The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
One of the best ways to avoid free credit score scams is to find reputable sources through reviews and not to click links from unknown senders advertising free scores. Some scams use robocallers as well.
A credit score is an important indicator of your financial health. It can affect your interest rates, how much your deposits are and your ability to get a loan. There are many services out there that charge you to check your credit score, which is what makes free credit score offers so alluring. Unfortunately, there are nefarious people who try to steal personal or financial information through free credit score scams.
According to the Federal Trade Commission (FTC), consumers reported losing over $10 billion to fraud in 2023. During this time, there were 5.4 million reports, and many included identity theft. This is why knowing how to spot credit score scams is so important.
Today, you’ll learn four tips to avoid credit score scams and how to find reputable organizations that provide the service legitimately.
1. Only use reputable sources for free credit scores and reports
If you’re looking to check your credit score for free, one of the most important things you can do is to find reputable companies. In order to check your credit score and report, the company needs your personal information, so you want to ensure they’re legitimate.
How to safely get your free credit report
The best source to get your credit report is through AnnualCreditReport.com, a site authorized by the U.S. government to provide you with your report once a year for free. Here, you receive your report from the three major credit bureaus — TransUnion®, Experian® and Equifax®. Doing it this way, you can ensure getting your free credit report is safe.
How to safely check your credit score for free
There are many ways to get your credit score for free, including:
Credit card companies: Credit card companies often offer free credit scores via their mobile app and website. You can sometimes find it on your monthly statement as well.
Banks and credit unions: Similar to credit card companies, many banks also have your credit score in their app or on their website. Not all credit unions have this service, so check to see if yours does.
Reputable online services: Many online services that offer free credit scores, but do your research first to see if they’re reputable.
Also, keep in mind that some companies aren’t legitimate, so learning how to identify credit repair scams is helpful.
2. Beware suspicious emails
Email scams commonly advertise financial services as a way to steal your information. Bad actors use a technique known as “phishing,” which involves trying to get your information by having you click on links.
Many scammers are good at what they do, so the emails will look legitimate. They may use company logos and legitimate-looking websites to steal your information. This is why it’s helpful to look for signs of email scams:
Email address: The sender should have an email address that’s @ the company’s website domain.
Suspicious attachments and links: Some links or attachments can steal your information, so try not to click or open ones that look suspicious.
Poor spelling and grammar: If you look closely, you can often find issues with spelling and grammar. They may also have awkward phrasing because they’re sometimes sent from outside the U.S.
Sense of urgency: In an attempt to have the reader not look too closely or question the email, the sender may create a false sense of urgency to get your information.
3. Don’t provide payment information
A free credit score should be free, which is why you should be skeptical if the service is asking for payment information upfront. A free credit report scammer may ask for your payment information so they can steal it to make purchases.
It’s helpful to note that many legitimate services that provide free credit scores may ask for payment information for a free trial. If you don’t want to move forward with the membership, it may be a good idea to set a calendar reminder to cancel before you’re billed. Just be sure to check that the company is reputable before providing your payment information.
4. Ignore unknown callers and robocallers
Unknown callers can sometimes be a red flag, and robocallers are becoming more popular. Robocallers are often pre-recorded messages, but with artificial intelligence becoming more popular, they can sound even more real.
A credit score or credit report scam may be from someone impersonating a financial institution. Similar to scam emails, they may create a sense of urgency by telling you there’s a problem with your credit report and trying to entice you to give your information. This can lead to identity theft or the theft of your credit card information.
One of the simplest ways to avoid these types of scam calls is to change your phone settings. Many of the newer smartphones allow you to change the settings to send unknown callers straight to voicemail.
What to do if you’re the victim of a free credit score scam
Even with the knowledge of what to do to avoid free credit score scams, you can still become a victim. If this happens, there are some steps you can take:
Freeze your credit: You can freeze your credit with all three bureaus to prevent anyone from opening new lines of credit until you unfreeze it.
Report the scam: On the FTC website, you can report fraud to begin an investigation.
Contact your bank and credit card providers: If the scammers stole your information, consider canceling your debit and credit cards and changing your bank account information.
How to get your free credit score from a reputable company
To avoid free credit score and credit repair scams, be sure to use a reputable company like Lexington Law Firm. To avoid free credit score and credit repair scams, be sure to use a reputable company like Lexington Law Firm. Get your free credit assessment today for a free credit score and credit report summary.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
When purchasing a home, one of the most critical steps in the process is obtaining a home appraisal. Whether you’re a first-time buyer or a seasoned homeowner, understanding the significance of a home appraisal can help ensure that you make an informed decision.
Appraisals provide an objective assessment of a property’s value, which plays a pivotal role in securing a mortgage, protecting your investment, and ensuring fairness in the transaction. Here’s why home appraisals are so important in the buying process.
Determining Fair Market Value
A home appraisal provides a clear understanding of a property’s fair market value. This is crucial not only for buyers, but also for sellers and lenders. The appraiser assesses the home based on various factors, such as the condition of the property, its location, comparable sales in the area, and other market trends. This evaluation helps ensure that the price you’re paying for the home aligns with its actual market worth, protecting you from overpaying.
Securing a Mortgage
Most lenders require a home appraisal before approving a mortgage. The reason is simple: lenders want to ensure that the property is worth the amount they are lending. If the home appraises for less than the agreed purchase price, the lender may refuse to finance the full amount, leaving the buyer with options such as renegotiating the price or paying the difference out of pocket. A fair appraisal, therefore, is essential to secure the loan and avoid financial surprises down the road.
Protecting Your Investment
For most people, buying a home is one of the largest financial investments they’ll make in their lifetime. A home appraisal ensures that you’re making a sound investment. It gives you a realistic picture of what the home is worth based on its condition, location, and recent sales in the area. This helps you avoid buying an overpriced property and ensures that your investment will hold its value in the future.
Negotiating Power
In cases where the appraisal comes in lower than the agreed purchase price, buyers can use this information to negotiate with the seller. Since the home is appraised for less than the asking price, the seller may agree to lower the price to match the appraisal. If the seller refuses, buyers can walk away from the deal or consider other financing options, but the appraisal gives them leverage in negotiations.
Protecting the Lender
While homebuyers benefit directly from appraisals, lenders are also protected. The appraisal acts as a safeguard for lenders by confirming that the property has sufficient value to cover the mortgage amount in the event of foreclosure. If the borrower defaults on the loan, the lender needs assurance that the home can be sold to recoup the outstanding loan balance.
Ensuring Transparency and Objectivity
The appraisal process introduces an element of objectivity to the home-buying process. The appraiser is an independent, licensed professional whose job is to provide an unbiased opinion of the home’s value. This impartiality ensures that neither the buyer nor the seller has an undue advantage, and the final decision is based on the property’s true value, not emotions or market pressure.
Home appraisals are a critical part of the home-buying process, ensuring that both buyers and lenders are protected from overpaying for a property. By providing an objective assessment of a property’s fair market value, appraisals help buyers secure financing, protect their investment, and ensure transparency throughout the transaction. Whether you’re purchasing your first home or adding another property to your portfolio, understanding the importance of appraisals can help you make more informed decisions and avoid costly mistakes.
Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
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As a Midwestern hub with a long, rich history, there is so much that Detroit, MI, is known for. From automotive history, to legendary music, to popular sports, this resurging city has so much to offer all who come across it. Whether you’re looking for an apartment in Detroit, MI, planning to rent a house in the city, or buying a home in the area, this list of 16 unique things to do in Detroit is hand-picked by local experts to help you immerse yourself in the spirit of the Motor City.
1. Wander the beautiful Belle Isle Park
Audio-D Tours, a free mobile tour company highlighting unique things to do in Detroit, didn’t hesitate to recommend Belle Isle Park. Just a few minutes from downtown, the park includes numerous free attractions, rental kayaks, the Dossin Great Lakes Museum, peaceful picnic spots and new playscapes. Get more information about each of these spots in the park with their free audio tours.
2. Drift into Motor City heritage
Detroit is known as the origin of the American automotive industry. It is home to the 120-year-old Ford Piquette Avenue Plant, the birthplace of the iconic Model T, the car that put the world on wheels. Now a museum and U.S. National Historic Landmark, it offers visitors a glimpse into the origins of the Motor City through film, exhibits, original artifacts, and a collection of rare antique vehicles.
3. Savor fresh fish from the Great Lakes
Head over to the Marina District to experience the flavors of fresh fish indigenous to the Great Lakes. Dining at Sindbad’s Restaurant & Marina is a must on this list of unique things to do in Detroit. Their local meals feature fresh Perch and Walleye that celebrate the aquatic bounty and showcase the best of the Great Lakes.
4. Stop for a scoop at Sedo’s
Located in the picturesque and historic Villages, Sedo’s Ice Cream on Agnes St. offers a selection of sweet treats to indulge in. Try one of their 16 rotating ice cream flavors, or treat yourself to a sundae, milkshake, or malt to enjoy while you explore the neighborhoods of Detroit.
5. Jump into the sports culture
“If you’re getting to know Detroit, the first thing to know is that we are diehard sports fans, whether our team is good or not,” shares Matt, leader of local band Collision Six. “Make sure to check out a Tigers, Lions, Wings, or Pistons game. We think the best times to go are when there is live music at the home games or during big events like opening night.”
