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The deadline for the U.S. to raise the debt ceiling is looming. If the U.S. defaults, it’s likely to impact many Americans in some capacity. Even if we manage to escape this economic crisis, though, another one is likely on the horizon.
Whether it’s a nationwide recession, worldwide crisis or a personal event, it’s a good idea to start thinking about how to stabilize your finances now so they can be a safety net in your time of need.
How the U.S. debt ceiling crisis could impact your finances
“We’ve never had this type of default before,” says Jean Ross, a senior fellow of economic policy at the Center for American Progress. A lot depends on whether the default period is short term or more protracted.
Things that could happen include:
A decrease in household wealth: This would especially be the case among those who have retirement portfolios and stock holdings. A stock market spiral could impact retirees who are pulling from their retirement funds, as well as workers on the brink of retirement who might now have to reconsider their plans.
Rising interest rates: Rates on credit cards and adjustable-rate mortgages would increase, and with it, the debt load of many Americans — which also could negatively affect their credit scores.
Delayed paychecks: This would impact federal employees and businesses with federal government contracts. Those affected could include everyone from cleaning contractors to graphic designers and people who serve lunch in federal buildings, according to Ross.
A disruption in some federal or state government benefits: Programs like Supplemental Nutrition Assistance Program, Medicaid, Social Security and veterans benefits could be affected.
How to make your budget resilient
You can’t always control how much time you have to prepare for a financial crisis. The key is to work strategically with the time and resources you have to safeguard your budget as best you can.
Here are some tips for how to brace your budget for a major financial disruption.
1. Make or fine-tune your budget
To prepare for an emergency, isolate your necessary expenses so you know what your bare minimum budget should be. A 50/30/20 budget framework is a good way to start thinking about what’s necessary and what you can cut if needed.
“When it comes to expenses, we usually don’t go back far enough,” says Kia McCallister-Young, the director of America Saves, a nonprofit organization and an initiative of the Consumer Federation of America. Only looking at your last few statements can cause you to leave out annual expenses. McCallister-Young recommends going back a full year and examining all your statements, including those from your bank and other bill pay apps.
If you’re in a crisis now: Make a list of expenses you can cut — things like cable or streaming subscriptions, meal services, eating out and shopping. Contact these providers to cancel immediately.
2. Create or bulk up your emergency fund
Ideally, you should have or be working toward an emergency fund that holds three to six months of necessary expenses. However, “three to six months in expenses is very overwhelming, and for some people unattainable as well, especially if you’re not earning a living wage,” says McCallister-Young.
She recommends starting with an attainable goal and automating your savings, either through direct deposit or through your bank. Even $10 a week is a good starting point. “Saving is a habit, not a destination,” says McCallister-Young.
Storing your emergency fund in a high-yield savings account is a good idea because it’s easy to access and also will be earning interest with each passing month, helping you reach your goal faster.
If you’re in a crisis now: It can feel scary to pull money from your emergency fund, but don’t be afraid. “You don’t have to feel bad about the fact that you are using the savings that you have created,” says McCallister-Young. “It’s supposed to be there to help you.” If you don’t have an emergency fund, though, reach out to your community resources.
3. Research assistance in your area
Knowing where to turn in a financial crisis can be a challenge because you might be feeling panic or shame. McCallister-Young recommends finding a “community of support that can lift you up and can tell you where you should go” in a time of need.
Plugging into these community resources ahead of an emergency can be helpful. Consider joining online neighborhood groups, following the social media pages of local nonprofits and identifying food banks in your area.
If you’re in a crisis now: Start your internet search with211.org for confidential help from experts on everything from finding food to mental health assistance. From there, reach out to your community of support to find local food banks or identify community groups or nonprofits that can help pay your bills.
4. Pay down your debt
One of the ways you can set yourself up to survive a financial crisis is to have as little debt as possible. Big disruptions are likely to make it harder to pay your bills, and accruing interest will only make digging out of your circumstance harder.
To prepare for an emergency, start paying down credit card and other debt now. If it’s a recession you’re worried about, focus on paying down debt with the highest interest rates.
If you’re in a crisis now: Contact lenders to discuss payment options. For example, a lender might be able to put you on a payment plan to spread out costs into more manageable chunks or temporarily lower your interest rate.
5. Bolster your credit score
The best way to protect your credit during a financial disruption is to make on-time payments and keep your credit utilization as low as possible. However, this might be difficult, especially if you’re operating off of a reduced income and need your credit cards to supplement your monthly expenses.
You have some options when it comes to handling your debts, explains Melinda Opperman, chief external affairs officer at Credit.org. If you have time to prepare, “call your lender to ask if they offer a concession like a lower interest rate or a deferred payment,” she says. The only risk, according to Opperman, is that your lender might lower your credit limit, causing your credit utilization ratio to increase. This could harm your score until you are able to pay down the balance.
You also might consider using a balance transfer or 0% APR credit card to take some of the pressure off. Just pay attention to the fine print, especially when it comes to transfer fees and repayment terms, which are typically around 18 months, says Opperman.
If you’re in a crisis now: One way to weather a financial storm is to make on-time payments, but consider only paying the minimum balance, says Opperman. While it will temporarily increase your debt load, especially if you’re used to paying your balance in full each month, paying the minimum for a short time can help you get through a tough time while recording on-time payments, which is a huge factor in calculating your credit score.
The thing to note about your credit score is that it’s not typically directly impacted by a recession or personal financial crisis.
“A credit score doesn’t reflect your income, wealth or current financial situation,” says Opperman. “It’s a measure of how you handle your debts.”
By Peter Anderson12 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited August 19, 2022.
The last few years have been tough ones, with the economy going through recession, millions of people becoming unemployed and businesses going under left and right.
The economy has shown some signs of improving, but indications are we still have a lot of rough road ahead of us.
With the economy being so unsure, now is as good a time as any to start thinking about how to cut back on your regular monthly bills. For many, once you’ve cut out some of the more obvious expenditures, it doesn’t feel like there are that many other places that can be cut. The truth is, however, that most people have a lot of places that they can still cut back and save money.
Today I thought I’d look at some of the main areas of spending that people have every month – their regular monthly bills.
Often people take those monthly bills for granted, not even thinking about how they can save money on those regular expenditures, just taking it on faith that they can’t get those bills any lower.
So today’s post is all about how to save money on just about all of your regular monthly bills.
How To Save On Your Phone And Wireless Bills
There are a variety of ways that you can save on your cell phone, home phone and mobile internet charges. Here are a couple of the options that we’re using – or plan to start using in the coming year to save on our phone bills.
Landline phone service
: For years we’ve had a landline because my wife prefers talking on that versus a cell phone, and also because we needed the landline for our home security system. We recently made changes that mean we can now opt for a cheaper VOIP option for our landline service. After doing some research a lot of other bloggers are talking about the Ooma phone service, which is apparently very good. All you have to do is pay upfront to buy an Ooma Telo device for around $140, which then allows you to make unlimited calls in the U.S. for free over your existing broadband connection! All you have to pay is local taxes in your area (about $4.50 for us). You can port your current landline phone number over as well, for a $39.99 fee. Read my full review of Ooma here, and my post talking about setting Ooma up here.
Prepaid Cell Phones: One way that we’ve been saving a ton of money over the years is by using prepaid cell phone service, instead of more costly contract plans. We have no contract phone service from Republic Wireless, and we pay on average about $40/month for two phones. Both of them are Android smartphones with tons of minutes and unlimited text with 1GB/data ($20/month). The only downside is the up front cost of the cell phone – it isn’t subsidized like on contract plans. There are a variety of other low cost prepaid cell services out there that many people recommend including Tello and a Gen Mobile. Check out the related content below for a full article talking about saving on your cell phone bill using prepaid services. Want to use a traditional phone service? Check out Bill Shark, BillFixers or Rocket Money to negotiate a reduction in your monthly cell phone bills.
Low Cost Hotspots: A while ago I had a need to have Internet access on the go while traveling. At the time I settled on buying a mobile hotspot from Virgin Mobile via their prepaid wireless broadband plan. You just buy the hotspot, and then pay $35/month for 1GB of data. I was in a rush so I bought the hotspot and used it while on my trip. When I got back I became aware that there are quite a few companies that offer mobile hotspots for much lower cost, or phones and phone plans that can be used as hotspots – for much less. Do your research.
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How To Save On Your Housing Costs
One place that you can save hundreds of dollars every month is in your housing costs. Most people are aware that they could probably save by refinancing, but there are other ways you can save as well.
Refinance your mortgage: The most obvious way to save on your housing costs is simply to refinance your home mortgage. Rates are so low right now, and by refinancing you can often save hundreds of dollars off of your regular monthly payment. I’m in the middle of looking for a refinance right now, and we stand to save in the neighborhood of $200-300/month.
Appeal your property taxes: A lot of people don’t realize that you can actually appeal your property taxes in many counties by appealing the county’s tax appraisal value. I have successfully appealed our value once a couple of years ago, saving $363/year. Find out how I did it below via the related content.
Get cheaper homeowner’s insurance: I go into this more in the insurance section below, but if you shop around you can often find hundreds in savings every year just by switching insurance companies. We saved almost $1000/year by doing this just a couple of months ago.
Remove mortgage insurance: If you’re paying mortgage insurance with your regular monthly payment, and you have already reached 20% equity in your home, you may want to look into having that insurance removed by your mortgage company. It isn’t there to protect you, but the bank. Often you can have it removed after getting 20% equity in the house, and in many cases it may be required that they remove it. In some cases, if you’re a high risk borrower or if you have a FHA loan, you may need to keep the mortgage insurance longer.
Downsize your house: If you’re really trying to lower your bills a sure fire way is to downsize your house. Not only will your payment go down, but your insurance, taxes, maintenance costs and other costs will go down as well. Of course any costs associated with moving also need to be taken into account.
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How To Save On TV, Movies And Entertainment
There are a lot of ways that you can cut costs when it comes to your entertainment dollar.
Shop around and sign up for deals on premium TV: First, if you’re determined to keep your premium TV because of sports or programming only available on cable, you can at least make sure that you get the best possible deal on your cable TV package. Make sure to shop around once your introductory deal runs out and you can usually end up saving hundreds every year by switching companies! Or you can use a bill negotiation service like Bill Shark, BillFixers or Rocket Money to negotiate a reduction in your monthly bills.
Cancel un-needed services: Another thing you can do is check to make sure you’re not doubling up on any services. When we were cutting back a while ago we realized that we were paying for both Netflix streaming and Amazon Prime – which has a good video streaming option. We realized most of the same TV shows and movies were available on both sources, so we canceled Netflix – saving us $7.99/month.
Cut the cord: If you’re a bit more ambitious and aren’t very particular about receiving certain channels or waiting to see content the night it airs, you might want to make this the year that you cut the cord. Cancel your cable or satellite TV packages and move to something more affordable. Instead of paying for a TV package you can use free or low cost video streaming services like Hulu or Philo, shows streamed by the networks, and more. Use a software like Playon to stream the shows directly to your TV using an existing gaming console like the Xbox One or Playstation 4, or a cheap device like the Fire TV or Roku. The options are pretty numerous, and we’ve used options like this in the past to get most of our TV entertainment. Check out the related content below for a couple of exhaustive posts on how to set this up.
Use cheap movie rental alternatives: Don’t really watch TV or movies too much – and a monthly Netflix or Amazon subscription doesn’t make sense for you? Use a cheap rental alternative like Redbox, where you can rent a new release movie for a dollar. You can often find coupon codes to get free rentals every now and then. If you rent infrequently enough for it to matter, use cheap pay per view video options on Itunes, Amazon and Xbox to rent movies without leaving the comfort of your home. Amazon often gives away free credits on social media for their MP3 and Video stores, so follow them on Twitter and Facebook to get deals!
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How To Save On Your Internet Costs
If you’re looking to save on your internet costs, the best thing you can do, similar as with TV deals, is to shop around, or use a bill negotiation company.
Search for the best deal: Find out where you can get the best deal. For us our internet options include DSL service from a couple of different companies and cable internet. You can usually find competing deals and introductory offers that you can use to hop from company to company and always have the best deal. Other times you can bundle with other services and save. It can be a pain, but it can save you a ton of money too.
Get reduced rate internet: Another thing you can do if you live in certain areas is us a free 4G internet service. Of course to do this you’d have to live in an area with good 4G coverage.
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How To Save On Insurance
The best way to save on your insurance costs is just to shop around on a regular basis. I like to do it at least every 1-2 years for my homeowner’s insurance, auto insurance, life insurance and less often for other types. We found our best deal by using an insurance broker because they were able to compare rates at multiple companies and compare quotes for us.
