When researching personal loans, you may see the terms APR (Annual Percentage Rate) and interest rate used interchangeably. However, they are not the same thing. The interest rate refers to the cost of borrowing money, expressed as a percentage of the principal amount, but it doesn’t include any other fees or charges.
APR, on the other hand, includes not only the interest rate but also other fees and charges you may incur when borrowing money. This makes the APR a more important number to look at that interest rate.
Read on for a closer look at APR vs interest rate, what it means when these two numbers are different, and what it means when they are the same.
What Is Interest?
Interest is the cost you pay for the privilege of taking out a loan — the money you’ll owe along with the principal, or the amount of money you’re borrowing.
Interest is expressed in a rate: a percentage that indicates what proportion of the principal you’ll pay on top of the principal itself. Interest may be simple — charged only against the principal balance — or compound — charged against both the principal balance and accrued interest itself. Typically, personal loan rates are an expression of simple interest. 💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.
Loan APR vs Interest Rate
So what’s the difference between an APR vs. an interest rate?
APR stands for Annual Percentage Rate and specifically designates how much you’ll spend, as a proportion of the principal, over the course of one year. Furthermore, the APR includes any additional charges on top of interest, such as origination or processing fees, which a straight interest rate does not.
In other words, APR is a specific type of interest rate expression — one that’s more inclusive of additional costs.
Interest Rate
APR
Expression of how much will be paid back to the lender in addition to repaying the principal balance
Expression of how much will be paid back to the lender in addition to repaying the principal balance
Includes interest only
Expresses cost of the loan over one year including any additional costs, such as origination fees
Why Is My Personal Loan APR Different Than the Interest Rate?
If your personal loan’s APR differs from its interest rate, that indicates that there are additional fees, such as origination fees, included in the total amount you’re being charged. If there were no fees, the APR and interest rate would be identical.
How Important Is APR vs Interest Rate?
A loan’s APR is generally more important than its interest rate because APR reflects the true cost of the loan — it accounts for interest as well as any fees tacked on by the lender. Looking at APR also allows you to compare two loan offers apples to apples. One loan may have a lower interest rate than another loan but if the lender tacks on high fees, then it may not actually be the better deal.
APR vs Interest Rate on Revolving Credit Accounts
Personal loans aren’t the only financial product that involve APR and interest rate. Revolving credit accounts — including credit cards — also have interest rates expressed as APR. However, with credit cards, these two rates are one and the same: APR is just the interest rate, and the terms can be used interchangeably.
Credit card issuers may charge other fees, e.g., cash advance fees, late fees, or balance transfer fees as applicable to individual usage. But it’s impossible to predict the type or amount of fees that might be charged to any one card holder.
Although these two expressions are the same, it’s important to understand that the interest rate on credit cards and other revolving credit accounts is usually compound interest, which is precisely why it can be so easy to spiral into credit card debt. When interest is charged on the interest you’ve already accrued, the total goes up quickly.
A single credit card account can have multiple APRs, depending on how the credit is used.
• Purchase APR: the standard APR for general purchases.
• Cash advance APR: the rate charged for cash advances made to the card holder.
• Balance transfer APR: may begin as a low or zero promotional rate, but increase after the introductory period ends.
• Penalty APR: may be charged if a payment is late by a predetermined number of days.
💡 Quick Tip: With average interest rates lower than credit cards, a personal loan for credit card debt can substantially decrease your monthly bills.
What Is a Good Interest Rate for a Personal Loan?
The interest rate on your personal loan — or any financial product — will vary based on a wide variety of factors, including your personal financial history (such as your credit score and income) as well as which lender you choose, how big the loan is, and whether or not it’s secured with collateral.
The average personal loan rate is currently about 12% APR. However, the rate you receive could be higher or lower, depending on your financial situation and the lender you choose.
Getting a Good APR on a Personal Loan
To get the best rate on your personal loan, there are some financial factors you can influence over time. Here are some action items to consider.
Improving Your Credit
It’s been said before, but it’s true: the higher your credit score, generally the better your chances are of achieving favorable loan terms and lower interest rates — not to mention qualifying for the loan at all. While there are loans out there for borrowers with bad credit and fair credit, improving your credit profile can make borrowing money more affordable.
