Author: Editor

Should You Get an Extended Auto Warranty for Your Vehicle?

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When you buy a vehicle—whether new or used—you may be offered an extended auto warranty. These warranties promise to cover certain repairs after the manufacturer’s warranty expires. While they can offer peace of mind, they also come with costs and caveats that aren’t always clear up front. So, is an extended auto warranty worth it? Let’s explore the pros, cons, and key factors to help you decide.

What Is an Extended Auto Warranty?

An extended auto warranty, sometimes referred to as a vehicle service contract, is a plan you can purchase that covers specific repairs and services after the original manufacturer’s warranty expires. These warranties are often sold by dealerships, automakers, or third-party providers, and coverage can range from basic powertrain protection to full bumper-to-bumper plans.

The Pros of Extended Warranties

  1. Peace of Mind
    If you’re someone who worries about unexpected repair bills, an extended warranty can offer reassurance. It can help you budget better by turning unpredictable expenses into more manageable, regular payments.

  2. Protection Against Expensive Repairs
    Modern vehicles are packed with electronics and tech features that can be costly to repair. An extended warranty may cover items like infotainment systems, sensors, or transmission components that would otherwise lead to large out-of-pocket costs.

  3. Added Resale Value
    If the warranty is transferable, it could make your car more attractive to potential buyers. A used vehicle with coverage still in effect may stand out in a competitive market.

The Cons of Extended Warranties

  1. High Upfront Cost
    Extended warranties can cost anywhere from a few hundred to several thousand dollars, depending on the provider and coverage level. Often, the cost may outweigh the actual repairs you end up needing.

  2. Limited Coverage
    Not everything is covered. Many warranties exclude wear-and-tear parts like brake pads and tires, and some require you to stick to a strict maintenance schedule or use specific repair shops.

  3. Questionable Value
    Studies have shown that many consumers who buy extended warranties never use them. And even when they do, the repair costs may not exceed the warranty price.

  4. Deductibles and Fine Print
    Some plans have deductibles for each repair visit, and the fine print may include exclusions that can make claims difficult to approve.

When an Extended Warranty Might Make Sense

  • You Plan to Keep the Car Long-Term: If you’re planning to drive your car well beyond the original warranty period, extended coverage could be a smart investment.

  • Your Car Has a Poor Reliability Record: Research your vehicle’s reliability ratings and history of common repairs. If it’s known for mechanical issues, the warranty might pay off.

  • You’re Buying a Used Vehicle: Many used vehicles are no longer covered under the original factory warranty. An extended warranty might fill that gap, especially if it’s certified pre-owned (CPO) and comes with some existing coverage.

When It Might Not Be Worth It

  • You’re Buying a Reliable Vehicle: If you’re purchasing a brand with a reputation for dependability (e.g., Toyota, Honda), chances are you may never need the extra coverage.

  • You’re Financially Prepared for Repairs: If you have an emergency fund or savings set aside, you might be better off putting money into a repair fund instead of buying a warranty.

Final Thoughts

An extended auto warranty isn’t a one-size-fits-all decision. It can be a smart investment for some drivers and an unnecessary expense for others. Before buying, read the contract carefully, research the provider’s reputation, and consider your vehicle’s reliability and your own risk tolerance. Sometimes, peace of mind is worth the cost—just make sure it’s a well-informed choice.

Bridge Loans Explained: What They Are, How They Work, and When to Use Them

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In the world of finance and real estate, timing is everything. Whether you’re buying a new home before selling your current one or acquiring business property while waiting for permanent financing, delays can disrupt even the most well-laid plans. That’s where bridge loans come in. Designed to “bridge” short-term gaps in funding, these loans provide immediate capital when traditional financing isn’t yet available. But while bridge loans can be incredibly useful, they also come with higher risks and costs. Understanding how they work—and when to use them—is essential for making smart financial decisions.

A bridge loan is a short-term financing solution typically lasting six months to a year, though some may extend up to 36 months depending on the lender and situation. These loans are often secured by collateral—most commonly real estate—and are intended to offer quick access to funds while a more permanent source of financing is arranged. Borrowers use bridge loans to avoid losing opportunities due to financing delays, such as purchasing a new property while waiting for the sale of an existing one or closing a business acquisition pending final approval of long-term funding.

In the context of real estate, a common use case is when a homeowner wants to buy a new house but hasn’t yet sold their current one. Instead of making a contingent offer—which can be less appealing to sellers—they use a bridge loan to finance the down payment or purchase. The loan is then repaid once their current home sells. For businesses, bridge loans are used to cover temporary cash flow shortages, purchase inventory, or fund critical expansion initiatives while longer-term financing is being finalized.