6. Experience the perfect fusion of Detroit energy
A visit to The Lager House in the Corktown neighborhood is a must. It’s the perfect spot to experience Detroit’s diverse music scene live while soaking in the area’s blend of old-school grit and new energy. Their hidden speakeasy downstairs offers a cozy, retro contrast to their lively outdoor courtyard, and the offerings of local craft beer and Detroit-style eats give you a true taste of what life in Detroit is like.
7. Take a walk on a self-guided statue tour
“One of the best things about Detroit is that we value public art,” shares Peter, co-owner of local Van Dyke Books. Here is his recommendation for a short walking tour of Detroit’s most iconic statues:
Start at Campus Martius to find two statues that contrast the new Detroit with the ancient Detroit: the 152-year-old Michigan Soldiers’ and Sailors’ Monument and the newer “Waiting” statue by modern artist KAWS.
Head south from Woodard Ave to Jefferson Ave to find “The Fist,” a giant black-bronze fist suspended by chains in the center median. This statue honors Joe Louis, legendary Detroit boxer and one of the first Black national heroes.
Continue south to land in Hart Plaza. This riverside plaza is dotted with numerous works of art, including a life-sized statue of the city’s founder, the International Monument to the Underground Railroad, a 63-foot-tall monument to the Detroit labor movement called “Transcending”, and many more.
8. Find connection and support in the community
BasBlue is an inclusive, safe, and diverse community of women and non-binary individuals. If you’re new to the area and searching for an authentic, empowering, and loving group to connect with, look no further. Equipped with a library and café filled with locally sourced coffee, craft cocktails, a curated wine list, and delightful culinary options, it’s the perfect place to soak up all that Detroit has to offer.
9. Explore the Motor City on two wheels
Wheelhouse Detroit, right on the Detroit Riverwalk, is a bicycle shop that offers retail, service, rentals, and even tours of the city. Whether you’re looking for your dream bike to take adventuring through your new neighborhood or you want to join your friends on an in-depth pedal with the inside scoop, this locally owned and women-led team is eager to help you with all of your cycling needs.
10. Grab a slice from local Belle Isle Pizza
Named after the beloved Belle Isle Park in the heat of the Detroit River, Belle Isle Pizza sits nestled between historic Indian Village and West Village. This pizzeria is a local staple, bringing people together with handcrafted pizzas made from fresh, local ingredients. It embodies the grit, warmth, and pride that define what it means to live in Detroit.
11. Get an i-cone-ic experience at MJ’s North End Ice Cream Parlor
If you’re looking for a great locally-owned spot to hang out and learn about more unique things to do in Detroit, make sure to visit MJ’s Ice Cream Parlor in the North End neighborhood. This area is immersed in music history, once home to some of Motown’s icons such as Aretha Franklin, Smokey Robinson, and Stevie Wonder to name a few. Be sure to ask the owners for the inside scoop on the little-known facts of the neighborhood.
12. Celebrate the culture and diversity of the city with Distinctively Detroit Tours
Step off the beaten path and dive into the vibrant culture and history of Motown like never before with Distinctively Detroit Tours. From the first and only hip-hop history tour led by a celebrity recording artist, to an insider’s look at the city’s thriving music industry, the hidden gems of Detroit’s art and history, or mouthwatering culinary destinations, there are so many great tour options for all ages and interests.
13. Cozy up with tea and treasures
If you’re looking for a comfy spot to shop, gather, or work, keep an eye out for CommodiTeas Tea Shop in the Fisher Building. Local owner, Katrina, really knows her tea, and will help you find the perfect cup to cozy up with—hot or iced. The lush surroundings make it easy to relax in, and the shop includes beautiful items perfect for a housewarming party gift – for a friend or for yourself.
14. Sip and pedal on a moving party
Experience Detroit in a whole new way with Detroit Roll House, the first and only pedal pub with a live DJ. This unique thing to do in Detroit takes you through the streets of Motor City with an expert blend of music, fun, and scenic views while you power the ride as the DJ pumps the vibes. Whether you’re celebrating or just exploring with friends, this is the ultimate way to enjoy the city’s striking views and profound culture.
15. Experience Detroit’s revitalized energy
“Detroit is experiencing an exciting resurgence, showcasing vibrant new and existing businesses, restaurants, and attractions,” shares Craig, owner of local Craig’s Coffee, a standout roaster known for their sustainably sourced beans and small-batch roasted coffee. “Must-see spots include the expanded Motown Museum and the beautifully restored Michigan Central Station in Corktown.” Stop by Criag’s for the perfect warm-up after a day filled with exploring.
16. A few highlights for a shorter trip
Not staying in Detroit long? The Albert Kahn Legacy Foundation, which honors the life and legacy of architect Albert Kahn, shares a few extra unique things to do in Detroit for a well-rounded introduction to the city:
Fisher Building: Designed by Albert Kahn, this is a must-see for Detroit’s history buffs, featuring stunning Art Deco architecture and intricate interior details.
Detroit Institute of Arts:A cultural landmark with a world-class collection, including Diego Rivera’s famous murals.
Eastern Market: Visit on a Saturday for a taste of Detroit, where the largest historic public market brims with local vendors, fresh produce, and artisan goods.
Detroit RiverWalk: An ideal spot for jogging or strolling, offering beautiful river views, public art, and nearby parks.
Detroit Jazz Festival: The annual festival showcases the city’s musical heritage, drawing top jazz musicians from around the globe and filling the city with soul-stirring sound.
Unique things to do in Detroit, MI: The Motor City is moving on up
Detroit stands as a testament to resilience and transformation with a rich history that shapes its ever-evolving identity. Whether you’ve lived in the city for a while and are looking for more connection, or you’re trying to decide if Detroit is a good place to live before making a big move, these unique things to do in Detroit chosen by local experts showcase everything the city is known for.
Yes, college is expensive. The real surprise: Housing can be pricier than tuition. At public four-year colleges in 2023-24, the average cost for housing and food was $12,770 — higher than the $11,260 for tuition and fees, according to a 2023 College Board report. Students at community colleges and private schools also faced similarly high housing costs.
High housing prices can impact a student’s ability to thrive at college or complete their degree. According to a 2019 report by Temple University’s Hope Center in Philadelphia, about 56% of surveyed students said they experienced housing insecurity — including the inability to pay rent — in the previous year.
“We see escalating prices and escalating costs whether you’re on- or off-campus, and so it’s becoming a bigger piece of the college education funding puzzle for a lot of families,” says Olan Garrett, associate vice president of student affairs at Temple University.
There are strategies to lower your college housing costs, from getting roommates to carefully comparing on- and off-campus options. Advisors at your college can guide you toward affordable options, even in emergency situations.
Before you take out more student loans than necessary to pay for college housing, consider these expert-approved tips.
Start early and do your research
Start looking for housing as early as possible — for many students looking off-campus, that will be mid- to late-fall for the next academic year, says Garrett. You may have more time if you want to live on-campus: that selection process typically opens in the spring, he says.
“The later you wait, the fewer options there will be,” Garrett says.
One way to get ahead of the curve: reach out to leasing agents in your community. “For example, if you’re going to an open house or an apartment tour, find the leasing agent and get in contact with them about what other available units might come up,” suggests Matt Aini, chair of the Student HOMES Coalition, a student-run organization that promotes affordable student housing policies. This could help you find apartments that aren’t yet listed online.
Do some research on your potential landlord or rental management company before signing a binding lease. Reach out to friends and peers and look up online reviews.
“How have people perceived the way the landlord works? Is it a landlord that’s very responsive to requests?” says Garrett.
Compare on-campus and off-campus options
Off-campus living may come with more independence and cheaper rent — but when it comes to comparing costs with on-campus options, it’s not always “apples to apples,” says Garrett.
With on-campus living, utilities like heat, water, electricity, trash and WiFi are typically baked into your housing fee. The dorm may also come fully furnished. Off-campus rent doesn’t usually include these services, so you’ll have extra college expenses. Off-campus apartments may also require a security deposit and first month’s rent upfront.
Most college websites offer online cost-of-living calculators that can help you compare average costs of living on- or off-campus.
If your school is close to home and you have the option to continue living there, you may consider commuting to save money on housing.
Aini, who is a senior at the University of California, Berkeley, lives with his parents nearby and commutes to campus.
“I made a very conscious decision,” Aini says. “And among other things, you see the cost. And I think it just makes things easier.”
Get roommates and manage expectations
Having a roommate is part of the quintessential college experience for many freshmen at American universities. Even after freshman year, living with roommates allows you to split rent and utility bills.
“I do believe there’s value in roommates or shared living environments,” says Brenda Ice, senior associate dean and senior director of residential life at Brown University in Providence, R.I. “This isn’t me saying, ‘try to pack in as many people as you can in a particular house or apartment,’ but I do believe there is both a social benefit of living with more than one person in a shared space, while also helping to cut down on costs.”
Be willing to compromise on amenities to get a place that’s within your budget. You may not be able to live in a brand new or recently renovated residence hall without roommates.
“Understand the first goal of this is to be able to live in a place of comfort that allows you to sleep, study, do the things you need to do,” Garrett says.
Reach out to university resources
For help navigating housing options, reach out to your university’s housing and residence life office. School administrators can walk you though on-campus options, and some can help with off-campus housing.