Within the past few weeks we shopped around for new homeowner’s insurance after the premium skyrocketed. We ended up saving almost $1000/year when we switched our homeowner’s and auto insurance to a new company. That’s not the first time we’ve been able to do that! We did the same thing about 4 years ago, comparing rates and saving over $1000 that time!
Not sure where to start in getting quotes? Check out our insurance page to get quotes from a bunch of different companies.
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Save By Getting A Better Bank Account
You may have had your old bricks and mortar checking or savings account since you were in high school, but have been noticing lately that they’ve started charging you fees for various things. You’ve also noticed that the fees for your brokerage account have gone up, and mysterious inactivity fees started popping up. Whatever the case, people often find that their bank account is no longer useful to them, and that they can save money on fees (or make more interest) by moving somewhere else.
Save money by closing old accounts: Often old accounts start charging inactivity fees for dormant accounts, or just start charging fees because they think they can get away with it. Closing an account can be a pain, but it can also save you money (and headaches) in the long run.
Sign up for better bank accounts: Signing up for a better bank account will mean not only savings because of no fees and no minimums, but also can mean you’ll end up making more money interest, cash back and other perks. For example, a while back we Chime a great online bank. We’ve saved quite a bit in account fees that we no longer pay. Our old account at a traditional bricks and mortar was charging us fees for all sorts of things, and customer service wasn’t great. We have also switched our savings account to online banks with accounts from Capital One 360 and CIT Bank Not only are we making more in interest, but the features available at those banks surpass our old bank.
Lower interest on your credit card accounts: If the interest on your credit card is getting unreasonably high, consider closing the account after signing up for a card with a lower interest rate, 0% balance transfer and no fees. Just be wary of big charges to actually transfer balances.
Different account types to consider closing if the fees or features aren’t up to snuff? Savings accounts, checking accounts, brokerage accounts, mutual fund company accounts, credit cards. Go down the list and figure out which ones just aren’t cutting it anymore.
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How To Save On Energy Bills
Saving on energy bills often can’t be done by switching to another provider because there is often only one option for water, gas or electricity in many areas. That means the savings usually has to come from being creative and saving in other ways.
Some ways to save on your energy bills:
Get a programmable thermostat
: A good portion of your utility bills every month are going to come from your heating and cooling bills. By buying a programmable thermostat like the smart Nest thermostat, you can have your heat turned down at night, turned low when you’re gone and even control it remotely. They advertise an annual savings average of $173, so it may take about 18 months to pay back the $249 cost – unless you can find it for less. Other options include regular programmable thermostats which can run $50-70 or more.
Get (slightly) out of your comfort zone: Be willing to turn the temp down slightly in the winter, and up in the summer. You can save a ton of money just by turning the temp up or down even a few degrees!
Use a power saving device: A lot of the electronic devices we use these days have phantom power drain even when you’re not using them. Get around this by getting an auto-sensing power strip that will turn off all power when the unit is off, or energy saving power plugs that have on off switches for things like coffeemakers or toasters.
Save at your water heater: The water heater can account for 14-25% of your energy bills every year. Often the heat on your water heater is turned up higher than you need it to be. A temp of 120-140 degrees is hot enough, and every 10 degrees you lower it you’ll save 3-5% on your bill. Some experts say not to go below 120 degrees, however, because bacteria can grow in the tank. You can also save by putting a fiberglass insulating blanket on the water heater to save money on heat loss.
Get a home energy audit to find energy leaks: Local utilities will often come out to do a home energy audit free of charge or a small fee to help you find where your home is leaking energy. Plug up the leaks and save!
Maintain your appliances: Doing things like cleaning your AC condensor coils or changing furnace filters regularly can save you money on your energy. If you don’t, appliances can work harder than they need to, and drain more energy.
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Save On Bills By Negotiating Them
One way you can save money on your regular, recurring monthly bills is to negotiate them.
If you have the time to do a little research, and make a few phone calls you can often reduce your monthly bills by hundreds of dollars every year.
If you don’t have the time, there are quite a few companies that will do it for you, for a small cost.
Conclusion
So there you have it, how to save money on just about all your possible monthly bills. I could probably go on, but the point is there are no shortage of ways to save money on your regular monthly expenditures. You can save on your housing costs, your phone and wireless broadband costs, your insurance costs, your energy costs, your bank accounts and even on your spending on entertainment. You just have to be creative, find cheaper alternatives and cancel un-needed services.
So what ways to save on your regular monthly bills can you suggest? Tell us your money-saving strategies in the comments!
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When you are trying to tighten down the hatches on your spending, you are doing everything possible to stick to your budget.
You are determined to stick to your budget this time around. But, you always hear that budgeting can be hard.
Well, here are some quick budgeting tips that will make sure to stick to your budget.
As most new budgeters learn, they struggle to stick to a budget for their monthly expenses. It is a natural process everyone goes through.
Budget, if you are looking for an easy button, then learn which payment type is best if you are trying to stick to a budget.
Especially if you spend a lot of time on social media, studies have shown you are more likely to overspend. So, you must learn which payment type will have you stick to a budget.
Then, you may be wondering and wanting help deciding which payment type is best for you.
The Optimal Solution Payment Type Solution
The most efficient payment type is something that is instantaneous and there are no fees associated with the transaction.
Cash is the most efficient payment type: Cash payments are usually the most efficient and convenient way to pay for goods or services.
Credit cards can be a less favorable option: Credit cards tend to have high-interest rates and can lead to financial disaster if used irresponsibly.
Debit cards are a great way to keep your spending within your budget: Debit cards should be considered a top priority for budgeting because they keep you within your spending limits.
Developing a budget will help you avoid financial disaster: A budget helps you stay organized and make informed decisions about which payment method works best for you.
Today, there are so many options on which payment type to use in today’s online world.
1. Cash
Cash is a payment type that can be used to reduce debt spending. It is versatile and can be used for a variety of expenses, such as groceries, medical bills, and gym memberships.
Cash is an excellent choice for people just starting to budget and save.
It is more restrained than credit or debit cards. The envelope method of cash budgeting can be used to train your brain to reduce spending. Cash is the most traditional payment method and has the fewest drawbacks. However, you need a safe place to store your cash, and some stores may not accept it.
Benefits of Cash:
Cash is an excellent payment type when your financial goals are to reduce debt spending.
Cash is a finite payment method that prevents you from overspending.
You have a set amount of money to spend each month, so there’s no chance of overspending.
Easy to track with the envelope method: Utilizing the envelope method ensures that you are tracking your spending (i.e groceries, gas, medical bills) and making sure that you aren’t overspending.
Cash is a quick and easy way to pay for goods and services.
No Fees. No maintenance fees or interest rates as credit cards. Cash is just plain cash – printed paper of currency.
You can avoid high fees associated with card transactions: There are no associated fees when paying with cash, making it the cheapest option overall.
Cash discounts may be available. Since you are paying with cash many small businesses offer a cash discount of 2-5%.
You can use cash at any store: No need to carry around extra cards or checks.
It’s easy to get cash: You can easily get cash and make extra cash.
There’s no need for bank account details: No need for bank account details means you’re free from identity theft risks and other inconveniences that come with having a bank account.
Cash allows you to skirt some financial regulations: Because cash payments don’t fall under the purview of many financial regulations, businesses can take advantage of loopholes in the law that allow them to charge higher interest rates on loans or engage in shady business practices. (highly recommended to stay above book)
Cons of Cash:
Possibility of losing or stolen cash: Keep your cash in a safe place!
You need a safe place to store your money: Another disadvantage of using cash is that you may need a safe place in which to keep it – some stores don’t accept it as a payment method.
Why Choose Cash?
Total control over your money, so there’s little chance of unexpectedly running out of funds.
Cash is a great way to stay on budget, as you can easily track your spending and see where you need to cut back.
Unpleasant to spend money with cash, which can help train your brain to reduce spending.
Cash is a quick and easy way to pay: Using cash eliminates the need for banks, credit cards, or other forms of payment.
Verdict: Paying with cash is the best method for budgeting and saving.
Overall, cash is a great payment type when it comes to budgeting. You can immediately see how much money you’ve spent and what needs to be cut back.
You can’t make impulsive buying decisions with debit cards or credit cards.
With a finite amount you can spend, cash is an excellent choice to prevent overspending. According to research, paying with cash can feel unpleasant, which can train your brain to reduce spending as much as possible.
2. Credit cards
Credit cards offer a number of benefits, including convenience, cash back, and the ability to make large purchases or pay bills in case of emergency. However, credit cards also come with credit card debt and can lead to overspending and financial problems if not used carefully.
For many, credit cards are the easiest way to blow your budget because you don’t have control over how much money you spend.
It is possible to overspend with credit cards if you are not mindful of what you charge.
On the flip side, this is a preferred method as many credit cards also offer rewards programs that give you cash back or points for purchases. If you make the conscious decision to use credit cards, you must make payments on time to avoid penalties.
Benefits of Credit Cards
Credit cards are convenient: Convenient to use and don’t have to worry about losing cash.
Use a credit card if you are disciplined and have strict spending habits: If you are disciplined and have strict spending habits, then using a credit card can work well for budgeting purposes.
Flexibility on larger purchases: Some benefits that come with having a credit card include more cash flow as well as being able to make larger purchases.
Credit cards provide support in times of crisis: Many credit cards offer extended services that can help like 24-hour fraud protection, lost wallet services, traveler’s insurance, and many other benefits – check each issuer for details.
$0 Liability on Unauthorized charges: Your credit card company will not be held responsible for any charges that were not authorized by you. This means that if you did not authorize a charge in person, online, or otherwise, you will not be responsible for it.
Fraud protection: Check your credit card issuer, but many offer fraud protection.
New card introductory APR is helpful to pay down debt: The introductory APR for the new card may not last long.
Payments on balance transfer should be manageable: Make sure that the payments on your balance transfer are manageable.
Points: You can accrue points along with your spending which can be a great perk.
Credit card interest rates are significantly lower than payday loans: Interest rates on credit cards are usually much lower than payday loans.
Due Date is After your statement closes. Since your bill cycle is at least another 21 days between the closing date for your statement and the due date, it gives you flexibility. Personally, I still account for the credit card bill in the same month that it was accrued.
Cons of Credit Cards
Potential for credit card debt: When using a credit card, be aware of your credit limit and the interest rate that you will have to pay on your debt. Also one of the categories of debt.
Credit limit often leads people to spend money: The credit limit often leads people to spend money by giving them a false sense of security, when they should stick to a budget and pay attention to their credit card statement and the billing cycle.
Credit card overspending can lead to debt: Consider the purchase if it is essential or delay it if possible.
Ability to easily purchase something you cannot afford. Buying something that you don’t have the money saved up for will cost you interest fees associated and maybe even with a credit card balance transfer.
There are a number of fees associated with a balance transfer: Transfer fee, interest on new purchases charged to the card.
Your introductory APR may not be valid if you make too many payments late: If you fall more than 60 days behind on payments your introductory APR might be canceled and you may face higher interest rates.
Credit score can suffer from debt: When you carry a credit card balance or don’t pay your monthly bills on time, you will lower your credit score.
Avoid carrying a balance: Pay your statement in full each month to avoid paying interest and maximize your grace period.
Key Takeaways on Credit Cards
Make sure to pay attention to the dates: Don’t spend more than you can afford, and make sure you’re making your minimum monthly payments on time so that your debt doesn’t increase over time.
A credit card can be used for budgeting only if you’re very disciplined: If you know that overspending is NOT an issue and you pay the credit card’s monthly balance in full, then using a credit card is fine.
Credit card transactions usually take several days to register in the feedback system: Something to look out for!
You can step back into debit cards or cash if needed: If credit cards are not for you, there are other options available such as debit cards or cash
3. Debit cards
Debit cards are a good option if you want to stick to a budget because the predetermined amount of funds can help you stay within your means. Additionally, debit cards are more convenient than cash and just as accepted as credit cards in most places.
A debit card works more similarly to cash than to credit cards.
They provide an easier way to track your spending and avoid having to carry a lot of cash.
Pros of Debit Cards:
No Need to Carry Cash: A debit card is better than cash because you don’t have to carry a lot of paper money and change around, and they’re also safer.
Debit cards are faster and easier to use: Debit cards work just like credit cards – withdrawing cash, making purchases, and paying bills – but they are linked directly to your bank account, so there is no need to carry around a separate cash envelope wallet or purse for them.
A debit card is a good option if you want to stick to a budget: Debit cards come with a predetermined amount of funds that you can spend from your bank account just like cash.