Key features of bridge loans include rapid approval and funding, which can occur in a matter of days or weeks—significantly faster than conventional loans. This speed comes at a price, however. Bridge loans usually have higher interest rates, often ranging from 6% to 12% or more, and may include origination fees, closing costs, and early repayment penalties. These added expenses reflect the lender’s increased risk and the short-term nature of the loan.

Because of these higher costs, bridge loans are best used when there is a clear exit strategy—that is, a known and likely source of repayment, such as a pending home sale, permanent loan approval, or a predictable revenue stream. Without a solid plan in place, borrowers could find themselves in a worse financial position, potentially needing to refinance into another short-term loan or risk default.

Bridge loans are typically easier to qualify for than traditional mortgages or business loans, especially for borrowers with strong equity positions or valuable collateral. However, creditworthiness still plays a role. Lenders assess the borrower’s income, debt-to-income ratio, and repayment ability to minimize default risk. In many cases, bridge loans require interest-only payments during the term, with the full principal due at maturity. This structure allows borrowers to manage cash flow while securing permanent financing or liquidating assets.

Despite their advantages, bridge loans aren’t suitable for every borrower. For homeowners, the pressure to sell quickly to repay the loan can be stressful—particularly in a slow or unpredictable housing market. If the current home doesn’t sell within the expected timeframe, the borrower may face overlapping mortgage payments or foreclosure risk. For businesses, relying too heavily on bridge loans without securing long-term funding or stabilizing cash flow can lead to financial overextension.

In recent years, the rise of private lenders, online platforms, and alternative funding sources has made bridge loans more accessible. However, it also increases the variability in terms, transparency, and reliability. Borrowers should perform thorough due diligence, read all contract terms carefully, and consult with financial advisors or attorneys before entering into any bridge loan agreement. It’s also wise to compare bridge loan terms against other options, such as home equity lines of credit (HELOCs), personal loans, or business lines of credit, which may offer lower rates or more flexible repayment structures depending on the scenario.

In conclusion, bridge loans can be powerful tools for individuals and businesses navigating complex financial transitions. They offer speed, flexibility, and strategic advantages—especially when timing is critical. But like any financial instrument, they must be used wisely, with a clear understanding of the risks, costs, and repayment expectations. When applied under the right circumstances, a bridge loan doesn’t just close a gap—it opens the door to new opportunities.

What to Do When Lenders Say No: Strategic Moves for Business Owners Facing Rejection

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Being denied a loan by a lender—whether it’s a bank, credit union, or private financier—can feel like a crushing setback, especially if you were relying on those funds to stabilize cash flow, expand operations, or seize an opportunity. But a lender’s “no” doesn’t mean the end of the road. In fact, it can be the catalyst for a stronger, more financially sound strategy. The key is understanding why the denial happened, responding with clarity and purpose, and exploring alternative paths that lead you back to capital and forward toward your business goals.

The first and most important step is to request specific feedback from the lender. Many business owners walk away from a rejection without ever asking why. However, lenders often have a clear reason—insufficient revenue, weak credit history, high debt-to-income ratio, lack of collateral, or simply applying for the wrong type of loan. Understanding the “why” gives you power. It turns a vague disappointment into a concrete list of things to improve. Ask your lender for a written explanation or a meeting to go over your application. Use this as an opportunity to learn how your business is perceived from a financial standpoint.

Once you know the reasons behind the denial, take time to reassess your financial profile. If your business credit score is low, it may be time to review your credit reports from major agencies such as Experian, Equifax, and Dun & Bradstreet. Look for inaccuracies, late payments, or negative trade lines. Similarly, if your revenue or cash flow fell short of underwriting criteria, you may need to provide stronger documentation, such as updated profit-and-loss statements, tax returns, or future projections backed by contracts or recurring sales. In some cases, simply improving the presentation of your business plan or demonstrating better debt coverage can make the difference in a future application.

If your business is young or lacks collateral, consider starting with smaller, more flexible financing products. Microloans, invoice factoring, business lines of credit, or merchant cash advances may be easier to qualify for and can help you build a track record of repayment. While some of these options come with higher interest rates or shorter terms, they can serve as stepping stones to traditional funding when used responsibly. Another increasingly popular option is crowdfunding or peer-to-peer lending platforms, which may focus more on your story, market potential, or community support than on traditional metrics.

Alternative lenders—online or non-bank entities—are another avenue to explore. Many of these institutions offer faster approval times and less rigid criteria than conventional banks, especially for small and mid-sized businesses. However, due diligence is critical. Compare rates, terms, repayment structures, and hidden fees. Understand that while accessibility may be higher, the cost of borrowing can be significantly greater. Always read the fine print and weigh whether the capital being offered is truly aligned with your business’s cash flow capacity and growth trajectory.

