Latest news with #GeneMarks
CBS News
12-05-2025
- Business
- CBS News
Use buy now, pay later? Here's how it could soon help or hurt your credit.
Buy now, pay later has become a popular way to pay for everything from big purchases to groceries and even takeout, but it could soon impact your credit score. More than half of American consumers report using buy now, pay later services at least once in the past year, with many saying they prefer it over credit cards, according to findings from a recent study by Ascent. Buy now, pay later soon to be included on credit scores These loans let consumers split payments into smaller installments spread out over time. The most common buy now, pay later loans are "pay in four" products, according to the Consumer Financial Protection Bureau. Buy now, pay later loans have typically been left off of credit reports, but that's about to change in a big way. The three big U.S. credit bureaus — Experian, Equifax and TransUnion — have all announced they will start including buy now, pay later loans in the calculation of your credit score. TransUnion said it's working with FICO to include buy now and pay later data in its calculations. These loan services can also help your credit score Credit agencies argue that it will provide a more accurate picture of a consumer's financial health. But whether it will help or hurt you depends, according to financial columnist Gene Marks. "The more examples you can give to a credit agency that you can manage your debts well, the more positive impact that will have on your credit rating," Marks said. Marks added that it also provides an opportunity for people to build credit who otherwise don't have access to traditional lines of credit. "But at the same time, you have to make sure you are paying it back within time," Marks said. "Otherwise, you really will be penalized and not just by the buy now, pay later services but also by the credit rating bureaus that are going to be looking that much more closely at you." Buy now, pay later grows among Americans under 44 Exactly how and when the credit bureaus will start incorporating this data remains unclear. Marks says one challenge for credit bureaus will be determining how to factor in short-term buy now and pay later loans when the length of credit history accounts for a significant share of your credit score. So far, Affirm is the only major buy now, pay later company reporting to any of the three credit bureaus. But at least for now, Experian and TransUnion say that information is going to stay separate from your core credit data. The use of buy now, pay later has grown significantly for young people under 44. Lending Tree just found that a quarter of buy now, pay later users are now using installment plans to pay for everyday essentials, like groceries. Critics of buy now, pay later services have cautioned that some can charge exorbitant rates and large fees when you miss a payment. Unlike credit cards, buy now, pay later loans lack basic consumer protections. Do you have a money question, a consumer issue, or a scam story you want to share? Email InYourCorner@
Yahoo
25-03-2025
- Business
- Yahoo
Opinion - Don't abolish the Small Business Association when communities need it most
While cutting government waste has been Priority No.1 in Washington this year, a recent op-ed by Gene Marks calling for the abolition of the U.S. Small Business Administration missed the mark in a major way, deeming the SBA 'a failed experiment.' Calls to dismantle the SBA in the name of savings or efficiency are not only misguided — they pose a threat to the millions of entrepreneurs who rely on its programs. Small businesses are often started by individuals with innovative ideas but without the necessary financial resources or business expertise to navigate the complexities of entrepreneurship. The SBA steps in to bridge this gap, offering critical support through its lending programs, Small Business Development Centers and procurement assistance. Without these resources, many aspiring business owners would struggle to access capital, secure government contracts, or recover from economic downturns and natural disasters. The SBA was expressly created to address this fundamental market failure. The SBA's loan programs, including the widely used 7(a) and 504 loans, have enabled countless entrepreneurs to secure financing when traditional banks would not take the risk. Each year, the agency facilitates tens of billions of dollars in small-business loans, fueling job creation and innovation. Critics argue that private lenders and investors can fill this gap, but history tells a different story. Without the SBA's guarantees, many small businesses — including those owned by veterans — would struggle to secure the funding they need. Beyond lending, the SBA plays an essential role in federal procurement. Small businesses received over $180 billion in government contracts last year, thanks in large part to the SBA's advocacy and oversight. Eliminating the agency would consolidate more power in the hands of large corporations, making it even harder for small firms to compete. The SBA has also proven indispensable in times of crisis. Whether responding to natural disasters like hurricanes and wildfires or economic downturns, as we saw in the wake of the COVID-19 pandemic, the agency provides rapid, targeted support to keep