Tracking payments is easy with debit cards: Your debit payments will appear on your issuer’s dashboard, which you can monitor anytime from any location.
Convenience: Debit cards are more convenient to use and faster than needing to write a check or carry around cash. Plus they don’t add to your debt.
Shopping online is easy. You can use your debit card to make online purchases with your bank account, and digital banking tools make tracking your spending easy.
Points: Some debit cardholders can earn points for spending on their cards, which can be redeemable for rewards such as cash back or gift cards. This is new to compete with credit cards.
Fraud protection is typically offered for free with most debit cards—meaning if your card is stolen or used without your permission, you can get your money back.
No impact on your credit report. When you use a debit card, the funds are actually withdrawn from checking or savings accounts so there is no credit reporting occurring.
Cons of Debit Cards:
An overdraft on a debit card can happen when a purchase exceeds the amount of money in the checking account, leading to overdraft fees.
Funds on hold with fraudulent charges. If your account gets hacked, your losses will be limited since most banks protect their users against fraudulent charges and online purchases with their accounts. However, those funds will be held while they investigate and you may be liable for $50.
No chance to improve your credit score. Since you are not borrowing money, you are unable to improve your credit score.
Debit cards are a great way to keep your spending within your budget and avoid overspending which can lead to many detrimental issues.
Regardless of the overdraft fee, debit cards are still better than cash because they’re safer and easier to carry around.
4. Checks
Checks… do people still write checks? Why yes they do!
Checks offer a few benefits as a payment method, even though they are slowly being replaced by more modern options.
This can help you keep track of your spending and make sure you do not overspend. Additionally, if you ever need to dispute a charge, having a check can be helpful in proving what you paid for.
What is a check?
A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer from the check writer’s account. The date is usually written in month/day/year format. The signature of the check writer is usually on the line below “Pay to the order of.”
There are three main types of checks:
A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier.
A certified check is a personal check for which the bank has verified that there are sufficient funds to cover the payment.
A personal check is one that you write yourself and that is not guaranteed by the bank.
Pros of Checks
Checks are still a payment option: Checks are one of the traditional payment methods, but it is slowly dying out because of modernization.
Physical written record. It can be helpful to have physical copies of checks in addition to digital records through the bank.
You need to make both digital and physical copies of the check: Save check stubs but also transfer the information to a budgeting system.
Cons of Checks
Saving check stubs is helpful, but you still need to transfer the information to a budgeting system: Useful for tracking spending, but you’ll likely want more detailed records than just check stubs.
Not as convenient as credit or debit cards.
5. Apple Pay or Apple Cash
Apple Pay is easy to use and convenient since you only need to connect your smartphone to your cards and bank accounts via the app.
It is easy to use since you just hold your phone up to the reader and wait for the payment screen to appear.
You can even get cash back with apple pay.
Pros of Apple Pay:
Apple Pay is easy to use and convenient: You only need to connect your iPhone to your cards and bank accounts via the app.
You don’t need to carry any extra cards or cash: No need for additional cards or cash when you’re out and about
You can use Apple Pay on different devices: You can use Apple Pay on your iPhone, iPad, and Mac.
Transactions are secure: Your transactions are secured with Touch ID or a passcode.
Set up Spending Limits for each user. This way you can make sure you (or others with authorized access) are not spending more than you intended. Learn how.
Protection of Data during transactions. Your actual credit card number is changed to a different digital number, which allows limits your card number’s exposure.
Cons of Apple Pay:
Not widely accepted (yet). This method of payment is 100 percent guaranteed. While many stores offer apple pay, not all do quite yet.
The same rules apply if you load apple pay with a debit or credit card drawbacks include late fees, interest rates, and overspending: Keep that in mind when choosing Apple Pay as your payment method.
6. Mobile wallets like Google Pay, Samsung Pay, Venmo, or Zelle
Mobile wallets are digital payment systems that allow you to pay for items with your smartphone. Many people find mobile wallets are very convenient and becoming a traditional method of payment (such as credit cards).
With mobile wallets, you are making digital payments without having to carry around cash or cards using just your smartphone.
Mobile wallets are easy to use and provide instant payment convenience, making them perfect for shopping online.
Pros of Mobile Wallets:
Mobile wallets use credit cards and debit cards: Connect your smartphone to your bank accounts and use it for digital payments.
Mobile wallets are easy to use and convenient: Instant payment convenience makes them perfect for shopping online as well.
No need for cash or cards: No need for cash or cards.
Strong secuirity features provide privacy and security features that ensure your personal information is safe from data breaches and unwanted charges.
You can make purchases without having to show your identification: You can make purchases without having to show your identification.
Additional Layer of Security. Additionally, mobile wallet data is protected with verification, such as fingerprints.
Cons of Mobile Wallets:
With Zelle and Venmo, it is easy to send money to the wrong person or add an extra zero and send more money from planned. More often than not, it is difficult to recover your money.
You need to be disciplined when using a mobile wallet: Pay attention to late fees and interest rates, as well as the amount you spend in a month.
7. Prepaid Cards or Gift Cards
A prepaid card or a gift card could be right for you. The advantage of these is the mere fact that you reached the limit is enough to deter overspending.
It can make you think twice about whether you need to purchase an item or not.
Pros of Prepaid Cards and Gift Cards
Easy to use: Prepaid and gift cards are easy to use and manage your finances with.
The mere fact that you reached the limit is enough to deter overspending: It can make you think twice about whether you need to purchase an item or not.
No strings attached: No need to worry about any fees associated with the prepaid card once activated.
Privacy: The prepaid card does not track your spending or use any personally identifiable information.
Credit Score Doesn’t Matter: Your credit score does not matter when obtaining a prepaid card.
Cons of Prepaid Cards or Gift Cards
Losing a prepaid card is not a fun experience. Contact the prepaid card issuer right away to protect the funds on the prepaid card.
Fraud protection: Consider whether your prepaid card issuer offers any theft or fraud protection, as not all providers offer this feature.
Prepaid cards have limits on how much money you can load onto them, which can be frustrating if you need to make a large purchase.
8. PayPal
PayPal is a very convenient way to pay for items online or in person. It is widely accepted and used by many people.
PayPal is a digital payment service that offers convenience and ease of use. You can use them to send money to people or pay for online purchases.
However, because these services can only be used online, they should not be relied on as your sole method of budgeting and tracking expenses. Instead, consider Paypal in combination with another budgeting tool, like a spreadsheet or app, to get a fuller picture of your spending.
Pros of PayPal:
PayPal is one of the most popular online payment methods: Widely accepted and used by many people.
You can use them to send money to people or pay for online purchases: Help you review your spending prior to purchase.
Cons of Paypal:
EasyTarget for phishing scams. A phishing scam is when someone tries to trick you into giving them your personal information, like your password or credit card number. They might do this by sending you an email that looks like it’s from PayPal, but it’s not. Or they might create a fake website that looks like PayPal. If you enter your information on these sites, the scammers can then use your account to make purchases or send money to themselves.
Reputation for poor customer service. This is evident in their customer service ratings, which are some of the lowest in the industry. The majority of complaints against PayPal revolve around poor service received when asking for assistance with fund freezes and account holds.
9. Cryptocurrency (ie: Bitcoin)
Cryptocurrencies offer a new and innovative way of handling payments. They’re not yet widely accepted, so there’s potential for businesses to get in on the ground floor with this new technology.
However, because cryptocurrencies are so new, it’s uncertain if they will be regulated or not. This could pose a challenge for businesses down the road.
Pros of Crypto
Not subject to the same regulations as traditional currency, which makes them appealing to those who want to avoid government intervention.
The valuation of Crypto changes rapidly. If you are smart with crtyple this is a great way to spend your crypto coins.
Cons of Crypto
Cryptocurrencies are not accepted everywhere: Cryptocurrencies are not accepted by most organizations yet, which it makes it difficult to use them in day-to-day life.
It’s unclear if cryptocurrencies will be regulated: It’s uncertain if cryptocurrencies will be strictly regulated or not. This poses a challenge for those who want to use them as a payment method.
Bitcoin and other cryptocurrencies are still in their infancy: Bitcoin and other cryptocurrencies have only been around for a few years, so they may still face challenges in the future.
Here are the most popular budget apps today:
Other Payment Methods:
ACH payments
ACH Payments is an excellent way to pay bills and other financial obligations: You can easily set up a billing cycle for recurring payments, making it safe and convenient.
Fewer people are aware of your transactions when using ACH payments, reducing the chances of fraud or theft.
Key Facts:
Fewer people know about your transactions when using ACH payments, reducing the chances of fraud or theft.
Your checking account information is not shared or accessed by the system in any way.
You can quickly pay bills and other expenses with ACH payment: Financial institutions offer this as part of their deals.
When setting up recurring bills with ACH payment, you are aying your bills on time is important for maintaining a good credit score.
Pay attention to your check account balances: Make sure you have enough funds in your check account to avoid paying overdraft fees.
Money orders
A money order is a document that orders the payment of a specified amount of money. Money orders are convenient because they can be bought at many locations, including post offices, banks, and convenience stores.
To get a money order, you will need to fill out a form with the payee’s name, the amount of the payment, and your contact information. You will then need to purchase the money order with cash or a debit card.
To cash a money order, you will need to take it to a bank or post office. You will need to show identification and sign the back of the money order. The teller will then give you the cash for the payment.
More secure than cash: Money orders are more secure than cash because they don’t require a bank to make the transaction.
Less convenient: money orders are less convenient because you must purchase them in person.
Able to trace. They are also more secure than cash because they can be traced if lost or stolen.
Wire Transfers
Wire transfers are a more secure way to transfer money than traditional methods like checks and cash. These are sent through the banking system and are usually processed within two business days.
Typically, wire transfers are used when sending and receiving large sums of money (over $10000).
More secure than cash: Wire transfers are more secure than cash as the bank verifies there is enough money to make the wire transfer.
Fees involved with using a wire transfer. Most institutions charge for handling a wire transfer.
What method of payment is best?
Cash is the most widely accepted form of payment, but debit and credit cards are very popular.
The payment method that is best for you depends on which one helps you to stick to your budget and spend less money. The goal is to be financially stable.
What method is best for sticking to a budget?
There are several different types of budgeting methods that people use in order to manage their finances. Many people focus on using the 50/30/20 method, in which each percent corresponds to a different category of expenses.
There are plenty of budgeting tools available today to make sure you stick to your budget.
You need to find what works best for you. At the end of the month, you want to spend less than you make. That is the winning combo!
1. Budgeting App
There are many budgeting tools available online, which can be helpful as it can be easier to track your progress and budget over time.
You can use various popular budgeting apps like Quicken, Qube Money, or Simplifi.
These apps can help you track your spending, set goals, and stay on track with your budget.
2. Paper and Pen or Simple Spreadsheet
Some people find that they prefer using a simple spreadsheet or paper budget. This may be due to personal preference or because they find it easier to understand and use.
Additionally, using a paper budget may help you stay more organized as you can physically see where your money is going.
Options to get you started include our own budgeting spreadsheets or using an automated system like Tiller.
3. Envelope budgeting method
The cash envelope system is a good way to stick to a budget because it is rigid and based on envelopes and cash. You can’t get more money until your cash payday. So, this system helps you track your spending and budget better.
However, using only cash can have drawbacks as having large amounts of cash on hand can be risky.
The envelope method gives you a sense of control over your spending and makes it more tedious to write down your transactions. If you find writing down your transactions tedious, the envelope method may be too much for you.
4. Know Your Budget Categories and Track expenses
Tracking expenses is essential to move ahead financially: Knowing what you have spent in each category will help you make better financial decisions.
Be specific with your budgeting categories. Don’t make it too complicated. Always remember to include household items, clothing, and groceries when tracking expenses.
5. Prioritize your Budget Plan
A budget can provide a realistic picture of your finances, help reduce stress related to money matters, and guide you toward achieving your goals.
Creating a budget can help ensure that you are able to meet your financial obligations and still have money left over for savings and other goals. A budget can also help you track your spending so that you can make adjustments if necessary.
Make a budget plan: This will help you stay on track and make sure that you are spending your money wisely.
You decide where to spend money: A budget helps you set future goals and achieve your financial goals.
Creating a budget can help reduce stress: If you tend to get stressed about money matters, creating a budget can give you peace of mind.
A budget has other benefits beyond financial ones: If you want to achieve something in life, creating a budget can help guide you in the right direction.
See where to cut back spending. You can also look at your past spending habits to see where you can cut back. Sometimes it may be necessary to save more in order to achieve long-term goals, like buying a house or having a wedding. Always be mindful of your budget when making payments and spending money.