Another constructive response to loan rejection is to strengthen your internal financial practices. This means tightening your accounts receivable processes, reducing unnecessary expenses, managing inventory more efficiently, or renegotiating contracts to improve margins. Not only do these steps make your business healthier overall, but they also improve your appeal to future lenders by showing that you are financially disciplined and operationally resilient.

You may also consider bringing on a partner or co-signer with stronger credit, offering additional collateral, or applying for loans backed by government agencies such as the U.S. Small Business Administration (SBA). SBA-backed loans typically offer more favorable terms and are designed for businesses that might not qualify for traditional financing on their own. These programs often involve more paperwork and longer approval times, but they can be game changers for businesses in need of affordable long-term capital.

Finally, rejection should serve as a moment of strategic reflection, not panic. Take time to evaluate whether external financing is truly the best solution—or whether there’s a better way to solve the underlying challenge. Can you fund growth through customer deposits, pre-orders, or joint ventures? Is there a grant or incentive program for your industry or region? Can you pivot temporarily to a leaner operating model that buys you time to build capital organically?

When lenders say no, don’t hear “never”—hear “not yet.” Every successful entrepreneur has faced financial rejection at some point. What separates those who thrive from those who fold is their ability to respond intelligently, adapt strategically, and keep moving forward with purpose. Rebuild your application, rework your financials, explore alternatives, and remember: one denial is not the definition of your business. It’s simply a challenge waiting for a more creative solution.

Top 10 Vehicles of 2020: The Best Cars of the Year Ranked

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As 2020 unfolds, the automotive world finds itself at a thrilling crossroads. From the growing influence of electric drivetrains to the integration of advanced driver-assist systems and luxe-level comfort even in budget-friendly trims, this year’s lineup of standout vehicles reflects a market brimming with innovation and evolving consumer expectations. Whether you’re seeking performance, utility, economy, or forward-thinking technology, the best vehicles of 2020 deliver. Here are our top 10 picks for the year—models that shine in their segment and redefine the standards for what a car should be.

1. 2020 Kia Telluride
A revelation in the midsize SUV segment, the Telluride has quickly become one of the most sought-after vehicles in America. With bold styling, a spacious third row, and a refined interior that rivals luxury brands, the Telluride blends practicality with polish. Its standard V6 engine delivers smooth acceleration, while an upscale cabin, robust infotainment system, and advanced driver assistance features come standard—even at lower trims. Kia’s newest flagship SUV is proof that value and quality no longer sit at opposite ends of the showroom.

2. 2020 Tesla Model 3
The Model 3 is the electric car that finally made EVs mainstream. In 2020, it continues to impress with industry-leading range (up to 322 miles on the Long Range trim), lightning-fast acceleration, and a minimalist interior that feels pulled from the future. Over-the-air updates keep the Model 3 current, while its Autopilot suite offers an unmatched semi-autonomous experience. For eco-conscious drivers who refuse to compromise on performance or tech, the Model 3 remains the gold standard.

3. 2020 Chevrolet Corvette Stingray (C8)
Chevrolet shocked the performance world this year by moving the Corvette’s engine behind the driver for the first time in its 67-year history—and it paid off spectacularly. The mid-engine 2020 Corvette Stingray offers exotic car dynamics at a fraction of the price. With a 6.2-liter V8 producing 495 horsepower and a 0–60 mph time under three seconds, it’s an American supercar accessible to enthusiasts. Paired with sharp styling, a cockpit-focused cabin, and refined handling, the C8 marks a true renaissance for the Corvette name.

4. 2020 Toyota RAV4 Hybrid
Toyota continues its dominance in hybrid technology with the RAV4 Hybrid, which improves upon the standard RAV4 in nearly every way. It’s quicker, more efficient (up to 40 MPG combined), and comes standard with all-wheel drive. In an age where utility and fuel economy are paramount, the RAV4 Hybrid offers both without sacrificing the comfort or reliability Toyota is known for. It’s an excellent family vehicle that feels built for the modern world.

5. 2020 Honda Civic
Few nameplates offer as much versatility and consistency as the Civic. The 2020 lineup includes sedans, coupes, and hatchbacks, with trims ranging from fuel-sipping commuters to the track-ready Civic Type R. With crisp handling, a refined interior, and excellent fuel economy across the board, the Civic remains one of the smartest buys in any segment. It continues to appeal to young drivers, urban commuters, and enthusiasts alike, offering a broad appeal rarely matched in the compact market.

6. 2020 Ram 1500
The Ram 1500 continues its reign as the most refined full-size pickup available. With a coil-spring rear suspension that delivers unmatched ride comfort, an available 12-inch touchscreen, and luxurious cabin materials, the Ram 1500 blurs the line between work truck and luxury SUV. The new EcoDiesel option adds impressive fuel economy and towing power, while the eTorque mild-hybrid system enhances efficiency across the V6 and V8 variants. It’s the truck that does it all, and looks good doing it.

