Markus Andrews

Rent reporting services provide tenants the opportunity to grow their credit history through monthly payments.
However, landlords could also report late or unfulfilled payments to debt collectors.
Here’s what tenants need to know about how their rent can affect their credit.

Blonde woman standing in the room while unpacking boxes.
Miniseries | E+ | Getty Images

Rent payments don’t typically affect your credit — but they can in a few circumstances. The consequences can be significant.
Rent doesn’t show up in your credit history, experts say because landlords don’t usually report payments to credit bureaus as credit card issuers and other lenders do.

When rent payments do appear, it’s generally because a tenant — or a property manager on a tenant’s behalf — has enrolled in a so-called rent reporting program. These services are meant to provide tenants with the opportunity to grow their credit history through on-time rent payments.
“The good news is that there are a lot of them out there,” said Matt Schulz, chief credit analyst at LendingTree. “It’s certainly been a growing space over the last few years.”
If you fall behind, however, those services can also hurt your credit, experts say. And whether you report your rent to the bureaus or not, debt collection efforts for late or unfulfilled rent payments can also be a black mark on your credit.
The Consumer Financial Protection Bureau began accepting complaints about rental debt collection in August 2023. Since then, there have been roughly 10,960 consumer complaints about rental debt collection in the U.S., per CFPB data through Feb. 21.

If you’re a renter or plan to be, here’s what you should know. 

Rent reporting can help the ‘credit invisible’

Rent reporting can especially help those who are “credit invisible” or do not have any credit history. If you’re looking for ways to grow your credit, such platforms can be a helpful tool.
Those who have enrolled typically see their credit scores increase. When rent payments are included in credit reports, consumers see an average growth of 60 points to their credit score, according to a 2021 TransUnion report.
But if you fall behind on your rent payments, that activity could be also reflected in such tools, and in turn, your score, experts say.
What’s more, rent reporting services are not always free and do not always report the data to all three major credit bureaus, experts say. For example, rent reporting platform Rental Kharma charges $8.95 a month after an initial setup fee of $75. The service reports the data to two of the three bureaus: TransUnion and Equifax. 

How rent can appear as a debt collection

Even if you don’t use a rent reporting service, your landlord has the ability to report late or unpaid rents to the credit bureaus via a debt collection service, said Chi Chi Wu, a senior attorney at the National Consumer Law Center, a nonprofit headquartered in Boston. 
Rent delinquencies sometimes appear in credit reports if a tenant leaves a unit and the landlord claims the tenant owes back rent or damages, she said. The landlord in this situation will then send that amount to a debt collector.

The addition of any paid or unpaid collections tradeline — amounts of allegedly past-due accounts appearing on consumer credit reports — of at least $100 to a credit report will reduce a score of 680 by more than 40 points and a score of 780 by over 100 points, according to a 2014 report by the CFPB, citing the FICO 8 scoring model.
But the impact of a collection tradeline will depend on variable factors like your current score, the score model and even how recent the collection is, experts say. It could be less impactful once paid. 
“If the debt collection items are a few months old, that’s going to hurt a lot more than if it’s a few years old. It’s very variable,” Wu said.
Here are some key factors to keep in mind about how your track record as a tenant could affect your credit history, according to experts:

Rent reporting services

1. Do you actually need it? Check out if you would truly benefit from reporting your rent payments, Wu suggests. Experts point out that it’s more of an advantageous tool for those with weaker credit history. 
“It’s not the same value for everyone,” said Adam Rust, director of financial services at the Consumer Federation of America.
More from Personal Finance:Steps to student loan borrowers should take ‘immediately’What the privatization of Fannie Mae, Freddie Mac may mean for youFederal workers’ money questions answered
“For some people, their credit may already be good. So it won’t make much of a difference, whereas for others, particularly those who have no credit history or a thin file, it could be very important,” Rust said.
2. Does the service cost anything? Some rent reporting services are free of charge, others require a fee that can range from $6.95 to $9.95 a month, according to Apartment List. Some services charge a one-time enrollment or setup fee that can cost from $25 to $95, the site found. See if it would come at an additional cost to you or if your landlord covers any of the fees.
3. Does the service report to all three major bureaus? It makes sense to confirm that the rent reporting services report your payment history to all three credit bureaus, Schulz said. Sometimes the service will report to one or two of the bureaus, but not all three — which can mean a limited or uneven effect on your credit.
“It’s something that people don’t always think about,” he said.
4. What data does the service report? Some only share on-time, in-full rent payments to credit bureaus while others might include late-payment activity, experts say. And even if they only report positive history, if you’ve paid on time for eight consecutive months and all of a sudden the record is blank, future landlords and lenders might be able to connect the dots, Wu said.
Also remember that “life happens,” she said. “Look at all of these federal employees that are out of a job right now. They didn’t think they were going to be late on rent either, and they had secure jobs.”