It’s a three-step process that involves basic math: Making a budget is simple and requires only basic math skills.
Stay on track: Making a budget plan will help you stay organized and keep track of your expenses.
A budget plan will help you stay on track and make sure that you are using the best payment type for your budget.
Making a budget is an easy way to save money. By following a few simple steps, you can keep track of your expenses and make sure that you are spending your money wisely.
Which type of payment is best for sticking to a budget?
One of the main pros of using cash as a method of payment is that it is the most efficient way to keep track of your finances. This is because it is very easy to budget when you are only dealing with cash.
However, many people prefer debit or credit cards are the best type of payment. They are more convenient than cash and can help you keep track of your spending. However, if you have a bad credit history or a low credit score, credit cards may not be the best option for you.
Cash payments are the most efficient: Most convenient and easiest to keep track with cash envelopes.
Credit cards allow you to accrue points along with your spending: These are a great benefit and one that can be a perk if handled well as part of your budgeting process. As long as pay them off in full each month to avoid credit card debt, high-interest rates, and other negative consequences.
Debit cards are also a good option for sticking to a budget. They can be used like credit cards but with less risk of debt.
Cash-based payments are a newer option and are more reliable: May not have as many negative consequences as other payment methods such as credit cards or loans.
What Not to Use when you are Trying to Stick to a Budget
You need to steer clear of these types of payments if you want to be financially stable person.
Personal loans
Personal loans are a risky way to budget. However, if you need the money for an emergency or unexpected expense, a personal loan can be a lifesaver.
There are many risks to consider and other ways to lower your spending before resorting to a personal loan.
Loans can cause budgeting problems: Loans can mess up your budget and make it difficult to stick to spending plans.
Taking out a personal loan just for the sake of having money can disrupt your budgeting: Consumers often borrow money in order to pretend they’re doing better financially than they really are.
Borrowing money is usually not a good idea: When you borrow money, you may find that you cannot handle seeing low checking account balance, which can lead to deeper debt problems.
Payday Loans
Payday loans are a bad option for someone looking for a long-term solution. They are expensive, and there is a high chance that the person will not be able to pay back the loan.
The interest that is charged is also high, and it can add up quickly.
Write bullet points about what happens with a payday loan
Payday loans can trap people in a cycle of debt, as they are often unable to pay back the loan in full on the due date.
When someone takes out a payday loan, they are borrowing money from a lender in a short amount of time, usually two or three days.
Payday loans are often expensive, with interest rates that can be above 300%.
Debt Consolidation Loans
Debt consolidation can be a good way to manage your debt because it can result in a lower monthly payment and extended payments may impact your financial plan. You can use a debt consolidation calculator to estimate how much debt you can afford before taking out a consolidation loan.
Debt consolidation loans also provide convenience because they have lower interest rates than payday loans. However, be careful when consolidating your debt because it is possible to overspend and lose your introductory APR.
You may be able to pay off your debt with one monthly payment: A consolidation loan often results in a much lower monthly payment than all of your previous monthly payments combined.
Extended payments may impact your financial plan: Take a look at how these extended payments will impact your financial planning.
You can estimate how much debt you can comfortably afford: use this tool – Tally .
It is possible to overspend with debt consolidation: If you spend more money than you planned on your day-to-day expenses, this could increase your debt. Consider if the purchase is necessary or if it can be delayed.
You may lose your introductory APR: If you fall more than 60 days behind on payments, you will likely lose your introductory APR and may even trigger a penalty interest rate.
You need to be careful when transferring a balance: Transferring a balance can also forfeit your grace period and you’ll need to pay interest on new purchases charged to the new card.
What type of payment method is best for sticking to a budget?
There are a variety of payment methods available, and each has its own benefits and drawbacks. It’s important to choose the payment method that’s best suited for your business and budget.
A payment method that allows you to stick to a budget is the best option.
FAQs
There are three main types of payment methods: cash, debit cards, credit cards, and cash-based payments.
The envelope budgeting method is a simple way to create a budget. You will need envelopes and divide your money up into the different categories that you spend money on. You will then put the corresponding amount of money into each envelope. This method can be helpful if you have a hard time sticking to a budget.
The zero-based budgeting method is a more methodical way to create a budget. With this method, you track every penny that you earn and spend. This can help you to see where your money is going and make adjustments accordingly.
A debit card is a plastic card that is linked to a checking account. Customers can spend money by drawing on funds they have already deposited. An overdraft on a debit card can lead to overdraft fees, which have high-interest rates.
A credit card is a plastic card that allows customers to borrow money up to a certain limit in order to purchase items or withdraw cash. Using a credit card can help build credit or improve your credit score.
There are a few different ways to use a credit card. You can use it to check your balance and review your spending history, which can be helpful in staying accountable.
Credit cards also offer online tools which make the analysis of your spending easier which can be helpful in tracking your budget.
Finally, you can use a credit card to rebuild your credit score by using it responsibly and paying off the balance in full each month.
Which payment type can help you stick to a budget?
When it comes to choosing a payment type that will help you stick to a budget, there is no one-size-fits-all solution.
The best payment method for you will depend on your specific needs and preferences.
When you are creating a budget, it is important to consider which payment type will help you stay on budget. Different payment types work better for different people, so it is important to experiment and find the one that works best for you.
As I stated for me, I have learned how to use credit cards to maximize cash back. But, I learned how to budget with cash when first starting.
Please pay attention to your budget and how it changes over time, as different payment types may work better at different stages of your life.
Consequently, I hope that this guide has given you a better understanding of the different payment types available and helped you narrow down your options. There are a variety of payment types that can help you stick to a budget, so it’s important to research each one carefully.
I highly recommend using an app to track your expenses and know where you spend your money. By developing a budget and choosing the right payment type, you can stick to your financial goals.
Know someone else that needs this, too? Then, please share!!
“He’s my little ball of sunshine,” Mallory Bartels says of her 13-year-old Boston terrier, Buddha. With his shiny black coat and white spots on his paws that look like socks, Bartels describes him as a sweet pup with a playful personality.
Buddha’s zest for life was apparent when he jumped off the couch in Bartels’ home near Seattle. The leap landed Buddha in urgent veterinary care with a ruptured disk and paralyzed legs that required spinal surgery.
On top of being “a bawling mess” at the vet, Bartels also received a vet bill for over $5,000. “I didn’t have savings or cash to pay for it,” she says.
According to the American Pet Products Association, Americans spent nearly $36 billion in veterinary care, surgical procedures, medication and other products through vet clinics in 2022. The APPA expects that number to increase by $1 billion in 2023.
How do pet owners pay for emergency pet care? Here are options plus tips to prepare when Fido or Fluffy takes a tumble and needs urgent help.
Ways to pay for emergency pet care
Savings
Savings is one of the best ways to pay for emergency vet care, says John Boyd, a certified financial planner and the founder of MDRN Wealth in Scottsdale, Arizona. He suggests clients have an emergency fund that totals three to six months of living expenses and includes money for pet care.
The type of pet can influence how much to put away. “If you’re like me and you have a Great Dane, and they’re prone to stomach issues that could cost up to $2,000, factor that into the equation when it comes to how much to save,” Boyd says.
Vet financing plans
Many vets and pet clinics offer financing plans, typically through a third party that partners with the vet. Some plans offer 0% interest financing and a quick approval process. Read the fine print to check the interest rate on the plan, and note that approval may require a hard credit check that will cause your score to dip a few points.
CareCredit Card
CareCredit is a financing option that specifically covers health care expenses for your family, including pets. You can apply online, and CareCredit typically offers 0% interest for six, 12, 18 or 24 months for expenses of $200 or more. However, if you don’t repay the full amount by the end of the promotional period, you’ll be charged interest retroactively from your original charge date.
Bartels used an existing CareCredit credit card to pay the vet bill for Buddha’s surgery. Because the account was already open, Bartels was outside the initial 0% interest period. She understood she’d be charged interest on the vet bill she put on CareCredit.
Buddha, a 13-year-old Boston terrier, waits at a veterinarian’s office. (Photo courtesy Mallory Bartels)
Credit cards
A credit card can be a convenient way to pay for emergency veterinary care if you have the available credit. However, credit card rates can be high, so paying off any accrued balance as soon as possible is important to avoid high-interest charges.
To save on interest, Bartels transferred her CareCredit balance to a credit card with a 0% annual percentage rate for 12 months. She paid a balance transfer fee, which was offset by the savings in interest. She had to add the monthly payments to her household budget, but the balance transfer card gave Bartels breathing room to pay it off.
Pet loans
Banks, credit unions and online lenders offer personal loans that can help pay for unexpected veterinary expenses. Personal loans typically have interest rates from 6% to 36% and two- to seven-year repayment periods. Depending on how much you qualify for, loans start at $1,000 and go up to $50,000 or more. For quick cash, such as in the case of a pet emergency, some lenders provide next-day funding.
For borrowers with strong credit, a personal loan may have a lower interest rate than a credit card to pay large vet bills. A shorter loan term can mean higher monthly payments but less total interest cost. Use a personal loan calculator to estimate monthly payments based on the rate and term.
Local animal welfare organizations
Animal welfare organizations in your local area can be another option for caring for your pet. These organizations typically provide services at a lower cost than a regular vet, thanks to private funding and donations.
Regarding pet care, “we understand that not everybody has the money all the time, and we try to meet people halfway,” says Erin Johnson, clinic manager for the Society for the Prevention of Cruelty to Animals in Tulsa, Oklahoma.
In addition to preventive care, vet assistants at the SPCA offer a minor-needs clinic for pets that are feeling unwell, have an infection, are in minor pain or need an X-ray.
While the SPCA can help with minor injuries, Johnson recommends knowing where your nearest urgent care vet is in case of a major accident. “Have a relationship with a full-service vet so that when something does go wrong, you have somebody to go to,” Johnson says.
What about pet insurance?
Signing up for new pet insurance won’t help if you’re uninsured in an emergency, but depending on the plan and provider, pet insurance can cover a future accident.
Boyd says pet insurance can make sense if you don’t have enough emergency funds or if you have cash flow but not savings. In that situation, monthly premium payments can help provide coverage and peace of mind if something happens to your pet.
On the other hand, if you have savings for pet emergencies, “I would ditch the pet insurance and just self-insure, essentially,” Boyd says.
Buddha back in action
“He’s just been like a little pillar in my life,” says Bartels, who was relieved to have Buddha home after his operation. Although his spinal surgery was successful, the costs didn’t end. Bartels bought an orthopedic bed for Buddha to recuperate more comfortably and stairs to make it easier for him to go up or down from furniture.
Having learned the hard way about sudden emergency bills, Bartels opened a separate checking account for Buddha’s expenses. She deposits money monthly and uses the checking account’s debit card to pay for vet trips, food and other Buddha-related purchases.
“It helps me feel more comfortable that if we were put in the situation again, we’d at least have a cash buffer to help us out,” Bartels says.
No financial institution can be all things to all people, but some come pretty close.
BMO Harris Bank is one of those banks. It’s a full-service bank with hundreds of branches in the United States (mainly in the Midwest and Southwest) and thousands of fee-free ATMs. With a comprehensive array of checking and savings accounts, plus credit cards, auto loans, and more, BMO Harris Bank is about as close as a bank can come to being a one-stop shop.
Does that mean BMO Harris Bank is right for you? Not necessarily. Plenty of other high-quality banks vie for your deposits every day. See whether BMO is the best fit — or whether you should see what else is out there instead.
What Is BMO Harris Bank?
BMO Harris Bank N.A. is an American bank that provides consumer and business banking services online and through a network of physical branches. Eligible deposits with the bank are FDIC-insured up to statutory limits set by Congress.
Its deposit accounts include checking, savings, money market, and certificates of deposit (CDs), and it also offers credit products like credit cards, mortgages, auto loans, personal loans, and private student loans. BMO Harris Bank has a wealth management division that focuses on relatively high net worth individuals and families, but no self-directed brokerage platform.
Is BMO Harris Bank a good place to park your cash, borrow money, and invest for the future? I’ve reviewed dozens of online banks and brick-and-mortar financial institutions over the years, and I believe BMO Harris Bank is in the upper echelon of the brick-and-mortar group. In other words, it’s one of the best traditional banks to work with — in part because it has embraced technology and innovation in a way that many of its competitors haven’t.
How BMO Harris Bank Stacks Up
BMO Harris Bank is a full-service financial institution that consistently ranks among the top traditional banks for U.S.-based consumers.
