someone from HR.

But sometimes the specialists can be wheeled in – maybe Technical or IT. Understanding this will help your interview preparation. You can never fully predict the questions, but based on their role in the company, you can make an educated guess on what they might ask.

6. Me, Myself, and “I”

A job interview is your opportunity to showcase yourself. If you are lucky, someone may have recommended you for this role, but regardless, the best person to showcase ‘you’ is ‘you.’

Prepare and plan your best stories so you have a go-to library to answer any questions. Talk about what you did. That’s the “I.”

Think about a successful interview and prepare your stories to deliver it. Link them to critical items in the job description with data to substantiate the content.

• I was responsible for delivering a project with an $Xm budget.
• I led a team of X people in Y countries.
• My ideas and initiative saved thousands of $$$’s over two years.
• My streamlined process reduced the time to market by X months and saved X hours or valuable resources.

7. Authentic and Genuine

Always be authentic and genuine. As you showcase yourself, YOU MUST hold on to these values. Don’t make things up to make yourself sound more important or accomplished. You will get found out at some point, which will not be good.

8. Gaps and Defense

Depending on your character, you will probably think this job is perfect for you, and you tick every box. Or you will consider every requirement in detail and think you have some gaps or something that potentially stops you from getting this role. Everybody has some gaps, and no one is perfect, so reach for that role!

By preparing your defense for those little chinks in your armor, you can increase your chances of landing the role.

If you have no experience in the job or sector, consider what transferable skills you can bring.

For example, the interviewer may ask, “You don’t seem to have had many direct reports?”

And you can respond with, “I had a small number of direct reports but extensive in-direct reports spread across multiple countries and time zones, which required my skills to motivate and get the best from them even when they didn’t report to me.”

9. Common Job Interview Questions

Often, the answers to common interview questions are in your CV, but the interviewer is likely to ask anyway, just to corroborate what you wrote to what you are saying now.

Additionally, you might still get asked classic interview questions: Where do you see yourself in 5 years? What would you describe as your biggest strength? What is your biggest weakness?

Eye rolling as they might be, you need to prepare for these interview questions. There are loads of practice questions on the internet to help you here.

10. Behavioral Interview Questions

If the interview does not go down the route of classic questions, you might be faced with other questions that are helping them evaluate your behavior or core values in the workplace.

These will be detailed questions, often starting with, “Can you tell me about a time when…”

Situations like this are perfect for you to showcase how great you are for the job and why they should hire you.

Plan out some responses, which are themed around the following:

• A time when you had to make a decision with a lack of data.
• A time when you had to decide under time pressure.
• A time when you had to make an unpopular decision.
• A time when you had to make a decision that went against your manager’s direction.
• A time when you were asked to do something you were uncomfortable with.

Each response should define the situation and explain what “you” did along with the outcome. For bonus points, you can add additional learnings and what you would do better if there were a next time.

11. Your Questions

At the end of every job interview, you will always have time to ask any questions to the interviewers. You must ask questions even if you don’t need any more information.

Ask questions where you want to know more, but try to avoid subjects such as pay, time off, and benefits. You can discuss these contractual subjects with HR once you receive a formal job offer.

If you struggle to think of questions, always have a couple of backup ideas, maybe something to connect you further with the interviewer.

• Why did you want to work for the company?
• What do you enjoy most about working there?
• How would you describe the company culture?

It’s also ok to make a list of questions and bring them out at this point, highlighting how you have thought and prepared for the interview.

12. Illegal Questions

Interviewers should never ask about race, gender, age, religion, family planning, marital status, or sexual orientation.

Sharing any of that in your responses or stories is totally up to you.

However, people don’t always stick to the rules, so you need to be prepared with a response if you get asked something you shouldn’t.

By rights, you can say:

• I am not sure you can ask me that.
• I am not sure how that relates to my application for this role.

Or answer without answering, like a politician.

