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- January 30, 2026
January 30, 2026
This Week’s Money Map:
💸 The $2,000 penalty you're paying on insurance
🏡 What home insurance looks like in 2026 — and what to do now
💰 High-yield savings vs. money market funds: Where should your cash live?
🛳️ How to book your dream cruise for half the price
💸 The $2,000 penalty you're paying on insurance
Your neighbor has the same house, the same car, and the same coverage. But they're paying $2,000 less per year for insurance.
The difference? Their credit score. Here's how to work this in your favor.
Why insurers care about your credit
Insurance companies use something called a credit-based insurance score. It's similar to your FICO score but weighted differently. Insurers claim it predicts how likely you are to file a claim.
The connection sounds strange. Your credit card payment history has nothing to do with whether a tree falls on your roof. But insurers have used this data for decades, and most states allow it.
Only California, Maryland, and Massachusetts ban credit from home insurance pricing. Hawaii joins them for auto insurance. Everyone else plays by the old rules.
The penalty hits both your home insurance and your auto insurance. Drivers with poor credit pay about 80% more for car insurance than those with good credit. At some companies, the gap is even wider.
How to shrink the gap
The good news? Your credit score responds quickly to the right moves.
Pay down credit card balances first. Your credit utilization ratio makes up 30% of your score. Drop your balance from 90% of your limit to under 30%, and you could boost your score by 60 to 100 points. Pay before your statement closes for the fastest results.
Check your credit reports for errors. A 2024 Consumer Reports study found that nearly half of people who reviewed their reports spotted at least one mistake. Disputing errors costs nothing and takes about 30 days to resolve.
Set up autopay on everything. Payment history makes up 35% of your score. One missed payment can tank your score. Autopay removes the risk of forgetting.
Ask for a credit limit increase. A higher limit with the same spending lowers your utilization ratio instantly. Many issuers approve this request online without a hard credit pull.
Request a re-rate from your insurer. If your credit has improved since you bought your policy, call your insurance company. They won't automatically lower your rate. You have to ask.
90 days to better rates
Most people see meaningful credit improvement within three months. The biggest gains come from paying down balances and fixing errors. These two moves alone can shift your insurance costs at your next renewal.
Your credit score is one of the few insurance factors you can actually control. And the payoff shows up in both your home insurance and your auto insurance premiums.
🏡 What home insurance looks like in 2026 — and what to do now
Home insurance premiums rose 24% between 2021 and 2024, according to a Consumer Fed report. That pace finally slowed in 2025. But 82% of homeowners still expect their premiums to climb in 2026.
The real question: Does your policy actually protect what you think it does? The gap between what you're paying and what you're covered for has never been wider.
The bad news: Premiums remain at all-time highs. Insurance now accounts for roughly 9% of the typical homeowner's monthly mortgage payment — the highest share ever recorded. If you live in a high-risk area for wildfires, flooding, or severe storms, your personal risk profile could trigger even steeper costs. Colorado, Texas, and Georgia saw some of the sharpest rate hikes last year. California homeowners face pending rate increases of 17% to 30% from major carriers.
Know what type of policy you actually have
Not all homeowners insurance works the same way. The most common policy is HO-3, which covers your home against most perils except those specifically excluded. About 75% of homeowners carry this type. Your belongings are covered only for named perils like fire, theft, and vandalism.
An HO-5 policy provides the broadest protection available. Both your home and belongings are covered at replacement cost against all perils except exclusions. This matters if you own valuable items. The premium is higher, but the coverage is far better.
Condo owners need HO-6 coverage, which protects the interior of your unit and your personal property. Mobile home owners should look at HO-7 policies. Older or historic homes may require HO-8 coverage when rebuilding costs exceed market value.
Review your policy type before your next renewal. Many homeowners discover gaps only after filing a claim.
Flood insurance is no longer optional
Updated FEMA flood maps and shifting weather patterns mean more properties now fall into designated flood zones. Standard homeowners policies don't cover flood damage — this gap catches many homeowners off guard.
Flood premiums are climbing 10% or more in many areas. Even homes outside official flood zones may benefit from coverage. If your property sits near water, in a low-lying area, or has experienced water intrusion before, consider adding a separate flood policy now.
How to save money without cutting essential coverage
Bundling your home and auto insurance with the same company can save up to 25%. Installing a monitored security system can reduce premiums by 5% to 15%. Upgrading your roof, electrical, and plumbing systems can also lower your rate.
Raise your deductible from $1,000 to $2,500, and you could save about 12% annually. Just make sure you have enough cash set aside to cover that deductible if you need to file a claim.
Shop around every year. Get quotes from at least three companies before your renewal date. Compare coverage limits and deductibles carefully.
High-yield savings vs. money market funds: Where should your cash live?
The Fed cut rates three times in 2025, and more cuts are expected by mid-2026. If your cash is sitting in a near-zero savings account, you're leaving money on the table.