Rental debt

Affected tenants may have inaccurate information reported to the credit bureaus. From August 2023 up until Feb. 21, there have been roughly 1,697 complaints about false statements or representation about debt collection related to rent, per CFPB data.
If you understand there is inaccurate or erroneous information on your credit report, you have the right to dispute that information under the Fair Credit Reporting Act, a law that governs credit reports, tenant screening reports and background checks, Wu said. 
“You have the right to dispute it,” she said. But keep in mind that it has been historically difficult to dispute reporting errors that involve debt collectors, Wu said. Creditors typically will take the side of the debt collector.

“It’s like a judge that always rules for the defendant or a referee that always makes the call for the home team,” she said. 
Even if you decide to ultimately pay the collection item on your credit report, with the exception of medical debt, it does not immediately go away, Wu said — it just appears as “paid.”
Under the provisions of the Fair Credit Reporting Act, adverse information like debt collections may remain on your credit report for seven years.
In 2022, the three credit bureaus announced voluntary changes to remove some medical debt from credit reports, which included paid off medical debt and unpaid debt under $500, Wu said. 
Outside of that, the item stays as a “ding” on your credit report even if you pay. 
“So paying it off might not solve the problem,” she said. One thing you could do is “pay-for-delete,” or pay the debt collector for them to kick the collection line off your credit in return, she said. If you decide to go through this route, make sure to get the agreement in writing, Wu said. You may want to consult legal experts about the idea.
Similar to your landlord — if you’re going to end your lease early, and you get the landlord’s “OK,” get the agreement and any details on your outstanding balance or obligations in writing. More

The logo of the Booking Holdings is seen on a screen of a smartphone next to a screen with an illustration ofthe stock market. Booking Holdings is listed in Nasdaq.
Alexander Pohl | NurPhoto | Getty Images

Worrisome economic data, weak consumer sentiment and tariff fears contributed to a rocky ride for stocks in February, with the S&P 500 losing 1.4% during the month.
Investors should pick stocks of companies that can withstand these short-term pressures and capture growth opportunities to deliver attractive returns over the long term. To this end, recommendations of top Wall Street analysts are helpful, as they are based on in-depth analysis of a company’s strengths, challenges and growth prospects.

With that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Booking Holdings
First up is Booking Holdings (BKNG), one of the leading online travel agents. The company delivered market-crushing fourth-quarter results, thanks to strong travel demand. Booking Holdings is investing in its business to drive long-term growth through several initiatives, including deploying generative artificial intelligence technology to enhance the value it provides to travelers and its partners.
In reaction to the stellar results, Evercore analyst Mark Mahaney reiterated a buy rating on BKNG stock and boosted the price target to $5,500 from $5,300. The analyst noted that the company’s solid Q4 beat was driven by strength across all geographic markets and travel verticals. He also highlighted that BKNG’s fundamentals improved across the board, with key metrics like bookings, revenue and room nights growth accelerating in the quarter.
In fact, Mahaney pointed out that despite being more than two-times bigger than Airbnb and three-times bigger than Expedia in terms of room nights, BKNG’s bookings, revenue and room nights grew faster than these two rivals in Q4 2024. Given its massive scale, superior growth, very high margin, and a highly experienced management team, the analyst considers BKNG to be the highest quality online travel stock.
“And we continue to view BKNG as reasonably priced, with sustainable & premium EPS growth (15%), substantial FCF [free cash flow] generation, and a clear track record of execution,” said Mahaney.