Paying Down Your Debts
One way you may be able to improve your credit is to pay down your debts. And along with the opportunity to bolster your credit, paying down debt can also improve your chances of being approved for a loan because your debt-to-income ratio is one factor lenders look at when qualifying you for a loan. What’s more, paying down debt can make keeping up with your monthly loan payments a lot easier, since you’ll have more leeway in your budget.
Be Careful When Applying for Credit
Applying for too much credit at once can be a red flag for lenders and ding your credit score, so if you’re getting ready to apply for a personal loan, auto loan, or mortgage, try to limit how many times you’re having your credit score pulled. Typically, prequalifying for a loan involves a soft credit pull, which won’t impact your credit.
While credit scoring models do allow for rate shopping, it’s still a good idea to compare multiple lenders over a limited amount of time — a 14-day period is recommended — to find the lender that works best for your financial needs. If done in a short window of time, multiple hard credit pulls for the same type of loan will count as just one.
Recommended: Soft vs Hard Credit Inquiry
The Takeaway
Personal loans and other financial lending products come at a cost: interest. That’s the amount you’ll pay on top of repaying the principal balance itself. Interest is expressed in a percentage rate, most commonly APR, which includes both the interest and any other fees that can increase the cost of the loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Why is my personal loan APR different than the interest rate?
If the annual percentage rate (APR) on your personal loan is different from the interest rate, it means the lender is charging additional fees, such as origination fees or others.
How important is APR vs interest rate?
The annual percentage rate (APR) is generally the more important figure to look at, since it includes additional costs incurred in getting the loan, such as fees. The APR will give you a more holistic picture of the price of the loan product.
What is a good APR and interest rate for a personal loan?
Personal loan interest rates vary widely but currently average around 12% APR. Depending on your personal financial history, the type and amount of the loan you’re borrowing, and your lender, the rate you receive could be higher or lower.
Photo credit: iStock/Charday Penn
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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
Last April, when Bed Bath & Beyond held its store-closing sales after declaring bankruptcy, I popped into one of its Manhattan locations and found the shelves almost completely stripped of inventory, snagged by earlier shoppers who’d been quicker to the liquidation bargains. Dwell’s senior home guides editor Megan’s experience at another Manhattan location, though, seemed slightly less chaotic, and even in small but not insignificant ways gratifying. So last week, when Dwell’s managing editor Jack Balderrama Morley dropped a tweet in a team Slack channel pointing out the “crazy sales” at another major retailer, Joann, which on March 18 announced it filed for bankruptcy, and said: “Maybe a writer wants to go and see what home design can be pulled out of a dying store?” I bravely volunteered. Most of the online reactions I’d seen to Joann’s bankruptcy were more focused on corporate details than implications for crafters, but I assumed the news would circulate widely enough in at least some corners of TikTok’s DIY universe that the sales would generate a fairly quick clean out.
To be clear, my putting myself forward is only notable because from where I live in Manhattan, a trip to the craft store—or any department store, really—is a vastly different experience than in the suburbs. The Hudson, Ohio-based chain, which has operated for more than 80 years, has roughly 800 stores nationwide (all of which the company said will continue to operate as it restructures its finances). But none of those stores are in Manhattan, or even Brooklyn. Long Island has three locations, and there’s one in Scarsdale, about an hour’s drive north of my apartment (closer to Connecticut in actuality). Across the Hudson, there’s a Joann store in Paramus, New Jersey. Depending on the time of day, the drive is anywhere between 30 and 50 minutes.
My girlfriend and I have a Zipcar membership that we use almost solely for the purpose of completing another task that’s a vastly different experience when you live in New York City: grocery shopping. Every other month or so, we go to a Trader Joe’s outside of the city to stock up on groceries that we can drive home, not carry. We were due for another Big Shop and had also been talking about crafting over the weekend, since the forecast was gross and rainy. In Paramus, there’s a Trader Joe’s all but three minutes from Joann. So Paramus it was. We were making a Saturday of it.
The arts-and-crafts store, formerly known as Jo-Ann Fabrics, was a big part of my childhood. (Full disclosure: I was blissfully unaware of the 2018 rebrand and had been using the former moniker up until I learned about the recent bankruptcy filing, and am still having a tough time adjusting to the name change, in true millennial fashion.) In the early 2000s, the Jo(-)ann (Fabrics)(!) on the side of Highway 101 in Corte Madera, California, was where I bought fabric for weekly sewing classes with Winky Cherry (I’m serious), a kids’ sewing teacher and author, I’m just learning, who taught out of a downstairs room in her home. It’s where I found felt and appliqués for the DIY poodle skirts I wore to school sock hops. It’s also where I found the fabric, pom-poms, and ribbons I tasked my adult neighbor, whose children I babysat, with fashioning into a jester costume for me one Halloween; one side had blue fabric with a moon pattern, the other a maroon background with suns. There were elastic cinches at the wrists and ankles that created frilly cuffs. In retrospect, it was quite a vision for my young mind to conceive of, but stylistically…misguided.