“My focus is on my development and commitment to delivering for my employer. It’s hard to predict what opportunities will come in the future.”

13. Thinking Time

How often have you finished an interview and felt, “I could have answered that better, or I should have said that!”? Often nerves and adrenaline take over and can lead to rushing an answer.

Give yourself some thinking time by developing questions and strategies to give you a moment to think.

Here are some suggestions:

• Clarify the question by responding with, “Let me make sure I understand the question.”
• Delay by saying, “What a great question. I haven’t heard that before.”
• Ask for time, “Can you give me a moment to think about that?”

14. Practice or Mock Job Interviews

Practicing interviewing with someone, like a trusted colleague, recruiter, friend, or partner, is a great idea.

Try to predict things you may get asked based on what you learned about the company, role, and interview process. Alternatively, just practice answering questions about the strong points and stories you want to get across in the interview.

In addition, practice things you are not solid or comfortable answering to polish your responses.

15. First Impressions Matter

The first five minutes of an interview are critical. The first impressions you make can define how the whole interview will go.

Focus on being confident, positive, and energized without coming across as an over-caffeinated crazy person.

How can you communicate the importance and your appreciation for this opportunity? Consider an early introduction of your positive view of the company and the work they are doing.

16. Connect With the Interviewer

Employers often look for someone they can relate to, connect with, and will fit in with the team. This is human nature.

You may find instances where someone is looking for a change or disrupter, but this goes against the norm; expect the interviewer to communicate if they want something different.

It is best to find ways to connect with the interviewer like maybe they have a particular problem that this role intends to fix. This may allow you to show care and empathy for their situation.

17. Be Assertive

Being assertive does not mean being bullish, overconfident, or pushy. The purpose of the interview is to sell yourself as you get asked questions to showcase your skills. Sometimes this might not go your way, and you will need to steer the interview to points you want to get across.

You must be polite, respectful, concise, and articulate. You must answer the questions but think of ways to expand or connect the points you feel are missing.

• In addition, I also…
• Similar to that…

18. Be Concise

I have mentioned a few times that the job interview is about selling yourself. A critical factor in your success will be doing this concisely.

Keep your answers concise; don’t stray off topic and waffle. You will lose the interviewer’s attention, and they won’t be able to record your responses effectively.

This links strongly with the mock interviewing practice mentioned earlier, especially if you know you are a bit of a talker!

19. Positivity

Staying positive throughout the interview is a must, but some questions may trip you up or make this challenging.

• Tell me about a time when a project failed.
• What’s the worst thing about your current job?
• Tell me about a situation where you had to deal with conflict.

These questions could make you talk negatively about yourself, your peers, colleagues, or employers. So how do you respond? All of your worst experiences will have had some positives or taught you something new. This is where you should focus.

“My project failed as we did not get the scope and resources we needed from the start. Since then, I have worked hard with all parts of the business to get the scope and resources signed off and never start a project if it has gaps. This taught me the importance of ensuring a project is set up for success before it starts.”

20. Be Clear if You Want the Role

You would be amazed how often I have heard the phrase, ” I am not sure how much they want this role.” when the interviewers are deliberating an offer. Don’t leave the interviewers with any doubt.

A good finishing or closing statement is critical here. If you want the role, let your interviewers know.

“Thanks so much for your time today. The role sounds even better than I expected. It aligns perfectly with my career goals, and the company sounds amazing. I look forward to hearing from you soon.”

21. Be Prepared With Hard Copies of Your Resume

It never hurts to be prepared. Always take clean, crisp copies of your resume (CV) and cover letter to an in-person interview. Take more copies than you need and hand them out at the start of the interview.

The worst thing that can happen is the interviewer says thanks, and they already have it. But you certainly don’t want the situation where you leave someone out and have to say, “Sorry, I don’t have enough for you.”

22. References

It’s often hit or miss if the recruiting company will ask for references. In any case, you need to be prepared with at least two people and their contact information for the company to contact for references. You can often include these on your resume or put “References on request” at the bottom.