“Have a conversation with a housing officer,” Garret says. “In most cases, one size does not fit all.”
Many colleges offer off-campus housing databases with vetted landlords and properties. Some may even offer free workshops. For example, Brown works with a campus partner to teach students about financial literacy, understanding leases, connecting with neighbors and more, Ice says.
Even if your school doesn’t offer such robust housing resources, it likely has a housing officer. At North Seattle College, a community college, housing resource specialist Shannon Thomas helps students through emergency housing situations.
“I make connections with agencies and programs all throughout the area, whether it’s community service organizations, city or state programming, private landlords, or other schools and agencies,” Thomas explains.
Submit the FAFSA to minimize borrowing costs
If you need to take out student loans for housing, then prioritize federal student loans, which have more generous protections and flexible repayment options. You must submit the FAFSA to qualify for federal student loans and need-based Pell Grants. If you’ve borrowed the maximum amount in federal loans, consider private student loans as a last resort to fill in any funding gaps.
Read your lease and communicate with landlords
If you plan to live off campus, understand that leases are binding legal documents with major financial implications. Violating your lease terms may result in extra fees, eviction and a stain on your record that could make it difficult to rent an apartment in the future.
Some schools, like Brown, employ attorneys to help students with legal advice, including reviewing lease terms and navigating landlord disputes. You can also bring your lease documents to a free legal clinic at your school or in your community, says Aini.
If you’re already living off-campus and foresee an issue paying rent, reach out to your landlord proactively, Garrett says.
“I’m channeling my wife here, who’s a property manager, she would say, ‘communicate with your landlord early … if you know you’re going to be an issue, let them know you’re going to be an issue.’ Most landlords are willing to work with you up front,” he explains.
Apply for emergency housing grants
According to the 2019 Hope Center survey, 14% of students at four-year colleges said they experienced homelessness in the past 12 months. At community colleges, that figure was 18%. The vast majority of these students temporarily stayed with a relative or friend, the survey found.
Grants can help you get by in emergency situations where you’re at risk of losing housing. States, cities and institutions usually offer these grants. To learn about your options, reach out to the housing officer at your institution.
For example, colleges in Washington state can dole out the Washington Student Achievement Council (WSAC) emergency grant.
To apply for the WSAC grant, students typically first meet with a housing coordinator at their school, says Thomas, who oversees the WSAC grant program at North Seattle College. The amount of money students can get from this grant is flexible, though Thomas says it goes up to roughly $3,000.
“We will assess their housing needs, their basic needs and then we’ll prioritize what those are and set a course for finding them,” Thomas says. “A student might drop in and say, ‘we’re moving into an apartment that’s going to cost us ‘X’ amount of money. I only have so much. I am not receiving assistance from my family, or can’t pay for a variety of reasons. And so can you help me with this?’ And so what happens is, we take a request for financial assistance and we explore it as a team.”
In an urgent situation, Thomas says he may refer students to a shelter or arrange for a stay in a motel.
“It’s pretty clear that if you’re addressing the basic needs of your students, that you’re going to improve your retention rates … and you’re also going to improve the quality of community on your campus,” Thomas says.
If you’re dreaming of owning your own home, whether that means a cute Colonial or a loft-style condo, you are likely contemplating financing, and that can mean a mortgage. A home loan can give you the funds required to purchase a property, but there can be a learning curve involved, especially if you are a first-time homebuyer. For instance, what term should you select? How do mortgage interest rates work, and is a fixed rate typically best?
In this guide, you’ll get the scoop on how home loans work, what kind of options you have, and how to assess which loan could be right for you.
What is a Mortgage?
A mortgage loan, also known simply as a mortgage, is issued to a borrower who is either buying or refinancing real estate.
The borrower signs a legal agreement that gives the lender the ability to take ownership of the property if the loan holder doesn’t make payments according to the agreed-upon terms.
Once issued a mortgage, the homebuyer will pay monthly principal (that’s the lump sum of the loan) and interest payments for a specific term. The most common term for a fixed-rate mortgage is 30 years, but terms of 20, 15, and even 10 years are available.
A shorter-term translates to a higher monthly payment but lower total interest costs. Put another way, you pay more every month, but the amount of interest over the life of the loan is lower.
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💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $5,000 credit.‡
A Buffet of Mortgage Choices
When homebuyers apply for a loan, they’ll need to choose whether they want a fixed interest rate or an adjustable rate and the length of the loan.
Fixed-Rate Mortgage
The interest rate on the home loan doesn’t change, so the monthly principal and interest payment remains the same for the life of the loan. Whether mortgage rates increase or decrease, the loan holder is locked in for their monthly payment.
Adjustable-Rate Mortgage (ARM)
With an ARM, the interest rate is generally fixed for an initial period of time, such as five, seven, or 10 years, and then switches to a variable rate of interest. The rate fluctuates with the rate index that it’s tied to.
As the rate changes, monthly payments may increase or decrease. These loans generally have yearly and lifetime interest rate caps (or maximums) that limit how high the variable rate can adjust to.
Next, borrowers will need to decide what type of mortgage loan works best for them.
Conventional Loans
Conventional loans are loans that are not backed by a government agency and must adhere to the requirements of Fannie Mae, Freddie Mac, or other investors. Typically, conventional loans are issued with at least 3% down. However, it’s worth noting that private mortgage insurance (commonly known as PMI) is generally required on loans with a down payment of less than 20%.
The coverage protects the lender against the risk of default. Your mortgage servicer must cancel your PMI when the mortgage balance reaches 78% of the home’s value or when the mortgage hits the halfway point of the loan term, if you’re in good standing.
PMI typically costs 0.2% to 2% of the loan amount per year.
Down payment: Generally between 3% and 20% of the purchase price or appraised value of the home, depending on the lender’s requirements.
FHA Loans
Loans insured by the Federal Housing Authority, or FHA loans, can be attractive to first-time homebuyers or those who struggle to meet the minimum requirements for a conventional loan. In a SoFi survey of 500 would-be homeowners conducted in April 2024, 28% of people who had filled out a loan application had applied for this type of loan, and fully 63% of those who filled out an application had applied for some type of government-backed financing.
These loans usually require a one-time upfront mortgage insurance premium (or MIP vs. PMI), which typically can be added to the mortgage, and an annual insurance premium, which is collected in monthly installments for the life of the loan in most cases.
Down payment: Starts at 3.5%
Recommended: First-Time Homebuyer Guide
VA Loans
Loans guaranteed by the U.S Department of Veterans Affairs are available to veterans, active-duty service members, and eligible surviving spouses. SoFi’s survey showed that 12% of potential homebuyers who applied for a loan had filled out a VA loan application.
VA-backed loans require a one-time “VA funding fee,” which can be rolled into the loan. The fee is based on a percentage of the loan amount and may be waived for certain disabled vets. The current range is from 1.5% to 3.3% of the loan amount.
Down payment: None for approximately 80% of VA-backed home loans. 💡 Quick Tip: A VA loan can make home buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†
How Does a Mortgage Work?
There are several components to a monthly mortgage payment.
Principal: The principal is the value of the loan. The portion of the payment made toward the principal reduces how much a borrower owes on the loan.
Interest: Each month, interest will be factored into payments according to an amortization schedule. Even though a borrower’s fixed payment may stay the same over the course of the loan, the amount allocated toward interest generally decreases over time while the portion allocated to principal increases.
Taxes: To ensure that a borrower makes annual property tax payments, a lender may collect monthly property taxes with the monthly mortgage payment. This money can be kept in an escrow account until the property tax bill is due, and the lender can make the property tax payment at that time.
Homeowners insurance: Mortgage lenders usually require evidence of homeowners insurance, which can cover damage from catastrophes such as fire and storms. As with property taxes, many lenders collect the insurance premiums as part of the monthly payment and pay for the annual insurance premium out of an escrow account. Depending on your property location, you may have to add flood, wind, or other additional insurance.
Mortgage insurance: When a borrower presents a down payment of less than 20% of the value of the home, mortgage lenders typically require private mortgage insurance. When developing a budget for owning a home, it’s important to know the difference between mortgage insurance and homeowners insurance and whether both are required.
Reverse Mortgage Loans: What Are They?
A reverse mortgage is available to homeowners 62 and older to supplement their income or pay for healthcare expenses by tapping into their home equity.
The loan can come in the form of a lump-sum payment, monthly payments, a line of credit, or a combination, usually tax-free. Interest accrues on the loan balance, but no payments are required. When a borrower dies, sells the property, or moves out permanently, the loan must be repaid entirely.
The fees for an FHA-insured home equity conversion mortgage, typically the most common type of reverse mortgage, can add up:
• An initial mortgage insurance premium of 2% and an annual MIP that equals 0.5% of the outstanding mortgage balance
• Third-party charges for closing costs
• Loan origination fee
• Loan servicing fees
You can pay for most of the costs of the loan from the proceeds, which will reduce the net loan amount available to you.
You remain responsible for property taxes, homeowners insurance, utilities, maintenance, and other expenses.
A HUD site details all the criteria for borrowers, financial requirements, eligible property types, and how to find an HECM counselor, a mandatory step.
If you’re considering a reverse mortgage, learn as much as you can about this often complicated kind of mortgage before talking to a counselor or lender, the Federal Trade Commission advises.
