The cost of carrying gold in your wallet is about to get more expensive.
As of July 25, 2024, the annual fee on the American Express® Gold Card is increasing to $325, up from $250. Terms apply; see rates and fees. Existing cardholders will see the annual fee increase starting Oct. 1, 2024.
Accompanying the higher annual fee are new dining-based perks; an annual cap on qualifying bonus spending at restaurants; the ability to select a limited-edition card design; and a shake-up of the merchants where the card’s monthly dining credit can be used.
Through Nov. 6, 2024, new cardholders can also grab an enhanced welcome offer.
Here’s what you should know.
What’s new with the American Express® Gold Card?
The American Express® Gold Card hasn’t had an overhaul this significant since 2018, when it increased its annual fee to $250 (from $195) and added more rewards and goodies. Here’s what’s changing this time:
Annual fee: Increase to $325 (up from $250).
Increased welcome bonus: From July 25 to Nov. 6, 2024, new cardholders can earn 60,000 Membership Rewards points, plus 20% back on restaurant spending worldwide (up to $100) after spending $6,000 on eligible purchases on your new card in your first 6 months of card membership
New cap on bonus rewards at restaurants: Cardholders will receive 4x points on dining purchases worldwide (including takeout and delivery) on up to $50,000 in annual spending. Purchases above the cap will earn 1x point. Previously, there was no spending cap in this category.
New $50 semiannual Resy credit: Get $100 in annual statement credits, issued as two $50 semiannual credits, after enrolling and using your card on eligible purchases at U.S. restaurants on the Resy app or on Resy.com.
New $7-per-month Dunkin’ credit: Receive $7 per month in statement credits after enrolling and using your card at Dunkin’ Donuts locations in the U.S.
Updated $10-per-month dining credit: Five Guys is now an eligible restaurant for the $10-per-month ($120 annual) dining credit, adding to the existing list of Grubhub, The Cheesecake Factory, Wine.com and Goldbelly. Milk Bar and Shake Shack have been removed as eligible restaurants for the dining credit.
New card design: New cardholders can select a limited-edition white-gold card design (while supplies last), in addition to the existing gold and rose gold design options.
Terms apply.
What’s staying the same?
New and current cardholders will continue to enjoy the card’s existing credits and benefits, including:
$10 per month in Uber Cash credits (up to $120 annually) toward Uber Eats or Uber rideshares.
4x points at restaurants worldwide (now with the $50,000 annual cap).
4x points at U.S. supermarkets on up to $25,000 in purchases per year.
3x points on flights booked directly with airlines or AmEx Travel.
Terms apply.
What it means for cardholders
The new $325 annual fee represents a 30% increase over the previous fee of $250. (The fee increase in 2018 represented a 28% hike.) Whether these new changes are worth that much will depend on your spending habits and how well you actively manage your card to take advantage of the recurring credits. The new perks follow the coupon-book model American Express is using to offer more perceived value at a higher cost for their premium cards, like the American Express® Gold Card and the The Platinum Card® from American Express. However, adding more benefits for specific merchants makes the card more complex to optimize for some.
That said, the new welcome offer should suit many people well. Maximizing the 20% cash back on restaurant spending (up to $100) would require only $500 eligible dining expenses, and 60,000 points could take you far. NerdWallet values American Express Membership Rewards points at between 1 cent and 2.8 cents each (depending on how you redeem them). Between the points and the dining incentive, you could easily cover the annual fee for the first year before accounting for any additional monthly or semiannual credits.
Welcome to the vibrant city of Oakland, where the rich cultural diversity and stunning natural beauty come together to create a truly unique urban experience. From the bustling waterfront to the serene redwood forests, Oakland offers a little something for everyone. So whether you’re looking for an apartment in downtown Oakland or an apartment in Rockridge, you’ve come to the right place. In this ApartmentGuide article, we’ll cut to the chase, breaking down the pros and cons of living in Oakland. Let’s get started and see what awaits in this diverse city.
Fast facts about living in Oakland
Population: Approximately 430,000 residents
Average rent: $2,355 per month for a one-bedroom apartment
Median home sale price: $895,000
Public transit: Bay Area Rapid Transit (BART), AC Transit buses, and ferries
Public parks: Over 130 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 3.5 million visitors each year
Restaurants: Over 1,000, offering a variety of cuisines from around the world
1. Pro: Rich cultural scene
Oakland offers a vibrant cultural scene, with numerous museums, galleries, and theaters. The city is home to the Oakland Museum of California, which showcases the state’s art, history, and natural sciences. Additionally, the Fox Theater and the Paramount Theatre host a variety of concerts, performances, and events throughout the year. The city’s diverse population contributes to a rich tapestry of cultural festivals and events, such as Art + Soul Oakland and the Eat Real Festival, offering residents ample opportunities for artistic and cultural engagement.
2. Con: High cost of living
Housing costs in Oakland are relatively high, with the median sale price for a home in Oakland around $895,000 and the average rent for a one-bedroom apartment in Oakland about $2,355 per month. These housing costs are 87% higher than the national average, making it challenging for many people to afford living in the city.
The high cost of living extends beyond just housing. Overall, the cost of living in Oakland is about 40% higher than the national average. Utilities are 40% more expensive, groceries are 17% higher, transportation costs are 33% above average, and healthcare costs are 21% more. These increased expenses in multiple areas can significantly impact residents’ budgets, requiring careful financial planning to manage effectively.
3. Pro: Strong job market and innovation hub
Oakland has a robust and diverse job market, particularly in the technology, healthcare, and education sectors. The city’s proximity to Silicon Valley and San Francisco provides additional job opportunities, and its more affordable commercial real estate has attracted a growing number of tech companies and startups. This environment fosters a spirit of innovation and entrepreneurship, providing numerous opportunities for networking and career advancement in the tech industry.
Major employers in the area include Kaiser Permanente, Clorox, and the Port of Oakland. The presence of these companies, along with a thriving startup scene, contributes to the city’s economic stability and offers a wide range of career opportunities.
Top employers in Oakland
Blue Shield of California
Sutter Health
Pixar Animation Studios
Southwest Airlines
Alameda Health System
4. Pro: Outdoor recreational activities
Oakland offers a wide range of outdoor recreational activities, thanks to its extensive park system and proximity to natural attractions like the East Bay Hills and the San Francisco Bay. Residents can enjoy hiking, biking, kayaking, and picnicking in the numerous parks and natural areas. The city’s mild climate allows for year-round enjoyment of these activities.
Popular outdoor spots in Oakland
Lake Merritt
Joaquin Miller Park
Redwood Regional Park
Temescal Regional Recreation Area
Middle Harbor Shoreline Park
5. Con: Traffic and parking
Oakland, like many urban areas, experiences traffic congestion and limited parking options. The city’s layout and infrastructure can make driving challenging, and finding parking can be difficult and expensive, especially in popular neighborhoods and downtown. Public transportation, biking, and walking are popular alternatives, but residents who rely on cars may find the traffic and parking situation frustrating. Investing in a parking spot or using car-sharing services can help mitigate some of these challenges.
6. Pro: Culinary diversity
Oakland features a diverse culinary scene, with a wide range of restaurants offering cuisines from around the world. From high-end dining establishments and historic seafood restaurants to food trucks and ethnic eateries in neighborhoods like Chinatown and Fruitvale, the city has something to satisfy every palate. Food festivals, such as Eat Real Festival and Oakland Restaurant Week, showcase the city’s culinary creativity and provide opportunities for residents to explore new flavors.
Popular restaurants in Oakland
Commis
Brown Sugar Kitchen
Homeroom
Sobo Ramen
Drake’s Dealership
7. Con: Earthquake risk
Oakland is located near several major fault lines, making it prone to earthquakes. While the city has implemented stringent building codes and preparedness measures to mitigate the impact of seismic activity, the risk of earthquakes remains a significant concern for residents. Homeowners and renters are encouraged to have earthquake insurance and to be prepared with emergency kits and plans. This natural disaster risk is an important factor to consider when deciding to live in Oakland.
8. Pro: Public transportation
Oakland has a well-developed public transportation system, making it easy for residents to get around without a car. Bay Area Rapid Transit (BART) connects Oakland to San Francisco, Berkeley, and other parts of the Bay Area. AC Transit provides extensive bus services, and ferries offer a scenic commute across the bay. Ride-sharing services like Uber and Lyft are also widely available. Oakland has a transit score of 57, a walk score of 75, and a bike score of 65, reflecting the city’s good infrastructure for public transit, walking, and biking.
9. Pro: Strong sense of community
Oakland is known for its strong sense of community and civic engagement. Residents are often involved in neighborhood associations, community events, and local initiatives that promote a sense of belonging and collaboration. The city’s diverse neighborhoods, such as Rockridge, Montclair, and Fruitvale, each have their own unique character and charm, fostering tight-knit communities where residents support one another. This strong community spirit enhances the quality of life and makes Oakland a welcoming place to live.