It competes not only with other big banks like Chase Bank and Citibank but with major online banks as well. If you’re torn between an “innovative incumbent” like BMO Harris Bank and an “established upstart” like Ally Bank, see for yourself how the two compare.
BMO Harris Bank
Ally Bank
Monthly Maintenance Fees for Checking
None on the BMO Harris Smart Advantage™ Account
None
Savings Account Yields
Relatively low
3.60% APY
CD Yields
Up to 4.50% APY
Up to 4.25% APY
Credit Products
Credit cards, mortgages, credit-builder loans, home equity products, personal loans, auto loans, private student loans
Credit cards, mortgages, home equity products, auto loans
Self-Directed Brokerage
No, managed investments only
Yes
Physical Branches
Yes, in Illinois, Arizona, Wisconsin, Indiana, Florida, Missouri, Kansas, and some other states
No
What Sets BMO Harris Bank Apart?
Where does BMO Harris Bank get its edge? Out of all the bank’s advantages and selling points, three things really stand out:
A Checking Account With No Monthly Maintenance Fee, Period. The BMO Harris Smart Advantage™ Account is a truly free checking account. It doesn’t charge a monthly maintenance fee, period, regardless of balance or relationship status with BMO, yet it’s packed with features. It’s rare to find an account like this at a big bank.
One-Stop Shop for Credit. Even Ally Bank, probably the best online bank for borrowers, doesn’t bother with certain credit products. BMO Harris Bank has a comprehensive lineup of loans and lines of credit, from home and auto loans to personal and student loans.
Excellent CD Rates (For a Traditional Bank). BMO Harris Bank’s CD rates are competitive with the top online banks for CD customers. And they blow most traditional banks’ CD rates out of the water.
Key Features of BMO Harris Bank
BMO Harris Bank has a comprehensive lineup of deposit accounts and loans, plus some nice value-adds like account opening bonuses and a handy digital app. See what to expect from its products and how to determine which, if any, are right for you.
Account Opening Bonus Opportunities
BMO Harris Bank has some fantastic new account opening bonus opportunities for new checking customers.
BMO Harris PremierTM Account — $350 Cash Bonus
This one is best for higher-income folks who have no problem meeting the direct deposit requirement. Here’s how it works:
Open a new BMO Harris PremierTM Account by July 14, 2023, and receive a total of at least $7,500 in qualifying direct deposits during the first 90 days of account opening. If you do, you’ll get a $350 cash bonus in your account.
This new checking account offer is not available for current BMO Harris personal checking customers, nor to customers who closed a personal checking account within the past 12 months. Open on-line or in branch; accounts subject to approval.
If you can’t notch $7,500 in qualifying direct deposits during the first 90 days, this bonus could be right for you. It’s nearly as generous:
Open a new BMO Harris Smart AdvantageTM or Smart MoneyTM Account by July 14, 2023,and receive a total of $4,000 in qualifying direct deposits within 90 days of account opening. Do this and you’ll get a $200 cash bonus in your account.
The same restrictions apply to this offer — you must be a new BMO Harris personal checking customer and can’t have had a BMO Harris personal checking account within the past 12 months.
Checking Accounts
BMO Harris Bank offers three consumer checking accounts, each with its own clear use case. All offer access to in-branch and online banking, plus low- or no-fee transactions at more than 40,000 in-network ATMs:
BMO Harris Smart Advantage™ Account: With no monthly maintenance fee, this account is ideal for folks with modest incomes and low-ish balances — folks who wouldn’t be able to avoid monthly maintenance fees at most big competitor banks.
BMO Harris Smart MoneyTM Account: Is a $5 monthly maintenance fee worth it for no overdraft fees, ever? If you occasionally dip into the red, probably yes. And there’s no maintenance fee if you’re under age 25, making this a solid student checking account.
BMO Harris Premier™ Account: BMO’s fanciest checking account entitles you to relationship benefits like up to $25 in monthly out-of-network ATM fee reimbursement and 0.50% off your home equity line’s interest rate. Benefits increase with your total BMO deposit balance.
Like all banks, BMO charges some account fees beyond the headline monthly maintenance fees (where present). Here’s how the Smart Advantage Account’s fee schedule looks:
Fee Type
Fee Amount
Monthly Maintenance Fee
$0
Allpoint and BMO Harris ATM transactions
$0
Non-BMO ATM transactions
$0
Paper statements
$2, but $0 when you opt into paperless
Check images
$3, but $0 when you opt into paperless
Overdraft fee
$15, but $0 when you opt into overdraft services
Minimum opening deposit
$25
Savings Builder Account
The Savings Builder Account is BMO Harris Bank’s standard savings account. There’s a $25 minimum opening deposit and no monthly maintenance fee.
Savings Builder’s defining feature is a $5 reward for each month you save at least $200 during the first year. Save $200 per month for all 12 months of the first year from account opening and you’ll clear a cool $60 in extra cash.
Moving forward, the Savings Builder Account has a negligible yield — just 0.01% APY. First-year deposit bonus aside, it’s not suitable if you’re looking for a high-yield savings account. On the bright side, it doesn’t have the usual savings account transaction limit. You’re free to make as many withdrawals as you like without incurring a penalty.
Money Market Account
BMO Harris Bank’s money market account has a higher yield than the Savings Builder Account. However, the yield requires a paired Premier checking account, and your actual return depends on how much you have on deposit across all BMO accounts.
To get the best rates — 2.00% higher than the baseline — you need at least $250,000 in deposits with BMO. And you need at least $10,000 in the money market account to avoid the $10 monthly maintenance fee.
Needless to say, this one’s better if you have a lot of cash on hand.
Certificates of Deposit
BMO Harris Bank offers standard CDs with terms ranging from three months to 60 months (five years). All require a minimum opening deposit of $1,000 and charge interest penalties if you withdraw principal before maturity.
BMO’s standard CD rates are not competitive. The longer-term products earn less than 0.50%, compared with 4.00% APY or higher at the best online banks for CDs.
BMO does offer CDs with competitive rates though. These special CDs, as they’re known, earn upwards of 4.00% APY on terms ranging from 13 to 59 months. They require a minimum deposit of $5,000, but if you can swing that, they’re well worth it.
You can structure select CDs as individual retirement accounts (IRAs) and enjoy tax-deferred or tax-free growth.
Individual Health Savings Account
BMO Harris Bank is one of relatively few banks that offer direct-to-consumer health savings accounts (HSAs). If you’re enrolled in an individual or family high-deductible health plan (HDHP) not through your employer, a BMO Harris Bank HSA can help you save for planned and unplanned medical expenses — or save for retirement if you stay healthy.
BMO’s HSA is delivered by Lively, a leading provider of individual HSAs. There are no ongoing or hidden service fees or monthly fees — you pay nothing out of pocket for the account — and you can withdraw money at any time to cover eligible health care expenses without paying taxes. Your contributions may be tax-deductible as well.
Credit Cards
BMO Harris Bank has four consumer credit cards, although its lineup has changed in the past and could in the future:
BMO Harris Bank Platinum Rewards Mastercard®. Earn 2 points per $1 spent on eligible gas and groceries, up to $2,500 in combined purchases each calendar quarter. Plus, get 10% bonus points on your cardmember anniversary each year (based on prior-year spending) and 0% introductory APR on balance transfers for 12 months from date of first transfer (must be completed within 90 days from date of account opening).
BMO Harris Bank Premium Rewards Mastercard®. Earn 3 points per $1 spent on eligible dining, hotels, and airfare, up to $2,500 in combined spend each calendar quarter, plus 15% bonus points on your anniversary. The same first-year balance transfer promotion applies, but there’s a $79 annual fee after the first year.
BMO Harris Bank Cash Back Mastercard®. Get 5% cash back on eligible streaming and cable/satellite TV purchases and 3% cash back on eligible gas and grocery purchases, up to $2,500 in combined spend per calendar quarter. Plus, get up to $400 in cellphone protection (restrictions apply) and the same first-year balance transfer deal.
BMO Harris Bank Platinum Mastercard®. If you need to finance a major purchase, this is your card. Enjoy 0% APR for 15 months from account opening on purchases and balance transfers.
Loans and Lines of Credit
BMO Harris Bank offers a full lineup of loans and lines of credit:
Mortgage loans, including fixed-rate and variable-rate conventional loans, jumbo loans, and specialty loans like VA and FHA mortgages
Home equity products, including home equity loans and lines of credit
Specialty property loans for bank-owned properties — BMO is one of the few banks that connects consumers with distressed property opportunities
Unsecured personal loans and lines of credit
Savings secured loans — borrow against your savings balance
Credit-builder loans — ideal for people just beginning their credit journeys
Auto loans
Private student loans and student loan refinancing
Premier customers may qualify for rate discounts and other benefits on select loan products.
Wealth Management Services
BMO Harris Bank has a team of in-house wealth advisors who offer financial planning and investment management services customized to your needs. One thing to note here: BMO doesn’t have a self-directed brokerage, so if you prefer to manage your own funds, you’ll need to look elsewhere.
Mobile Banking App
The BMO Harris mobile banking app is compatible with Android and iOS devices. It’s capable of handling most everyday banking functions, including online bill pay, money transfers, and statement review.
Advantages of BMO Harris Bank
BMO Harris Bank has a lot going for it. These are its most notable advantages.
Actually Has a Free Checking Account With No Minimum Balance. BMO Harris Bank is one of the few big banks that has a truly free checking account: the Smart Advantage Account. Most competitors require you to jump through some sort of hoops to avoid a monthly fee or impose age-based restrictions you can’t avoid.
Offers a Health Savings Account for Individuals. BMO Harris Bank’s individual HSA is another rarity among big banks. And it’s backed by Lively, a leader in the HSA space.
Built-in Free Overdraft Protection With Smart Money. BMO’s Smart Money Account doesn’t charge for overdrafts, period. Call it complimentary overdraft protection — it’s a big deal if you sometimes cut it close.
Impressive Range of Deposit Accounts and Loans. BMO Harris has three checking accounts, several savings products, and just about every major type of consumer loan you can imagine. It’s a one-stop shop for consumer financial products and services.
Competitive Rates on Special CDs. If you can meet the $5,000 minimum balance requirement, BMO’s special CDs are a great deal. Yields range from 2.00% to 3.00% annual percentage yield and appear responsive to changes in benchmark interest rates.
Disadvantages of BMO Harris Bank
Consider these potential drawbacks before opening an account with BMO Harris Bank.
Poor Savings Account Yields. BMO’s Savings Builder Account has a very poor yield. It’s not even worth talking about, frankly — if you’re in the market for a high-yield savings account, look elsewhere.
Standard CD Rates Aren’t Competitive. BMO’s standard CD rates aren’t competitive either. Fortunately, as long as the special CDs are available, you don’t have to bother with them.
Special CDs Have High Minimum Balance Requirements. BMO’s special CDs have high minimum balance requirements ($5,000). If that’s tough for you to swing, you may need to look elsewhere for competitive CDs.
Premier Benefits Have High Balance Requirements. BMO’s Premier relationship tiers offer lots of potentially valuable perks and benefits, but you have to hold up your end of the bargain by bringing tens of thousands of dollars to the table. The juiciest perks are reserved for people with at least $250,000 in eligible BMO accounts.
Is BMO Harris Bank Legit?
Yes, BMO Harris Bank is legit. It’s the eighth largest bank in North America by assets and serves more than 12 million customers on both sides of the U.S.-Canada border. It has been in business for nearly 200 years and has paid dividends to shareholders for virtually all of that time — dividends that have steadily increased over the decades.
For U.S.-based customers, BMO Harris Bank is a Member FDIC institution, which means eligible deposits are insured up to statutory limits by the Federal Deposit Insurance Corporation. When you open a checking, savings, money market, or CD account with BMO Harris, you can rest assured that your money is backed by the full faith and credit of the U.S. government — up to $250,000 per account type.
Final Word
BMO Harris Bank is a full-service financial institution that has been in business for hundreds of years and serves millions of customers in the U.S. and Canada. It’s accessible through a network of physical branches (mostly in the Midwest and Southwest), through thousands of in-network ATMs, and online and through the BMO Harris Bank mobile app from anywhere.
BMO Harris Bank stands out for several reasons. It has one of the best no-maintenance-fee checking accounts of any big bank. It offers a comprehensive lineup of savings products, although its actual savings accounts don’t have competitive yields. And it’s basically a one-stop shop for consumer credit, from credit cards and auto loans to mortgages and education financing.