7. 2020 Hyundai Sonata
Hyundai’s complete redesign of the Sonata has positioned it as a design and tech leader in the midsize sedan space. The bold styling commands attention, but it’s the inside that impresses even more—with an available 12.3-inch digital gauge cluster, push-button shifter, and semi-autonomous Smart Parking Assist. With available turbocharged engines and a hybrid variant boasting solar panels on the roof, the Sonata delivers style, substance, and innovation in equal measure.

8. 2020 Subaru Outback
The Outback remains a unique player in the market—part wagon, part SUV, all utility. For 2020, it gains more tech, a new turbocharged XT model, and an upgraded interior while retaining the standard all-wheel drive and go-anywhere confidence that’s made it a cult favorite. Subaru’s EyeSight driver assist suite is standard across all trims, making the Outback one of the safest and most versatile options for outdoor enthusiasts and urban families alike.

9. 2020 Mazda CX-5
Mazda has carved a niche for offering premium design and driving dynamics at mainstream prices, and nowhere is that more evident than in the CX-5. This compact SUV feels like it belongs in a luxury lineup, with an elegant interior, athletic handling, and an available turbocharged engine that elevates performance. Add in a suite of advanced safety features and sharp exterior styling, and the CX-5 continues to prove that affordable doesn’t have to mean ordinary.

10. 2020 Ford Mustang
The Mustang remains an icon, and in 2020 it reinforces its legacy with options for every kind of driver. From the value-packed EcoBoost to the thunderous GT500 with 760 horsepower, the Mustang lineup is more diverse and exciting than ever. It retains classic muscle car charm with modern touches, including a digital gauge cluster and MagneRide suspension. Whether you’re looking for weekend fun, track-ready thrills, or retro style, the Mustang stands strong in its sixth decade.

Final Thoughts:
From groundbreaking EVs to luxurious pickups, sporty coupes, and practical SUVs, 2020’s top vehicles showcase the industry’s continued evolution. These cars are not just modes of transport—they’re statements of innovation, performance, and thoughtful design. As we enter a new decade, these models prove that consumers can have more: more value, more features, more sustainability, and more excitement. In a year full of challenges and change, the automotive world still finds plenty of reasons to accelerate into the future.

Understanding Septic Systems: What Every Property Owner Should Know

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A septic system is a critical yet often overlooked component of many residential and rural properties, responsible for treating and disposing of household wastewater in locations that are not connected to municipal sewer systems. For millions of homeowners, understanding how a septic system functions—and more importantly, how to maintain it—can prevent costly repairs, environmental contamination, and health hazards.

At its core, a septic system is a decentralized wastewater treatment structure. It consists of a septic tank and a soil absorption field (also known as a drain field or leach field). When water from toilets, showers, sinks, washing machines, and dishwashers exits a home, it flows into the septic tank. This tank, typically buried underground, holds the wastewater long enough for solids to settle at the bottom as sludge, while lighter materials such as oils and grease float to the top and form a scum layer. The remaining liquid—called effluent—then flows out of the tank into the drain field.

In the drain field, the wastewater is filtered through soil, which naturally removes harmful bacteria, viruses, and nutrients. Over time, the purified water reenters the groundwater system. This process is environmentally safe when the system is properly installed and maintained. However, failure to maintain a septic system can result in backups, foul odors, contamination of nearby water sources, and expensive emergency repairs.

Routine maintenance is key to a healthy septic system. Most experts recommend pumping the septic tank every three to five years, though the exact frequency depends on the size of the tank, the number of household members, and overall water usage. Regular inspections—typically every one to three years—help catch early warning signs like excessive sludge buildup, tank leaks, or drain field saturation.

Water conservation also plays a significant role in preserving septic system health. Overloading the system with too much water in a short period of time can push solids into the drain field, causing clogging and eventual failure. Installing high-efficiency toilets, showerheads, and washing machines can reduce the volume of water entering the tank. Spacing out laundry loads and fixing leaks promptly are also important habits.

Homeowners must also be mindful of what goes down the drain. Flushing non-biodegradable items like wipes, diapers, or feminine hygiene products can clog the system. Similarly, pouring grease, harsh chemicals, or medications into the sink or toilet can disrupt the natural bacterial processes in the tank, impairing its function and damaging the soil in the drain field.

Land use around the septic system also matters. Trees and shrubs should be planted away from the drain field, as roots can infiltrate and damage the pipes. Heavy vehicles and construction equipment should never drive over or park on top of the system, as compacted soil can reduce filtration capacity and crush underground components.

Modern septic systems may also include advanced treatment units, alarms, or filters. These systems offer improved treatment efficiency, particularly in sensitive environmental areas. However, they may require additional maintenance and professional oversight, making it essential for homeowners to understand the specific design and requirements of their system.