10. Pro: Vibrant arts scene
Oakland features a vibrant arts scene, with numerous galleries, studios, and performance spaces. The city is home to the Oakland Art Murmur, a monthly event that showcases local artists and galleries, and the First Fridays street festival, which features live music, food vendors, and art installations. Additionally, Oakland’s cultural diversity is reflected in its many community arts programs and events, offering residents ample opportunities to engage with the arts and express their creativity.
“Until he got all rich and fancy so that he no longer understands the common person’s plight.
Stash probably doesn’t even practice any of these money-saving things he preaches any more!”
When I read things like this, I can’t help but laugh. Because on the one hand, when you put a bunch of personal life details online like this, being misunderstood is just part of the package. But on the other hand, if the critics could peek in and see our real lives – not just mine but those of all the Mustachians – they would have to give up their conspiracy theories and accept the fact that this stuff just works.
Because really, not much has changed when it comes to the basics. Like many MMM readers over the past twelve years, my total wealth level has increased pretty regularly. But also like many of us, I haven’t felt the need to change very much about my spending because I was doing my best to live an enjoyable life in the first place.
How have so many people found such great success? I think we Mustachians have something that’s a bit more rare and special than standard financial advice, which is what makes it work so well:
Standard Advice: Slash your spending and make sacrifices until you reach a certain savings percentage, and beyond that it doesn’t matter, it’s all personal choice. More income? Great, that means you don’t have to sacrifice as much! FatFIRE for everyone!
Mustachianism: Cultivate a love of efficiency, creativity, self awareness, and self improvement. Use this knowledge to improve your life in all ways, including those which help you live better even as your monthly expense rate drops over time.
So what does this mean in practice?
Well, I’ll give you some examples from my own present-day life. Things I do because I happen to enjoy them, which also happen to save a lot of money. Some of these are normal, some are silly and may end up in some future gossip magazine hit piece, but all of them happen to work for me, so the critics can be damned.
As I list each item, I’ll include an estimate of how much the activity saves me per decade, because you should always think at least in terms of decades.
To make that calculation yourself, just use the “rule of 172” – take a monthly expense and multiply it by 172 to estimate how much it would compound into over ten years, if invested.
1) Fixing my own House (and everybody else’s too)
Construction projects from recent years, at home and around the state.
I’m a big believer in self-sufficiency, and working to build up the skills to manage the most important parts of your own life without depending on too many things (or people) that are outside of your control. In other words, one giant recipe for a happy life is simply to Become a Producer of the Things You Most Enjoy Consuming.
And in my case, I happen to love houses. I like living in beautiful, functional spaces and sharing them with friends. But most houses are ugly and poorly designed when you buy them, so I realized that I also love solving problems and redesigning old buildings to become new again. I enjoy this process so much that I spend most of my free time doing it – on both my own properties and the homes of friends.
And I love teaching other people to gain power over their own houses too. It’s amazing how great people feel as they lose their fear and dependence on outside contractors, and gain the ability to fix and maintain things with their own two hands.
Savings: An average of $20,000 per year = $287,000 per decade
2) Craigslist and Community
Members of our coworking space, swapping valuable free stuff every day.
You know what’s great? Having so much money that you can buy whatever you want – high quality things which get delivered to your front door the very next day.
You know what’s even better? Not buying some of those new things, and instead finding ways to share, repurpose and buy equally high quality items from other people who don’t need them any more. All while building up your own community and creating new friendships in the process.
Craigslist, Facebook Marketplace, and even NextDoor all have Buy Nothing groups for most areas. In the MMM-HQ community, we run a Discord server with about 200 local people, who chat around the clock on a wide range of subjects. They help each other with major projects in one channel called #diyhowto, and give away and sell things on #forsale and #buynothing.
Although our private Discord group is my favorite, I also use Craigslist regularly, and probably save (and earn) a few thousand every year thanks to the habit:
Savings: About $42,000 per decade
3) Bikes over Cars
Sure glad I’m not stuck in a Jeep on these off-road trails!
We all know that Mr. Money Mustache’s biggest contribution to personal finance is to insist that bike transportation is the best way to get around. And I still feel this way. As we learned in The True Cost of Commuting, cars cost at least 50 cents per mile to operate, while bikes are much cheaper, mainly due to reduced depreciation and maintenance costs (which are even bigger than the gas savings).
I do still use bikes (or walking) for at least 95% of my local trips these days, but because I live in the center of a small city, my life is pretty local. So this still only adds up to about 2000 miles per year, a savings of “only” $14,000 per decade.
But when you choose active transportation, there’s much more to the picture than just cutting your car expenses. You’re changing everything about your physical and mental health picture for the better, which brings us to the next point of…
4) Muscle over Motor
Digging out the crappy old window wells to build a bigger terraced garden.
Although I’m no competitive athlete, whenever I see an option to make my body work a bit harder, I usually take it. Stairs instead of elevators, running the golf course instead of using a golf cart, moving my own furniture and appliances instead of calling a mover, shoveling snow and raking leaves instead of using a machine.
When I face a decision like this, I simply ask myself the question:
“Well, Mustache. Do you want MORE health and fitness, or LESS?”
Putting it in that context makes the answer obvious. Every bit helps, because when it comes to your body, the rule is pretty much use it or lose it.
But how much money does this save? There’s no real way to calculate it exactly, but I like to think of it this way: The US average health care spending is about $13,000 per person per year. My lifetime costs due to illness or medication so far have been just about zero, plus I know I’ve had more energy and greater productivity due to being healthy. Let’s just put it very conservatively and set the estimated savings and benefits at $10k per year which means
Estimated Savings: $140,000 per decade.
5) Saving Energy by Running my home like a Glamping Retreat
Outdoor cooking, showering, laundry and even a homemade gym? Why not?!
Here’s where things get a bit silly, but my level of joy is actually at its greatest.
My personality type is probably a weird combination of an engineer, a carpenter, an artsy hippie, and a mad scientist. Oh, and a devoted homebody too. Because of this, my favorite activity most days is to just run around my house taking care of things and trying new little experiments and improvements.
Sometimes I’ll cut a few big holes on on the South side of the house and install sliding doors and big windows to allow nice sunbeams and passive solar energy to get into my house and give me free heat in the winters. Other times it’s just smaller things to save energy and live more at at one with the seasons of my area:
optimizing the use of air conditioning by running fans at night and building heat tolerance during the days (we set the A/C to only kick on at about 80F)
Enjoying most of my showers outside, with free hot water from the 100 foot garden hose that happens to be coiled in a sunny spot
Cooling myself and get free energy boosts by jumping in the “cold plunge”, which is simply an unheated hot tub I have set up in my back yard
Doing most of my cooking and dining outdoors with an induction cooktop, gas grill, espresso machine, and mini convection toaster oven deal that I keep set up outside during the warmer months of the year
Drying 99% of my loads of laundry out on the line instead of using the clothes dryer
I even charge my car with a little off-grid array of solar panels set up in the driveway (from Craisglist, of course!), which gives me free electricity for driving without going through the permit-hell hassle of a full grid-tied system in my city’s currently solar unfriendly environment.
Even taken all together, these things are pretty small – the average combined gas and electric bill for my area is about $250 per month, while my usage adds up to about $75. So while we’re only saving about $30,000 per decade for what sounds like a lot of work to most people, I consider this to be the biggest win because I enjoy living in “MMM’s Energy Efficiency Playground” so much.
6) Local Living over Constant Travel
This little lake right behind my house is a great daily “vacation” which allows me to savor home life more and travel a bit less.
“Hey, we’re having a big back yard pool party next weekend to celebrate Amy’s graduation from kindergarten, can you make it?”
“OH NOOOO!!! We will be off in at Disneyland that whole week! We planned the trip months ago, I wish we could make it!
As I type this in the height of the summer season, I really feel this effect at its fullest: almost all of my friends are off on trips, and my guest suite here at home is almost constantly full. People are traveling a lot, and many of them sound like they wish they could spend a few more of their precious summer weeks and weekends at home.
I’ll let you in on a little secret: you can! The trick is saying, “no thanks” more often to plans that involve you being away, and “yes please” to things that let you stay at home. The benefits are numerous:
You nurture your local friendships more and meet new people who live nearby
You spend way less money on plane tickets, hotels, restaurants gasoline, and car repairs
Your levels of health and fitness can go way up because you aren’t missing workouts and spending hours sitting in plane and car and bus seats. And you can better control your meals – more salads with grilled salmon, less McDonald’s and Pizza Hut
You sleep better
And you have more time to take care of projects around your house where you learn more skills which compound for life
Estimated Savings: Even if you replace just two weeks of travel for a family of four, with equivalent time at home you might save $5,000 per year in direct costs and a further $5,000 per year in incidental benefits like the health and local friendships. This would work out to a shocking $143,000 per decade of wealth increase!