If you’re in the market for a new bank, I’d encourage you to give BMO Harris Bank serious consideration. It’s not perfect, to be sure, but it’s better than most.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
The Oregon-based credit union First Tech has a small suite of credit cards that includes the Choice Rewards World Mastercard. A rarity among cards, the Choice Rewards card boasts “triple zero” perks: a $0 annual fee, $0 balance transfer fee and a 0% annual percentage rate period. However, because a credit union issues the Choice Rewards card, potential cardholders must meet specific eligibility requirements to get the Choice Rewards card.
If you already belong to the First Tech credit union and could use some breathing room on interest, getting the Choice Rewards card feels like an easy, sensible choice. Everyone else will need to decide if the effort required to join the credit union is worth the benefits of the Choice Rewards card.
Here are five things to know about the First Tech Choice Rewards World Mastercard.
1. Membership is required
Only First Tech Credit Union members are eligible to apply for the Choice Rewards credit card. Nevertheless, there are many points of entry into this credit union. You can become a member if:
A family or household member is already a First Tech member.
You or a family member work for one of First Tech’s partners. The list is quite extensive and represents a range of industries.
You work for the state of Oregon.
You work or live in Lane County, Oregon.
You belong to California’s Computer History Museum, which costs as little as $15 a year.
You belong to the Financial Fitness Association. Membership costs $8 a year.
The ability to gain First Tech membership by joining the Financial Fitness Association will be especially useful for those who live outside of Oregon, where the First Tech Credit Union is headquartered. Credit union members must typically live or work near one of the union’s branches. Still, by joining the Financial Fitness Association, you can bypass that requirement for a few bucks a year.
2. It’s light on fees
One of the highlights of the Choice Rewards card is the absence of fees common in other credit cards. In addition to its $0 annual fee, the card also does away with:
The Choice Rewards card does charge up to a $25 fee for late and returned payments, but other cards usually charge as much as $40.
🤓Nerdy Tip
When you open a First Tech Rewards Checking or Savings account, you’ll get a $10 streaming subscription rebate and an extra 0.5% cash back on monthly credit card spending. Earnings from the additional 0.5% are capped at $15.
3. 0% APR period is ideal for balance transfers
As noted above, the Choice Rewards card doesn’t assess a fee on balance transfers. Most other cards charge between 3%-5% percent of the balance transfer amount, which could mean hundreds of dollars in fees.
You’ll save money on balance transfers to the Choice Rewards card thanks to its 0% APR period. If you complete the balance transfer within 90 days of account opening, you won’t pay interest on that debt for 12 billing cycles. A year of no interest charges can certainly accelerate the debt payoff process.
Be aware that you may lose the 0% APR promotion if you make a late payment before the 12 billing cycles have passed. In addition, your interest rate would increase to the current balance transfer APR of 13%-18% (as of May 2023).
Cardholders can transfer any type of loan to the Choice Rewards credit card; however, loans moved from existing First Tech Credit Union accounts do not qualify for the 0% APR period.
🤓Nerdy Tip
The Choice Rewards credit card has a minimum credit limit of $10,000 and a maximum of $35,000.
4. It earns double points in popular spending categories
The Choice Rewards card earns 2 points per $1 spent on several everyday categories:
Electronics.
Grocery stores.
Household goods.
Medical expenses.
Telecommunications.
All other spending earns 1 point per $1 spent. There’s no cap on the points you can earn, and points never expire.
Points are worth 1 cent each when redeemed for cash, so 1,000 points equal $10 in cash back. In addition to cash back, rewards points may be redeemed for travel, merchandise, gift cards and experiences. Minimum redemption amounts vary depending on the redemption type; cardholders must have at least 2,500 points to redeem for cash.
🤓Nerdy Tip
The Choice Rewards Mastercard has a robust list of categories that qualify for bonus points, but read the fine print so you’re familiar with what earns double points and what doesn’t. For example, food delivery services won’t count as dining and warehouse clubs like Costco aren’t classified as grocery stores.
5. It has a sweet sign-up bonus
New Choice Rewards cardholders will earn 20,000 points by spending at least $3,000 within the first 60 days of account opening. That’s equal to $200. That bonus is competitive with those offered by top-shelf credit cards such as Citi Custom Cash℠ Card and Wells Fargo Active Cash® Card. However, the spending threshold to earn the bonus on the Choice Rewards card is a bit higher than other cards, which can be as low as $500.
Editorial note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted. Read our Editorial Guidelines to learn more about our team.
How to use Credit Karma’s debt repayment calculator
If you’re trying to get out of debt, Credit Karma’s debt repayment calculator can help you figure out how long it could take.
Our calculator can help you estimate when you’ll pay off your credit card debt or other debt — such as auto loans, student loans or personal loans — and how much you’ll need to pay each month, based on how much you owe and your interest rate. You’ll also be able to see how much principal versus interest you’ll pay over the lifetime of the debt.
Of course, it’s important to keep in mind that these are only estimates based on the info you provide. This debt payoff calculator can help give you a sense of timing and monthly payments as you put together a repayment plan, but it doesn’t consider other factors — such as your card’s annual fee (if it has one), late-payment fees or any other fees you might incur. It also assumes you won’t use the card to make any new purchases.
Here are some details on the information you’ll need to use this debt calculator.
Balance owed
Enter the amount of debt you’re trying to pay off. For example, if you’re paying off credit card debt, you can usually find the balance by logging into your credit card account or looking at your most recent billing statement.
If you’re carrying a balance on multiple credit cards, and you’re planning to consolidate those balances on to one card, you could list the total combined balances here. But if you plan to pay the cards off separately, run a calculation for each card separately because they may have different interest rates.
Estimated interest rate
The interest rate is the amount you’ll pay to borrow money, expressed as a percentage. The interest rate on a loan is different from the annual percentage rate, or APR, which includes the amount you pay to borrow as well as any fees. On a credit card, the APR is the interest rate expressed as a yearly rate. Entering an estimated APR in the calculator instead of an interest rate will help provide a more accurate estimate of your monthly payment.
Pay attention to whether your credit card charges different interest rates for purchases, balance transfers and cash advances. If that’s the case, you may be able to refer to your most recent credit card statement to see which rate most of your balance is being charged. If you have two large balances on your card that have different interest rates, you might want to run those balances through the calculator separately.
It’s also important to keep in mind that if you make a late credit card payment, you might get hit with a penalty APR, which could unexpectedly increase your interest charges.
You can usually find your credit card APR by logging into your account and searching for the terms and conditions, cardmember agreement or a recent billing statement. If you have a loan, the APR should be stated in your loan documents.
Expected monthly payment
Whether you plan to make your credit card’s minimum payment or think you can afford to pay a little more each month, enter that amount here to find out how long it could take you to get out of debt. If you’re more concerned with repaying your debt within a certain timeframe of number of payments, keep this field blank.
Desired months to pay off
Enter the length of time (in months) that you’d like to repay your debt. For example, if you want to pay off your credit card debt in the next year, enter “12 months” in this field to estimate how much you need to pay each month to hit that goal.
How do you calculate interest on a credit card?
To calculate your interest charges, you need to figure out what your APR is, how much your average daily balance is, and how many days are in your billing cycle. You should be able to find most of this information by logging into your account.
Divide your APR by 365 (the number of days in a year) to get your daily periodic rate.
Multiply that number by your average daily balance. Your average daily balance is your total balance divided by the number of days in your billing cycle.
Multiply your daily periodic rate by the number of days in your billing cycle to get your total interest charges for the billing cycle.
If you’re carrying a credit card balance, you’ll likely be charged interest. Credit card companies may differ in the time frame they give you to pay for new purchases before they charge interest, though they typically give you about a month to do so.
How do you calculate a credit card payment?
Your credit card issuer will require you to make the minimum payment each month. Whileeach issuer may have a slightly different policy, the common practice is to charge the greater of a certain amount (say $25 to $35), or …
1% of your current balance, plus
Any new interest charges, plus
Any late fees or past due amounts if you previously missed a payment
You may also choose to pay your statement balance or current balance. The statement balance is your entire balance as measured at the end of your last billing period. After you receive your credit card bill, you usually have a few weeks to pay before it’s due. During this time, any additional purchases you make will be added to your current outstanding balance, which is the total amount you owe right now.
You can avoid interest charges by paying off either the statement balance or current balance by the due date.
How can I pay off large amounts of debt?
Consider these strategies and financial products to help you get out of credit card debt or other types of debt.
Snowball method
With the debt snowball method, you start by knocking out your lowest debt balance while making the minimum monthly payment on everything else. After you pay off that first debt, you put the money you were paying on it toward your next smallest debt. If you repeat this process, you’ll start gaining momentum like a snowball.
Paying off your smaller debts more quickly provides a little extra motivation. But the downside is that you might pay more in interest charges because you’re prioritizing the size of the balance over the APR.
Avalanche method
The debt avalanche method, on the other hand, focuses on paying off your debt with the highest interest rate first. This way, you’ll reduce the total amount of interest you pay on your debt over the long term. But you might not notice your progress as quickly, especially if your higher-interest-rate debt consists of your larger balances.
Balance transfer card
You may find it simpler to consolidate your credit card debt onto one card with a balance transfer credit card. Not only is it easier to focus on one payment, but you might be able to negotiate a lower interest rate to help you save money.
Some credit cards have a low promotional interest rate on balance transfers. This could be ideal for people with good or excellent credit who qualify for the card and expect to pay off their balance within the intro APR period.
Personal loan
If you need more time to pay off your debt, consolidating your credit card debt into a personal loan may offer lower interest rates over a longer period of time. Keep in mind that you’ll need good to excellent credit scores to qualify for the best loan rates and terms. And the longer you stretch out your personal loan term, the more interest you’ll pay on your loan. If you decide a personal loan is your best option for paying off your debt, be sure to shop around and compare loan offers to find the best option for your financial situation.
If you’re a small business owner, then your credit card may be one of your most valuable tools. The right small business credit card offers you a way to separate out your company expenses, a means of short-term financing, and even valuable rewards.
The U.S. Bank Triple Cash Rewards Visa® Business Credit Card helps you to score big on all three of these features. It offers 3% cash back on many common business purchases, while giving you 15 months of 0% APR financing (then 18.99% to 27.99% variable) on both new purchases and balance transfers.
You can even earn a $500 cash back bonus for opening a new account. But best of all, it does this while imposing no annual fee.
What Is the U.S. Bank Triple Cash Rewards Visa® Business Credit Card?
The U.S. Bank Triple Cash Rewards Visa® Business Credit Card is a credit card for small business owners that offers both cash back rewards and a promotional financing offer.
As a new applicant, you can earn $500 cash back after using your card to spend $4,500 within 150 days of account opening. New accounts also receive 15 months of 0% APR introductory financing on both new purchases and balance transfers, with a 3% balance transfer fee.
This card also offers you 3% cash back on eligible purchases at gas and EV charging stations, office supply stores, cell phone service providers, and restaurants. You earn 1% cash back on all other purchases, and it even features a $100 credit for recurring software subscription expenses such as FreshBooks or QuickBooks.
And like many small business credit cards, this card allows you to track your business spending using free online tools. These tools produce reports that give you a complete picture of your business’s credit card spending.
What Sets the U.S. Bank Triple Cash Rewards Visa® Business Credit Card Apart?
Most credit card issuers offer a variety of small business credit cards, and many of these provide cash-back rewards. But this card stands out for a few reasons:
Strong 0% APR promotional financing offer. The best interest free financing offers are typically found on cards marketed to consumers, and the offers found on small business credit cards are rarely in the same ballpark. But this 15 month offer for both new purchases and balance transfers is one of the best available for a small business card.
$500 cash back new account bonus. This isn’t the largest cash bonus available for new accounts, but it’s still very competitive. It’s also helpful that you have 150 days (five billing cycles) to reach the minimum spending requirement of $4,500. Many other small business cards have larger spending requirements that you must meet within three months.
Unlimited 3% cash back reward categories. You earn 3% cash back on eligible purchases at gas and EV charging stations, office supply stores, cell phone service providers, and restaurants. But unlike many cards, there’s no cap on the amount of purchases that are eligible for the 3% cash back.
$100 annual credit for accounting software purchases. Not only does this card not have an annual fee, you receive a $100 credit every 12 months for recurring software subscription expenses such as FreshBooks or QuickBooks.
Key Features of the U.S. Bank Triple Cash Rewards Visa® Business Credit Card
This small-business credit card has a simple rewards structure, a strong promotional financing offer, and very competitive cash back rewards.
Sign-Up Bonus
Earn $500 in cash back after spending $4,500 on your card within 150 days of account opening.
