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The Week in Review
• The Federal Reserve says consumer credit cooled off after exploding in November. Revolving credit, such as credit cards, rose just 2.4% in December after soaring by 22.8% the prior month.
• The US Census Bureau reported December’s federal trade balance. It came in at a deficit of $80.7 billion, after economists had predicted a $82.8 billion shortfall. The NFIB’s small business index for January was also released, showing inflation remains the biggest concern among small business owners. The index is down 1.8% from December.
• The US Commerce Department reported wholesale inventories rose by 2.2% in December. Economists had expected the number to stay flat. Some argue this shows supply-chain pressures are beginning to ease.
• Jobless claims ticked lower, surprising analysts. Initial claims came in at 223,000, which is lower than estimates. The previous week’s number was 238,000. Market watchers argue this shows Omicron’s impact may be fading.
For more economic news and how it affects your money, visit the SoFi app.
Credit: It’s Like Your Financial Report Card
Your credit score is a critical part of your financial health. The number factors into whether you can qualify for loans or credit cards, auto or homeowner’s insurance, and the terms you’re offered on debt.
If you fall into the low credit score range, remember that it isn’t set in stone. There are steps you can take such as making on-time bill payments, keeping debt to a minimum (or consistently paying it off) and being mindful of opening and closing your credit cards. It won’t happen overnight — be aware of anyone who promises a miracle quick fix as this could be a scam.
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This Week’s Top Stories
Oil prices alone do not predict economic fallout, but they are usually something we see in the rearview mirror and wish we’d paid attention to sooner.
Oil prices climbed 34% since the beginning of Dec 2021 and topped $90/barrel. See what SoFi’s Head of Investment Strategy has to say about oil prices and how it could inform your portfolio risk.
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Investors are increasingly eyeing dividend stocks in response to widespread market volatility and uncertainty regarding inflation.
Analysts say traders are pivoting away from growth-oriented stocks as the Fed plans to hike interest rates in response to rampant inflation. Some believe this makes dividend stocks more attractive given they pay shareholders cash on an annual basis. Still, rising bond yields could eventually change investors’ attitudes toward equities overall.
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So-called green startups have faced a number of challenges and broad selloffs after being the darlings of investors in early 2021.
Several electric vehicle makers and companies associated with their construction are seeing share prices plummet amid outside investigations and product challenges. This also goes for companies invested in sectors like eco-friendly farming.
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Deep Dives from SoFi Learn
There are plenty of cute Valentine’s Day ideas to be found, but what about cheap Valentine’s gifts that won’t break the bank?
Find inexpensive Valentine’s Day gift ideas that will have your sweetheart swooning. Get ready to brag about how much you didn’t spend!
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What credit score is needed to rent an apartment in 2022?
Learn more about how your credit score can affect renting an apartment, and how you can approach renting if you have a lower credit score.
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Volatility is unavoidable, but there are things investors can do to minimize the impact to their portfolio when trading stocks.
Navigating volatility as an investor means understanding different market sectors. Learn how volatility investing works and which sectors to target.
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