Overall, Mahaney is confident that BKNG can maintain its long-term target of 8% growth in bookings and revenue and 15% growth in EPS. He is also encouraged by BKNG’s multi-year strategic investments in merchandising, flights, payments, connected trips and generative AI as well as the growing traffic to the company’s site.
Mahaney ranks No. 26 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, delivering an average return of 27.3%. See Booking Holdings Stock Charts on TipRanks.
Visa
The second stock pick is payments processing giant Visa (V). At the investor day event held on Feb. 20, the company discussed its growth strategy and the revenue opportunity in its Value Added Services (VAS) and other businesses.
Following the event, BMO Capital analyst Rufus Hone reaffirmed a buy rating on Visa stock with a price target of $370. The analyst stated that the event helped address many investor concerns like the remaining runway in Consumer Payments and the company’s ability to sustain a high-teens growth in VAS.
The analyst highlighted management’s commentary about the significant remaining runway in Consumer Payments. Specifically, the company estimates a $41 trillion volume opportunity in Consumer Payments, of which $23 trillion is currently underserved by the existing payment infrastructure.
Commenting on the VAS business, Hone noted that the company offered significant insights into its VAS business. Notably, Visa projects longer-term revenue growth in the range of 9% to 12% and expects a continued shift in its revenue mix into the faster-growing Commercial & Money Movement Solutions (CMS) and VAS businesses, which will offset the expected moderation in Consumer Payments growth. Visa expects CMS and VAS to contribute more than 50% of its total revenue over time, compared to roughly one-third in FY24.
Finally, Hone views Visa stock as a core holding within the U.S. financial space. “We continue to believe Visa will sustain double-digit top-line growth for the foreseeable future (consensus ~10% growth),” concluded the analyst.
Hone ranks No. 543 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 76% of the time, delivering an average return of 16.7%. See Visa Hedge Fund Activity on TipRanks.
CyberArk Software
The third stock on this week’s list is CyberArk Software (CYBR). The company recently announced solid Q4 2024 results, reflecting strong demand for its identity security solutions. On Feb. 24, the company held its investor day event to discuss its performance and growth prospects.
Following the investor day, Baird analyst Shrenik Kothari reiterated a buy rating on CYBR stock and increased the price target to $465 from $455. The analyst stated that the event reinforced the company’s dominance in the cybersecurity space. Specifically, CyberArk now sees a total addressable market (TAM) of $80 billion, reflecting a notable jump from the previous estimate of $60 billion.
Kothari explained that the expansion in CyberArk’s TAM is driven by the demand for machine-identity solutions, AI-driven security, and modern Identity Governance and Administration (IGA) solutions. The analyst noted that the 45 times surge in machine identities compared to human identities has created a huge security gap, which CyberArk is well-positioned to capture through its Venafi acquisition.
Moreover, the company’s Zilla Security acquisition is helping in addressing the need for modern IGA solutions. Coming to AI-driven security needs, Kothari highlighted CyberArk’s innovation, especially the launch of CORA AI.
Kothari added that management is targeting annual recurring revenue of $2.3 billion and a free cash flow margin of 27% by 2028, backed by platform consolidation trends. “Deep enterprise pipeline/adoption, execution discipline should sustain CYBR’s long-term growth trajectory, in our view,” the analyst said.
Kothari ranks No. 78 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 74% of the time, delivering an average return of 27.7%. See CyberArk Software Ownership Structure on TipRanks. More

Neodesha, Kansas, is offering incentives for those willing to move there, such as waiving state income tax through 2026, student loan repayment assistance and free college tuition.
Other communities across the country are also upping the ante with cash incentives or voucher programs for people willing to relocate.
“This is a cost-effective way of doing economic development,” says Evan Hock, co-founder and chief operating officer of MakeMyMove.

Field of wheat in central Kansas is nearly ready for harvest.
Ricardo Reitmeyer | Getty Images

With a population of about 2,100, Neodesha, Kansas, is roughly 100 miles from Wichita and Topeka in Kansas and Tulsa, Oklahoma. Its claim to fame is the 65-foot-tall tower that supported the drilling framework for the first commercial oil well west of the Mississippi River, locals say. 
But as an old oil town, Neodesha has struggled with a decreasing population and an aging housing supply for years.

When the refinery formerly owned by Standard Oil Co. closed in 1971, “the population was cut in half over night,” according to Neodesha’s mayor, Devin Johnson.
“We have seen that decline as every small community has over the last 50 years,” Johnson said. “The thing with small communities is, if you are not growing, you are dying.”
Last year, Neodesha partnered with MakeMyMove, an online relocation marketplace that connects workers with communities trying to attract new residents.

Incentives include tax waivers and free college

The town is now offering qualifying new residents incentives — such as waiving state income tax through 2026 along with property tax rebates and help with day care for working parents — as well as access to existing perks, including student loan repayment assistance up to $15,000 and free college tuition through the Neodesha Promise scholarship program.
MakeMyMove, which has worked with 88 communities across the U.S., screens applicants and connects them with local resources.

Since the program launched in 2024, more than 30 people are in the process of moving to Neodesha, according to Evan Hock, MakeMyMove’s co-founder and chief operating officer.

“We’ve awarded over $1 million in scholarships, and I feel like we are helping the community and making some real progress,” said Ben Cutler, who grew up in Neodesha and now funds the scholarship program, which started in 2020 and is available to any graduate of Neodesha High School in good standing. (Neodesha’s promise program will cover tuition at participating colleges or associate degree programs and vocational schools nationwide.) 
“One of my key focuses was helping build the community, to help in any way I could to make Neodesha a more attractive community for young families, and I think we’re making some real progress in that regard — I certainly hope so anyway,” Cutler said.
More from Personal Finance:2025 is a renter’s market, experts sayHome price growth has slowed1 in 3 Americans have ‘layoff anxiety’
Meanwhile, efforts are also underway to construct hundreds of new homes, apartments and duplexes in the region, along with the development of retail and commercial spaces and the renovation of several historic buildings on Main Street.
“We’ve got to cherish what we’ve got but make sure we make Neodesha an attractive place for people to come,” Johnson said.