Earning Rewards
Earn unlimited 3% cash back on eligible purchases at gas and EV charging stations, office supply stores, cell phone service providers, and restaurants. You also earn 5% cash back on prepaid car and hotel reservations booked in the U.S. Bank travel rewards center using your card.You earn 1% cash back on all other purchases.
Redeeming Rewards
Cash back may be redeemed as a statement credit, U.S. Bank Rewards Card, or deposited to your U.S. Bank business checking, savings or money market account.
0% Intro APR Promotion
New accounts also receive 15 months of 0% APR introductory financing on both new purchases and balance transfers made within 30 days of account opening, with a 3% balance transfer fee.
Once the 0% intro APR promotion ends, the ongoing purchase and balance transfer APR is 18.99% to 27.99% based on your creditworthiness when you open your account.
Important Fees
This card has no annual fee. There’s a 3% balance transfer fee and a 3% foreign transaction fee imposed on all charges processed outside the U.S.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, then you’ll likely have trouble being approved. However, this is pretty standard for a small business credit card.
Pros & Cons
This is one of the best no-annual-fee business credit cards around, but it’s not perfect. The foreign transaction fee is a bummer, as is the lack of travel transfer arrangements with top airlines and hotels.
No annual fee
Up to 5% cash back on eligible purchases
Sign-up bonus is well above average
$100 credit towards accounting software
3% foreign transaction fee
No travel rewards points to transfer to external partners
Few cardholder benefits
Advantages
This card has several advantages over its competitors, including its new account bonus, introductory financing, cash-back rewards, and low fees.
No annual fee. This card has no annual fee. Having an annual fee can be a dealbreaker for some frugal business owners.
Great bonus rewards. It’s really fantastic to get unlimited 3% cash back on common business purchases like gas and EV charging stations, office supply stores, cell phone service providers, and restaurants.
Impressive sign-up bonus for a no-annual-fee card. This card has one of the best offers out there for a small business credit card with no annual fee.
Very competitive 0% intro APR offer. This card’s 15-month 0% APR introductory financing offer (then 18.99% to 27.99% variable) is valid for both new purchases and balance transfers. Offers of this length are common for consumer cards, but almost unheard of for small business products.
$100 credit towards accounting software. If your small business uses FreshBooks or QuickBooks, then it’s like you’re starting each year $100 in the black even before you earn any rewards.
Disadvantages
There’s no annual fee for this card, but its gets you with a foreign transaction feeif you travel outside the U.S., or if you need to make a purchase that’s processed outside the U.S. This card also isn’t a favorite of those who love award travel.
3% foreign transaction fee. These unnecessary fees are largely obsolete, so it’s disappointing to see it on this card. So when you think U.S. Bank, you should remember only to use this card in the U.S. Find a different card if you’re traveling outside the U.S., or need to make a credit card purchase that will be processed outside of the U.S.
No travel rewards points. If you’re an award travel enthusiast, you can sometimes earn more value by collecting travel rewards points that can be transferred to airlines and hotels. If this sounds like you, then this isn’t the right card.
Not a lot of cardholder benefits. Some small business owners love travel insurance and purchase protection benefits. But U.S. Bank doesn’t advertise any for this card.
How the U.S. Bank Triple Cash Rewards Visa® Business Credit Card Stacks Up
One of U.S. Bank’s closest competitors is the Business Advantage Customized Cash Rewards credit card from Bank of America. It also has no annual fee, an attractive new account bonus, and a 0% intro APR financing offer. The U.S. Bank card has a much more attractive introductory financing offer, and its bonus cash-back doesn’t have limits.
U.S. Bank
Bank of America
Annual Fee
$0
$0
Sign-Up Bonus
Yes
Yes
Rewards Rate
Unlimited 3% on select purchases.
2%-3% cash back, with limits.
0% Intro APR
Yes, purchases and balance transfers
Yes, purchases only
Foreign Transaction Fee
3%
3%
Credit Needed
Good or better
Good or better
Final Word
The U.S. Bank Triple Cash Rewards Visa® Business Credit Card gets your attention with $500 cash back for new accounts, along with an appealing introductory financing offer. But it keeps you interested by offering unlimited 3% cash back on purchases from popular business categories.
You’re not going to find too many other small-business credit cards that offer 15 months of interest-free financing on both new purchases and balance transfers, nor will you find many cards with unlimited 3% cash back categories. If cash-back rewards and promotional financing are the qualities that you’re looking for, then the U.S. Bank Triple Cash Rewards Visa® Business Credit Card is a card that you must consider.
The Verdict
Our rating
U.S. Bank Triple Cash Rewards Visa® Business Credit Card
Sign-Up Bonus:Earn $500 cash back after using your card to make $4,500 in eligible purchases within 150 days of account opening.
5% Cash Back: Eligible prepaid travel purchases booked through U.S. Bank Travel Rewards Center.
3% Cash Back: Purchases at gas and EV charging stations, office supply stores, cell phone service providers, and restaurants.
1% Cash Back: All other eligible purchases.
Intro APR: 0% on purchases and balance transfers for 15 months, then 18.99% to 27.99% variable.
Annual Fee: $0.
Credit Needed: Good or better.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Jason has been writing about personal finance, travel, and other topics on blogs across the Internet. When he is not writing, he has a career in information technology and is also a commercially rated pilot. Jason lives in Colorado with his wife and young daughter where he enjoys parenting, cycling, and other extreme sports.
If you’re actively enrolled in any sort of accredited higher education or certification program, you’re eligible for a whole slew of student credit cards.
Sorting through all your options can be a chore, but take my word for it: You want to consider the Bank of America® Travel Rewards Credit Card for Students. It’s one of the best student credit cards on the market — if you qualify.
And qualification is just one of this card’s curveballs. Before you apply, make sure you understand all its ins and outs.
What Is the Bank of America Travel Rewards Credit Card for Students?
The Bank of America Travel Rewards Credit Card for Students is a student credit card with no annual fee and a flat-rate rewards program.
Notable features include a better-than-average sign-up bonus and an unusually long 0% intro APR promotion on purchases and balance transfers. If you have a Bank of America checking account, you can (but aren’t required to) use your card for overdraft protection. There’s no transfer fee for this service, but interest begins to accrue right away.
What Sets the Bank of America Travel Rewards Credit Card for Students Apart?
While not wildly unique, the Bank of America Travel Rewards Credit Card isn’t a typical student credit card. It stands out for several reasons:
Unusually generous sign-up bonus. This card has the best sign-up bonus of any student credit card on the market. If you can meet the reasonable early spending requirement, it’s an excellent incentive to open an account.
Unusually long 0% intro APR promotion. This card also has a category-leading 0% intro APR promotion: 18 months for purchases and balance transfers. Whether you’re planning a big purchase ahead of the semester or need to pay down existing high-interest credit card debt, there’s no better student card.
High credit standards. This card has unusually picky underwriting standards, at least compared to other student cards. You need good credit to qualify.
Key Features of the Bank of America Travel Rewards Credit Card for Students
The Bank of America Travel Rewards Credit Card for Students has is a basic rewards credit card with student-friendly features like an above-average sign-up bonus, an average rewards program, and a very impressive 0% intro APR promotion.
Sign-Up Bonus
Earn 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening. That’s worth $250 when redeemed for a statement credit toward travel and dining purchases.
Earning Rewards
All eligible purchases earn 1.5 points per $1 spent. There’s no limit to how many points you can earn, and points don’t expire as long as your card remains active and in good standing.
Redeeming Rewards
The best way to redeem is for statement credits against eligible travel and dining purchases. Each point is worth $0.01 when you redeem, so a 20,000-point redemption is worth $200.
0% Intro APR Promotion
This card has a 0% intro APR promotion on purchases and balance transfers for 18 months from account opening. After that, variable regular APR applies, currently 17.74% to 27.74%. You must make qualifying balance transfers within the first 60 days of account opening.
Important Fees
This card has no annual fee or foreign transaction fee. The balance transfer fee is 3% of the transfer amount.
Overdraft Protection (Balance Connect)
If you have a Bank of America checking account, you can link it to your credit card for overdraft protection. When your bank account balance goes negative, Bank of America charges your credit card for the difference, negating the overdraft.
There’s no transfer fee for this service, but transfers immediately begin accruing interest, so you should pay them off as soon as possible to reduce your cost.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, you could have trouble qualifying. This is an unusually strict requirement for a student credit card.
If you opt in, you can get your FICO score monthly through your Bank of America account dashboard. This doesn’t affect your approval chances (you already have the card, after all), but it’s a nice way to keep tabs on your credit for free.
For more information, see our article on good versus bad credit.
Advantages
This card has several things going for it, including no annual fee, unlimited rewards, a very impressive sign-up bonus, and a category-leading intro APR deal.
No annual fee. This card has no annual fee, which is ideal if you don’t use it all the time or don’t spend enough to offset a recurring charge.
Unlimited rewards. There’s no limit to your rewards-earning potential with this card. Some student cards cap earnings, so this is notable.
Impressive sign-up bonus for a no-annual-fee card. This card has the best sign-up bonus in the student credit card category. In fact, it’s one of the better sign-up bonuses of any no-annual-fee rewards card.
Category-leading 0% intro APR promotion. This card’s 18-month 0% APR promotion on purchases and balance transfers is another unusual and appealing selling point for a student credit card. It blows other student cards’ 0% intro APR deals out of the water.
Low-cost overdraft protection. If you have a Bank of America checking account, you can use your credit card to back it up if (or when) your checking balance goes negative. Many credit cards don’t offer an overdraft protection option at all, and Bank of America’s is notable for being transfer-fee-free.
Disadvantages
Watch out for this card’s picky underwriting, capped rewards rate, and limited value-added perks.
Picky underwriting. By student credit card standards, the Bank of America Travel Rewards Credit Card for Students is difficult to qualify for. You need good credit or better, which many students can’t swing.
No way to earn above the 1.5x baseline. This card has no bonus rewards categories or tiers. Your earning rate tops out at 1.5 points per $1 spent, no matter what you spend your money on — lower than many competing cards.
Few value-added perks. This card has little in the way of perks and benefits. Most travel cards offer extras like airport lounge access or hotel freebies, but not this one.
How the Bank of America Travel Rewards Credit Card for Students Stacks Up
The Bank of America Travel Rewards Credit Card for Students is a good student credit card, but not so good that you shouldn’t consider any others before applying. See how it compares against the Capital One SavorOne Student Cash Rewards Credit Card, another popular (and relatively generous) option.
Bank of America
Capital One
Annual Fee
$0
$0
Sign-Up Bonus
Generous
Less generous
Rewards Rate
1.5x
Up to 8%
0% Intro APR
18 months
None
Foreign Transaction Fee
$0
$0
Credit Needed
Good or better
Fair or better
Final Word
The Bank of America® Travel Rewards Credit Card for Students has some notable perks that aren’t common in the student credit card space. Its sign-up bonus beats out many adult cash-back credit cards, its 0% intro APR promotion is also category-leading, and it earns rewards on all eligible purchases.
The catch: This card is unusually difficult to qualify for. That’s a potential problem for students with limited (or nonexistent) credit histories. By all means, try your luck — but don’t be surprised if you need to settle for a less generous card until your credit is in better shape.
The Verdict
Our rating
Bank of America® Travel Rewards Credit Card for Students
Sign-up bonus: Yes
Rewards rate: 1.5x points
Redemption: Dining and travel statement credits
Intro APR: 0% on purchases and balance transfers for 18 months
Annual fee: $0
Credit needed: Good or better
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
SoFi is a nationally chartered, online-only bank that offers customers a high 4.20% on savings, an interest-earning checking account, and a host of other benefits for being a member. The bank currently has more than 5.5 million customers, which it calls members, and has an extensive rewards system in place to help your money go further and grow faster.
Find out why SoFi is a top-rated bank, as well as one of the fastest growing financial technology companies offering loans, an investment platform, and a rewards credit card.
SoFi at a Glance
SoFi became a nationally chartered online bank in early 2022, following the fintech’s acquisition of Golden Pacific Bancorp. SoFi started as a company that provided student loan refinancing, and evolved to provide personal loans and other services.
Its status as a national bank enables the fintech to help even more people. “This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said SoFi CEO Anthony Noto in a press release following the acquisition.
SoFi Products
Today, the online bank offers a variety of products to help American consumers meet their financial goals. The parent company, SoFi Technologies, is the parent company of SoFi Bank, Member FDIC. Products and services include:
SoFi checking and savings
SoFi personal loans
Credit card
Student loans and student loan refinancing
Mortgages
Investment and Retirement Products
Find out how these products compare to competitors in the industry in our SoFi reviews below.
