Will closing this credit card hurt my credit score?
Updated Dec 18, 2020;
Q. I have had a popular national credit card since 1988. They raised the annual fee to $150, so I’ve decided to change to a no annual fee credit card from the same issuer and cancel the original card. Will this adversely affect my credit rating, which is an excellent? Credit concerned
A. We understand not wanting to pay that annual fee. It’s pretty hefty.
But yes, but by cancelling one card and opening another it is possible that your credit score could be negatively affected.
One of the calculations for credit scores is the debt utilization rate, or how much money you owe compared to how much you can borrow, said Kenneth Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.
What’s the best way for a grandparent to set up a 529 plan?
Updated Dec 15, 2020; Grandparent
A. It’s smart to plan ahead so you don’t impact any financial aid for college.
Generally, grandparents can set up 529 accounts and they do not count towards the family contribution when applying for aid, said Kenneth Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.
As you noted in your question, the caveat is when a grandparent distributes the funds from the 529 to the student.
When this happens, it is considered income to the student, and students must contribute 50% of their income for education, Van Leeuwen said.