These cities will pay you to move there

Other communities across the country have also been upping the ante with cash incentives or voucher programs for people willing to move.
For example, workers relocating to Topeka can receive up to $10,000 for rent for the first year or up to $15,000 to put toward buying a home.
Another program affiliated with the West Virginia Department of Tourism is offering a cash incentive of $12,000 along with access to free coworking spaces and outdoor recreation packages for those who move to the state for at least two years.  
The Shoals Economic Development Authority offers $10,000 in cash to full-time remote employees who are willing to relocate to the Shoals community in northwest Alabama.

“This is a cost-effective way of doing economic development,” said MakeMyMove’s Hock. The communities “usually get a return within the first year.”
However, “incentives are not the reason people actually move,” he said. Affordability is key, he said, but community also plays an important role.
“They are looking for quality of place, they want a community connection, that’s what is motivating the move,” Hock said.

‘A family-friendly place to live’

Incentive programs in Neodesha and other regions are gaining steam as residents from major cities across the country increasingly migrate to Southern and Midwestern spots where housing costs are less severe, and where construction is keeping up with the demand, reports show.
United Van Lines’ annual 2024 study found a growing shift away from the cities and suburbs of New York, Los Angeles and Chicago toward more “livable” locations with lower day-to-day living expenses.

Kaitlyn and Jack Sundberg with their dogs Max and Bella in front of the home they purchased in Neodesha, Kansas.
Courtesy: Kaitlyn Sundberg

Kaitlyn Sundberg never expected that she would move to Kansas. Sundberg and her husband, Jack, lived in Southern California but struggled to save enough for the down payment on a home of their own.
“We were living with my in-laws, and we were not able to afford anything,” said Sundberg, 27.
Sundberg’s husband, who worked as an estimator for a telecom company, expanded his job search — significantly — and found an opportunity as the program manager for Southeast Kansas Inc.
When they visited Neodesha, “it just seemed like a family-friendly place to live,” Sundberg said.
“We spent a Saturday looking for a house — there were kids riding bikes,” she said, “I just cried.”
The couple moved to Neodesha with their two dogs 18 months ago, even before the incentive program launched. Sundberg now works as the executive director of the new early learning center in town after a neighbor brought over the job posting and suggested she apply for the position.
“Being away from family is the hardest part,” she said, “but I would never want to move back.”
Subscribe to CNBC on YouTube. More

The U.S. Social Security Administration has never missed a benefit payment.
Now the continuity of monthly checks for millions of Americans could be at risk following changes under the Trump administration, former commissioner Martin O’Malley says.

Then Social Security Commissioner Martin O’Malley testifies before the Senate Committee on the Budget on Sept. 11, 2024.
Anna Rose Layden | Getty Images News | Getty Images

Social Security has never missed a benefit payment since the program first began sending individuals monthly benefits more than eight decades ago.
But the recent actions at the U.S. Social Security Administration by Elon Musk’s so-called Department of Government Efficiency are putting monthly benefit checks for more than 72.5 million Americans at risk, former commissioner and former Maryland governor Martin O’Malley told CNBC.com.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”
Ahead of any interruption in benefits, “people should start saving now,” O’Malley said.
More from Personal Finance:Americans are suffering from ‘sticker shock’ — how to adjustYou can still lower your 2024 tax bill or boost your refund1 in 5 Americans are ‘doom spending’ — how that can backfire
The Social Security Administration uses multiple systems and technologies that Elon Musk has criticized for leading to errors. As commissioner, O’Malley told Congress the agency needed more funding for IT modernization.  
O’Malley said DOGE leaders are now making changes at the agency, and significant staff cuts have already led to system outages. Those intermittent IT outages may happen more frequently and for more extended periods of time until there is a “system collapse and an interruption of benefits,” he said.

Neither the Social Security Administration nor the White House responded to requests for comment by press time.

Social Security Administration leadership upheaval

The Department of Government Efficiency, also known as DOGE, is not a federal department. And Musk, whom President Donald Trump brought on board to implement DOGE, is not an elected official.
Since its establishment, DOGE has looked to slash spending at federal government agencies.

The cuts have led to leadership upheaval, with the recent resignation of acting commissioner Michelle King following a reported disagreement over DOGE’s access to sensitive data. O’Malley resigned from the Social Security Administration in November to run for chairman of the Democratic National Committee, a race which he lost to Minnesota Democrat Ken Martin.
Trump has nominated Frank Bisignano, CEO of financial-technology company Fiserv, to serve as the new commissioner of the Social Security Administration. Bisignano has yet to sit for Senate confirmation hearings.
In the interim, Lee Dudek, who first joined the agency in 2009, has been appointed acting commissioner.
Earlier this month, Dudek posted on LinkedIn that he had been placed on administrative leave from the agency for helping DOGE representatives, The Wall Street Journal reported on Feb. 20.
“Our continuing priority is paying beneficiaries the right amount at the right time, and providing other critical services people rely on from us,” Dudek said in a Feb. 19 statement about his appointment.