Of course, travel is generally a good thing for broadening the life experience of you and your kids. It’s worth spending on, lavishly at times. But the key is to balance it out and be discerning, keeping the most enriching trips and pruning a few off the bottom of the list. And remembering that home time is valuable and healthy too.
And Whoa! We’ve already built up a huge list and I feel like I was just getting started.
Cutting a friend’s hair at a group event: entertainment, education and free haircut in one!
Taken all together, we’ve already detailed things that compound to $656,000 every decade, which already more than double the median wealth that most American seniors have as they cruise nervously into their retirement years – after over 40 years of work!
And now that I’ve been writing this blog for over ten years myself, I can safely say that over $656,000 of even my most recent worth increases are directly attributable to these simple habits. The same ones many of us have been enjoying and preaching about all along, both before and after our retirement dates.
If money is in genuinely short supply, you could go a lot further than the examples in this article. And indeed, there’s a lot more laid out in this blog or the MMM Boot Camp email series.
But one of the points of Mustachianism is that you usually don’t have to try all that hard. Just tweaking your lifestyle to be slightly less ridiculous and more efficient than average is usually all it takes.
—
In the comments: what are your quirks and frugal indulgences? The things you do now to save money, or things you still do even after it’s no longer about the money? I often wonder how widespread this frugality-just-for-fun is. But since we Humans are a naturally curious and problem solving species in our natural state, I suspect there are many more of us out there.
An installment loan consists of a lump sum of money you repay over time. Auto loans, personal loans and mortgages are common examples of installment loans.
The term installment loan, sometimes called “installment credit,” refers to a financial agreement wherein a lender offers you a lump sum of money you’ll have to repay over time. People tend to seek installment loans for big purchases like a new car or financing for a home. Effectively repaying your loan in full and on time can elevate your credit score.
We’ll thoroughly discuss installment loans in this guide, weigh their pros and cons and help you decide if this funding is right for you.
How do installment loans work?
A person can acquire an installment loan by applying with a financial institution such as a bank or credit union. Each lender has distinct criteria they’d like applicants to meet and specific loan terms.
On average, installment loans can offer borrowers anywhere from $1,000 to $100,000 and typically have repayment periods that range from one to 30 years.
If you’re approved for an installment loan, the lender will provide you with the funds to use for whichever purpose is outlined in your loan agreement. Then, you’ll be expected to repay the money you borrowed in weekly or monthly installments — plus any interest generated by your loan’s annual percentage rate (APR).
Interest rates play a substantial role in your loan repayment plan. When you carry a balance on a loan, your APR will be factored in to determine how much interest you’ll be responsible for. If you have a six percent interest rate and you have a balance of $100 due, you’ll end up paying 50 cents in interest. The lower your remaining balance is, the less interest you’ll pay for the remainder of your loan.
Installment loans differ from revolving credit (like a credit card) in terms of use. With an installment loan, you borrow money for a specific purchase and then pay it off for good. With revolving credit, you repeatedly borrow and repay funds for various purchases in perpetuity.
Do installment loans affect your credit score?
Installment loans influence your score in several ways. When you first apply for funds, lenders will review your credit report. This counts as a hard inquiry to the major credit bureaus and may briefly lower your score.
How you manage your loan repayments can also affect your score for better or worse; consistently paying your minimum balance for each billing cycle can significantly increase your credit score by demonstrating financial responsibility and vice versa.
Managing an installment loan also contributes to your credit mix — a factor that can potentially raise your credit score based on your current number of open accounts.
5 types of installment loans
A variety of installment loans are available for eligible borrowers. Below are five examples of some of the most common loans you’ll encounter.
Auto Loans
Auto loans help borrowers obtain vehicles with relative ease and gradually repay what they owe over several years. A person’s monthly car note is largely determined by auto loan rates, APR and their down payment amount. Auto loans for bad credit borrowers might offer smaller amounts or have stricter repayment terms.
Main advantage: Help borrowers lease or finance vehicles.
Main disadvantage: Good credit or more is needed for the best auto rates.
Buy Now, Pay Later Loans
When shopping online, you may be able to apply for a buy now, pay later loan. These funding options let you split a purchase into installments and spread across several weeks or months. These loans normally cover purchases between $50 to $1,500.
Main advantage: Splits eligible purchases into installment payments.
Main disadvantage: It’s easy for people to borrow more than they can afford.
Mortgages
Mortgages are some of the largest and longest-lasting installment loans a person can apply for. Banks typically offer mortgages with 30-year terms, though this can vary depending on things like the economy and a borrower’s credit profile.
Main advantage: This can help you purchase a home that you can eventually own.
Main disadvantage: Mortgages are hard to obtain and can be expensive in the long term.
Personal Loans
Personal installment loans can come in multiple forms, including debt consolidation, medical loans and joint loans.
Main advantage: Lump sum funding that can have versatile uses.
Main disadvantage: Normally comes with high interest rates and additional fees.
Student Loans
These are some of the first installment loans that people might be eligible for because they have more open-ended eligibility requirements. Government institutions and banks are usually willing to offer these loans to students with little or no credit history. They might even defer repayment until after graduation.
Main advantage: Low or no credit score requirements for students, eligible for debt forgiveness and deferment plans.
Main disadvantage: Come with loan caps and can take 10 to 30 years or more to repay.
Should I use an Installment Loan?
Installment loans are helpful for making important purchases, though one can potentially overborrow if they take out too many loans without a solid repayment plan set. You should use installment loans if you believe you can reliably make your minimum payment amounts each period.
If your financial situation changes, it’s important to notify your lender as soon as possible. Writing a goodwill letter that accurately explains your circumstances can pave the way for leniency and give you more time to marshal your finances.
How knowing your credit score can help you get a loan
People can use installment loans to help make major purchases and boost their credit, so long as they have a plan to repay what they owe. Knowing your credit profile can give you a better sense of the loans you’re currently eligible for. Get a free credit assessment from Lexington Law Firm today.
At both federal and state levels, financial institutions are governed by laws that protect consumers against unfair and unscrupulous treatment in the banking and finance sectors. In addition, guidelines are in place to combat fraud and monopolistic behavior, helping to ensure the smooth running of the free-market economy.
Granted, catastrophic historic events — such as the 2008 global financial crisis — occur despite the oversight of robust financial regulatory agencies. Because of this, laws and regulations are constantly being examined and updated to finesse the banking and finance legal framework.
Read on to understand more about finance watchdogs, their roles, and how regulations work to protect the public and the economy from fraud and illicit practices.
What Is Financial Regulation?
Financial regulation is a set of laws, rules, and policies set by governing institutions. These are designed to keep your money safer. Specifically, they aim to maintain confidence and stability in the financial system by eliminating fraud and monopolistic behavior.
In the United States, governing bodies try to balance the need for oversight with a free-market economy, which can be a challenging endeavor.
Why Financial Regulations Are Important
Without regulations, consumers have no protections. They might be subject to fraud, sold bad mortgages, and charged high interest rates and fees on credit cards. Large companies could create monopolies or duopolies, which allow them to control prices.
Laws and policies prevent companies from gaining too much market control and stifling competition, which threatens the free market economy. Regulations also prevent financial institutions from taking risks that put consumer funds in jeopardy.
Here’s a brief history lesson that shows how lack of regulation can negatively impact daily life: The 2008 financial crisis was precipitated by deregulation and the repeal of the Glass-Steagall Act of 1933. This allowed financial institutions to engage in risky hedge fund trading. To fund their investments, the banks created interest-only loans for subprime borrowers, which contributed to more home purchases (including to buyers who would not have otherwise qualified) and quickly rising prices. This created a housing bubble, and millions of people were left bankrupt and couldn’t sell their homes when home prices then plummeted.
But too much regulation can also be a threat to an economy. In a free-market economy, prices are largely determined by supply and demand. Competition among suppliers tends to keep prices at bay as they each try to grab market share.
If regulations become too onerous and costly, companies may use up capital to comply with federal rules. That means they aren’t using those funds to create innovative products. In some cases, specific industries or groups manage to influence regulators and persuade them to introduce or eliminate laws that benefit them and not their competitors.
Types of Financial Regulations
Different agencies focus on the safety and soundness of products and services, transparency and disclosure, standards, competition, and rates and prices for different entities. Here’s a closer look at some of the most important regulations to be aware of:
• Stock Exchange Regulations Laws and rules for stock exchanges ensure that the pricing, execution, and settlement of trades is fair and efficient.
• Listed Company Regulations Listed companies (public companies) are required to prepare quarterly financial statements and submit them to the Securities and Exchange Commission (SEC) and to their shareholders. Investors use this information to inform their trades.
• Asset Management Regulation Financial advisors and asset managers must follow strict rules set by financial services regulatory bodies so that clients are treated fairly and not defrauded. Any company that provides investment advice is considered an investment advisor, and the SEC oversees investment advisors with more $110 million in assets under management (AUM).
• Financial Services Regulation Banking and financial institutions must follow specific guidelines to ensure a functioning banking system. These rules are enforced by The Federal Reserve Board (the Fed), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), and the Federal Deposit Insurance Corporation (FDIC).