How to Get A Mortgage
For many people, it can be a good idea to shop around to get an idea of what is out there.
Not only will you need to choose the lender, but you’ll need to decide on the length of the loan, whether to go with a fixed or variable interest rate, and weigh the applicable loan fees.
The first step is to have an idea of what you want and then seek out quotes from a few lenders. That way, you can do a side-by-side comparison of the loans.
Once you’ve selected a few lenders to get started with, the next step is to get prequalified or preapproved for a loan. Based on a limited amount of information, a lender will estimate how much it is willing to lend you.
When you’re serious about taking out a mortgage loan and putting an offer on a house, the next step is to get preapproved with a lender.
During the preapproval process, the lender will take a closer look at your finances, including your credit, employment, income, and assets to determine exactly what you qualify for. Once you’re preapproved, you’re likely to be considered a more serious buyer by home sellers.
When shopping around for a mortgage, it can be a good idea to consider the overall cost of the mortgage and any fees.
For example, some lenders may charge an origination fee for creating the loan, or a prepayment penalty if you want to pay back the loan ahead of schedule. There may also be fees to third parties that provide information or services required to process, approve, and close your loan.
To compare the true cost of two or more mortgage loans, it’s best to look at the annual percentage rate, or APR, not just the interest rate. The interest rate is the rate used to calculate your monthly payment, but the APR is an approximation of all of the costs associated with a loan, including the interest rate and other fees, expressed as a percentage. The APR makes it easier to compare the total cost of a loan across different offerings so you can assess what is a good mortgage rate for your budget.
The Takeaway
If the world of mortgages feels like a mystery to you, you are not alone. Before taking on this colossal commitment, it can be best to soak up as much as you can about how mortgage loans work, what kinds of mortgages are available, potential challenges, and steps to qualify. You’ll be better prepared to take on what can be a major step in your personal financial journey.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will give you a credit toward closing costs or additional expenses caused by the delay in closing of up to $10,000.^ The following terms and conditions apply. This Guarantee is available only for loan applications submitted after 04/01/2024. Please discuss terms of this Guarantee with your loan officer. The mortgage must be a purchase transaction that is approved and funded by SoFi. This Guarantee does not apply to loans to purchase bank-owned properties or short-sale transactions. To qualify for the Guarantee, you must: (1) Sign up for access to SoFi’s online portal and upload all requested documents, (2) Submit documents requested by SoFi within 5 business days of the initial request and all additional doc requests within 2 business days (3) Submit an executed purchase contract on an eligible property with the closing date at least 25 calendar days from the receipt of executed Intent to Proceed and receipt of credit card deposit for an appraisal (30 days for VA loans; 40 days for Jumbo loans), (4) Lock your loan rate and satisfy all loan requirements and conditions at least 5 business days prior to your closing date as confirmed with your loan officer, and (5) Pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. This Guarantee will not be paid if any delays to closing are attributable to: a) the borrower(s), a third party, the seller or any other factors outside of SoFi control; b) if the information provided by the borrower(s) on the loan application could not be verified or was inaccurate or insufficient; c) attempting to fulfill federal/state regulatory requirements and/or agency guidelines; d) or the closing date is missed due to acts of God outside the control of SoFi. SoFi may change or terminate this offer at any time without notice to you. *To redeem the Guarantee if conditions met, see documentation provided by loan officer. *SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice.See Lexington Law’s editorial disclosure for more information.
Landlords don’t report your rent payments to the credit bureaus, but there are rent-reporting services that allow you to add rent to your credit report. This can help build your score by improving your credit history.
The only thing worse than having to pay rent is having nothing to show for it on your credit score. Unlike mortgage loan lenders, landlords are not required to report your rent payments to the major credit bureaus, so your credit report won’t automatically reflect them. But the good news is that you can learn how to add rent to your credit report to build your score.
In this guide, we teach you how you can build credit with rent payments through rent-reporting services. You’ll learn how these reporting services work, which companies provide these services and what to look for.
Does paying rent build credit?
Paying your rent each month doesn’t help you build credit on its own. It costs your landlord money to report your payments to the credit bureaus, which is why many landlords don’t report.
Rent doesn’t help you build credit, but it’s helpful to know how your renting can negatively affect your credit. When you initially fill out a rental application, your credit score can temporarily decrease if the landlord runs a hard inquiry into your credit report. Your credit score can also decrease if you owe the landlord money and it goes to collections. This can happen if you owe money after moving out or when breaking your lease agreement.
Which rent-reporting services help build credit?
There are a few different ways to report your rent to help you build credit. Some companies charge for rent reporting, but you can also find services that do it for free. As more landlords learn about the benefits of reporting rent, many are beginning to provide it for tenants. A recent TransUnion® report found that 27 percent of landlords who know about rent reporting have adopted the practice.
Below, we list some of the best rent-reporting services. As you’ll see, some services only report to specific credit bureaus.
Free rent-reporting services for tenants
Experian Boost®: Experian Boost is a free rent reporting service created by the major credit bureau Experian. This app allows users to report all monthly bills to Experian, from rent payments to video streaming services.
Piñata: This app bills itself as the solution to make rent rewarding for its users, and it is partnered with TransUnion.
Self: Self has a free plan that allows tenants to report their rent payments. With the upgraded paid service, you can report your utility and cell phone payments. Utility payments are only reported to TransUnion.
Paid rent-reporting services for tenants
Boom: This service is an app for renters to track their payments and boost their credit score by reporting payments to all three bureaus.
Credit Rent Boost: This is a paid service tenants can use to report their credit scores to TransUnion and Equifax®. You will have to pay a la carte every time for past and ongoing rent payments.
RentReporters: This service is a one-time fee and will add 24 months of past rent payments to your credit report immediately for a quick boost. This service reports to Equifax and TransUnion.
Rental Kharma: Rental Kharma charges a one-time setup fee and a monthly subscription. They report all of your past history for your current address to TransUnion and Equifax. For an additional fee and monthly charge, you can add a roommate or spouse.
PaymentReport: This service reports to Equifax and charges a small monthly fee. You’ll need to link your bank account so they can verify your payments. They also have a free option if you can provide landlord verification.
Rock the Score: After an enrollment fee, you pay monthly for reporting to TransUnion and Equifax. You can pay an additional fee for up to two years of your rental history.
Rent-reporting services for landlords
Esusu Rent: With Esusu Rent, a landlord will collect rent payments through the Esusu online portal. Then, Esusu will share tenants’ payment history with every major credit bureau.
Rent Dynamics: This is a CRM for landlords to create and manage renter profiles, implement omnichannel communication services and help their residents build credit through the Resident Retention program.
PayYourRent: Landlords or property management pays the fee to report to all three credit bureaus. Tenants can choose to opt in or out at any time.
ClearNow: Landlords can provide this service to take rent out of tenant checking or savings accounts. ClearNow reports to Experian® only.
Bilt Rewards: This service is specific to Bilt Alliance properties that participate. Tenants receive the option to use this service upon move-in and can earn points using the Bilt credit card. Bilt Rewards reports to all three bureaus.
Azibo: Azibo reports to all three bureaus and allows tenants to make free ACH bank transfers for their rent payments. Tenants also have the option to pay by debit or credit card for a 2.99 percent convenience fee.
Jetty Credit: This is part of a pilot program from Fannie Mae and is free to renters at participating properties. It adds two years of previous rental history and also reports on-time utility bills. Jetty Credit reports to all three bureaus.
How to report rent to credit bureaus
While there aren’t any self-rent-reporting methods to send your rent payment history directly to the major bureaus, you can use third-party reporting services. Your payment history is worth 35 percent of your credit score, so a rent-reporting service can be instrumental when trying to improve your credit score. Typically you connect to your bank account to verify you’re paying your rent. Some can link to credit cards as well.
Each rent-reporting service is different and will have different costs, so it’s beneficial to research and compare the options. Once you find a service to use, you should continue to check your credit report to ensure the payments are showing.
It may be helpful to talk to your landlord prior to choosing a service. Some landlords report rent because it helps them screen tenants and can incentivize renters to pay on time to avoid lowering their score. If they see how it can benefit their business, they may decide to provide rent reporting.
What to look for in rent-reporting services
You have multiple options for rent-reporting services, and the right one depends on your unique situation. There are both free and paid services, so your budget is something to take into consideration. Just remember, the least expensive option may not be the best one.
Here are some factors to keep in mind when choosing a service that reports your rent:
Cost: The price should be within your budget.
Additional reporting: Some services offer additional reporting for utilities and other regular payments.
Credit bureaus: Ideally, you want your rent reported to all three credit bureaus.
Rental history: Services sometimes add up to two years of previous rental history on signup.
Cancellation policy: See if the service will let you cancel at any time or if there’s a fee.
Reviews: It’s always helpful to see what current and previous customers say about the service.
Can your personal credit score benefit from rent reporting?
One challenge many people face is that they don’t know if their credit score needs a boost from rent reporting because they’re unsure where they stand. Here at Lexington Law Firm, you can receive a free credit assessment.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
You may have heard that 20% is the ideal down payment on a house, but that doesn’t mean you must pony up that amount to become a homeowner. In truth, the average house down payment is considerably smaller. Currently, the median down payment for a house is 15%, according to data from the National Association of Realtors® (NAR).