Whose benefits may be most at risk

Yet experts say the benefits Americans rely on could be at risk based on the Trump administration’s overhaul of the agency.
“The American public needs to understand that one of their major social safety nets is in dire jeopardy,” said Jill Hornick, a union official at the American Federation of Government Employees Local 1395, which primarily represents Social Security offices in Illinois.
“It’ll take a while for the effects to be felt, but they’re coming,” Hornick said, predicting what will happen to Social Security is going to be “far worse” than the planned cuts to Medicaid.
For people who are already receiving Social Security benefits, most of that is automated and may not be affected, she said. However, processing new claims — whether it be for retirement or disability benefits — may take longer since those cannot be processed without Social Security employees, she said.

On Thursday, the Social Security Administration sent a notice to employees that gives them until March 14 to decide whether to take an early buyout. Unlike a previous January offer, this now includes service employees, and staffing reductions in that area may impact how quickly the agency processes benefit claims and provides other services, Hornick said.
For example, if a woman files for a survivor benefit after her husband passes away, she needs to provide a copy of her marriage license. A Social Security employee then needs to code the system to verify they have seen that document and the applicant is eligible for benefits, Hornick said.
“Not everybody can do things electronically,” particularly the older adults and disabled individuals who the Social Security Administration serves, said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.
“If you don’t have people to run an agency that requires hands-on customer service, then of course there’s a risk that you could end up with benefits being either denied or interrupted,” Freese said.

Office closures may reduce access to services

The DOGE savings web page has a list of about 45 Social Security locations where leases will be terminated, according to Rich Couture, spokesperson for AFGE SSA General Committee, a union that represents 42,000 Social Security employees nationally.
The list provides little information on the uses for the locations that are being closed. Based on the square footage listed, they may be sites used to conduct in-person hearings for disability benefits, Couture said. In one case, the location seems to be a busy New York state field office that provides general services, he said.
“If they’re going to close these offices that are busy in highly populated areas, it would suggest to me that there’s no office in this country that would be safe from having a lease terminated, especially in rural areas,” Couture said.

In a recent statement, Rep. John Larson, D-Conn., said the moves are a “backdoor benefit cut.”
“Let me be clear — laying off half of the workforce at the Social Security Administration and shuttering field offices will mean the delay, disruption and denial of benefits,” Larson said.
In a statement to CNBC.com earlier this week, the Social Security Administration said it has not set any reduction targets, in response to reports it plans to cut 50% of its employees.
As a union, AFGE has been issuing bargaining demands in response to the agency’s recent decisions and plans to enforce employee rights through other methods as necessary, spokesperson Couture said.
While many lawsuits have been filed, it will take time to work through them, especially as the courts are now being flooded with cases tied to the Trump administration’s actions, said Nancy Altman, president of advocacy organization Social Security Works.
The biggest results may come from the pressure American voters could put on elected officials, former SSA commissioner O’Malley said.
“I think many people throughout the country are going to start bringing a lot of heat to members of Congress who have been facilitating, supporting, aiding and abetting the breaking of their Social Security and the interruption of benefits that they work their whole lives to earn,” he said. “These are earned benefits.” More

Pavlo Gonchar | Sopa Images | Lightrocket | Getty Images

Company: Aspen Technology (AZPN)

Business: Aspen Technology provides industrial software that focuses on helping customers in asset-intensive industries worldwide. Its software is used in performance engineering, modeling and design, supply chain management, predictive and prescriptive maintenance, digital grid management and industrial data management. The company serves a range of asset-intensive industries, including oil and gas exploration and production; oil and gas processing and distribution; as well as oil and gas refining and marketing.
Stock Market Value: $16.8B ($265.25 per share)

Stock chart icon

Aspen Technology shares in the past year

Activist: Elliott Investment Management

Ownership: ~9.0%
Average Cost: n/a
Activist Commentary: Elliott is a very successful and astute activist investor. The firm’s team includes analysts from leading tech private equity firms, engineers, operating partners – former technology CEOs and COOs. When evaluating an investment, the firm also hires specialty and general management consultants, expert cost analysts and industry specialists. Elliott often watches companies for many years before investing and have an extensive stable of impressive board candidates. The firm has historically focused on strategic activism in the technology sector and has been very successful with that strategy. However, over the past several years its activism group has grown, and Elliott has been doing a lot more governance-oriented activism and creating value from a board level at a much larger breadth of companies.

What’s happening

On Feb. 7, Elliott announced that it’s taken a $1.5 billion position in Aspen Technology. The firm expressed its disagreement with Aspen’s decision to support a $265 per share tender offer by Emerson Electric, noting that it substantially undervalues the company.