small businesses afloat. This is especially important in rural and in smaller communities, where communications or a lack of resources may pose challenges in getting business owners the help they need and deserve. Removing this safety net would leave entrepreneurs more vulnerable and threaten the economic stability of communities nationwide. One of the biggest challenges small businesses already face is a lack of knowledge about the federal programs designed to help them. The SBA serves as a central hub, providing clear, accessible guidance that ensures small-business owners can navigate available resources effectively. Without this dedicated support, entrepreneurs would be left to decipher a complex web of government programs spread across multiple agencies, increasing confusion and inefficiencies. Rather than dismantling the SBA, we should be working to strengthen it. Congress should focus on improving the efficiency and reach of SBA programs, ensuring that small businesses have the resources they need to thrive in an increasingly competitive economy. There are over 60 million people in the U.S. directly employed by small businesses. Their success is integral to the nation's economic growth and prosperity. The SBA is not a bureaucratic obstacle — it is a necessary partner in fostering entrepreneurship and innovation. If we truly care about the future of small businesses and the economic vitality they bring to our communities, we must invest in and modernize the SBA, not eliminate it. Todd McCracken is president of the National Small Business Association. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
25-03-2025
- Business
- The Hill
Don't abolish the Small Business Association when communities need it most
While cutting government waste has been Priority No.1 in Washington this year, a recent op-ed by Gene Marks calling for the abolition of the U.S. Small Business Administration missed the mark in a major way, deeming the SBA 'a failed experiment.' Calls to dismantle the SBA in the name of savings or efficiency are not only misguided — they pose a threat to the millions of entrepreneurs who rely on its programs. Small businesses are often started by individuals with innovative ideas but without the necessary financial resources or business expertise to navigate the complexities of entrepreneurship. The SBA steps in to bridge this gap, offering critical support through its lending programs, Small Business Development Centers and procurement assistance. Without these resources, many aspiring business owners would struggle to access capital, secure government contracts, or recover from economic downturns and natural disasters. The SBA was expressly created to address this fundamental market failure. The SBA's loan programs, including the widely used 7(a) and 504 loans, have enabled countless entrepreneurs to secure financing when traditional banks would not take the risk. Each year, the agency facilitates tens of billions of dollars in small-business loans, fueling job creation and innovation. Critics argue that private lenders and investors can fill this gap, but history tells a different story. Without the SBA's guarantees, many small businesses — including those owned by veterans — would struggle to secure the funding they need. Beyond lending, the SBA plays an essential role in federal procurement. Small businesses received over $180 billion in government contracts last year, thanks in large part to the SBA's advocacy and oversight. Eliminating the agency would consolidate more power in the hands of large corporations, making it even harder for small firms to compete. The SBA has also proven indispensable in times of crisis. Whether responding to natural disasters like hurricanes and wildfires or economic downturns, as we saw in the wake of the COVID-19 pandemic, the agency provides rapid, targeted support to keep small businesses afloat. This is especially important in rural and in smaller communities, where communications or a lack of resources may pose challenges in getting business owners the help they need and deserve. Removing this safety net would leave entrepreneurs more vulnerable and threaten the economic stability of communities nationwide. One of the biggest challenges small businesses already face is a lack of knowledge about the federal programs designed to help them. The SBA serves as a central hub, providing clear, accessible guidance that ensures small-business owners can navigate available resources effectively. Without this dedicated support, entrepreneurs would be left to decipher a complex web of government programs spread across multiple agencies, increasing confusion and inefficiencies. Rather than dismantling the SBA, we should be working to strengthen it. Congress should focus on improving the efficiency and reach of SBA programs, ensuring that small businesses have the resources they need to thrive in an increasingly competitive economy. There are over 60 million people in the U.S. directly employed by small businesses. Their success is integral to the nation's economic growth and prosperity. The SBA is not a bureaucratic obstacle — it is a necessary partner in fostering entrepreneurship and innovation. If we truly care about the future of small businesses and the economic vitality they bring to our communities, we must invest in and modernize the SBA, not eliminate it.