Here, you’ll learn more about down payments so you can house-hunt like an insider. Getting a sense of what others are paying and how that differs based on geographic area is helpful. We’ll also share how you might access help if you can’t come up with 20%. Armed with this intel, you’ll be better prepared to navigate that major rite of passage: purchasing a home.
Table of Contents
Key Points
• The median down payment for a house in the US ranges widely from 10% to 35% of the purchase price.
• The amount of the down payment can vary based on factors like loan type, credit score, and lender requirements.
• A larger down payment can result in lower monthly mortgage payments and potentially better loan terms.
• Down payment assistance programs and gifts from family members can help with affordability.
• It’s important to save and plan for a down payment to achieve homeownership goals.
Average Down Payment Statistics
As of 2023, the median down payment for a house was 15%, or $63,908 if you consider that the median national home price in 2023 was $426,056, according to Redfin. This was up slightly from 13% in 2022, according to the NAR. (The median means half of buyers put down less and half put down more; it’s generally considered a better barometer than an average, because the latter can be thrown off by outliers — people who spend wildly more or less than usual.)
This 15% figure shows that the conventional wisdom that you need 20% down to purchase a home is, to a large extent, untrue. In fact, in an April 2024 SoFi survey of prospective homebuyers, many planned to put down far less than 20%. Almost a third of respondents (29%) said they planned to put down 10% or less, and 7% of those surveyed were exploring zero-down-payment options.
A 20% down payment will lower your mortgage amount and monthly payments vs. a smaller down payment, and will allow you to avoid private mortgage insurance (PMI), but it’s not the only game in town.
Average Down Payment on a House for First-Time Buyers
First-time buyers make about a third of all home purchases, and the typical down payment for first-time buyers in the NAR survey was 8%, while repeat buyers’ typical down payment was 19%. (Repeat buyers often have money from the sale of their first residence to put toward the purchase of their next one.)
Down Payment Requirements by Mortgage Loan Type
The amount of money you put down on a home may be governed in part by the type of mortgage loan you choose (and conversely, how much money you have saved for a down payment could dictate the type of mortgage you qualify for). Let’s take a look at the different loan types and their down payment requirements.
Remember that if you are buying your first home or you haven’t purchased a residence in three or more years, you may qualify as a first-time homebuyer and be eligible for special first-time homebuyer programs.
Conventional Loan
This is the kind of loan favored by most buyers, and for first-time homebuyers some conventional home loans can allow for as little as 3% down on a home purchase. A repeat homebuyer might need to put down a bit more — say 5%.
FHA Loan
An FHA loan, acquired through private lenders but guaranteed by the Federal Housing Administration, allows for a 3.5% minimum down payment if the borrower’s credit score is at least 580.
VA Loan and USDA Loan
These loans usually require no down payment, although there are still other hoops to jump through to qualify for one of these loans.
A VA loan backed by the Department of Veterans Affairs, is for eligible veterans, service members, Reservists, National Guard members, and some surviving spouses. The VA also issues direct loans to Native American veterans or non-Native American veterans married to Native Americans. For a typical VA loan borrower, no down payment is required.
A USDA loan backed by the U.S. Department of Agriculture is for households with low to moderate incomes buying homes in eligible rural areas. The USDA also offers direct subsidized loans for households with low and very low incomes. Typically, a credit score of 640 or higher is needed. While borrowers can make a down payment, one is not required.
Jumbo Loan
A jumbo loan is a loan for an amount over the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA). In most U.S. counties, the conforming loan limit for a single-family home in 2024 is $766,550. Minimum down payment rules for jumbo loans vary by lender but are generally higher than those for conforming loans. Some lenders require a 10% down payment, and others require as much as 20%.
For all of the above loan types, the home being purchased must be a primary residence in order to qualify for the minimum down payment, but a homebuyer can use a conventional or VA loan to purchase a multifamily property with up to four units if one unit will be owner-occupied.
Average Down Payment by Age Group
The latest NAR Home Buyers and Sellers Generational Trends Report breaks down by age the percentage of a home that was financed by homebuyers in 2023.
Older buyers tend to use proceeds from the sale of a previous residence to help fund the new home. Buyers 59 to 68 years old, for instance, put a median of 22% down, the NAR report shows.
Most younger buyers depend on savings for their down payment. Buyers ages 25 to 33 put down a median of 10%, and those ages 34 to 43, 13%. A fortunate 20% of the younger homebuyers (those age 25-33) received down payment help from a friend or relative.
Percentage of Home Financed
All buyers
Ages 25-33
Ages 34-43
Ages 44-58
Ages 59-68
Ages 69-77
Ages 78-99
50%
15%
6%
8%
15%
22%
31%
29%
50-59%
6%
2%
5%
5%
9%
14%
11%
60-69%
6%
2%
5%
6%
9%
11%
9%
71-79%
13%
13%
14%
14%
12%
9%
15%
80-89%
23%
26%
27%
22%
19%
18%
14%
90-94%
13%
19%
14%
12%
10%
4%
8%
95-99%
14%
22%
17%
12%
8%
4%
7%
100% (financed the whole purchase)
12%
9%
11%
13%
9%
9%
6%
Average Down Payment by State
The average house down payment in any given state is tied to home prices in that location. You can look into the cost of living by state for an overview and then find the median home value in a particular state at a given point in time and estimate what your down payment might be.
The least expensive states in which to buy a home? Iowa, Oklahoma, Ohio, Mississippi, and Louisiana are among them, according to Redfin.
Average Down Payment On a House in California
California, the most populous state and one of the largest by area, is joined by Hawaii and Colorado on many lists of the most expensive states in which to buy a house. Redfin shows a median sales price of $859,300 in California in spring of 2024. A 3% down payment would be $25,779; 10% down, $85,930; and 20% down, $152,260. The Los Angeles housing market is among the toughest in California, with the median sale price up more than 10% in the last year to $1,050,000. You might want to check out housing market trends by city as well if you are interested in finding out where owning a home could be more or less expensive.
Hawaii comes out near the top with a median home price of $754,800. Three percent down would be $22,644; 10% down, $75,480; and 20%, $150,960. In Hawaii, the conforming loan limit is $1,149,825, a reflection of the state’s high home prices. If you need a mortgage for more than that amount in Hawaii, you’ll be in the market for a jumbo loan.
Recommended: How to Afford a Down Payment on Your First Home
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Source of Down Payment
You’re probably wondering where homebuyers get the money to afford a down payment, especially first-time homebuyers. NAR has polled buyers to probe that question. Not surprisingly, more than half of buyers (53%) simply say they have saved up the money — which of course isn’t simple at all.
Savings is especially likely to fund a home purchase for those ages 25-33. Almost three-quarters of younger buyers rely on it for their down payment. Older buyers also use savings but are more likely to draw on the sale of a primary residence. This is especially true after age 59.
Other down payment sources include gifts from relatives or friends, sale of stock, a loan or draw from a 401K or pension, or an inheritance. For those who don’t have generational wealth or savings to rely on, first-time homebuyer programs can make home ownership possible.
City, county, and state down payment assistance programs are also out there. They may take the form of grants or second mortgages, some with deferred payments or a forgivable balance.
How Does Your Down Payment Affect Your Monthly Payments?
Curious to see what your potential mortgage would look like based on different down payments? Start with a home affordability calculator (like the one below) to get a feel for how much you’ll need to put down and other expenses.
Or use this mortgage calculator to estimate how much your mortgage payments would be, depending on property value, down payment, interest rate, and repayment term.
What Do I Need to Buy a House?
If Your Down Payment Is Less Than 20%
If your down payment will be less than 20%, you now know that you’ll have plenty of company. (In SoFi’s survey, 14% of would-be buyers said not having an adequate down payment was their primary challenge.) Consider these ways to optimize the situation:
• A government loan could be the answer: FHA loans are popular with some first-time buyers because of the lenient credit requirements. The down payment for an FHA loan is just 3.5% if you have a credit score of 580 or more. Just know that upfront and monthly mortgage insurance premiums (MIP) always accompany FHA loans, and remain for the life of the loan if the down payment is under 10%. If you put 10% or more down, you’ll pay MIP for 11 years.
• You may be able to improve your loan terms: If you can’t pull together 20% for a down payment, you can still help yourself by showing lenders that you’re a good risk. You’ll likely need a FICO® score of at least 620 for a conventional loan. If you have that and other positive factors, you may qualify for a more attractive interest rate or better terms.
• You can eventually cancel PMI: Lenders are required to automatically cancel PMI when the loan balance gets to 78% LTV of the original value of the home. You also can ask your lender to cancel PMI on the date when the principal balance of your mortgage falls to 80% of the original home value.
You may be able to find down payment assistance: City, county, and state down payment assistance programs are out there, and SoFi’s survey suggests they don’t get enough attention: About half (49%) of the homebuyers who said they were challenged to come up with a down payment hadn’t looked into city or state down payment assistance programs. The assistance may take the form of grants or second mortgages, some with deferred payments or a forgivable balance.
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Dream Home Quiz
The Takeaway
What is the average down payment on a house? Currently, it’s about 15% of the home’s purchase price, which usually means mortgage insurance and higher payments for the buyer. But buyers who put less than 20% down on a house unlock the door to homeownership every day. If you want to join them, you can be helped along by low down payments for first-time homebuyers, as well as government loans, down payment assistance, and other programs.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Is 10% down payment enough for a house?