Recommended: What Is a Fiduciary Financial Advisor?
Types of Financial Institutions
There are a wide variety of financial institutions in America, some of which you may be familiar with. Here’s the rundown:
• Central banks, like the U.S. Federal Reserve, watch over the country’s monetary policy.
• Retail banks are probably what most people are familiar with. These are banks where the general public can have checking accounts and savings accounts, loans, and other financial services.
• Commercial banks are similar to retail banks (above) but they serve the business community. Large banks may act as both commercial and retail banks.
• Credit unions are similar to banks but they are nonprofits, and members are part owners of them. They offer the same kind of services as banks but may tailor themselves to specific communities.
• Community development financial institutions (CDFIs) are financial institutions that work to build financial knowledge, services, and wealth in communities that are less advantaged.
• Savings and loan associations are organizations that use savings to create housing loans.
• Brokerages manage securities trading (say, stocks and exchange-traded funds, or ETFs), which are regulated though not insured.
• Insurance companies help both businesses and individuals protect themselves from property loss and may provide services such as loans.
• Investment companies function by issuing securities to both businesses and individuals who seek to raise capital.
• Mortgage companies offer home loans and may also manage commercial real estate.
What Is a Financial Regulator?
A financial regulator is an organized governmental or formal body that has the jurisdiction to oversee other entities, such as stock markets, banks, and asset managers. Their mandate is to ensure fairness, protect the public and institutions from fraud, and to facilitate a well-functioning financial sector.
Examples of financial regulators are the Fed, the Securities and Exchange Commission (the SEC), and the Financial Industry Regulatory Authority (FINRA).
How Are Financial Institutions Regulated?
Banks and financial institutions are regulated by the Fed, the OCC, the CFPB, and the FDIC, while asset management companies and stock exchanges answer to the SEC and FINRA. (Also worth noting: Individual stock brokers, investment bankers, and other professionals likely need FINRA securities licenses.) State agencies may enforce regulations on financial institutions, notably insurance providers.
Each of these organizations requires documentation from financial institutions and companies that show compliance with laws. For example, listed companies have to submit quarterly financial statements to the SEC. If they fail to do so, they may be charged with “Failing to Comply” and may lose the ability to trade their shares on the stock market and be forced to pay penalties.
Recommended: FINRA vs. SEC: How are they Different?
The Most Common Financial Regulatory Bodies
The following is a list of the more recognized regulatory agencies and a brief description of what each one does.
The Federal Reserve Board (FRB)
The Fed is the central bank of the United States. As such, it ensures the U.S. economy functions effectively. The Fed is in charge of monetary policy and has the power to increase or decrease interest rates or to instruct banks on the quantity of reserves they must maintain. The Fed also monitors financial systems and their impacts, facilitates efficient settlement of U.S dollar transactions, and upholds laws that protect consumers.
The Federal Deposit Insurance Corporation (FDIC)
The FDIC was created by Congress to support the U.S. financial system. The FDIC insures deposits and monitors financial institutions and their compliance with consumer protection laws. The FDIC also manages bank failures, though they occur very rarely.
The Consumer Financial Protection Bureau (CFPB)
The is a relatively new agency that implements and enforces Federal consumer financial law. CFPB regulations protect consumers by making sure financial products and services are “fair, transparent, and competitive.”
The National Credit Union Association (NCUA)
The NCUA was created by Congress in 1970. The association insures consumer accounts with credit unions with up to $250,000 of share insurance. Enforcement tools of the association include letters of understanding and agreement, administrative orders, and consent orders.
The Securities Exchange Commission (SEC)
. The SEC strives to maintain the public’s trust in the capital markets by insisting on fair practices. Various acts have been passed over time including the Securities Act of 1933, the Sarbanes-Oxley Act of 2002, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The Commodity Futures Trading Commission (CFTC)
The CFTC was created in 1974 to oversee commodity trading in the agricultural sector. Commodity trading has been subject to government regulation since the 1920s. The CFTC supervises and monitors commodity traders and market activity. The commission investigates and prosecutes wrongdoers and educates customers about their rights and how to avoid fraud.
Recommended: What Are the Difference Between FDIC and NCUA Insurance?
How Financial Regulators Help Banking in the Way We Know Today
The banking and financial systems operate well under current regulation, but what about digital banking? Digital banking is a recent innovation, and existing banking laws and regulations generally apply to digital start-ups and fintechs. However, there are some regulatory frameworks specifically for digital banking.
An example of protection for digital banking consumers is Electronic Know Your Customer (e-KYC), which is used for digital onboarding and checks that a customer is who they say they are to avoid fraud and money laundering. E-signature is a way for customers to validate transactions remotely.
Another instance is the Electronic Fund Transfer Act (Regulation E) which aims to make applicable electronic transactions compliant with regulations as well as have “readily understandable” consumer disclosures.
Recommended: Online Banking vs Traditional Banking: What’s Your Best Option?
The Takeaway
Financial services regulatory bodies like the Fed, the FDIC, and the SEC oversee the banking and finance sectors in the United States. State agencies also play a role. Though many consumers are not aware of the details, these regulatory bodies have jurisdiction over stock markets, commercial and retail banks, investment banks, and asset managers. Their mandate is to ensure fairness for consumers, ensure entities comply with fraud protection rules, and to protect the financial sector and free-market economy.
Which is all good, of course. But if you are looking for a great bank for your personal accounts, see what SoFi offers.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
Who regulates financial institutions in the United States?
In the United States, financial institutions are regulated by the Fed, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the SEC, FINRA, the CFPB, the NCUA, and the CFTC. State agencies also enforce regulations on financial institutions, especially insurance providers.
What are regulators in finance?
Finance and banking regulators are state- and government-appointed bodies that protect the safety and fair treatment of consumers. They also ensure smooth operations of the finance and banking sectors, the backbone of the economy.
Who regulates investment banks?
U.S investment banks are regulated by the SEC. For regulatory purposes, investment banks were declared separate for commercial banks following the passing of the Glass Steagall Act of 1933.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Average rent: $1,451 per month for a one-bedroom apartment
Median home sale price: $564,000
Public transit: Capital Metropolitan Transportation Authority (CapMetro) provides bus and rail services throughout the city
Public parks: Over 300 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 30 million visitors each year
Restaurants: Over 4,000, offering a variety of cuisines from around the world
1. Pro: Thriving music scene
Austin is famously known as the “Live Music Capital of the World.” The city boasts a vibrant music scene with numerous live music venues, ranging from small bars and clubs to large concert halls. Events like South by Southwest (SXSW) and Austin City Limits (ACL) draw international attention and provide endless entertainment options for residents and visitors alike. The city’s rich musical heritage and active live music scene make it a haven for music lovers.
2. Con: High housing costs
While Austin offers many amenities and a high quality of life, housing costs are relatively high. Housing costs have risen significantly and are now about 9% more than the national average. The median sale price for a home in Austin is around $564,000, and the average rent for a one-bedroom apartment in Austin is about $1,451 per month. Residents need to budget carefully to manage these expenses effectively.
3. Pro: Strong job market
Austin has a robust and diverse job market, particularly in the technology, healthcare, and education sectors. The city is home to numerous tech companies, including major players like Dell, Apple, and Google, earning it the nickname “Silicon Hills.” The presence of these companies, along with a growing number of startups, provides ample job opportunities and contributes to the city’s economic stability. Additionally, the University of Texas at Austin is a major employer and fosters a strong academic environment.
Top employers in Austin
IBM
National Instruments
Ascension Seton
Amazon
Samsung Austin Semiconductor
4. Con: Hot summers
Austin experiences hot summers, with temperatures often soaring into the 90s and sometimes reaching triple digits. The intense heat can be uncomfortable and limit outdoor activities during the peak summer months. Residents need to be prepared for the weather with proper cooling systems and hydration strategies. While the city enjoys mild winters, the summer heat can be a challenge for those not accustomed to such conditions.
5. Pro: Affordable cost of living
Despite high housing costs, the overall cost of living in Austin is about 1% lower than the national average. Utilities are 4% lower, groceries are 2% less expensive, transportation costs are 10% below average, and healthcare costs are 2% less than the national average. These lower costs in other areas can help balance out the high housing expenses, making it easier for residents to manage their overall budgets.
6. Pro: Outdoor recreational activities
Austin offers a wide range of outdoor recreational activities, thanks to its extensive park system and proximity to natural attractions like the Hill Country. Residents can enjoy hiking, biking, kayaking, and swimming in the numerous parks and natural areas. The city’s mild winters and long summers make it possible to enjoy outdoor activities year-round, and the diverse landscape provides opportunities for both leisurely and adventurous pursuits.