For homebuyers, a septic inspection should be a mandatory part of the due diligence process. Identifying an aging or malfunctioning system upfront can save thousands in repairs and potential fines. Local health departments and environmental agencies often provide records of previous inspections, system designs, and permits.

In conclusion, a septic system is a silent workhorse that plays a crucial role in managing a property’s wastewater. When understood and properly cared for, it can function efficiently for decades. Neglect, on the other hand, can lead to health risks, environmental damage, and significant financial loss. For every property owner with a septic system, knowledge and maintenance are the keys to long-term peace of mind.

Understanding Fuel Octane: What It Means, How It Works, and Whether Your Car Really Needs Premium Gas

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At every gas station, drivers are faced with a decision: Regular, Mid-Grade, or Premium? These choices—usually labeled by their octane ratings such as 87, 89, and 91 or 93—are more than just pricing tiers. They represent different formulations of gasoline that affect how your engine performs and how efficiently it combusts fuel. But with higher prices attached to premium fuel, a common question arises: is it really necessary for your car?

To answer that question, you must first understand what octane rating actually means and how it impacts your engine.

What Is Octane?

Octane is a measure of a fuel’s ability to resist “knocking” or “pinging” during combustion. Knocking occurs when the air-fuel mixture in an engine’s cylinder ignites prematurely or unevenly. This causes a sharp knocking noise and can lead to engine damage over time. The higher the octane number, the more compression the fuel can withstand before igniting. Essentially, a higher octane fuel is more stable under pressure and resists pre-ignition better than a lower octane fuel.

Gasoline’s octane number refers to its resistance to this detonation:

  • 87 Octane: Regular Unleaded

  • 89 Octane: Mid-Grade or Plus

  • 91-93 Octane: Premium Unleaded

Note: Some regions label premium as 91, others as 93, depending on availability and local fuel formulations.

How Octane Affects Your Engine

The octane rating your car requires depends on your engine’s compression ratio, design, and whether it uses forced induction systems like turbochargers or superchargers.

  • High-Compression Engines: These engines compress the air-fuel mixture more tightly, which creates more power but also increases the risk of premature combustion. These engines typically require higher-octane fuel to operate safely.

  • Turbocharged or Supercharged Engines: Because these systems force additional air into the engine, they increase cylinder pressure, which raises the risk of knock. Manufacturers of such vehicles often recommend or require premium fuel.

  • Standard Engines (Low to Medium Compression): These engines are designed to run efficiently on 87 octane, and using higher-octane fuel offers little to no benefit in terms of performance or efficiency.

Does Higher Octane Improve Performance?

One of the biggest myths is that premium fuel improves performance in all vehicles. In truth, using a higher octane fuel than your car requires does not enhance power, improve fuel economy, or clean your engine better—unless your engine is specifically tuned to take advantage of the higher octane. High-performance vehicles may respond better with premium because their engine management systems adjust spark timing and fuel delivery based on octane levels. But for the average car designed for 87 octane, premium gas provides no extra value aside from draining your wallet faster.

When You Should Use Premium

You should use premium fuel if:

  1. Your owner’s manual says “required” or “only” premium fuel. This is often the case for luxury or performance vehicles. Ignoring this recommendation can result in reduced engine performance, lower fuel efficiency, and even long-term damage.

  2. You experience knocking or pinging with regular fuel. This may indicate your engine is sensitive to lower-octane fuel, or your driving conditions (high heat, towing, uphill climbs) are increasing pressure inside the combustion chambers.

  3. You’ve had your car tuned or modified. Aftermarket ECU (engine control unit) tuning, turbo upgrades, or increased compression often necessitate higher octane to prevent knock.

When Premium Is Optional or Unnecessary

If your owner’s manual says “premium recommended,” you can generally use regular fuel without immediate harm. You might see a slight drop in horsepower or mileage—often barely noticeable—but you won’t be causing engine damage.

For vehicles that specifically state 87 octane is required, using 91 or 93 is not just unnecessary—it’s wasteful. The computer won’t advance timing enough to make use of the higher octane, so you’re essentially paying more for no gain.

Special Note on Ethanol and “Top Tier” Gas

Another factor to consider is ethanol content. Most gasoline in the U.S. contains up to 10% ethanol (E10), which helps with cleaner combustion but has slightly less energy than pure gasoline. Some vehicles are designed for flex-fuel (E85), which is 85% ethanol and requires a completely different fuel system.

“Top Tier” fuel refers to gas that contains extra detergents and additives to help keep your engine clean. This is different from octane rating and is worth considering if you want to maintain long-term engine health, especially for direct-injection engines prone to carbon buildup.

Octane Misconceptions

  • Higher octane means more power: Only in cars that require it.