Two popular alternatives keep coming up: high-yield savings accounts and money market funds. They sound similar but work differently. The right choice depends on how you plan to use your money.
What's happening with rates right now
The federal funds rate now sits at 3.50% to 3.75%, down from its peak. High-yield savings accounts are still paying between 4% and 4.35% APY at the best online banks. Some promotional accounts offer up to 5% APY with certain conditions. Meanwhile, the national average for traditional savings remains stuck at 0.39% according to the FDIC.
Money market fund assets hit a record $7.73 trillion in early January 2026. Investors poured nearly $800 billion into these funds over the past year — a 12.9% increase. Both individual savers and institutions are clearly still hungry for yield.
High-yield savings: Simple and protected
High-yield savings accounts come from banks and credit unions, often online institutions without traditional brick-and-mortar locations. They pay far more interest than traditional savings while keeping things simple.
Why people choose them: FDIC or NCUA insurance up to $250,000 per depositor, easy access to your money with no market risk, no need to monitor prices or yields daily, and they're ideal for emergency funds and short-term goals.
The tradeoff? Rates can change at any time. When the Fed cuts rates, yields on high-yield savings accounts usually follow within weeks.
Money market funds: Higher yield, slightly more complexity
Money market funds are investment products that hold short-term government or high-quality corporate debt. They're typically offered through brokerage accounts like Fidelity, Schwab, or Vanguard.
What sets them apart: Government money market funds currently yield around 3.5% to 3.7%. Returns fluctuate based on market conditions. They aren't FDIC-insured, though government money market funds are considered very low risk. They work best for cash you don't need daily access to.
One advantage: A portion of the interest from government money market funds may be exempt from state income taxes, depending on where you live.
Quick decision guide
Ask yourself: Do I need this money instantly for emergencies?
If yes, choose a high-yield savings account. If you’re parking cash for a few months or longer, consider a money market fund.
Do I value simplicity over squeezing out every last bit of yield? Choose high-yield savings. On the other hand, if you’re comfortable using a brokerage account and tracking yields, consider a money market fund.
You don't have to pick just one. Some people keep their emergency fund in a high-yield savings account while parking extra cash in a money market fund to earn a bit more.
🛳️ How to book your dream cruise for half the price
Wave season ends in March. This is when cruise lines offer their deepest discounts of the year. Miss this window, and you could pay 30% more for the same cabin. Here's how to stack the savings.
Book during wave season or at the last minute
The best time to book a cruise is during wave season — January, February, and March. Cruise lines compete aggressively for early bookings. You'll find free upgrades, onboard credits, and reduced deposits.
The opposite strategy works, too. Last-minute cruise sales usually pop up the week of, or a few weeks before the sailing — sometimes a month out. This approach requires flexibility with dates and cabin types.
Skip the cruise line excursions
Cruise line excursions are convenient but almost always overpriced and crowded. Websites like Viator and GetYourGuide partner with the same local tour operators the cruise lines use, but they sell the tours for a fraction of the price.
Cover yourself before you sail
More than 21.7 million Americans are expected to book passage in 2026, according to AAA. Many travelers skip cruise travel insurance and regret it.
Premium credit cards offer solid baseline protection. Chase Sapphire cards cover you if your cruise is canceled or delayed for covered reasons, and they also include baggage delay insurance and travel accident coverage.
For comprehensive coverage, third-party insurance is worth considering. Comprehensive cruise travel insurance policies typically cost between 4–10% of your total insured travel expenses.
Credit cards with zero foreign transaction fees
Foreign transaction fees typically run 1–3% per purchase. On a cruise with port excursions, these fees add up fast. Every card below charges nothing for international purchases.
Chase Sapphire Preferred offers 75,000 bonus points after $5,000 in spending. It earns 5X on travel through Chase and 3X on dining. The $95 annual fee is offset by a $50 hotel credit. This card includes trip cancellation coverage up to $10,000 per person.
Capital One Venture earns 75,000 bonus miles after $4,000 in spending. You get 2X miles on everything. The $95 annual fee comes with a $120 Global Entry credit.
Chase Sapphire Reserve delivers 125,000 bonus points after $6,000 in spending. It offers primary rental car insurance and trip delay coverage after just 6 hours.
Capital One Venture X provides 100,000 bonus miles after $10,000 in spending. You also receive Priority Pass lounge access and a $300 annual travel credit.
Bank of America Travel Rewards offers 25,000 bonus points after $1,000 in spending. It carries no annual fee and a 0% intro APR for 15 months.
Your booking checklist
Sign up for cruise line email alerts today, and compare wave season pricing across at least three cruise lines before February ends. Apply for a no-foreign-transaction-fee card at least three weeks before your trip. Review your credit card's travel insurance benefits before you sail.
Your bucket list cruise is within reach. You just need to book strategically.
It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
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The MoneyGeek Team
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