Try to select people and connections that have some relevance to the role. Having references of people you have recently worked with or know are a good choice. A referee from a job you did 20 years ago looks a little strange.

23. Be Natural

Although I mentioned practicing mock interviews, don’t feel pressured to learn your responses verbatim. If you do, you won’t come across as natural; even worse, it won’t sound like you are talking about yourself.

Your stories and responses are yours, so you already know the details. The skill here is to have your list of stories and answers planned in your head, linked as answers to potential questions.

For example, you know ahead of time that if they ask about leadership, you can talk about your team. If the interviewer asks about financial skills, you can talk about the budget you managed and the project P&L. If they ask about managing conflict, you can tell them about the time…

24. Plan Your Travel

Plan to be early. The last thing you want is to be running into a job interview all hot, sweaty, and flustered from being late or on a time crunch.

Anything you can do in advance will help, like filling the car with gas ahead of time, buying transportation tickets in advance, or adding money to travel cards beforehand. Add extra time to the journey plan for rush hour, school pick-up times, accidents, etc.

If the interview location is not far from where you live, it helps to do a practice run.

25. Pack Your Bag In Advance

Planning continuously improves the interview experience, and packing your bag the night before will help you rest and save time in the build-up to the interview.

Here are things to pack for an interview:

• Essentials like hard copies of your resumes and reference list.
• A fully charged laptop (especially if you are making a presentation).
• Flashdrives with presentation (just as a backup).
• Tickets or travel confirmation.
• Powerbank or charge cables.
• Water, mints, gum, snack.
• Umbrella.

26. What to Wear to an Interview

It’s hard to be too descriptive here since the workplace is ever-evolving. If you are in doubt, go for the more professional look; it’s better to be overdressed than underdressed. Ensure you and your interview clothes are clean, neat, and tidy from the top of your head to cleaned and polished shoes.

Getting this right can also impact your confidence. If you look and feel great, it moves your spirit up a notch.

The last tip in this section is to go easy on your perfume or cologne. You don’t want your interviewer choking or eyes watering due to your overwhelming scent. It will distract from the great showcasing you are doing.

(If it’s a virtual video interview – don’t worry too much about your shoes or perfume!)

27. Body Language

Don’t underestimate the power of body language in a job interview, which can say a lot about you.

Your posture should indicate your engagement and interest in the role. Sit straight and slightly forward, never laid back and slouching. Think about a relaxed arm position. For example, folding your arms during questions can appear closed and defensive.

Keep your facial expressions positive and friendly.

28. Eye Contact

Eye contact is essential. It helps you connect with the interviewer and communicates your interest.

Virtual or video interviews can be a little easier here, as the screen size and being on camera makes it less noticeable. Watch out if you use multiple screens at home or the place where you have your interview. Just make sure you the screen you use and camera are in the same location to ensure you are looking at the interviewer.

Try to keep single-person interviews casual, as if you are talking to a friend. You don’t need to make eye contact 100% of the time, but not far off.

For interviews with multiple people, ensure you look at each interviewer equally and don’t just look at the person who asked the question. Engage everyone in the room by changing your eye contact while answering.

29. Handshake

You don’t need to consider handshakes for virtual interviews, which are an area of uncertainty since the pandemic.

Use this to your advantage by being confident and taking the lead. S something as simple as, “Is it still ok to shake hands?” It can break the ice as you agree to shake, fist bump, elbow tap, or whatever.

If you handshake, ensure it is firm without too much strength; nobody likes a crushed hand.

30. Phone

Unless you care for someone who needs to be able to contact you – and only you – 24 hours a day, turn your phone off for the interview. Vibrating phones are still a distraction.

31. Room Set-up

For virtual interviews, the easiest option is to use a background. Keep it simple and professional, or opt for the software’s blurred effect background. Maybe leave the beach scene background for another day.