Yes. More than a third of all buyers put down 10% or even less to buy a home. Lower down payments are especially common among younger and/or first-time homebuyers.
What is the minimum you should put down on a house?
Conventional wisdom says the minimum down payment is 20%, but most buyers put down less — 15% is far more common. Younger buyers and first-time homebuyers, especially, often put down far less and some home loans allow you to finance 97% or even 100% of the home’s cost.
What factors can affect my down payment requirements?
The amount of down payment you’ll need to come up with depends on your loan type, credit history and credit score, the cost of the property you’re buying, and whether you are a first-time homebuyer.
What are the pros and cons of putting down less than 20% on a house?
Putting down less than 20% on a house might allow you to buy a home sooner. It might also permit you to set aside money for renovations or to pay off other debts. The disadvantage is that those who put down less than 20% usually have to pay for private mortgage insurance which adds to their monthly costs. (Those with FHA loans who put down less than 20% will pay a mortgage insurance premium.)
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Many Americans don’t closely track their finances or know what their current credit score is. Being financially literate, especially when it comes to credit usage, can make it much easier to manage your finances and, over time, improve your situation. The good news is that numerous personal finance tools are available today to make things easier than ever.
Keep reading to learn more about the top four personal finance tools you should start using today.
What are financial tools?
Financial tools are apps or services that help you track and manage your financial transactions. These tools can help you stay within your spending limits, meet your financial goals and make informed financial decisions.
Today, you can access many of these tools online through a secure platform or app. For many, these tools are an essential part of financial management. They help simplify the financial tracking process and make it easier to understand your current financial status.
Top 4 types of personal finance tools available
1. Budgeting tools
Financial freedom doesn’t just happen overnight. It takes careful planning and continuous tracking of where you spend every dollar. This is why maintaining a personal budget is so important. Keeping a budget can ensure you’re saving enough to meet your future needs, preventing you from spending more money than you earn and helping you create an emergency fund.
Fortunately, you no longer need to rely on pen and paper to keep a budget and track your spending. Instead, there are a number of online tools you can use to quickly track where you spend every dime. While Mint has been a popular budgeting tool for many consumers, it’s ceasing operations as of January 1, 2024. Whether you’re looking for a Mint replacement or your first budgeting app, here’s a look at the top options available.
You Need A Budget: Commonly referred to as YNAB, this tool uses the zero-based budget system to track every dollar you earn and spend. The easy-to-use finance tool lets you link all your accounts, including bank accounts, credit cards and loan payments, to help you get a clear view of your financial status.
Goodbudget: This online tool uses the popular envelope budgeting system to ensure you’re tracking every dollar you spend. While you can’t link your bank account to Goodbudget, you can import data from your bank to keep everything up to date. The app shows you how much money you have left to spend in each category.
PocketGuard: PocketGuard is a simplified budgeting tool that links to your bank accounts, credit accounts and loans. It automatically tracks your bills to let you know how much you have left to spend. While it doesn’t have all the special features you might find with other budgeting apps, it’s a good choice for those who prefer a straightforward approach to budget tracking.
HoneyDue: This online budgeting tool is ideal for couples who want to sync their accounts. It lets users customize their own settings for what information they want to share with each other and how to split expenses. HoneyDue also offers special features such as bill reminders and goal setting.
2. Online banking tools
Nearly all banks, credit unions and credit card companies offer online services. Chances are, you already use these online tools to track your account balance, deposits and charges. While using these tools for basic services is a good first step, these apps offer so much more. Here’s a look at several other online services most financial institutions offer.
Online bill payment: Most banks and credit unions let you use their online platform to pay bills. This great feature allows you to instantly make payments online so you can avoid late payment fees.
Mobile check deposit: Fortunately, you don’t have to run to the bank every time you want to deposit a check. You can deposit it directly through your mobile device. In many cases, you can see funds from these deposits in your account almost immediately or the next day.
Transfer funds: When that work bonus hits your bank account, you don’t have to risk spending more of it than you planned. Instead, use your online banking platform to transfer the funds from your checking to your savings account instantly.
Credit score: Some banks and credit unions provide their customers with a look at their credit score. This feature can help you track your score over time.
3. Investment tools
According to the latest Gallup poll, 61 percent of adults in the United States own some type of stock. For many, their stock ownership is limited to their 401(k), but your investment options don’t have to stop there. Many online tools are ideal for beginner and long-time investors.
Best of all, you don’t need a lot of money to invest. In fact, you can get started with your spare change. If you’re ready to start building your investment portfolio, check out these online investment tools.
Acorns: Acorns is a good option for those just starting to invest. There are no minimum deposit requirements when you sign up for its Round-Ups program. This program rounds up every transaction you make to the nearest whole dollar. It then uses these funds to automatically invest your money and build your portfolio.
RobinHood: RobinHood is a popular investment app for those who want to take charge of their own investment options. There are no minimum balance requirements or commission fees, which is great for those looking for a low-cost way to start investing in the stock market. RobinHood even lets users buy cryptocurrency.
Fidelity: If you’re looking for an online tool that offers a hands-off approach to investment while also helping you better understand the stock market, Fidelity may be the right option for you. The combination of its robo-advisor services and online resources and tools make it easy to build a customized investment strategy.
Betterment: Through the Betterment app, you can start investing with as little as $10. This app lets you set your financial goals, risk level and starting amount. With these details, it automatically creates an investment plan to help you reach your goals.
4. Credit-related tools
Many people fail to understand the full impact their credit score has on their overall financial health. For instance, you may already know that your credit report and credit score can impact your ability to secure a credit card or obtain a car or home loan. But did you also know your credit score can determine your ability to rent an apartment, land a job or set up utilities in your name without a deposit?
It’s crucial you stay up to date on your credit score and credit report. First, tracking your credit can alert you to drops in your score and give you time to take steps to address any issues. Second, understanding issues on your credit report lets you create a strategy for repairing or rebuilding your credit.
Finally, regularly examining your credit report can help you quickly identify any errors that are wrongfully hurting your credit and take steps to fix them. It can also help you guard against identity theft.
You’re entitled to request one free copy of your credit report each year from each of the three major credit bureaus—Experian, TransUnion and Equifax. But you don’t have to wait until the end of the year to track your credit. Instead, you can use Lexington Law’s free credit assessment and other paid services to get updated information related to your credit. Using a combination of these tools can help you get a better handle on your financial status and set up a strategy to improve your credit.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Credit union student loans are offered by member-owned financial institutions to help you cover college costs. While banks and online lenders also offer private student loans, credit unions often stand out by providing no-fee loans with competitive interest rates.
In this guide, we’ll walk you through how credit union student loans work, explore your options, weigh the pros and cons, and explain how to apply.
What Are Credit Union Student Loans?
Credit union student loans are private loans offered by credit unions to help students pay for college or other educational costs. Depending on your situation, they can be a good alternative to loans from big banks or once federal student loans have been exhausted.
Advantages of Credit Union Student Loans
Credit unions are all about putting their members first. Because they prioritize people over profits, they can offer perks like lower interest rates and fewer fees. Some credit unions even team up with others to share resources, making things more convenient and affordable for you.
Advantages include:
Lower costs: As nonprofits, credit unions don’t focus on making money for investors. This allows them to pass savings on to you through lower interest rates and fewer fees, helping you save on loans.
Member-focused: Credit unions are dedicated to helping their members. You’re likely to receive personalized attention and support from representatives who take the time to understand your needs and recommend the best services for you.
Flexibility: Credit unions may be more flexible with loan eligibility requirements for members. They might be more willing to work with students who are considered high-risk or don’t have a cosigner.
Eligibility Requirements
To get a student loan from a credit union, you typically need to be a member. Each credit union usually has its own membership guidelines, which might require you to work in a specific industry, belong to a certain group, live in a particular area, or attend a specific school.
If you have a family member who’s already a member, you might be able to join through them. Many credit unions allow immediate family members to become members, which could give you access to a student loan.
Keep in mind, though, there might be a membership fee, typically between $5 and $25.
When it comes to getting a student loan, each credit union has its own criteria, just like banks and online lenders. While private lenders often look for a credit score of 670 or higher, you might still qualify even if your score is lower.
Recommended: Do Credit Unions Help You Build Your Credit Score?
Types of Credit Union Student Loans
Here’s a look at the types of student loans offered by credit unions. Keep in mind, though, that options vary by credit union.
Private Student Loans
Private student loans from credit unions are a way to help cover college costs. While it’s recommended to use federal financial aid first, a private student loan from a credit union may help bridge the gap. These loans often have competitive interest rates and flexible terms, making them an appealing option to finance higher education costs.
Unlike federal student loans, though, how much you can borrow and the interest rate you get usually depend on your credit and income.
Student Loan Refinancing
Some credit unions offer student loan refinancing options, which may help you streamline your student debt and potentially save you money. When you refinance with a credit union, you’re essentially getting a new loan to pay off your existing ones, whether your loans are federal or private.
In other words, credit union refinancing for student loans lets you consolidate your loans into one payment, potentially with a lower interest rate and better terms if you qualify. And with just one monthly payment to manage, handling your debt could become much less stressful.