Popular outdoor spots in Austin
Zilker Park
Lady Bird Lake
Barton Springs Pool
McKinney Falls State Park
Mount Bonnell
7. Pro: Culinary diversity
Austin features a diverse culinary scene, with a wide range of restaurants offering cuisines from around the world. From farm-to-table establishments and fine dining to food trucks and casual eateries, the city has something to satisfy every palate. Austin is particularly known for its barbecue and Tex-Mex cuisine, which are integral parts of the local food culture. Additionally, food festivals, such as the Texas Monthly BBQ Fest and the Austin Food + Wine Festival, showcase the city’s culinary creativity and provide opportunities for residents to explore new flavors.
Popular restaurants in Austin
Franklin Barbecue
Uchi
Odd Duck
Veracruz All Natural
Launderette
8. Con: Limited public transportation options
While CapMetro provides essential bus and rail services, the public transportation system in Austin is limited compared to larger metropolitan areas. The city has a transit score of 35, a walk score of 42, and a bike score of 54. While biking and walking are viable options for many residents, those who rely on public transit may find the system lacking in convenience and coverage, particularly in suburban areas. Investing in a personal vehicle is often necessary for more extensive commuting.
9. Pro: Cultural and arts scene
Austin boasts a rich cultural and arts scene, with numerous theaters, galleries, and music venues. The city is home to the Blanton Museum of Art, the Contemporary Austin, and the Zach Theatre. Additionally, Austin hosts a variety of cultural festivals and events throughout the year, such as the South by Southwest (SXSW) festival, the Austin City Limits Music Festival, and the Pecan Street Festival. These events celebrate the city’s artistic diversity and provide residents with ample opportunities for cultural enrichment and entertainment.
10. Pro: Strong sense of community
Austin is known for its strong sense of community and civic engagement. Residents are often involved in neighborhood associations, community events, and local initiatives that promote a sense of belonging and collaboration. The city’s diverse neighborhoods, such as South Congress, East Austin, and Hyde Park, each have their own unique character and charm, fostering tight-knit communities where residents support one another. This strong community spirit enhances the quality of life and makes Austin a welcoming place to live.
11. Con: Rising property values and housing demand
As Austin continues to grow and develop, rising property values and increased demand for housing have become significant concerns in many neighborhoods. These trends have led to the displacement of long-time residents and changes in the character of historic communities. The increasing property values can result in a loss of cultural diversity and affordable housing options in certain areas. Efforts are being made to address these issues through community initiatives and affordable housing programs, but the rapid growth and development remain challenges for the city.
12. Pro: Sports and entertainment
Austin has a vibrant sports and entertainment scene, with professional teams, collegiate athletics, and numerous live events. Residents can cheer on Austin FC, the city’s Major League Soccer team, at the state-of-the-art Q2 Stadium. The University of Texas at Austin also has a strong athletic program, with popular sports like football, basketball, and baseball. Additionally, Austin’s music venues, theaters, and event spaces host a wide range of concerts, performances, and festivals, providing a rich array of entertainment options for residents.
The best time to rent an apartment for lower rates is during winter (October to April) when rates and demand are lowest, especially from January to March.
The best time to look for an apartment before moving is in the middle of the month before your official move month.
The real estate market is seasonal, so being aware of these patterns can impact the ease of your search and the rental price you’ll pay.
Whether you’re moving to an apartment in LA during the summer or looking for a rental in NYC in the winter, timing can significantly impact your apartment rental experience. The real estate market is both cyclical and seasonal, with variations that affect rental prices and availability.
While winter is best for lower rental rates and less competition, summer is best for a larger selection of available apartments. Whether you’re looking to save money or have a wider selection to choose from, it all comes down to your priorities, and understanding these market trends can help you make an informed decision.
Winter is best for lower rental rates
Winter is the ideal time to find lower rental rates and secure budget-friendly deals on apartments. From October through April, the demand for apartments significantly drops. This decrease in demand leads to reduced rental prices as landlords and property managers strive to fill vacant units. During these slower months, they are often more willing to negotiate and offer attractive incentives to attract tenants.
For example, in January, the average rental price in New York was approximately $4,064. In contrast, during the summer, prices increased to around $4,726 in June, which is an increase of $662, or roughly 16.3%. Therefore, if cost savings are your top priority, winter is the best time to start your apartment search.
Summer is best for more rental listings
Summer is the peak season for apartment hunting, offering a broader selection of available apartments. From May to September, the rental market experiences significant turnover as many leases end and new ones begin, resulting in higher inventory. This influx of available units provides renters with a wide variety of options to choose from, including different sizes, styles, and locations.
While rental rates tend to be higher during these months due to increased demand, the abundance of listings makes it easier to find a place that meets your specific needs and preferences. Additionally, moving during the summer months can be more convenient due to longer daylight hours and more predictable weather. For those prioritizing selection and variety, summer is the optimal time to search for an apartment.
Renting an apartment in the Fall or Spring? Here are the pros and cons
Renting apartments in the Fall
Pros:
Lower rental rates: As the peak rental season winds down, landlords may be more willing to negotiate lower rents or offer incentives such as a free month’s rent or reduced security deposits to fill vacancies before the slower winter months.
Lower competition: There are fewer people moving during the fall compared to the summer, which means less competition for available units. This can give you more time to consider your options without the pressure of making a quick decision.
Mild weather: The weather in the fall is generally mild, making the moving process more comfortable compared to the extreme heat of summer or the cold of winter.
Cons:
Limited inventory: The number of available listings tends to decrease after the peak summer season, which can limit your options for finding the perfect apartment.
Lease overlap: If you are currently in a lease that ends in the summer, moving in the fall may require you to break your existing lease or manage a period of overlapping leases, which can be costly.
Renting apartments in the Spring
Pros:
Increased inventory: Spring marks the beginning of the peak rental season, with many leases ending in the summer. This results in a higher number of available listings, providing you with a wide variety of options to choose from.
Best weather: Spring offers pleasant weather conditions, making it an ideal time for moving and apartment hunting. You can explore neighborhoods and visit potential apartments without the discomfort of extreme temperatures.
Cons:
Higher rental rates: As demand increases during the spring, rental rates tend to rise. Landlords are less likely to offer discounts or incentives, and you may end up paying a premium for your new apartment.
Increased competition: The influx of renters looking to move in the summer means more competition for available units. You may need to act quickly and be prepared to make decisions on the spot to secure a desirable apartment.
Remember: Different cities have different peak times
The general trends for when to rent an apartment hold true, but peak rental seasons can vary significantly depending on the city. For instance in college towns, the best time to look for an apartment is often right after the school year starts in September, with many leases becoming available at the end of the school year in early spring.
In cities like New York, peak rental activity occurs in the summer, while in places like Miami and Atlanta, the high season extends from May through November and may not see as intense of a spike. Understanding these regional differences can help you strategically plan your apartment search to find the best deals and most suitable options for your needs.
Best time to rent and apartment FAQs
What time of year is rent the cheapest?
If your main concern is saving money, the cheapest time to rent an apartment is during the winter, especially in November. During the holiday season, less people are moving, resulting in lower demand and rental rates. While you might have fewer choices of available apartments since most leases end in the summer, landlords are often more willing to offer lower rental rates and concessions, such as skipping the security deposit or offering better deals on utilities, to avoid having units sit empty.
What is the best time of the month for apartment hunting?
The best time of the month for apartment hunting is generally in the middle of the month. This timing is strategic because many leases end at the end of the month, and landlords start listing new vacancies and preparing units for new tenants around the middle of the month. By beginning your search mid-month, you can get a head start on newly available listings. This helps you avoid the rush at the end of the month when many others are also looking to secure new rentals.
What time of the month do most apartments become available?
Most apartments become available at the beginning of the month. This is primarily because leases typically end on the last day of the month, and new tenants often move in at the start of the new month. Consequently, landlords and property managers prepare for turnover during this period, listing new vacancies and getting units ready for incoming tenants. To maximize your chances of finding an available apartment, it is beneficial to start your search a few weeks before the end of the month and be ready to act quickly as new listings appear.
How early should you look for an apartment?
You should start looking for an apartment about 30 to 60 days before your desired move-in date. This time frame allows you to explore various options, complete necessary paperwork, and arrange for any needed moving logistics without feeling rushed.
What is the best time of day to search the rental market?
If you want to get really specific, the best time to check online listings is between 9 and 10 a.m. Why? That’s when property managers are most likely to post new apartment listings for recently vacated rentals. You can strike while the iron is hot.
Rental data and prices is from Redfin and was pulled in June 2024
Are you looking for the best online jobs that pay daily? Online jobs that pay daily are great opportunities if you’re looking to earn money quickly and conveniently. These online jobs let you work from home or anywhere with an internet connection. There are many tasks that you can get paid to do, from taking…
Are you looking for the best online jobs that pay daily?
Online jobs that pay daily are great opportunities if you’re looking to earn money quickly and conveniently. These online jobs let you work from home or anywhere with an internet connection. There are many tasks that you can get paid to do, from taking surveys and playing games to writing and freelancing.