Before last weekend, I hadn’t been back to one of the stores since that time in my childhood. One of Joann’s competitors, Michael’s, has locations in Brooklyn and Manhattan, and I sadly did not retain any sewing skills from Winky Cherry’s classes, so these days the selection there or at Blick Art Materials—of which there are many in New York City—does the trick for my occasional craft projects. I was expecting the scene to be somewhat depressing: sparse aisles stocked with the same art supplies you can now order to your front door on Amazon, piles of worse for wear fabric collecting dust, and nary a shopper born after the turn of the millennium (and that’s being generous). The latter, from my observation, was true, but other parts surprised me.
The clearance sale shelves at the front of the store, marked 25 percent off, were haphazardly stocked as though either winds of eager customers had already blown through them, spoiling any prior display order, or the employees had simply gathered items from other aisles—a partially unwound yarn bundle, decorative stickers, children’s trinkets, and, unexplainably, a pack of popcorn seasoning, and quickly dumped them in this section, knowing any real organization efforts wouldn’t be worth their while.
We set ourselves a $200 budget, keeping in mind a few DIY projects we discussed prior, and knowing that we like to keep a stock of craft supplies for impromptu projects, so this sale would be as good a time as ever to spend somewhat freely. First, we popped over to the bead aisles to scope out the four for $10 deals. We picked 15 bead strands—with between 10 to 40 beads per set, depending—and a roll of clear cord (for later necklace-making projects). We also grabbed a small organizer to keep the beads in; not on sale, but something we felt necessary, and reasonable for $4.50. The next aisles had some of the biggest steals we encountered: 10 for $5 on two-ounce acrylic paints, 50 to 70 percent off fine art canvases, and 25 percent off other art supplies, from paint brushes to sets of paint, pens, and colored pencils. We added a 10-pack of 8×10 canvases and two 5×5 canvases to our shopping cart, along with a 24-tube acrylic paint setand a few larger paint tubes, plus a can of black spray paint and some wooden semicircle cutouts for a DIY mirror project.
We walked toward the next part of the store we knew had something we wanted: fiber filling to revive our couch cushions, which we assumed we’d find near the fabric department. Between there and the robust yarn section, it felt, for a second, like we could be in any big box retailer of the home goods ilk. You could buy outdoor rugs, plant stands, picture frames, and storage containers just like what’s in stock at Target or Home Depot. In my memory, the Jo(-)ann (Fabrics)(!) of my youth was much less home decor-oriented.
Still, the crafts and sewing storage items were marked 50 percent off, so we grabbed three collapsible bins in the style of Hay’s recycled color crates for the space above our kitchen cabinets at $5.99 each. I also picked out an 11×14 black picture frame, with visions of repainting it with a two-tone trim using our new acrylics set. We grabbed two large bags of the fiber filling—40 percent off, $17.99 each—and at some point along the way picked up a five-pound bucket of air-dry clay, which ran us $6.99.
Every five or so aisles we’d pass another shopper, which, compared to the experience of shopping at most major retailers, is essentially like walking through a desert, but I’d imagined something much more vacant. I realized I was likely conflating my understanding of bankruptcy with the idea of returning to a forsaken mainstay from my childhood, so to see other customers at all made me feel like the place was sufficiently busy.
The general energy in the store, however, reminded me otherwise. At one point, I heard an exasperated yell from the next aisle, “Is it so hard for people to put things back where they fucking belong?!” I obviously had to check whose Public Display of Begrudge this was; when I walked past, there was only one woman, wearing a Joann apron and organizing inventory.
In the fabric section, we had to squeeze our cart past a plastic storage bin with wet floor signs on either side that was blocking most of the walkway in order to catch droplets from a ceiling leak. I saw another millennial-looking couple talking to a woman at the service counter and wondered what they were there for, feeling an instant sense of curiosity and camaraderie with the other shoppers visibly under 60. We thought about buying some fabric to fashion a small curtain/cabinet skirt to hide our eyesore kitchen trash area, but decided against it—mostly due to decision paralysis, but also because we weren’t sure anything from the fabric selection would even really improve the situation. (As a kid, the actual quality of Jo-Ann’s Fabrics was not something I noticed, apparently.)