32. Virtual Interview Lighting

Probably the most challenging thing to get right is the lighting. It may require a test run with a friend or colleague.

Too much backlight makes you look like you are in witness protection, and your interviewer won’t be able to see you. Too much front light may make it look like you’re in a spy movie.

Whether you work from home or are likely to work from home, investing in a good desk lamp or ring light should help you get the adjustable lighting you need.

33. Internet Connection

You cannot control your internet speed for a virtual interview, but you can maximize the bandwidth during your job interview time. Ensure no one in your home downloads big files or live streaming, and try disconnecting a few devices.

34. Sleep

Easier said than done the night before an interview, but a good night’s sleep is essential. Think about the nights building up to the interview and get a few successive nights of good sleep. This will help you prepare for the interview.

Ease up on the coffee the day before and the day of your interview.

35. Follow-Up After the Interview

Following up or sending a thank you note is often a good idea after a job interview. It confirms your interest in the role, allows you to add any critical information you may have missed in the discussion, and keeps you in the interviewer’s mind.

An e-mail is sufficient but needs to include the following points:

• Thank the interviewer for their time and the opportunity, and make sure to reference the role.
• Include some points that relate to the highlights of your interview, but also reference some points they shared with you that interested you.
• Offer to answer any further questions and sign off with something along the lines of, “Looking forward to hearing from you soon.”

36. Learn

Every job interview is an opportunity to learn, develop and hone your skills. Make notes soon after the interview for things that went well, not so well, and what you would do differently next time.

Final Thoughts

The job interview is a critical part of the hiring process, and it’s essential to be prepared for it. This list of best job interview tips helps you prepare for your interview, aids with tips for the interview, and for the post-interview process. Now breathe and land your next job interview!

This article originally appeared on Savoteur.

Buying a home is integral to the “American Dream,” but it is increasingly out of reach for many hard-working adults.

The property market has been highly competitive over the last year because housing supply has shrunk dramatically. Now, many adults have given up on owning a home and expect they’ll rent for the rest of their lives. While most of the older generations will have their own homes through retirement, less than half of the largest group in the workforce – Millennials – think they’ll have that same luxury.

Despite their pessimism, a competitive market doesn’t mean it’s impossible to own a home – even if you have bad credit.

But what is a bad credit score?

Credit scores are usually based on the FICO scoring system, and different credit bureaus may grade scores differently. This is how Experian ranks them:

• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very Good: 740-799
• Exceptional: 800-850

About a third of consumers have a poor or fair credit score. If you fall in that category, don’t give up on homeownership. Some loans cater specifically to Americans with low scores.

Mortgage Options

A traditional mortgage is usually a fixed-rate loan, so the interest rate never changes. Although this is the kind of loan people typically think of, it’s only ideal for people with a credit score above 620.

By contrast, an adjustable-rate mortgage (ARM) typically has a set interest rate for the first three to seven years but then fluctuates based on the market thereafter. ARMs are better for people with a credit score of 600 or higher. That difference between 600 and 620 might not seem like much, but it can help someone who needs it. 

When market rates are lower, the interest on your loan will also be lower. The drawback, however, is that if rates are high, you will pay more too. You’re at the mercy of the economy – you could save money on the interest rate or lose some.

If you have a score as low as 500, you could qualify for a Federal Housing Administration (FHA) loan. FHA loans will cover about 97 percent of your home’s value, so you’ll need to make at least a 3 percent down payment. And until you pay off 20 percent of your home’s value, you’ll have to pay for private mortgage insurance. This covers your lender in case you default on the loan.

Since it’s a government-backed program, you’ll have to go to an FHA-approved lender.

Now that you know the various loan options, it’s time to take a look at the steps to getting there.

Step-by-Step Guide for Buying a Home With Low Credit

With so many loans and interest options, the best thing to do is talk to a professional who can review your situation and find the best path for you.