  • Premium gas cleans your engine: Detergents in fuel do that, not octane.

  • You should switch to premium as your car ages: Not necessarily. Unless your engine is knocking, stick with your manufacturer’s recommendation.

Bottom Line: What Should You Use?

  1. Check your owner’s manual. This is your definitive guide. If it says 87, use 87.

  2. Listen to your engine. If you hear knocking, consider using higher octane temporarily and have it checked by a mechanic.

  3. Don’t waste money on premium unless your vehicle requires it. There’s no “extra boost” unless your car can use it.

Final Thoughts

Fuel octane isn’t just about price—it’s about compatibility. Using the right octane ensures your engine runs efficiently, safely, and within its design limits. While premium gas has its place in high-performance and luxury vehicles, for the average driver in a standard vehicle, regular 87 octane is more than enough. Understanding the science behind octane—and how it fits into your vehicle’s needs—will not only protect your engine but save you money every time you fill up.

What’s Covered (and Not Covered) by an Extended Auto Warranty?

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When shopping for extended auto warranties, many drivers focus on price and term length—but overlook the most crucial detail: what’s actually covered. Not all warranties are created equal, and understanding the difference between comprehensive, powertrain, and component-specific coverage can save you from unexpected repair bills and buyer’s remorse.

In this article, we’ll break down the typical inclusions and exclusions of extended auto warranties, and what you should know before signing any contract.

Understanding the Basics

Extended auto warranties—also known as vehicle service contracts—kick in after your factory warranty expires. They’re designed to protect against the high cost of mechanical breakdowns. Depending on the provider and plan, coverage can range from basic drivetrain protection to near bumper-to-bumper inclusivity.

What’s Typically Covered

✔ Engine and Transmission
The heart of your vehicle—these parts are expensive to repair and commonly included in all levels of coverage.

✔ Drive Axle, Differentials, and Transfer Case
Especially important for AWD or 4WD vehicles.

✔ Cooling System
This includes the radiator, water pump, and cooling fan—components critical to preventing engine overheating.

✔ Fuel System and Electrical Components
Advanced plans may include fuel injectors, starters, alternators, power windows, and even navigation systems.

✔ Air Conditioning and Heating
Climate control systems, particularly the A/C compressor and condenser, are often covered in mid-to-premium plans.

✔ Seals and Gaskets
Typically included only if part of a covered component’s failure.

What’s Typically Not Covered

✘ Wear and Tear Items
Brakes, tires, windshield wipers, bulbs, belts, and filters fall under routine maintenance and are generally excluded.

✘ Cosmetic or Interior Damage
Scratches, upholstery wear, dashboard fading, or damage from spills won’t be covered.

✘ Scheduled Maintenance
Oil changes, tire rotations, alignments, and tune-ups are your responsibility—even under premium contracts.

✘ Pre-Existing Conditions
Most plans won’t cover issues that existed before you bought the warranty, which is why timing is critical.

✘ Environmental Damage
Rust, corrosion, hail, and flood damage are not covered under service contracts—these fall under auto insurance.

Key Takeaways

  • Always read the full contract, not just the brochure or summary.

  • Look for exclusionary coverage, which lists only what’s not covered—this is often more comprehensive.

  • Ask about the claims process, labor rates, and approved repair facilities.

  • Verify if the plan is transferable and cancelable—useful if you sell your car or change your mind.

  • Reputable providers should be backed by a strong insurance company and offer a 30-day review period.

Final Thought

An extended auto warranty can offer real peace of mind, but only when you know exactly what’s covered. By understanding the fine print and comparing your options, you can make an informed decision that protects your car—and your wallet—for years to come.

5 Common Myths About Home Warranties—And the Real Truth Behind Them

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When it comes to protecting your home, few tools offer as much convenience and peace of mind as a home warranty. But despite their growing popularity, home warranties remain one of the most misunderstood services among homeowners. Misinformation, outdated assumptions, and sales hype have created a number of persistent myths that keep many from making a well-informed decision.

If you’re considering a home warranty—or simply trying to make sense of what you already have—let’s set the record straight. Here are five of the most common myths about home warranties and the truth every homeowner should know.

Myth 1: A Home Warranty Covers Everything in the House

The Truth:
A home warranty does not cover everything. Unlike homeowner’s insurance, which protects against damage from external events like fire or weather, a home warranty covers the repair or replacement of major systems and appliances due to normal wear and tear. This typically includes HVAC systems, electrical, plumbing, water heaters, kitchen appliances, washers and dryers, and sometimes pool equipment or garage door openers—depending on the plan.

However, cosmetic damage, structural components (like roofing or windows), and non-mechanical items usually fall outside the scope of coverage. Always read the contract details and look for coverage limits, exclusions, and conditions before assuming you’re covered.