SoFi Checking and Savings Account
SoFi offers a combined checking and savings account to customers. You cannot open one without the other, but this provides tremendous benefits and an incentive to save. Currently, when you open a SoFi checking and savings account, you can earn up to $250 when you set up direct deposit within the first month.
That’s in addition to all the other perks, including an account with no monthly maintenance fees, no overdraft fees (for qualifying customers), and no minimum balance requirement. Plus, deposits are FDIC-insured up to $2 million through SoFi’s network of partner banks, which exceeds the federal limit of $250,000 per account holder, per account type.
SoFi Checking
Your SoFi checking account comes with a cash back debit card that pays up to 15% cash back on debit card purchases when you shop at local businesses. Your SoFi debit card also offers fee-free access to more than 55,000 AllPoint ATMs for cash withdrawals, cash deposits, and balance transfers. You can also check account balances at any ATM with no fees.
Your SoFi checking account also has many other benefits you may not find in a traditional bank account. You can get paid two days early with early direct deposit. Plus, your SoFi checking account earns interest at a rate of 1.20% APY.
If you enable overdraft protection, SoFi will pull from your savings account to cover checks, debit card purchases, and ACH withdrawals, including online bill payments, loans, and P2P payments. It will not pull from savings you have designated in vaults for specific purposes.
SoFi Savings Account
Your SoFi checking account offers a 4.20% APY, which is one of the highest available for online savings accounts. Be aware that to earn this high rate, you’ll need a qualifying direct deposit of any amount each month. Otherwise, you’ll earn 1.20% on all account balances.
The savings account also helps with cash management by offering automatic savings features and savings vaults. You can designate a specific amount of each ACH direct deposit or cash deposit to go directly into your SoFi savings account or into a specific savings vault. Unlike many traditional banks, there is no limit on savings withdrawals or transfers.
SoFi Pros and Cons
Your SoFi bank account has a number of desirable features that make it one of the best online savings and checking accounts for many people.
Pros
High 4.20% APY on savings
1.20% APY on checking account balances
Early direct deposit
No ATM fees
No bank fees
Overdraft protection for qualifying customers
Cons
No CDs
No money market accounts
No branches for in-person service
SoFi Membership Features and Additional Perks
SoFi members who open a fee-free combined checking and savings account also qualify for other benefits. There is no minimum opening balance or minimum balance requirements to be considered a SoFi member.
Some of the membership benefits include:
15% off estate planning
Free access to career coaching
Free financial planning services
Member events that can help with money management
SoFi Member Rewards
A few of the SoFi member benefits stand out, including the SoFi Member Rewards program. To join, download the SoFi app. You will earn points when you take actions like:
Using your debit card
Checking your credit store
Saving money
Investing
As you earn points, you can convert those points to cash deposited into your SoFi bank account. You can then redeem points to help may loan payments, convert points into fractional stock shares through SoFi Active Invest, or even cash in points for a statement credit.
SoFi Referral Program
SoFi’s Rewards don’t stop with actions you take within your account. If you share SoFi with friends using your unique link, you’ll earn additional points you can cash in.
Currently, SoFi offers 2,000 rewards points for every person you refer who opens a SoFi checking and savings account with at least $10. You will also earn 2,000 points for friends who open a credit card, SoFi Credit Score Monitoring Account, or fund a Lending Product within 90 days of registering for SoFi using your link. Your friend will also earn 2,000 points.
Note that you can only earn points for one account per friend, so your friend may open a bank account and a credit card, but you will each only earn 2,000 points.
SoFi Stadium Perks
You might not think of SoFi as a travel or entertainment rewards card, but SoFi’s Stadium Perks program does provide unique benefits for Los Angeles residents and tourists. SoFi members earn 25% cash back on purchases at SoFi Stadium, home of the Los Angeles Rams and Los Angeles Chargers, when you use your debit or credit card.
Plus, gain access to the exclusive SoFi Member Lounge and fast and easy entry to the stadium through the SoFi Member Express Entry line. If you need to check your bag, SoFi will reimburse the fees to your checking account or credit card.
SoFi Plus: Premium Membership
SoFi Premium members earn even more perks. Unlike many premier programs, SoFi Plus does not require an additional monthly purchase or subscription fee. To qualify, just set up direct deposit with your checking and savings account. When your first direct deposit clears, you’ll gain access to all the premium benefits.
Qualifying direct deposits for SoFi Plus must reach $1,000 per month or more to gain access to all the features of SoFi Plus. This includes no-fee overdraft coverage and rate discounts on SoFi loans. Other features, including the 4.20% APY, 2X rewards points, and preferred access to IPOs through SoFi Invest, apply to all SoFi Plus members.
How to Open a SoFi Account
Opening an account online is easy. You’ll need to provide some information, including your address and Social Security number. You must be a U.S. citizen or permanent resident to qualify.
There is no minimum opening deposit, but you’ll want to fund your account to take advantage of high interest rates and access all the benefits. You can deposit cash or checks to fund your account for the first time through:
ACH direct deposit
Mobile check deposit
a GreenDot debit card
Instant Funding
To take advantage of Instant Funding, link your existing Visa or Mastercard debit card to your SoFi account. Click “Transfer Instantly” and you can transfer up to $500 into your account in minutes. To use this method, you must be a new SoFi customer and deposit a minimum of $50.
SoFi Credit Card
The SoFi credit card lets you maximize the points you can earn. The card delivers 2% cash back rewards on every purchase and has no annual fees. To qualify, you’ll need a “good” or “excellent” credit score.
The card has a standard variable Annual Percentage Rate (APR) of between 17.74% up to 29.74% based on your credit score and financial history. Cash advances carry an APR of 31.74%.
The card carries fees comparable to other top-tier rewards cards, including a late payment/returned payment fee of up to $39, and balance transfer or cash advance fees of $10 or 5% of the transaction amount, whichever is greater.
You can redeem your cash back as a statement credit, cash back into your checking or savings account, or as a deposit for investing through SoFi Invest.
SoFi Investing
SoFi is not just an online bank, but a full-fledged financial services firm that includes planning, management, and investing. The online stock trading app provides automated investing or hands-on options. You can trade:
Stocks
ETFs
Fractional stocks
Crypto
IPOs (for qualified SoFi Plus members only)
SoFi Investing at a Glance
SoFi offers active investing for stocks, ETFs and even IPOs. You can start investing in some of the highest market cap companies on the S&P 500 and other stock indexes with as a little as $5. SoFi does not charge commissions on trades. When you open an Active Investing account with at least $10, you could win a bonus of stocks valued at up to $1,000 by playing the “Claw Game” promotion.
If you prefer not to engage in active investing, you can set up an automated investing account with as little as $1. Invest a set amount one time or set up automated recurring payments to watch your investments grow.
You will need to answer some questions so that SoFi can determine your risk tolerance and choose the right portfolio for you. SoFi automatically rebalances your investments quarterly and keeps your portfolio diversified based on your goals and risk tolerance.
SoFi also gives investors access to Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and 25 other popular cryptocurrencies. When you make your first crypto trade with a $10 minimum, you will earn a $100 bonus in Bitcoin within seven days. SoFi charges a mark-up of 1.25% on all crypto transactions.
SoFi Retirement Accounts
In addition to active and passive investment services through stocks, bonds, and ETFs, SoFi’s investments include Roth, SEP, and Traditional IRAs for retirement. You can choose active or automated investing. SoFi financial planners can help you create a retirement strategy that will work for you.
SoFi Investing Pros and Cons
As with all investment platforms, SoFi: Invest has many benefits and a few drawbacks.
SoFi Invest Pros
Active or automated investing
Investments in crypto, stocks, ETFs
Fractional shares permitted
Options investing
Intuitive app
SoFi Invest Cons
Options investing may require advanced knowledge
Not every investment will earn money
Odds of winning a $1,000 stock bonus are slim
SoFi Student Loans
Unlike many online banks, SoFi offers student loan refinancing with fixed interest rates as low as 4.99%. To qualify for the lowest interest rate, you will need to set up autopay for your loan payments.
SoFi can help you pay down your student loans faster with fixed APRs of 4.99% up to 9.99% or variable APRs of 5.74% to 9.99% APR. You may qualify for a SoFi student loan if you are gainfully employed, starting a job within 90 days of your loan application, or have sufficient income from various sources. You should also show a solid financial history and monthly cash flow indicating you can make the SoFi loan payments.
SoFi Mortgages
SoFi offers a broad range of mortgage products, including:
Conventional mortgages
Jumbo loans
Home equity loans
Cash-out refis
Short-term bridge financing for investment properties
With interest rates rising, SoFi’s “Lock and Look” feature lets you lock in today’s rates for up to 90 days while you shop for your dream home. Checking for your rate won’t affect your credit score.
First-time homebuyer loans may require as little as 3% down, while other home mortgages require just 5% down. Mortgages with a loan-to-value ratio greater than 80% will require private mortgage insurance.
SoFi offers conventional, fixed-rate mortgages with terms ranging from 10 to 30 years. If you take out a 30-year mortgage, you may qualify for a 0.25% pricing special or interest rate discount. To qualify for the lowest rates, you’ll want to have a strong credit history, an excellent credit score, and a low debt to income ratio.
SoFi Personal Loans at a Glance
SoFi may offer one of the top-rated online checking accounts today. But SoFi was founded as an online loan company in 2011, providing personal loans with no fees and loan amounts from $5,000 to $100,000. You can check your rates quickly with no impact to your credit score.
SoFi Personal Loans Review: Members-only Perks and Competitive Rates
A SoFi personal loan offers low fixed rates based on your credit history. Repayment terms range from two to seven years, while loan amounts run from $5,000 up to $100,000. SoFi borrowers pay no origination fee. You won’t suffer a prepayment penalty if you want to pay off your loan early. You can receive loan funds as quickly as the same day you apply.
SoFi personal loan interest rates range start at 8.99% according to the SoFi website. Secure the lowest rates with automatic payments directly from your SoFi account. SoFi Plus borrowers with qualifying monthly direct deposits may receive a rate discount as well. The higher your credit score, the lower your interest rate.
SoFi offers unemployment protection for borrowers, which can help with cash flow if you lose your job. You can modify your SoFi personal loan payments while you look for a new job. SoFi’s career coaching can even help you find new work.
Best for Fee-Free Debt Consolidation Loans
As one of the top online lenders today, SoFi can help you save money by consolidating high interest credit card debt into one, low, monthly loan payment. SoFi personal loans have no origination fee. Credit card consolidation can help you get out of debt faster and make it easier to pay your bills with one monthly payment directly from your account.
If you are planning to consolidate credit card debt through a SoFi personal loan, you can choose Direct Pay. Loan proceeds will go to your credit card companies directly, saving you time and hassle. You’ll also earn an interest rate discount with Direct Pay, making SoFi a great choice for credit card debit consolidation.
SoFi Personal Loans: Pros and Cons
SoFi personal loans have a number of benefits compared to other online lenders. Let’s look at the pros and cons of your SoFi personal loan.
Pros
No origination fees
Unemployment protection
Receive funds the same day you are approved
No prepayment fees
Loan amounts up to $100,000
Cons
Must be a U.S. citizen-permanent resident
Risk of charging up credit cards again after debt consolidation loan
Excellent credit scores required to qualify for the lowest rates
Hard credit pull to obtain a loan may reduce your credit score temporarily
What You Can Use SoFi Loans For
You can use SoFi loan money for virtually anything, including home improvements, credit card debt consolidation, family planning and IVF, or even luxuries like weddings and travel. With competitive rates, easy automatic payments, and unemployment protection, a SoFi personal loan might make sense to pay for one-time events where you might normally use a credit card.
How to Apply for a SoFi Personal Loan
Applying for a personal loan is easy. You may want to check your credit report first to ensure that all the information is accurate. A solid financial history can help you secure the best loan rates and highest loan amounts.
You will first want to open your SoFi bank account and set up direct deposit as well. SoFi Plus members can get interest rate discounts and even earn reward points for their loan. Once you are ready, visit SoFi.com, select personal loans from the drop-down menu of products, and click “View your rate.”
You’ll need to submit some information, including your name, address, Social Security number, loan amount, and income.
Bottom Line
SoFi Money encompasses all the banking, lending and investing services SoFi bank offers. SoFi ranks as one of the top online financial service companies, with excellent customer service and a wide range of products.
You can reach SoFi customer service via email, using the online virtual assistant chatbot, or by phone. Hours vary depending on the service you need. A wide range of financial products, low rates, and FDIC insurance up to $2 million for deposits set SoFi apart from competitors.