At checkout, the sweet (older) cashier winced as our balance climbed and offered to add an extra coupon that was typically only available online to bring our total down. It seemed like she hadn’t rung up a $184.17 tab for anyone in a long time.
Our first DIY project was the easiest: we added the stuffing to our couch cushions, which have formed light indents in various spots because of my bad habit of WFH…from the couch. Then, we took some of the beads and Gorilla Glued them to a glass vase we already own. I painted the black picture frame with two blue acrylics and put a Really Bad Portrait of us from the Upper West Side flea market in it. (I’m still battling my partner to let us hang it up in the bedroom.)
Next, we spray-painted the wooden semicircles black and Gorilla Glued them to the side of our Ikea Hovet mirror, inspired by furniture we saw at Originario on a recent trip to Mexico City. (We still have enough left to do the same with another black mirror in our dining room.) We used some of the quick-dry clay to make a small, foot-shaped catchall—again, inspired by ceramics we saw in Mexico City. We’re still deciding on what to paint on the canvases, but now we have the supplies at the ready for when inspiration strikes. In fact, we’ve barely scratched the surface of what we bought on our haul, so that trip will last us many more DIY projects. And, should the clearance sales continue and we decide we want more bead deals or actually do want to give that cabinet skirt a try, our receipt has a promo code that can be used on Joann’s website, so we won’t have to brave another visit.
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The Community Home Lenders of America (CHLA) this week submitted a letter to the Federal Housing Administration (FHA) that urges the agency to “provide comparable down payment treatment for FHA borrowers, regardless of whether or not the seller is willing to pay the home buyer broker commission,” according to an announcement by the organization.
The letter is being sent in response to a series of real estate commission lawsuits and the recent $418 million settlement by the National Association of Realtors (NAR), with the association also agreeing to abolish the “Participation Rule” requiring sell-side agents to make an offer of compensation to buyer brokers.
CHLA contends that the settlement is “likely to result in a shifting from the home seller to the home buyer of the financial responsibility to pay buyer Realtor commissions,” and cites three key concerns in its letter addressed to FHA Commissioner Julia Gordon.
The first is a contention that large swaths of first-time homebuyers, who already face major challenges to enter the housing market, will not be able to meet higher down payment thresholds necessary to pay the buyer’s agent commission when using FHA financing.
“We believe that FHA borrowers should not have to make a much higher down payment merely because the seller is (arbitrarily) unwilling to fund the buyer agent commission,” the letter stated.
The CHLA also raises concerns about preexisting biases that may impact borrowers using FHA financing, a bias they contend has been demonstrated in the past.
“Existing (and well documented) home seller biases against buyers with FHA loans will be exacerbated, because of concerns over the buyer’s ability to make higher down payments,” the letter stated.
The third highlighted concern stems from the potential for inflated sales prices based on commission impacts, with CHLA contending that sellers “may use their leverage over the higher down payment levels to extract a higher sales price in exchange for agreeing to pay the buyer agent commission.”
The letter provides a series of prototype loan scenarios that could spin out of the settlement, illustrating CHLA’s arguments. Among the scenarios is one that CHLA hopes will become standard practice, in which “every home seller will be willing to pay the buyer agent commission, as a courtesy and without extracting a higher price in exchange for doing so,” the letter stated. “However, we do not have confidence that this will be the case.”
FHA borrowers are particularly vulnerable to sellers who may try to leverage a higher sales price, since “paying cash for their agent’s commission may not be economically feasible [for FHA buyers],” the letter read. “Having spent several years building up cash reserves for the down payment, the homebuyer will thus have to wait a few years longer to accumulate the cash necessary to fund this amount.”
Late last month, FHA addressed a common question the agency had received from interested stakeholders, who asked how the proposed settlement agreement will affect the treatment of seller-paid buyer broker fees in transactions that use FHA-insured mortgage financing.
“Under existing FHA policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a manner of state and local law or custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other requirements are met,” the agency said in an informational notice distributed to professionals via email and published online.
Editor’s note: An FHA statement on a different matter was erroneously included in a previous version of this article.
Although fourth quarter mortgage originations were flat year-over-year, nonbank lenders that could provide products through multiple means were able to grow their business during that tough period, a Morningstar DBRS recap found.