Myth 2: Home Warranties Aren’t Worth the Cost

The Truth:
It depends on your perspective—and your home. For a relatively low annual fee (often between $400 and $700), a home warranty can save you thousands on unexpected repairs. If your furnace dies in January or your refrigerator breaks down suddenly, a warranty can cover the repair or even full replacement, minus a modest service fee (typically $75–$125).

Home warranties are especially valuable for older homes, or when you’re unfamiliar with the condition of appliances and systems—such as after purchasing a house. They’re also useful for homeowners who want predictable budgeting without emergency repair costs.

Myth 3: You Can Choose Any Contractor You Want

The Truth:
Most home warranty companies have a network of pre-approved service providers, and you must use one of their assigned contractors to process a claim. While this streamlines the repair process and often results in faster service, it can be frustrating for homeowners used to working with specific local professionals.

That said, reputable warranty companies vet their contractors for quality and reliability. If you experience a problem with a technician, the provider usually offers a reservice guarantee—meaning they’ll send a different contractor at no extra charge.

Myth 4: You Don’t Need a Warranty If You Have Home Insurance

The Truth:
Homeowners insurance and home warranties serve completely different purposes. Insurance protects your home and belongings from external events like theft, fire, storms, and vandalism. A home warranty, on the other hand, covers the repair or replacement of systems and appliances that break down over time due to normal use.

Think of it this way: insurance handles the big, unexpected disasters, while a home warranty takes care of the everyday breakdowns that come with living in a home. Ideally, both should work hand-in-hand to give you total peace of mind.

Myth 5: Warranty Companies Always Deny Claims

The Truth:
While denied claims are a source of frustration—and not entirely uncommon—they’re often the result of misunderstandings, not malice. Most denials occur due to:

  • Pre-existing conditions

  • Lack of proper maintenance

  • Items not included in your specific plan

  • Claims made during a waiting period

To avoid denials, make sure to:

  • Read your contract carefully

  • Maintain your covered items according to manufacturer guidelines

  • Ask your provider for clarity on covered components

  • Keep service records when applicable

Many reputable home warranty companies offer 24/7 customer support, online portals, and transparent coverage terms. The more informed you are, the better your experience will be.

Final Takeaway

A home warranty isn’t a magic fix-all—but it is a valuable safety net for many homeowners. By understanding what it does (and doesn’t) cover, reading your agreement thoroughly, and managing expectations, you can get the most out of your coverage and avoid costly surprises. Don’t let myths prevent you from making a smart, protective investment in your home.

How to Properly Build Business Credit

Posted on | by Editor

In 2017, the economy is steady, lenders are active, and the opportunities to secure funding for your business are as strong as they’ve been in years. But there’s a catch: your business must be credit-worthy.

Establishing strong business credit is the key to unlocking capital without risking your personal finances. Whether you’re seeking lines of credit, business loans, or vendor financing, your business credit profile is what lenders and suppliers are reviewing first. So, how do you build it the right way?

1. Start With the Right Business Structure

To build credit, your business must be a legal entity, such as an LLC or corporation. Sole proprietorships and DBAs won’t cut it—you need a structure that separates your business and personal finances.

Once you’ve incorporated, be sure to:

  • Obtain your EIN (Employer Identification Number) from the IRS

  • Register with your Secretary of State

  • Set up a dedicated business checking account

2. Establish Your Business Identity

Lenders and bureaus want to see that your business is real and active. You’ll need:

  • A dedicated business phone number and address

  • A professional website and domain-based email address

  • A listing in the 411 directory

These might seem small, but in 2017, these details build lender trust and improve your credibility across financial platforms.

3. Open Vendor Accounts That Report to Business Bureaus

The fastest way to begin building a business credit file is by opening Net-30 accounts with vendors who report to the bureaus, such as:

  • Uline

  • Grainger

  • Quill

  • Summa Office Supplies

Order supplies, pay the invoice early or on time, and those payments get reported to Dun & Bradstreet (D&B), Equifax, or Experian Business—all crucial to building your PAYDEX score and business credit profile.

4. Get Your D-U-N-S® Number

To build credit with Dun & Bradstreet, your business must be listed with a D-U-N-S Number. It’s free to obtain, and in 2017, it remains the foundation of your business’s credit identity.

This number is what lenders use to check your D&B PAYDEX score, which ranges from 0–100 (you want 80+).

5. Open a Business Credit Card

Once you’ve got some vendor accounts reporting, it’s time to apply for a business credit card. Choose one that reports to business bureaus, not personal credit. Popular options in 2017 include:

  • Capital One Spark

  • Chase Ink Business

  • American Express OPEN cards

Make small purchases, pay in full, and keep utilization low—just like with personal credit.