Behind the scenes

Aspen Technology (AZPN) is a global provider of process optimization software solutions designed to manage and optimize plant and process design, operational performance, and supply chain planning. On Nov. 5, 2024, Emerson Electric (EMR), which currently owns approximately 57.4% of Aspen’s outstanding shares, issued a tender offer to acquire all outstanding shares of Aspen not already owned by Emerson at $265 per share. To evaluate this offer, Aspen’s board formed a special committee of three independent and disinterested directors. Ultimately, on Jan. 27, 2025, it was announced that the committee voted unanimously to recommend the transaction for approval. On Feb. 7, Elliott announced that it opposes the tender offer as the firm does not believe it fairly values the company.

Emerson acquired a 55% position in Aspen in 2022 and until May 2024 had a standstill agreement preventing it from acquiring additional stock (it got to 57% through share repurchases by the company). As an insider for 2.5 years, Emerson knows Aspen well and could have made this offer at any time since May. As a controlling shareholder, Emerson has an informational advantage over the public and pursuing a buyout now suggests that it’s strategically timing its move. Notably, it comes after a good quarter where the integration of Emerson’s contributed assets from its 2022 majority investment is starting to take hold, an improvement of margins seems to be on the horizon, particularly with the recent suspension of Aspen’s Russia business, and the seating of the Trump administration (Emerson actually announced its bid on Election Day) bringing with it a more lenient regulatory environment for oil- and chemical-related products.
When Emerson publicly announced its tender offer, Aspen stock was trading at approximately $240 per share, making this a 10% takeover premium that does not come close to accounting for the significant synergies Emerson could get from this transaction. While there are operational and sales synergies of at least $100 per share, what is most valuable to Emerson is access to Aspen’s software and code, which Emerson can only get by acquiring the entire company. There is a clear precedent for this. In January 2023, Schneider Electric closed out its acquisition of Aveva, buying out the remaining 40% of the company – which happens to be Aspen’s smaller peer player. It offered a 41% premium to Aveva’s undisturbed share price before Schneider’s interest was disclosed in August 2022. This is more of a standard premium for these types of transactions and is consistent with the $100 per share of synergies Emerson would get here. This suggests a substantially higher fair price than $265 per share. When looking at all the synergies and integration advantages Emerson has in this transaction, a more reasonable takeout price looks to be north of $350 per share.
As a majority shareholder, Emerson has a lot of control in this situation. Absent an activist investor, this deal likely gets done at $265. Not only does the price seem glaringly low, but the process suggests a sweetheart deal. For example, Aspen’s “independent special committee” that approved this deal was comprised of three directors, two of whom were Emerson’s designated directors on the board. So, Emerson effectively controlled the special committee that was tasked with reviewing the tender offer. Fortunately, in Delaware, where the company is incorporated, a tender offer requires at least 50% of disinterested outstanding shareholders to approve the transaction. This means 21.4% of the remaining shareholders (other than Emerson) need to vote for the deal for it to pass. Elliott has 9%, and if every other shareholder votes (an improbable likelihood), Elliott would just need another 12.4% to block the transaction. If 5% of shareholders do not vote, Elliott would only need an additional 7.4% of votes. Kayne Anderson is the next largest shareholder with 6.5%, so its vote will be important. It should be noted that it is not clear if Elliott’s position is in common stock or swaps (a common practice for the firm) as its actions here would not require the firm to file a 13D. However, in this situation it is not that relevant. If the company were required to get the vote of 50% of disinterested shareholders, Elliott would need to have its position in common stock to vote. However, since in this case the requirement is a tender of 50% of disinterested shares, even if Elliott owns swaps (and assuming the counterparty does not take equity risk), the shares underlying the swaps will not be tendered.
One final note – this is not just a “bumpitrage” situation for Elliott. While the firm would sell to Emerson at a fair price, it owns the stock because it likes Aspen and thinks it is a good investment as a standalone company owned 57% by Emerson. If Emerson does not increase its bid, that does not mean Elliott will tender at the $265 price or any other price it finds insufficient. The firm would likely be happy to own the stock and benefit from the same operational and macro tailwinds that Emerson sees. Moreover, the company just had a strong earnings call, but the stock did not rise past the $265 on the news as the offer price is establishing somewhat of an artificial ceiling. So, this is a situation where if Emerson ups its offer, the stock will go up. If the offer goes away, the artificial ceiling does too, and the stock price could also go up in that situation.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

With the price of bitcoin down from a record high in January, there could be a chance to score a tax break, experts say.
Investors may consider “tax-loss harvesting,” which allows you to offset profitable investments by selling declining assets.
Currently, there’s also a special tax loophole for longer-term crypto investors.