“In addition to affordability challenges, seasonality and competition also impacted volumes and pricing,” the report from Shaima Ahmadi, assistant vice president, North American financial institution ratings, said. “However, on an individual company basis, those with omnichannel organization models continued to grow originations in [the fourth quarter] as they were able to capture a higher share of the market versus those with less diverse channels and refi heavy models.”
The top mortgage lenders benefited by undertaking business restructuring and making strategic shifts in order to capture more purchase business, Ahmadi said.
A shift underway that might not be going well is taking place at Finance of America, which had been at one point a multi-channel forward lender. After several previous strategy shifts, the company elected to focus on reverse mortgages. As part of that strategy, it bought American Advisors Group, which helped to drive FOA to a 40% market share in that segment.
“Despite market share gains, when excluding forward organizations in 4Q22, FOA’s reverse mortgage origination volume was down a significant 56% YoY in 4Q23,” Ahmadi pointed out.
“Meanwhile, Rithm Capital Corp. has made a number of acquisitions of mortgage servicing and alternative asset management businesses over recent years as part of the company’s strategic shift to become a real estate asset manager. Companies also continue to diversify their basket of mortgage loan offerings with added complementary services.”
The Mortgage Bankers Association’s fourth quarter industry profitability survey found that independent mortgage bankers and bank mortgage subsidiaries, both public and privately held, lost an average of $2,109 on every loan produced.
Furthermore, servicing was a net financial loss for the group of $24 per loan, while operating income for this function, which excludes amortization, gains/loss in the valuation of servicing rights net of hedging gains/losses, and gains/losses on bulk sales, was $108 per loan.
Mortgage servicing rights proved to be a double-edge sword in the fourth quarter. Companies reported fair-value losses on their MSR portfolios — a requirement of mark-to-market accounting that is tied to potential prepayments — but servicing fee income was up.
The publicly traded nonbank lenders tracked in the Morningstar DBRS report had a 6% increase year-over-year in their portfolios. But that ranged from a 14% gain at Mr. Cooper, which was active in the bulk purchase market, to declines of 5% at Rocket and 4% at United Wholesale Mortgage; UWM has been a strategic seller of servicing rights as part of its risk management strategy, executives noted on its fourth quarter earnings call.
FOA actually had a larger percentage increase at 38%, but that was primarily reverse servicing picked up in the AAG deal, and among the nine companies listed, it has by far the smallest portfolio.
Even though its portfolio is now smaller, Rocket bought MSRs originated with high rates for the potential refinancing opportunity.
“Given where mortgage rates currently are, borrowers have little incentive to refinance,” Ahmadi said. “However, some companies indicated that they expect a meaningful rebound in refinance activity when rates fall below 6%.” While the MBA thinks rates will sink under that mark, Fannie Mae’s latest forecast calls for them to just get to that level by the end of next year.
For the group losses narrowed as improved gain on sales margins were partially offset by lower origination volume.
Gross gain on sales margins, inclusive of fee income, net secondary marketing income and warehouse spread, was 334 basis points in the fourth quarter, up from 329 basis points three months prior, the MBA survey reported.
“We would expect margins to remain under pressure in 1Q given the negative impact seasonality typically has on both 4Q and 1Q,” Bose George, an analyst with Keefe, Bruyette & Woods said in an April 1 note on the survey. “Industry profitability is likely to be flat to down in 1Q as volumes should once again be low due to the seasonality associated with the quarter and the elevated average mortgage rate.”
Several public companies also reported major one-off expenses, including Pennymac Financial Services, which recorded $158.4 million in expenses from an arbitration ruling in favor of Black Knight (now part of Intercontinental Exchange) over mortgage servicing technology including allegations of breach of contract and misappropriation of trade secrets.
Meanwhile, Mr. Cooper’s November 2023 cybersecurity incident hit its results to the tune of $27 million.
Ahmadi also noted that the nonbanks had higher leverage ratios year-over-year for the fourth quarter, as debt levels increased slightly but was primarily caused by financial losses eroding company equity.
“During [the fourth quarter], nonbank mortgage companies were active in the high yield market, raising unsecured funding, which was partially used to pay down upcoming maturities in 2025, which we view positively for their credit profiles,” Ahmadi said. “Indeed, unsecured debt issuances increase nonbank mortgage companies’ financial flexibility by decreasing balance sheet encumbrance.”