Keep in mind, though, that refinancing federal student loans into private student loans makes it so you’re no longer eligible for federal benefits, such as student loan forgiveness programs and income-driven repayment plans.
Recommended: Pros and Cons of Student Loan Refinancing
How to Apply for a Credit Union Student Loan
Applying for a student loan from a credit union is a straightforward process, but it’s important to understand the eligibility requirements, necessary documentation, and application process.
Step 1: Check Eligibility
Before applying for a student loan from a credit union, you’ll typically need to become a member. Some credit unions will let nonmembers apply, but to receive a loan you must be a member. If you’re already a member, make sure you meet their lending requirements — like being enrolled at least half-time.
Also, double-check to see if your school qualifies for private student loans. If you’re attending a community college or trade school, not all schools may be eligible, so it’s important to confirm.
Step 2: Gather Required Documents
If you meet the eligibility requirements, you can typically apply online, by visiting a branch, or by reaching out to the credit union directly.
When you’re ready to apply, you’ll typically need to share some basic information, like your name, Social Security number, and proof of income. It’s a good idea to check your credit score first, as lenders typically look for borrowers with a solid credit history, a good credit score (670-739), and a certain level of income.
If you’re concerned you might not qualify on your own, think about getting a cosigner. A student loan cosigner could increase your chances of getting approved and might even help you get a lower interest rate and better terms.
Step 3: Compare Loan Options
You may want to compare lenders in order to get the best rate and terms for your situation. Some lenders let you get prequalified, which helps you explore your options. Since prequalifying only involves a soft credit check, it won’t affect your credit score and you can see potential rates and terms without any worries.
In addition to exploring credit unions, it’s worth checking out other lenders that might offer competitive rates and terms.
Step 4: Submit Your Application
Once you choose your credit union or another lender, you can submit your official application. The lender will then usually do a hard credit check, and you’ll get the final approval decision.
Repaying Your Credit Union Student Loan
With some private student loans, you’ll need to make payments during school, while others let you hold off until you’ve graduated. To find out which one applies to your loan, check with your loan servicer or take a look at your loan documents.
It’s also a good idea to ask if the interest that builds up during the time you’re in school will be added to your principal balance when repayment starts.
When it comes time to make your payments, where you pay depends on your loan servicer. Most servicers let you pay online, but it’s smart to confirm this before your payments begin.
Many servicers also offer automatic payments, which automatically deduct your monthly payment from your bank account. This can help you avoid missing payments or getting hit with late fees.
Recommended: 6 Strategies to Pay Off Student Loans Quickly
Tips for Managing Credit Union Student Loans
Here are a few tips for managing your credit union private student loans.
Make a budget. Knowing where your money goes each month is key to setting aside funds for loan payments. Review your income and expenses to see where you can cut back, and try to allocate more toward paying off your loans.
Compare repayment options. Unlike federal loans, repayment options with credit unions and other private lenders can vary. If you’re struggling to keep up with payments, check if your lender offers plans like interest-only repayments, which allow you to defer the principal.
Make extra payments. Whether it’s biweekly payments instead of monthly or tossing in extra cash when you can, paying a bit more here and there can help you pay off your loans faster. Just be sure to request that any extra funds go directly toward the principal balance.
Sign up for autopay. Many private lenders offer an automatic payment option. By enrolling in autopay, you can ensure you never miss a payment.
Focus on high-interest debt. If you have multiple student loans, paying off the one with the highest interest rate first could save you money in the long run.
Consider refinancing your loans. If managing your payments feels overwhelming, you can refinance your student loans. This allows you to combine multiple student loans into one, ideally with a lower interest rate or more favorable terms.
The Takeaway
Credit unions offer private student loans to help cover college expenses like tuition and books. Unlike federal student loans, these private loans don’t offer the same flexible repayment options or borrower protections. It’s best to use your federal aid first, and then turn to private student loans if needed.
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
Can you use a credit union for a student loan?
Yes, some credit unions offer private student loans to their members. These loans work similarly to those provided by banks or online lenders, often with competitive interest rates and additional member perks.
Are student loans from credit unions considered private?
Yes, student loans from credit unions are considered private since they’re funded by the credit union, not the government. While they don’t offer the same federal benefits and protections, they often come with competitive rates and special perks for members.
Is it more difficult to get a student loan from a credit union?
Getting a student loan from a credit union usually depends on your credit history and being a member. Membership might require living in a certain area or belonging to a specific group. But once you’re in, you could benefit from more personalized service and potentially better rates than what you may find with other lenders.
Photo credit: iStock/hobo_018
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.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do. You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to…
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do.
You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to taking surveys about products you buy. Some options let you shop for yourself, while others involve shopping for other people. It’s a fun way to earn money doing something you enjoy.
Over the years, I’ve found that there are so many ways to make money while shopping, and it’s been a great side hustle for me. From getting paid to shop for others to earning cash back on my own purchases, it’s an easy and enjoyable way to bring in extra income.
How To Get Paid To Shop
Below are the best ways to get paid to shop.
1. Personal shopper
Personal shoppers help people buy things. They pick out clothes, gifts, and other items for clients, so this can be a fun way to get paid for shopping.
To become a personal shopper, you need good taste and people skills. You should enjoy fashion and keeping up with trends.
Many personal shoppers work in person in retail stores, but you can also get paid to shop online for others. They help customers find outfits and accessories. Some work for wealthy clients, buying everything from groceries to designer clothes.
You can start by getting a job at a department store and looking for positions in personal shopping or styling. Another option is to work for yourself and you can find clients through word-of-mouth or online platforms.
When I was younger, I had a friend who was a personal shopper for a family. My friend mainly did their grocery shopping and ran errands, but would occasionally buy gifts for when the family was attending a birthday party or a wedding.
2. BestMark
I’ve done a lot of mystery shopping over the years, and it’s been a fun way to earn extra money while doing something I already enjoy. Whether it’s evaluating a store’s customer service, trying out new products, or going to a restaurant, it’s pretty easy work.
BestMark is a top mystery shopping company that’s been around since 1986.
As a BestMark shopper, you’ll visit stores, restaurants, and other businesses. You’ll act like a regular customer and evaluate your experience, and this might include checking product quality, service speed, and staff friendliness.
After your visit, you’ll fill out a detailed report online. BestMark gives you a list to help you understand what to look for during your shop.
The pay for BestMark shops varies, but you can tend to earn between $10 and $20 per task. For most assignments, you will get your meal or whatever you buy reimbursed. They usually give you a limit on what you can spend or they specifically tell you what to buy.
Recommended reading: 9 Best Mystery Shopping Companies To Work For
3. Swagbucks
Swagbucks is a popular website that pays you to shop online, and it’s free to join and easy to use.
I’ve been using Swagbucks for almost 10 years now, and I think it’s pretty easy to earn points.
To get paid to shop with Swagbucks, there are two main ways to earn points:
Earn cash back when shopping online. For example, right now you can get up to 8% cash back when shopping at Macy’s, up to 4% when shopping on Amazon, up to 10% when shopping at Best Buy, and more.
Earn points (SB) by submitting your shopping receipts. You can submit any receipt that you have from the last 14 days – both in-store and online receipts. You can then earn points. For example, you can get 50 points for any loaf of bread that you buy, 50 points for any bananas, 900 points for diapers, and more.
When you’ve collected enough SB, you can trade them for gift cards. You can pick from lots of popular stores. If you prefer cash, you can get money sent to your PayPal account instead.
I’ve redeemed over 100 gift cards from Swagbucks over the years, and I love how easy this rewards site is to use.
If you join Swagbucks through my referral link, you will receive a $10 bonus.
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Swagbucks is a site where you can earn points for answering surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.
4. Rakuten
Rakuten is a popular way to earn cash back when you shop online. It’s free to use and super easy to get started.
I have used Rakuten for years and it’s an easy way to get cash back for the online shopping that you already do. In fact, I just used it on a hotel booking, and I received 2% back, which adds up quickly for a hotel!
You just sign up for an account on Rakuten’s website or app. Then when you want to buy something, go through Rakuten first. They’ll send you to the store’s site to shop like normal.
After you make a purchase, Rakuten adds cash back to your account. The amount varies by store, but it’s often 1% to 10% of what you spend. Some stores even pay you 20% or more during special sales.
You can get paid by check or PayPal. Rakuten sends out payments every 3 months and you need at least $5 in your account to get paid.
So, why does Rakuten give you this cash back? Rakuten makes money by getting a commission from stores when you buy stuff. They share part of that commission with you as cash back.
Please click here to sign up for Rakuten. Plus, you can get a $30 bonus when you spend $30 if you join right now (at the time of this writing; please double-check the current offer).
5. Stitch Fix stylist
Want to get paid to shop for others? Becoming a Stitch Fix stylist might be perfect for you. This job lets you work from home and help people look their best.
Stitch Fix hires stylists for women’s, men’s, and kids’ styling. They even train you, so you can start with no experience.
As a Stitch Fix stylist, you’ll pick out clothes for customers based on their likes and needs. You’ll use a computer to see what items are available and choose the best ones for each person.
6. Instacart shopper
Becoming an Instacart shopper is a way to make money grocery shopping on your own schedule.
As an Instacart shopper, you’ll pick up and deliver groceries to customers. Instacart has full-service shoppers, where you shop and deliver groceries, as well as in-store shoppers, where you only shop in-store but don’t deliver (someone else picks up the items and delivers).