For me, I like work-from-home jobs that pay daily because of their flexibility and ease of starting, which is great if you want to get paid daily instead of waiting for a weekly or monthly paycheck.
Plus, some of the online jobs that pay daily below will allow you to earn a full-time income, or just some spare extra income – so you have flexibility to choose what will fit your schedule best.
Best Online Jobs That Pay Daily
Here’s a quick summary of my top online jobs that pay daily:
Below are the best online jobs that pay daily.
1. Blogging
Blogging is a great way to make money online and get paid daily. You don’t need to spend a lot to start, and all you need is a computer and an internet connection.
You can blog about any topic you like and I recommend to think about what interests you. Popular topics include travel, personal finance, lifestyle, and food.
To make money blogging, you can use ads, sponsored posts, and affiliate marketing. This means you earn money when readers see ads, companies pay you to write about their products, or you get a commission when people buy through your referral links.
Plus, because there are so many different ways to make money blogging, there is a good chance that you can earn several payouts throughout the month. I get money deposited into my bank account nearly every single day from my blog, which is nice!
I have a free training that you can take – How To Start A Blog FREE Course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Online surveys
Online surveys are a simple way to make extra money from home. You just need a computer or a cell phone with internet access. You can earn points (and redeem your points for cash and gift cards if you accrue enough) the same day as you answer surveys.
And, taking surveys doesn’t require any special skills. You just need to answer honestly, so it’s an easy and flexible way to bring in some extra cash.
Some paid survey sites where you can take surveys include:
Freecash
Prime Opinion
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Five Surveys
Branded Surveys
I’ve answered many surveys over the years. I liked doing them during short breaks in my day, like before and after work, during lunch, or while riding in a car. They are easy and usually only take a few minutes.
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Swagbucks is a site where you can earn points for surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.
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Once you complete five surveys, you’ve earned $5, which you can cash out using the payout options offered by the site (such as PayPal cash and free Amazon gift cards).
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Prime Opinion is a survey website that helps people to earn extra money by sharing their opinions at home. It’s a simple survey site to use: you share your thoughts, and they pay you for them.
3. Proofreading
Proofreading is a great online job that pays daily. As a freelance proofreader, you can invoice your clients after you complete a project and get paid the same day.
Writers often make errors in their work, and proofreaders help catch those mistakes. This job involves checking for grammar, spelling, and punctuation errors in different kinds of writing.
For example, proofreaders proofread blog posts, student papers, articles, ads, and more. It’s a flexible job you can do from home or anywhere in the world.
The pay for proofreading jobs can vary. Beginners might make around $20 to $25 per hour. With more experience, you could earn up to $50 or more per hour. Specialized fields like medical or technical proofreading may pay higher rates.
The best part is, you can start even if you have no experience as this is something you can learn. You will need a good eye for detail and a strong grasp of language to succeed.
If you enjoy reading and spotting errors, proofreading could be a fun and profitable job for you. Plus, it’s an excellent way to make money every day while working on your own terms.
You can learn more at 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
4. Bookkeeping
Bookkeeping can be a great online job that pays daily. If you like working with numbers, this is a flexible option for you. You can work from home and you don’t need a degree or much experience to get started.
Bookkeepers handle tasks like recording financial transactions and organizing receipts. They also create financial reports and manage budgets. Many businesses need these types of tasks done so that they can stay organized.
Many online bookkeeping jobs pay well, around $40,000 or more each year. This can be very good if you’re looking for a stable income from home.
You can learn more at Online Bookkeeping Jobs: Learn How To Get Started Today.
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This free training will show you how to start a profitable bookkeeping side-hustle in the next 30 days—even if you have no prior experience!
5. Play online games
Playing online games can be a fun way to earn money from home. There are many apps available that let you play games and collect real money or gift cards as rewards.
You can earn points (and redeem your points for cash and gift cards if you accrue enough) the same day as you play games.
Here’s a quick list of the top game platforms that pay real cash:
KashKick
Freecash
Swagbucks
InboxDollars
Game apps give real money rewards because they make money from ads and in-app purchases. They share some of this money with players like us to keep us playing their games.
Recommended reading: 23 Best Game Apps To Win Real Money
6. Sell stuff online
Selling things online is a great way to make money every day, and you can sell clothes, old phones, books, unused gift cards, kitchen items, and jewelry.
Many people have lots of items just lying around, so you could easily find things to sell without spending money on new stock.
You can quickly sell your items by listing them on sites like eBay, Craigslist, or Facebook Marketplace.
I have sold many items over the years and gotten paid the same exact day. It’s a great way to make money the same day with the things that you already have.
7. Transcriptionist
Transcription work is one of the top online jobs that pay daily with no experience needed to get started. Their job is to listen to audio or video files and type out everything that is being said. Transcriptionists need good listening and typing skills to do this job well.
One of the best things about transcription is you can work from home and have the flexibility to set your own schedule. This means you can work in the evenings, on weekends, or whenever you have free time.
There are different types of transcription jobs.
General transcription involves typing out things like interviews, podcasts, and videos.
Medical transcription requires you to type out doctors’ notes and medical records.
Legal transcription involves court hearings and legal documents.
Beginners can find work easily, especially in general transcription. You don’t need special training for most general transcription jobs. Sites like Rev, TranscribeMe, and Scribie are known for hiring beginners. They usually pay per audio hour, which means you get paid for each hour of audio you transcribe.
Beginners usually make $15 to $20 per hour, but your speed and accuracy can affect your earnings. The faster and more accurate you are, the more you can make.
As a freelance transcriber, you can invoice your clients after you complete a project and get paid the same day.
You can learn more at 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly.
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
8. Freelance writing
Freelance writing is a great way to earn money daily from home and you just need a computer and good writing skills. Many websites pay you to write articles, blog posts, and other content.
Freelance writers typically start at around $50 to $100 per article and with experience can earn over $1,000 per article.
I have been a freelance writer for years, for many different types of clients and different niches – travel, personal finance, lifestyle, and more.
As a freelance writer, you can invoice your clients after you complete a project and get paid the same day.
You can learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).
9. Virtual assistant
Virtual assistants help businesses with tasks like managing emails, scheduling meetings, social media posting, helping with SEO on a business website, and making travel arrangements. Many companies look for virtual assistants because it saves them time and money.
I have had a virtual assistant for many years now, and she helps my business run much more smoothly so that I can focus on other tasks – it is a much needed service!
One of the best things about being a virtual assistant is the flexibility. They can often set their own schedule and work from anywhere.
Virtual assistants can work for one company or several clients at once. This can keep the work interesting and help you build a wide range of skills. Plus, you can offer different services like social media management, customer service, and research.
Payment can vary and some virtual assistants are paid hourly, while others get a set fee for each job. Many platforms let you choose the payment method that works best for you. This can be helpful if you prefer getting paid daily or weekly.
You can learn more at Best Ways To Find Virtual Assistant Jobs.
10. Online tutoring
You can make money by tutoring students online, and this job lets you share your knowledge with kids or adults who need help with their studies.
All you need is a computer, a good internet connection, and a quiet place to work. Many tutoring jobs pay well, around $30 per hour on average and up to $50 or $60 per hour for advanced subjects like SAT Prep or calculus (and other higher level math subjects). Some subjects even pay well over $100 per hour.
You don’t always need to be an expert to start. Some jobs only require you to be good at what you teach and be able to explain it well. This makes online tutoring a great job for college students and part-time workers too.
Some sites to find online tutoring jobs include Pear Deck Tutor (formerly TutorMe), Wyzant, and Course Hero.
As an online tutor, you can invoice your clients after you complete a tutoring session and get paid the same day. Typically, with these types of same-day pay jobs, your client will pay right away.
11. Data entry jobs
Data entry jobs involve entering or updating information in a computer system or database, such as by typing info from documents into a digital format.
One perk of data entry is the chance to work from home as many companies hire for remote jobs that pay daily, letting you balance work with other activities.
You can find data entry jobs on websites like Indeed, Upwork, and Remote.co. Many of these online jobs pay daily after you complete a project, which makes it easy to get quick cash.
You’ll need good typing skills for this work because your typing speed and accuracy are important since you’ll be working with lots of data.
These jobs can pay well, too. Pay rates can range from $20 to $35 per hour. The rate can depend on your skills and the company’s budget.
You can learn more at 15 Places To Find Data Entry Jobs From Home.
12. Freecash
Freecash is a fun way to make extra money online. You can get paid for trying out apps, playing games, and answering surveys. The tasks are simple and only take a few minutes.
When you sign up, you’ll find many different offers. Each offer can earn you coins, which you can convert into cash or gift cards. The rewards can be used for PayPal, bank transfers, free gift cards, or even crypto.
One great thing about Freecash is that you can start earning almost right away. On average, it takes about 17 minutes to earn enough coins for your first cashout. This makes it one of the quicker ways to earn online.
I have personally redeemed over $400 in free gift cards from Freecash, so I know this site is real.
Click here to sign up for Freecash.