Both Rocket and Pennymac Mortgage Trust were able to reduce their leverage ratios. But FOA’s debt-to-equity ratio increased to 97.8x compared with 49.7x one year prior, while Ocwen’s was at 27.2x, versus 22.9x over the same period.
In a report last week on AI and cybersecurity, the U.S. Department of the Treasury said that, while banks tend to share plenty of information with each other for the purposes of cybersecurity and anti-money laundering, they have practiced “insufficient data sharing” in the area of fraud prevention.
The dearth of banks sharing their fraud data undercuts smaller banks’ efforts to train anti-fraud AI models— models that many banks hope will replace rule-based engines, deny lists and device fingerprinting in the fight to detect and prevent transaction-related crimes such as money laundering and fraud.
Treasury acknowledged a general gap in the data available to financial institutions for training AI models of all kinds, but the report said the gap is “significant in the area of fraud prevention,” which the report contrasted with robust cybersecurity data sharing efforts led by organizations including the Financial Services Information Sharing and Analysis Center.
“The accuracy of machine learning-based systems in identifying and modeling fraudulent behavioral patterns correlates directly with the scale, scope (variety of datasets) and quality of data available to firms,” the report reads.
The report said “most financial institutions” interviewed for the report, which was based on 42 interviews, expressed the need for better collaboration in the domain of fraud prevention, particularly as fraudsters themselves have been using AI and machine learning technologies.
“Sharing of fraud data would support the development of sophisticated fraud detection tools and better identification of emerging trends or risks,” the report said.
However, while such information sharing could improve fraud detection, it “also raises privacy concerns,” the report said, as it would involve collecting and storing sensitive financial information including transaction histories and personal behaviors. Data anonymization and algorithmic transparency — i.e., helping customers understand how their data is used — could mitigate these issues, the report said.
Treasury said in the report that the Financial Crimes Enforcement Network, which is a bureau of Treasury, might be well positioned to support fraud information-sharing efforts between banks, to ensure that smaller financial institutions “are benefitting from the advancements in AI technology development for countering fraud,” the report said. Core providers could also play this role, according to the report.
While many vendors offer smaller banks access to AI-based transaction monitoring systems, Treasury’s report said internal development at banks “offers advantages in oversight and control of the development, testing, transparency, and governance of models and access to sufficient data monitoring for model risk management evaluation purposes.”
For the moment, the report cited efforts by two institutions that are already working to close the fraud information-sharing gap: The Bank Policy Institute and the American Bankers Association.
The Bank Policy Institute, a public policy research and advocacy organization, told Congress in February that, as part of the effort to promote and enable data and intelligence sharing between institutions, the institute has established BITS, an “executive-level forum” for bankers to collaborate on policy advocacy, promote critical infrastructure resilience, strengthen cybersecurity and reduce fraud.
The American Bankers Association, a trade organization and bank industry lobbying group, is set to launch an information-sharing exchange in the first half of this year, which the association says will help member banks fight fraud.
As an example of how the exchange will work, in fraud cases known as business-email compromise, the platform will enable banks to alert their peers with key information about the account of the alleged fraudster, said Paul Benda, executive vice president of risk, cybersecurity and fraud at the American Bankers Association.
“The idea here is to allow banks to share this information amongst other banks in a near-real-time manner so they can integrate this data into their payment flows, into their risk-scoring systems, to stop that money from going out,” Benda said.
The association said its long-term goal is to make the exchange available to all financial institutions that are covered by Section 314(b) of the Patriot Act, which gives financial institutions the right to share information that could be used to identify transactions that might involve money laundering or terrorist funding.
As for the consequences of failing to promote adequate fraud information sharing, several institutions Treasury interviewed said “there may be a risk of future consolidation towards larger institutions” if “smaller financial institutions are not supported in closing this critical gap,” according to the report.
Switching banks, or even just opening a new account, isn’t something people do on a whim. The decision can be driven by need, like moving to another state. Sometimes, it may result from learning more about different options. In other cases, the switch is about seeking better rates, lower or no fees, or digital access. In fact, 32% of retail banking customers nationwide say they are now open to changing their primary bank because of these concerns, per 2023 research from Rivel Banking Research.
If you’ve decided to switch to a Discover account, here’s what you need to know about getting it funded ASAP. Depending on the kind of account you’re opening—checking, savings, certificate of deposit (CD), or money market—your available options and the timing may vary.