Jaque Silva/ | Nurphoto | Getty Images

With the price of bitcoin down from a record high in January, there’s a chance for some investors to score a tax break, experts say.  
Following a post-election rally, the flagship digital currency touched $109,000 on inauguration day before falling in February. As of midday Friday, the price was around $84,000, after dipping below $80,000 overnight, according to Coin Metrics.

The latest selloff presents a tax planning opportunity, including a “loophole” that could go away amid Congressional tax negotiations, according to Andrew Gordon, a tax attorney, certified public accountant and president of Gordon Law Group.
More from Personal Finance:Americans are suffering from ‘sticker shock’ — how to adjustYou can still lower your 2024 tax bill or boost your refund1 in 5 Americans are ‘doom spending’ — how that can backfire

Loading chart…

The strategy, known as “tax-loss harvesting,” allows you to offset profitable investments by selling declining assets in a brokerage or other taxable account. Once your losses exceed gains, you can subtract up to $3,000 per year from regular income and carry excess losses into future years. 
Some investors wait until December for tax-loss harvesting, which can be a mistake because asset volatility, particularly for digital currency, happens throughout the year, experts say. 
“You should look for these opportunities continually and take advantage of them as they occur,” Gordon said.  

You should look for these opportunities continually and take advantage of them as they occur.

Andrew Gordon
President of Gordon Law Group

The crypto wash sale ‘loophole’ 

When selling investments, there’s a wash sale rule, which blocks you from claiming a loss if you repurchase a “substantially identical” asset within a 30-day window before or after the sale.
But currently, the wash sale rule doesn’t apply to cryptocurrency, which can be beneficial for long-term digital currency investors, experts say.
“If you sell, for instance, bitcoin at a loss today and then buy it back tomorrow, you still have your loss on the books,” Gordon said. “This is an extremely effective strategy for crypto investors because they don’t have to exit their position.”

However, the strategy could disappear in the future as Congressional Republicans seek ways to fund President Donald Trump’s tax agenda.
Sens. Cynthia Lummis, R-Wyo. and Kirsten Gillibrand, D-N.Y., in 2023 reintroduced a regulatory framework for cryptocurrency, which included closing the crypto wash sale loophole. Former President Joe Biden’s fiscal year 2025 budget also included the proposal.
In the meantime, “the IRS gives us this loophole. We may as well take it,” Adam Markowitz, an enrolled agent at Luminary Tax Advisors in Windermere, Florida, previously told CNBC.
Of course, you should always consider your investing goals and timeline before implementing the tax strategy. More

After years of inflation, most Americans report experiencing some form of “sticker shock,” according to a recent report by Wells Fargo.
With a 25% tariff on imports from Canada and Mexico set to take effect in March, there is also the possibility that prices will rise even further in the months ahead.
Consumer savings expert Andrea Woroch recommends setting a spending plan now ahead of higher prices.

A worker stocks eggs at a grocery store in Washington, D.C., on Feb. 12, 2025.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

Whether it’s a dozen eggs or a new car, Americans are having a hard time adjusting to current prices.
Nearly all Americans report experiencing some form of “sticker shock,” regardless of income, according to a recent report by Wells Fargo.

In fact, 90% of adults said they are still surprised by the cost of some goods, such as a bottle of water, a tank of gas, dinner out or concert tickets, and said that the actual costs are between 55% and 200% higher than what they expected depending on the item.
More from Personal Finance:How the U.S. has used tariffs throughout historyWhat the ‘mother of all trade wars’ can teach us about tariffsAs tariffs ramp up, this investment can protect against inflation
Many Americans are still cutting back on spending, making financial choices and delaying some life plans, the Wells Fargo report also found. The firm polled more than 3,600 consumers in the fall.
“The value of the dollar and what it is providing may not be as predictable anymore,” said Michael Liersch, head of advice and planning at Wells Fargo. As a result, “consumer behaviors are shifting.”
Still, adjusting to a new normal takes time, he added: “Habit formation does take a while. Next year what you can imagine seeing is consumers being a little less surprised or shocked by prices and adapting to the current situation to create that goals-based plan.”

Some change is already apparent. Although credit card debt recently notched a fresh high, the rate of growth slowed, which indicates that shoppers are starting to lean less on credit cards to make ends meet in a typical month, according to Charlie Wise, TransUnion’s senior vice president of global research and consulting.
“After years of very high inflation, they are kind of figuring it out,” Wise said. “They’ve adjusted their baseline for what things cost right now.”
But with President Donald Trump’s proposed 25% tariffs on imports from Canada and Mexico set to take effect in March, there is also the possibility that prices will rise even further in the months ahead.

Consumers fear inflation will pick up

Mexico and Canada tariffs could put pressure on some consumer staples, experts say. That includes already high grocery prices, which are up 28% over the last five years, according to the Bureau of Labor Statistics.
The prospect of tariffs and renewed inflation is weighing heavily on many consumers. 
The Conference Board’s consumer confidence index sank in February, notching the largest monthly drop since August 2021. The University of Michigan’s consumer sentiment index similarly found that Americans largely fear that inflation will flare up again.