13. Sell printables on Etsy
Selling printables on Etsy is a great idea because you only need to create one digital file per product, which you can sell unlimited times.
Printables are digital products that customers can download and print at home, such as grocery shopping checklists, gift tags, candy bar wrappers, printable quotes for wall art, and patterns.
You can sell printables all day long, which means that you can get paid each day.
You can learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
14. Website testing
Website testing is a great way to earn money online and get paid right away. Many companies will pay you to test their websites and apps, and all you need is a computer or mobile device and you can start making money.
You don’t need any special skills to get started either – most website testing platforms just want your honest feedback on how easy their site is to use.
Common tasks as a website tester include checking links, testing navigation, and reporting any issues. You might also be asked to complete certain actions, like making a purchase or signing up for a newsletter.
The pay you can make for website testing varies. Some tests pay as little as $5, while others can pay up to $90 for more detailed work. Generally, you can expect to earn around $10 to $30 per hour depending on the platform and the complexity of the test.
Platforms like UserTesting and IntelliZoom are popular choices. They have frequent testing opportunities and pay through PayPal, which makes it easy to get your money quickly.
In a typical week, you might get 1 to 3 testing opportunities. This makes it a good side hustle, especially if you need extra cash quickly. Plus, it’s a flexible job you can do from home or anywhere with an internet connection.
For me, I have personally hired a website tester to test my website, Making Sense of Cents. They sent over a video of their screen and them talking, where they talked about what they liked and didn’t like about my website. I found it very helpful to see what someone thought of my website from an unbiased view.
15. Dropshipping
Dropshipping is a great way to start an online business without much upfront cost. Dropshippers sell products directly to customers without having to keep the items in stock.
They choose a product, list it on their online store, and when someone buys it, they order it from a supplier (typically, this is done automatically). The supplier then ships it straight to the customer. And, you get paid the same day as the sale.
It’s important to pick the right products and reliable suppliers. Good suppliers help to make sure that customers get their orders quickly and in good condition.
You also need to market your store, of course. Use social media and online ads to attract buyers.
16. Microtask websites
Microtask websites give you the chance to earn money by completing small tasks. These tasks can be simple and quick, like answering surveys or testing apps.
One popular site is Amazon Mechanical Turk (MTurk). It’s known for its diverse range of tasks, such as transcription, writing, market research, moderating forums, labeling photographs, data collection, categorizing products, and more. You can pick what you want to do and get paid for each task you finish.
Fiverr is another option. You can list your skills, whether it’s writing, graphic design, voice-over work, or something else (there are literally thousands of different kinds of tasks that you can list). Clients hire you for gigs and you get paid once the job is done.
17. Translator
If you know more than one language, you can work as a translator. This job lets you use your language skills to help others understand different texts.
You will translate documents like medical, legal, or technical papers. You may even be translating articles or books. Many platforms allow you to sign up and start translating after passing a test.
Platforms, like Upwork, have many translation jobs. You set up a profile and showcase your skills, and you can choose the jobs that match your expertise and agree on a payment rate with the client.
Hourly rates for translators can vary. Some jobs might pay around $20 per hour, while more specialized or urgent work can pay up to $100 per hour. Your pay depends on the complexity of the job and your speed.
As a freelance translator, you can invoice your clients after you complete a project and get paid the same day.
Frequently Asked Questions
Below are answers to common questions about how to find online jobs that pay daily.
What app lets you work and get paid daily?
Apps like DoorDash, Postmates, and Instacart allow you to deliver food and get paid the same day. These are apps where you work in person and not strictly online.
How to make $25 dollars an hour online?
Freelance writing can help you earn $25 an hour if you’re a fast writer. Proofreaders can also make good money. For me, I am a full-time blogger and I make over $25 per hour online.
How to make money and get paid the same day?
To make money and get paid the same day, you can do things like freelance writing or proofreading, starting a blog, selling printables, taking online surveys, playing games online, data entry, and more.
What are free online jobs that pay daily without investment?
There are many online jobs that pay daily without investment that you can start, such as proofreading, bookkeeping, writing, and translating. There are also sites that you can sign up for and earn spare cash, such as by answering surveys, testing out cell phone apps, and playing games online.
What are remote jobs that pay daily?
There are many remote jobs that pay daily in areas like writing, proofreading, and bookkeeping. Website testing on platforms like UserTesting can pay quickly. Data entry jobs can also have frequent payout options. These jobs let you work from home and earn fast.
What are the best online jobs that pay daily for students?
There are many online jobs for college students that can pay daily, such as selling items on Amazon, answering paid online surveys, starting an online store, reselling items online, and more.
How To Find Online Jobs That Pay Daily
I hope you enjoyed this article on how to find the best online jobs that pay daily.
There are many online jobs that pay daily cash and even some where you can work online and get paid instantly.
These include blogging (my favorite way to earn income every day), answering online surveys, proofreading, bookkeeping, selling stuff online (I have done this many times and it’s easy!), transcribing files, writing, selling printables, website testing, dropshipping, and more.
These fast-paying jobs may pay via direct deposit, check, free gift cards, PayPal cash, and more. It all just depends on what you are looking for.
What do you think are the best online jobs that pay daily?
Average rent: $2,653 per month for a one-bedroom apartment
Median home sale price: $1,090,000
Public transit: Los Angeles County Metropolitan Transportation Authority (Metro) provides bus and rail services throughout the city
Public parks: Over 450 parks and green spaces for recreation and relaxation
Languages spoken: Over 200, reflecting the city’s rich cultural diversity
Annual tourists: Approximately 50 million visitors each year
Restaurants: Over 29,000, offering a wide variety of cuisines from around the world
1. Pro: Entertainment capital of the world
Los Angeles is globally recognized as the entertainment capital of the world. The city is home to Hollywood, the center of the film and television industry, and hosts numerous film studios, theaters, and music venues. Residents have easy access to world-class entertainment, including movie premieres, concerts, and live performances. Additionally, LA offers a plethora of museums, art galleries, and cultural events, ensuring there’s always something exciting to do.
2. Con: High cost of living
The cost of living in Los Angeles is about 50% higher than the national average. Housing costs, in particular, are significantly higher, with the median sale price for a home in Los Angeles around $1,090,000 and the average rent for a one-bedroom apartment in Los Angeles about $2,653 per month, making housing 137% more expensive than the national average. Additionally, utilities are 13% more expensive, groceries are 12% higher, transportation costs are 29% above average, healthcare costs are 7% more, and lifestyle expenses are 17% higher than the national average. Residents need to budget carefully to manage these elevated expenses effectively.
3. Pro: Diverse cultural scene
Los Angeles boasts a rich and diverse cultural scene, influenced by its multicultural population. The city is a melting pot of cultures, offering a variety of international cuisines, festivals, and cultural experiences. Neighborhoods like Koreatown, Little Tokyo, and Olvera Street provide unique cultural experiences and highlight the city’s diversity. This cultural richness enhances the overall living experience and provides endless opportunities for exploration and learning.
4. Con: Traffic congestion
Los Angeles is infamous for its traffic congestion. With a sprawling layout and a high number of vehicles on the road, commuting can be time-consuming and stressful. The city has made efforts to improve public transportation, including expansions to the Metro rail system, but the reliance on cars remains high. Residents often face long commute times, especially during peak hours, which can impact daily life and work schedules. The heavy traffic can also contribute to increased pollution and higher stress levels. Despite various measures to alleviate congestion, including carpool lanes and ride-sharing options, traffic remains a significant challenge for Angelenos.
5. Pro: Beautiful weather
One of the biggest draws of Los Angeles is its beautiful weather. The city enjoys a Mediterranean climate, with warm, sunny days and mild, pleasant evenings throughout the year. This favorable weather allows residents to enjoy outdoor activities year-round, from beach outings to hiking in the nearby mountains. The consistent sunshine and mild temperatures contribute to a high quality of life and a variety of recreational opportunities.
6. Con: Air quality
Despite its beautiful weather, Los Angeles struggles with air quality issues. The city’s large population and heavy traffic contribute to smog and pollution, which can impact health and visibility. Efforts are being made to improve air quality, but it remains a concern for residents, particularly those with respiratory conditions. Staying informed about air quality levels and taking precautions on high-pollution days is important for maintaining health.
7. Pro: Thriving job market
Los Angeles has a thriving job market, with opportunities in various sectors such as entertainment, technology, healthcare, and tourism. The city is home to numerous major corporations, startups, and innovative businesses. The entertainment industry, in particular, provides a wide range of job opportunities, from production and acting to marketing and management. Additionally, the tech industry in Silicon Beach is growing rapidly, attracting talent from around the world.