Step One: Get Your Free Credit Report

The last thing you want is your credit score to be misreported. Go to annualcreditreport.com – you can get a copy of your credit report for free every year. Review all of the information provided. Is your social security number accurate? Are your addresses up to date? Which debts and transactions are causing you to lose points?

If anything looks inaccurate, reach out to your lender. It could be something as simple as a paperwork mistake or as serious as identity theft. Work with your lender to get some documents proving the error, and reach out to the credit reporting agency with the evidence. The Federal Trade Commission even offers a sample letter you can use to dispute any errors.

Step Two: Do What You Can To Raise Your Score

Unless you’re in a rush to buy a home immediately, take some time to improve your credit score as much as you can. Five factors determine your score. From most to least critical are your payment history, outstanding debts, length of your credit history (how long you’ve had your cards), types of credit you’ve used, and amount of new credit.

You can sign up for a credit monitoring service to help you keep track of it all. An app called SmartCredit offers a paid service and is one of the more helpful options. You can also use free tools, although they aren’t as in-depth. Credit Karma is one example. It can flag which credit factors are hurting or helping you the most, but it won’t give you detailed tips on how to fix those issues.

Step Three: Talk to a Professional

The best person to go to is a Department of Housing and Urban Development (HUD)-approved housing counselor. The government trains these counselors, specifically the Department of Housing and Urban Development. Their job is to help you find affordable, quality housing. They’ll get to know you and your situation, so they’ll be able to find local options that suit your situation.

Step Four: Enroll in a Homebuyers Workshop

If you can get into a course locally, it should be free. You can also do it online at your own pace. However, there will probably be a charge for this. Once the course is complete, you’ll get a certificate you can use when you apply for financing. The HUD counselor should be able to help you with this.

Step Five: Look For FHA Loans

As mentioned earlier, Federal Housing Administration (FHA) loans are the best option for someone with poor credit. The loan won’t come directly from the FHA but through an approved, private lender. Your local HUD office should be able to find the best option in your area. Make sure you have enough funds to cover the down payment and the mortgage insurance fee.

Step Six: Try To Get Pre-approved

Like any other mortgage, you can get pre-approved for an FHA loan. Pre-approval can help you save time and narrow your search as you look for a home. Like an approved counselor, this will help you understand what you can and can’t afford so you can look within your price range.

Getting pre-approved for a mortgage also makes you a much more attractive buyer to whoever is selling the home. This is an excellent leg-up, especially in a competitive market like we see today. Once approved, don’t spend money on furniture or other big-ticket items. The banks will monitor your activity so be sure to stay on budget.

In Conclusion

Keep three main goals in mind as you move forward in your house-hunting journey: save up for a down payment, track your credit, and work with a professional.

Doing this makes it possible to find a mortgage option that works for you despite your low credit score.This post was produced by Wealth of Geeks.

It’s no secret that kids’ birthday parties can be expensive. Between the cost of food, decorations, and entertainment, parents can easily spend hundreds of dollars on a single party. But it doesn’t have to be that way. There are plenty of ways to throw a fun and festive kid’s birthday party without breaking the bank. 

Learn how to celebrate your child’s birthday on a budget using simple tips like having a DIY photo booth, serving affordable snacks and drinks, and sending out free or inexpensive invitations. With creativity and planning, you can throw a birthday party that your child and friends will enjoy on a budget.

Have The Party at Home

One of the easiest ways to save money on a kid’s birthday party is to have it at your house, especially if you love your home and have the space. That will eliminate rental fees for venues and entertainment, and you won’t have to worry about food and drink minimums. 

Get creative if you’re worried about your home being too small or not having enough activities to keep kids entertained. There are plenty of games and activities that you can do indoors. If your child has a warm weather birthday, have it outside either in your yard or a park. 

Skip expensive venus like Skyzone trampoline parks, indoor adventure parks, and water parks.  Instead, consider places like churches, Emergency Squad buildings, and Firehouses for inside venues. They will typically allow people to use their facilities for a donation.