A recent CreditCards.com survey found that 23% of Americans expect to worsen or go into credit card debt this year, in part because they are making more purchases ahead of higher tariffs.

How to battle sticker shock

Consumer savings expert Andrea Woroch recommends setting a spending plan and tracking expenses. That helps you pinpoint wasteful purchases and those where prices are accelerating and take steps to save.
“Write out all your expenses currently from those essentials and the wants, figuring out an average monthly spend for fluctuating categories,” she said. “Once you have it all listed out, you can begin hacking away at unnecessary purchases or at least set goals for reducing in those nonessential categories.”
Identify triggers that lead to impulse purchases to help dodge them in the future, Woroch also said. “If you can’t resist a sale, then unsubscribe from store newsletters and turn off push notifications in deal apps.”
Ultimately, being more in control of your spending will “reduce the stress that comes with worry about how you’re going to afford higher prices,” Woroch said.
Subscribe to CNBC on YouTube. More

The Trump administration has taken down the applications for popular student loan repayment plans from the U.S. Department of Education’s website.
Here’s what borrowers need to know about the disruption.

A student studies in the Perry-Castaneda Library at the University of Texas at Austin, Feb. 22, 2024.
Brandon Bell | Getty Images

The Trump administration has taken down the applications for popular student loan repayment plans from the U.S. Department of Education’s website, leaving millions of borrowers with fewer options for now.
Borrowers are unable to access the applications for income-driven repayment, or IDR, plans, as well as the online application to consolidate their loans.

Both applications are critical for borrowers pursuing lower monthly payments and loan forgiveness through an IDR plan, as well as the related Public Service Loan Forgiveness program.
The disruption is due to a recent decision by the 8th Circuit Court of Appeals that blocked the Biden administration’s new IDR plan, known as SAVE, or Saving on a Valuable Education, as well as the loan forgiveness component under other IDR plans.
Congress created IDR plans in the 1990s to make borrowers’ bills more affordable. The plans cap borrowers’ monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
More than 12 million people were enrolled in the plans as of September 2024, according to higher education expert Mark Kantrowitz.
More from Personal Finance:How Trump, DOGE job cuts may affect the economyWhat experts say borrowers should do amid risks to Education DepartmentWhy Trump tariffs may raise your car insurance premiums

Here’s what to know about the changes.

Applications could be down for ‘a few months’

The IDR plan applications shouldn’t be down for too long, Kantrowitz said.
“I expect it will be temporary, lasting a few months while they make changes,” he said.
The Education Department is likely tweaking the applications to make sure all their plans comply with the new court order, as well as removing the SAVE plan altogether.
An Education Department spokesperson said the agency is “reviewing repayment applications to conform with the 8th Circuit’s ruling.”
“As a result, the IDR and online loan consolidation applications are currently unavailable,” they said, adding that borrowers can still submit a paper loan consolidation application.
Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit, also said she didn’t expect a long wait time before the applications return.
“I get the sense the ED is working hard to get the changes made,” Mayotte said.

Impacts of the plans going dark

Unfortunately, there’s nothing federal student loan borrowers who want to sign up for an IDR plan or switch between the plans can do right now, Kantrowitz said.
Borrowers who are due to recertify their IDR plans will also have to sit tight for the time being, Mayotte said. Those enrolled in IDR plans typically have to submit their income information annually.
While the legal challenges against SAVE were playing out, the Biden administration put enrollees into an interest-free forbearance. That payment pause is likely to end soon, experts said. By then, borrowers should be able to access other IDR plans.
Those who graduate in the spring are typically entitled to a six-month grace period before their first bill is due, Kantrowitz pointed out.
As a result, they won’t need to sign up for a repayment plan until November or December. The plans should be available again by then.

Options if you can’t afford your student loan bill

The disruption to IDR plans will be especially difficult for borrowers who can’t afford their current student loan bill and now can’t access a more affordable option, Mayotte said.
These borrowers can call their loan servicer and explain their situation.  

If you’re unemployed, you can request an unemployment deferment with your servicer. If you’re dealing with another financial challenge, meanwhile, you may be eligible for an economic hardship deferment.
Other, lesser-known deferments include the graduate fellowship deferment, the military service and post-active duty deferment and the cancer treatment deferment.
Student loan borrowers who don’t qualify for a deferment may request a forbearance.
You should first see if you qualify for a deferment, experts say. That’s because your loans may not accrue interest under that option, whereas they almost always do in a forbearance.
Under forbearance, borrowers can keep their loans on hold for as long as three years. However, because interest accrues during the forbearance period, you can be hit with a larger bill when the break ends. More