Top employers in Los Angeles
The Walt Disney Company
Warner Bros. Entertainment
UCLA Health
Kaiser Permanente
Northrop Grumman
8. Con: High property taxes
Property taxes in Los Angeles can be quite high, adding to the overall cost of homeownership. The average property tax rate in Los Angeles County is about 1.25% of the assessed home value. For a median home priced at $800,000, this translates to an annual property tax bill of around $10,000. The combined state and local tax burden can be significant, impacting homeowners’ budgets. This high tax rate, coupled with the already steep housing costs, can make purchasing and maintaining a home in Los Angeles financially challenging. Prospective homeowners need to consider these additional costs when planning their budgets.
9. Pro: Excellent education
Los Angeles is home to several prestigious educational institutions, including the University of California, Los Angeles (UCLA), and the University of Southern California (USC). These universities offer a wide range of programs and contribute to the city’s vibrant academic atmosphere. Additionally, Los Angeles Unified School District (LAUSD) and numerous private schools provide diverse educational options for everyone. The presence of these institutions enhances the city’s appeal to students and professionals seeking advanced education opportunities.
10. Con: Natural disaster risk
Living in Los Angeles means being prepared for natural disasters, such as earthquakes, wildfires, and occasional flooding. The city’s location along the Pacific Ring of Fire makes it prone to seismic activity. Residents need to be aware of these risks and take necessary precautions, such as having emergency kits and evacuation plans in place. While the city has infrastructure and protocols to manage these events, the risk of natural disasters is an important consideration for potential residents.
11. Pro: Outdoor recreational activities
Los Angeles offers a wide range of outdoor recreational activities, thanks to its diverse landscape. Residents can enjoy surfing at Venice Beach, hiking in Griffith Park, or skiing in the nearby San Gabriel Mountains. The city’s numerous parks and recreational areas provide ample opportunities for fitness and relaxation.
Popular outdoor spots in Los Angeles
Griffith Park
Runyon Canyon Park
Topanga State Park
Santa Monica Mountains National Recreation Area
Malibu Creek State Park
12. Con: Noise pollution
Living in Los Angeles often means dealing with significant noise pollution. The city’s constant hustle and bustle, from traffic and construction to nightlife and entertainment events, can create a noisy environment. Residents in areas close to major highways, airports, or busy commercial districts may find the noise levels particularly disruptive. This can impact sleep quality, stress levels, and overall quality of life. For those sensitive to noise, finding a quieter neighborhood or investing in soundproofing solutions may be necessary.
13. Pro: Iconic landmarks
Living in Los Angeles means having iconic landmarks and attractions at your doorstep. From the Hollywood Sign to the Santa Monica Pier, these sites contribute to the city’s unique character and charm.
Popular landmarks in Los Angeles
The Getty Center
Griffith Observatory
The Los Angeles County Museum of Art (LACMA)
The Hollywood Walk of Fame
The Los Angeles Coliseum
14. Pro: Culinary diversity
Los Angeles boasts an incredibly diverse culinary scene, with thousands of restaurants offering cuisines from around the world. From high-end dining establishments to street food vendors, the city has something to satisfy every palate. The city’s food scene reflects its multicultural population, offering a vast array of dining options, including authentic ethnic cuisines, farm-to-table eateries, and innovative fusion dishes. Food festivals, such as the Los Angeles Food & Wine Festival and Smorgasburg LA, further showcase the city’s culinary creativity.
Student loans are a type of financial aid option that lets you borrow a lump sum of money upfront that you’ll repay over time later, with interest. Some students are unclear whether a student loan is a secured or unsecured debt.
Both federal and private student loans are considered unsecured debt. Keep reading to learn more on secured loans versus unsecured loans, pros and cons of each, and why student loans are considered an unsecured form of debt.
What Are Secured Loans?
A secured loan is a type of debt that requires borrowers to provide the lender with an asset of value to back the loan. This asset is called collateral. Collateral could be your home, your car, other property that has monetary value, a savings account, jewelry, and more. The type of collateral you put up is stated in the loan agreement.
If a borrower defaults on their loan and doesn’t pay it back, the lender can take actions to seize possession of the collateral. It then uses the proceeds from the sale of the collateral to recover the unpaid debt.
Common types of secured loans include:
• Mortgage loans
• Home equity loans
• Auto loans
• Some personal loans
Lenders typically view secured loans as less risky to their bottom line since the promised collateral offers them at least some financial protection. In turn, secured loans might offer lower interest rates compared to unsecured loans.
Certain secured loans are also designed as accessible financing for individuals whose credit doesn’t qualify for an unsecured loan.
What Are Unsecured Loans?
An unsecured loan is an installment loan that doesn’t require an asset or collateral upfront to secure the debt. Since this type of loan doesn’t offer an asset-based guarantee to the lender, the borrower must demonstrate a strong likelihood that they’ll repay the debt.
A positive and extensive credit history, consistent and sufficient income, and low credit utilization are some markers that lenders use to determine how risky a borrower is for an unsecured loan. Additionally, since lenders don’t have access to collateral to fall back on in the event of default, unsecured loans generally have higher interest rates.
Credit cards, some personal loans, and private student loans are considered unsecured loans.
Pros and Cons of Secured vs Unsecured Loans
Secured and unsecured loans have their own advantages and downsides. Furthermore, some benefits are only for certain types of secured or unsecured loans. Before signing a loan agreement, it’s important to understand the pros and cons of each option.
Secured Loans
Unsecured Loans
Pros
• More accessible for certain borrowers
• May offer lower interest rates
• Might qualify for larger loan amount
• Certain loans might qualify for tax deductions
• No risk of lost collateral
• Application process might be more straightforward
• Might offer convenient features or perks
• Student loans might qualify for tax benefits
Cons
• Collateral required upfront
• Risk losing collateral if you default
• More stringent borrowing criteria
• Interest rates may be higher
How Federal Loans Differ From Typical Debt
Students often wonder whether federal student loans are secured or unsecured debt. Both federal loans and private education loans are unsecured debt. However, federal loans have significant perks and protections that private student loans don’t offer.
Unlike private student loans that require a minimum credit score or cosigner, most federal student loans don’t require a credit check or a cosigner to qualify for a loan. The Direct PLUS Loan is the only federal loan that requires a credit check, but borrowers with adverse credit can still access a Direct PLUS Loan by completing a few additional steps.
Federal loan rates are fixed, meaning your monthly payment won’t change throughout your repayment term. With federal subsidized Direct Loans, the Department of Education pays for interest that accrues while your loan is in deferment (e.g., while you’re in school). Conversely, other unsecured loans aren’t subsidized and might have variable interest rates that change throughout your repayment period, making it hard to anticipate your budget every month.
You’ll also have access to a range of repayment options, including income-driven repayment (IDR) plans, which are exclusive to federal student loans. Some borrowers qualify for a required payment of $0 per month while enrolled in an IDR plan. Finally, federal student loans are eligible for federal student loan forgiveness programs that cancel a portion of your student debt after meeting minimum program requirements.
Managing Your Student Loan Debt
Getting a handle on your unsecured student loan debt can feel challenging as you balance other areas of your life. Below are a few strategies to help you manage your student loans:
• Make in-school interest-only payments. If you can afford to, consider paying off the monthly interest that accrues while your loan is on in-school deferment. This applies to both unsubsidized federal loans and private loans. Making these small but meaningful interest payments can help you avoid interest capitalization (i.e., paying interest on interest) later.
• Track when your loan payments are due. Be aware of your loan due dates and minimum payments each month. Late payments or missing a payment altogether can have a negative effect on your credit score, since loan repayment history is reported to the major credit bureaus.
• See if you qualify for loan forgiveness or loan repayment assistance. The Department of Education offers a few forgiveness and cancellation programs for eligible borrowers with qualifying loans, like the Public Service Loan Forgiveness program for government and nonprofit employees. Some states also offer loan repayment assistance programs to workers in certain professions, like health care, social work, and law.
• Reach out to your loan servicer or lender. If you’re struggling to make your student loan payment, your loan servicer or lender is your best resource. They can guide you through relief options that are accessible to you, whether that’s getting on a different repayment plan or temporary forbearance.
The Takeaway
A student loan is unsecured debt. Having to put forward collateral to get a student loan is a roadblock that you fortunately don’t have to worry about.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Are student loans considered secured or unsecured?
Student loans are considered unsecured debt, meaning they don’t require collateral from you as a condition of securing the loan. Since there’s no collateral tied to the loan, if you default on the debt, the lender might choose to take you to court in an attempt to collect some or all of the debt.
Is it possible to get a secured student loan?
No. Student loans are a form of unsecured debt. No collateral is required to get a student loan, whether you’re borrowing a federal or private student loan.
How are federal student loans different from private?
Federal student loans are guaranteed and funded by the U.S. Department of Education. They offer exclusive fixed rates, established annual and aggregate loan limits, non-credit-based eligibility criteria, and access to income-based repayment plans and loan forgiveness.
Private student loans are provided by private financial institutions, like banks, credit unions, online lenders, and schools. Private lenders offer fixed or variable loan rates, which differ between lenders. Your eligibility for a private loan involves various factors, like your income and credit history, and repayment terms and plan options vary.
Photo credit: iStock/DNY59
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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