Pick A Simple Theme

Another way to save money on a kid’s birthday party is to pick a simple theme. You can still have all the fun of a themed party without going overboard with the decorations or activities. 

For example, forgo the gourmet picnic basket and pack a lunch from home if you’re having a teddy bear picnic. Keeping the theme simple can save money on decorations, food, and activities.

Make The Cake

If you want to save money on the cake, try making it yourself. Plenty of easy, kid-friendly cakes doesn’t require much time or effort. And if you’re not the baking type, you can always pick up an inexpensive cake from the grocery store and decorate it yourself. 

Consider also baking cupcakes and, as an activity, having the kids decorate their cupcakes.

Affordable Snacks and Drinks 

When it comes to food and drink, there are plenty of affordable options that will please kids and adults alike. 

Don’t have the party at meal time. This way, you can serve snacks and drinks instead of a meal.

For drinks, try serving punch or lemonade instead of soda or juice. 

For snacks, popcorn, pretzels, and chips are always popular choices. You could buy small bags of pretzels and other snacks in bulk and use the leftovers for lunches.

Free or Inexpensive Invitation Ideas

There are plenty of ways to create invitations for a kid’s birthday party without spending much money. You can use free online invite tools like Canva or make your invitations using construction paper, markers, and glue. 

You can make invitations from recycled materials like cereal boxes or toilet paper rolls if you’re creative.

Consider online invitations or a Facebook Event.

Keep the Guest List Small

One of the best ways to save money on a kid’s birthday party is to keep the guest list small. 

Having a smaller guest list means you’ll have to buy less food and drink, and you won’t have to rent a larger space for the party. You can also save money on invitations by only inviting the people you want to come.

One trick is to invite the number of children your child is age-wise. So if your daughter is turning 5, invite five children.

Dollar Store Decorations

One of the easiest ways to save money on decorations is to head to the dollar store. You can find affordable party supplies, from streamers and balloons to tablecloths and plates. 

You can also find a variety of puzzles, games, and toys that would be perfect for goodie bags. Just be sure to shop around and compare prices before you buy anything.

Skip The Goodie Bags

Goodie bags are an excellent way to thank your guests for coming, but they can also waste money.  Many parents aren’t on board with more junky toys to clean up after the child gets bored. 

If you’re looking to save, skip the goodie bags and let your guests take home their favorite piece of cake or a balloon. You can also send your guests home with a fun activity or game to play.

Consider choosing an activity as the takeaway from the party. Consider painting on a canvas, sand art, prizes on the scavenger hunt, or candy from a pinata.

DIY As Much As Possible

One of the best ways to save money on a kid’s birthday party is to DIY as much as possible. From the invitations to the decorations, there are plenty of things you can make yourself. You can also save money on food and drink by making cake, punch, or snacks.

Plan Ahead

One of the best ways to save money on a kid’s birthday party is to plan. Start by setting a budget and sticking to it. 

Then, start shopping for decorations, food, and drink a few weeks in advance. That will give you time to compare prices and find the best deals. 

And last but not least, don’t forget to send out the invitations early!

Play Simple Games

You don’t need to spend much on entertainment for a kid’s birthday party. Instead, try playing some simple games that everyone can enjoy. 

Games like charades, Simon Says, or tag is always popular choices. And if you’re looking for something more active, you can always set up an obstacle course or have a scavenger hunt.

Final Thoughts On Throwing Unforgettable Kid’s Birthday Parties on a Budget

Hosting kid’s birthday parties can be expensive, but it doesn’t have to be. There are plenty of ways to save money on decorations, food, and entertainment yet still have an epic birthday party. 

You can also keep the guest list small to save on costs. And don’t forget to DIY as much as possible! With creativity and planning, you can throw a birthday party your child will enjoy.

This post originally appeared on Hello Sensible.