6. Monitor Your Business Credit Reports

In 2017, many business owners overlook this step. But monitoring your credit helps you:

  • Catch errors or fraudulent accounts

  • See when new tradelines are reported

  • Track your PAYDEX and credit scores

Use tools like Nav.com, CreditSignal from Dun & Bradstreet, or direct monitoring through the bureaus.

7. Maintain Good Payment History

Your business credit score is largely based on one thing: payment history. In fact, your PAYDEX score from D&B is 100% based on how fast you pay your bills. Early or on-time payments are essential.

In 2017, underwriting models are less data-driven than they will be in the future, so lenders put heavy weight on:

  • Vendor and trade references

  • Years in business

  • Revenue and cash flow

Establishing good habits now sets you up for more aggressive funding in 12–18 months.

Final Thought: It’s a Long Game

Building business credit in 2017 is about playing the long game. You won’t go from zero to $100K in funding overnight—but by establishing a strong business identity, opening reporting tradelines, and paying bills early, you’ll be positioned to access larger lines of credit, lower rates, and better financing options without personal guarantees.

Take action now—by 2018, your business could be fully credit-worthy and positioned for serious growth.

Mastering the Flow: Best Ways to Keep Your Business Cash Flow Healthy

Posted on | by Editor

Cash flow is the lifeblood of any business, regardless of size, industry, or age. While profits may reflect the long-term success of a company, it is cash flow that determines its day-to-day viability. Many profitable businesses have collapsed simply because they failed to manage their cash flow effectively. Healthy cash flow ensures that a business can meet its financial obligations, invest in growth opportunities, handle unexpected costs, and maintain credibility with suppliers, lenders, and employees. Understanding how to control and optimize cash flow is essential for building a resilient and sustainable operation.

The first and most fundamental strategy is to establish accurate and real-time cash flow forecasting. A well-managed business operates on projections that account for both incoming and outgoing funds over the short and long term. Forecasting allows business owners to anticipate cash shortages before they occur and adjust operations accordingly—whether that means delaying a capital expenditure, negotiating new terms with a supplier, or ramping up a seasonal promotion to boost sales. It also provides clarity on patterns, such as high-expense months, payment delays, and recurring liabilities, enabling smarter decision-making across all areas of the company.

Invoice management is another critical lever in maintaining cash flow health. A significant portion of business revenue is often locked up in unpaid invoices. To reduce days sales outstanding (DSO), businesses should establish clear payment terms from the outset, send invoices promptly, and follow up consistently. Offering incentives for early payment or imposing penalties for late payment can encourage clients to remit funds more quickly. In more persistent cases, it may be worth leveraging invoice factoring or working with collection agencies—though these come with fees that must be weighed against the benefits of accelerated cash.

Controlling expenses is equally important. Just as revenue must be managed strategically, so must the cost of operations. This does not necessarily mean cutting costs aggressively, but rather ensuring that every dollar spent contributes measurable value. Businesses should review vendor contracts regularly, eliminate redundancies, and invest in automation or outsourcing where it improves efficiency. Negotiating better terms with suppliers or consolidating orders for bulk discounts can free up cash without sacrificing service or quality. Likewise, variable costs—such as marketing or discretionary travel—should be carefully aligned with the company’s cash position at any given time.

Diversifying income streams adds stability to cash flow by reducing dependency on a single source of revenue. Businesses that offer both recurring revenue models (such as subscriptions or retainers) and one-time sales are better equipped to weather seasonal dips or market volatility. Additionally, selling complementary services or products to existing customers often yields higher margins and quicker conversions, enhancing both profitability and liquidity.

Another often overlooked but powerful strategy is to build a cash reserve. Just as individuals are advised to keep an emergency fund, businesses benefit from having a cash cushion to handle slow months, unexpected repairs, or strategic opportunities. This reserve not only protects the business but also reduces reliance on high-interest credit lines or short-term loans that can compound financial strain during tight periods.

Access to credit should also be proactively managed—not only when it is urgently needed. Establishing business credit lines, securing relationships with lending partners, and maintaining a strong business credit score will position your company to access working capital more quickly and on better terms. Waiting until a crisis arises may lead to higher borrowing costs or denial of credit altogether.

Furthermore, a disciplined accounting system is non-negotiable. Timely and accurate financial records allow business owners to monitor liquidity, track receivables and payables, and avoid costly mistakes. Partnering with a knowledgeable accountant or financial advisor can help interpret these figures and provide guidance on cash flow strategies tailored to your business model and goals.

In the end, maintaining a healthy cash flow requires both vigilance and adaptability. It is not a one-time effort but a continuous discipline rooted in planning, monitoring, and strategic action. Businesses that prioritize cash flow health are not only better equipped to survive economic uncertainty, but also more prepared to seize growth opportunities and scale with confidence. A strong cash flow is the difference between reacting to circumstances and having the power to shape your own future.