To start, you need to be at least 18 years old. You’ll also need a smartphone to use the Instacart app as this app tells you what to buy at the grocery store and where to deliver it.
Instacart gives you a payment card to use at stores. You’ll get this card about a week after signing up. You use it to pay for the groceries you’re buying for customers.
Recommended reading: Instacart Shopper Review: How much do Instacart Shoppers earn?
7. Shopkick
Shopkick is a free app that lets you earn rewards for shopping. You can get points called “kicks” for different activities. These include scanning products in stores and uploading receipts.
You don’t even need to buy anything to earn kicks. Just walking into certain stores can give you points. The app works with many popular retailers like Target and CVS.
As you collect kicks, you can trade them for gift cards.
To start, just download the Shopkick app on your phone. Then link your credit or debit cards to your account, because this lets you earn kicks automatically when you shop at partner stores.
8. Ibotta
Ibotta is a free app where you can earn cash back on your everyday purchases. It works for both online and in-store shopping at many popular retailers.
To get started, download the Ibotta app on your phone. Before you shop, browse the app for “offers” at your favorite stores. You’ll see cash back deals on specific items or entire purchases.
When shopping in stores, buy the items with offers (of course, make sure these are items that you actually want to buy because the item is not free, it is simply more like getting a discount). Then, take a picture of your receipt with the app when you are done. Ibotta will match your purchases to the offers and add cash back to your account.
For online shopping, start your purchase through the Ibotta app or website. Shop as usual, and you’ll automatically earn cash back on qualifying items.
Ibotta works with many big stores like Walmart, Target, and Kroger.
Once you reach $20 in your account, you can cash out via PayPal or choose a gift card. It’s a simple way to make your shopping more rewarding.
This app is available for both Android and iOS (iPhone).
You can sign up for Ibotta here.
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Ibotta is an app where you can get cash back and earn free gift cards. Simply submit your receipts on your everyday purchases with your phone.
9. Ath Power Consulting
Ath Power Consulting is a company where you can get paid to do mystery shopping. They have a huge network of over 600,000 shoppers across North America.
Ath Power does more than 10,000 mystery shops each month. They work with many well-known brands and companies around the world.
Ath Power mystery shoppers shop in person for companies, and then share their thoughts about the products and services they try. Companies can then use this information to improve what they sell to customers.
10. IntelliShop
IntelliShop is a company that hires for mystery shopping jobs. You can sign up to become a secret shopper and get paid to visit stores.
Most tasks pay between $5 and $20. They usually take less than 15 minutes in the store, and then after your visit, you’ll need to fill out a report.
IntelliShop has jobs in stores, online, and over the phone.
As a mystery shopper for any of the mystery shopping companies on this list, please remember to keep any receipts or business cards from your visit. You’ll need these to prove you completed the task and get paid.
Recommended reading: How To Become A Mystery Shopper
11. Care.com
Care.com is a site where you can earn money by helping others with tasks like grocery shopping. You can sign up as a helper on their platform to find local gigs.
The site connects you with people who need assistance, such as parents and seniors. You might help with grocery shopping, cooking, or other errands.
As a helper on Care.com, you can set your own rates. Some helpers charge between $15 and $25 per hour. The amount that you decide you want to get paid may vary based on your experience and the tasks you do.
You may be able to find enough gigs to make this a full-time career, or you can also do this part-time in your spare time.
12. Capital One Shopping
Capital One Shopping is a free tool that can help you save money when you shop online. It’s a browser extension and mobile app that works in the background while you browse.
When you’re ready to check out, Capital One Shopping searches for coupon codes automatically and it tries to apply them to your order to get you the best deal.
The tool also compares prices across different websites. This can help you find the lowest price for items you want to buy.
You can earn rewards called Shopping Credits when you make purchases through Capital One Shopping. These credits can be redeemed for gift cards to popular stores.
While you won’t get paid directly to shop, you can save money and earn rewards. This can add up to significant savings over time and even free gift cards.
I recently received a $71 gift card for simply using the Capital One Shopping browser extension, which was super easy to get.
You can learn more at Capital One Shopping Review: Is It Worth It?
13. Fetch Rewards
Fetch Rewards is a free app that lets you earn points for shopping. You can get points by scanning any receipt or shopping online through the app.
I use Fetch Rewards for nearly all of my grocery shopping receipts. What I like about Fetch is that you don’t need to clip coupons or look for special offers. You just buy products and scan your receipts when you are done. It takes less than one minute to scan your receipt and earn points, so it is very easy.
Fetch gives you points for every receipt you upload. You can earn extra points by buying specific brands or products. The app has special offers where you can earn extra points, such as for buying a specific brand of cheese.
You can turn your points into gift cards from many stores and restaurants. Some options include Amazon, Target, and Starbucks.
You can sign up for Fetch Rewards here.
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With this app, you can scan your grocery receipts (from any grocery store or wholesale club, any time) and earn free gift cards. It is free to sign up and easy to use.
14. Uber Eats
With Uber Eats, you can make money by delivering food.
To get started, you’ll need to create an account and fill out some forms. Once approved, you can begin accepting delivery requests through the Uber app.
Uber Eats drivers can earn around $15 to $26 per hour on average. Your earnings can vary based on factors like your location, how busy it is, and the amount that you earn in tips.
You will want a reliable vehicle and a valid driver’s license, of course, for this side gig.
Recommended reading: 14 Ways To Make Money Driving
15. DoorDash
DoorDash is another way to get paid for delivering food.
DoorDash pays Dashers weekly through direct deposit. If you need money faster, DoorDash offers a Fast Pay option. This lets you cash out your earnings right away for a small fee.
Remember, you’re responsible for your own expenses like gas and car maintenance. It’s a good idea to track these costs to see how much you’re really earning.
16. Taskrabbit
Taskrabbit is an app that lets you make money by doing odd jobs for people in your area. You can pick tasks that fit your skills and schedule.
Some popular jobs on Taskrabbit include cleaning houses, assembling furniture, and running errands (such as shopping for others).
Taskrabbit gives you the flexibility to choose when and how much you work, as well as the type of work that you want to do.
17. Walmart personal shopper
You can get paid to shop as a Walmart personal shopper. This job lets you pick out items for customers who order online.
You’ve probably seen Walmart personal shoppers when you’ve been in Walmart. They work for Walmart and typically have a uniform and a very large basket where they collect items for different orders.
Walmart personal shoppers earn about $15 per hour on average.
Most personal shoppers work full-time or nearly full-time, between 32 to 40 hours a week.
As a personal shopper, you’ll walk around the store and find items customers want. You’ll need to be quick and careful to pick the right products.
Frequently Asked Questions
Getting paid to shop can be a fun way to earn extra money. There are different methods like using apps, shopping for others, and being a mystery shopper. Here are answers to common questions about how to get paid to shop.
How to get paid to go shopping?
You can get paid to shop by using cash back apps, becoming a personal shopper, or doing mystery shopping. Cash back apps give you money back on purchases. Personal shoppers buy things for busy people. Mystery shoppers check stores and fill out shopping assignments on their customer experience.
What are the top apps that pay you for shopping?
Some popular apps that pay you for shopping are:
Rakuten: Gives cash back on online purchases
Ibotta: Pays rebates on groceries and other items
Shopkick: Rewards you for scanning items in stores
Fetch Rewards: Gives points for uploading grocery receipts
These apps are free to use and can help you save money on things you already buy.
How can I earn cash by doing grocery shopping for others?
You can earn cash by grocery shopping for others through apps like Instacart or Shipt. Sign up as a shopper, get orders from customers, and deliver their groceries. You’ll get paid for each order you complete.
How much money do people usually make by delivering groceries?
The amount of money you can make by delivering groceries varies. Most shoppers make between $10 and $25 per hour, and your pay depends on factors like the number of orders you complete, the size of the orders, tips from customers, and time of day and demand.
Is being a secret shopper a good side hustle?
Secret shopping can be a good side hustle. It lets you earn money while shopping and dining out, but it’s not a full-time job. I have done a lot of mystery shopping assignments over the years.
What ways to get paid to shop on Amazon are there?
You can get paid to shop on Amazon in a few ways:
Use cash back sites like Rakuten when shopping on Amazon
Join Amazon’s Vine program to review products
Sell items on Amazon as a third-party seller
Sign up for the Amazon Associates Program to earn from product links
These methods can help you save money or earn extra cash while shopping on Amazon.
Best Ways To Get Paid To Shop – Summary
I hope you enjoyed my article on how to get paid to shop.
Getting paid to shop is a fun and easy way to make extra money while doing things you already like. I have been getting paid to shop for over 10 years now, and I have done almost everything on this list. While I’ve not earned a full-time income doing anything on this list, I have earned side income and plenty of free gift cards over the years.
You can use cash back apps or become a personal shopper to earn cash. You can make money buying groceries, clothes, or even taking surveys about your shopping habits.
Mystery shopping is another way to earn money by pretending to be a regular customer and reporting your feedback on your experience. Companies like BestMark and IntelliShop pay for this. Apps like Swagbucks and Fetch Rewards make it easy to earn by scanning receipts or shopping online.
Whether you want a side hustle or just want to save money, getting paid to shop is a fun way to make more money.