1. Online transfer
Internal (from a Discover deposit account to a different Discover account)
If you have multiple eligible accounts at Discover (for example, a Cashback Debit and a Money Market Account), you can complete an online transfer between accounts. Just log in via the app or online banking portal and follow the simple prompts to make a transfer.
External (from an account at a different bank to a Discover account)
No minimum opening deposit is required to open a new Discover Cashback Debit or Online Savings Account. If you’re transferring funds from an account at another bank or institution and would like to initiate the transfer with Discover, we’ll need to verify you’re an owner of that account.
Here are three methods for completing the verification process with Discover:
Instant verification
With instant verification, you just need to provide details about your external account. These include your name, the account number, and the ABA routing number. With that information, Discover should be able to verify your account and transfer the funds.
Real-time verification
With this method, Discover will ask for your name, your account number, and the ABA routing number, and will also require your login information (user ID and password) that you use to sign in online to your external account. Discover will verify that your account is valid and transfer the desired amount.
Trial deposit
With trial deposit verification, Discover will request information about your external account and then make two small deposits to that account—typically a few cents each. It typically takes three to five business days for these small trial deposits to show up in your external account. You’ll then confirm the amounts of these deposits to successfully authenticate the account (once this happens, the deposits are reversed).
By going through any of the methods above, Discover will process the transfer of funds. If you opt to initiate an account transfer at your other bank, you’ll need to share Discover’s routing number—031100649—and your account number to add an initial deposit to your Discover account within 45 days of opening it.
Be aware that some banks may charge fees for outgoing transfers to other institutions. If you’re hoping to avoid that, check out other options for funding your account below.
2. Mobile check deposit
A smartphone and a paper check are all you need to make a mobile check deposit. First, you’ll download the Discover Mobile App (available for Android phones and iPhones, tablets, and smartwatches) and register for access to online banking. Once signed in, you can complete a mobile check deposit by following the prompts—which typically involve capturing a clear image of the front and back of the check made out to and endorsed by you.
3. Direct deposit
If you want to fund your new checking, savings, or money market account through direct deposit, you may be able to automatically enroll your Discover Bank account with Discover online or in the app. You may also be able to sign up directly through your employer or other payor, such as Social Security. Once you’re set up, please allow up to two pay cycles for your first deposit to appear in your account.
Tip: One perk of direct deposit through Discover Online Banking is Early Pay, which may allow you to have access to some or all of your qualifying direct deposits up to two days early.1
4. Add cash
If you’d like to fund your new checking or money market account with cash, you’ll need to wait for your debit card to arrive—usually up to 10 business days from account opening.
With your new contactless debit card and a minimum of $20 in hand, head to your nearest U.S.-based Walmart and ask a cashier to add cash directly to your account. You’ll insert or swipe your card, hand your money to the cashier, and receive a receipt. There is no fee for this service, and deposits are generally posted the same day.
Other funding options
If none of these options work for you, you can also fund a Discover Cashback Debit, Online Savings, CD, or Money Market Account by mailing in a check (payable to you) and deposit slip, or initiating a wire transfer.2
Now you’re ready to bank
You’ve funded your new account. Maybe you’ve even set up direct deposit or downloaded the mobile app. Regardless of how you bank, your bank should work for you, so make sure to check out all the benefits of a Discover Cashback Debit account.
Ready to make the switch? Click here to learn more about Discover’s Cashback Debit checking account.
1 The Early Pay feature is automatically available to checking, savings (excluding IRA savings) and money market customers who receive qualifying Automated Clearing House (ACH) direct deposits (such as salary, pension, or government benefits) from a business, government entity or other organization. At our discretion, and dependent on the timing of Discover’s receipt of the ACH direct deposit instructions, we may make funds from these qualifying ACH direct deposits available to you up to 2 days early. Certain ACH direct deposits are not eligible for Early Pay and other limitations and conditions apply – see our Deposit Account Agreement for more information. Deposits made by an individual using online banking or Peer-to-Peer (P2P) payments (such as Apple Pay Cash, Venmo®, Zelle ® and PayPal®) are not considered ACH direct deposits. There is no fee for Early Pay, and customers do not need to enroll in the feature.
2 Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
Are you looking for the best low stress jobs? If you currently dread going to work and are looking for something new, here’s where to start. If your current job is too stressful, you may be thinking about switching to something less intense. Lots of jobs pay well without making you feel anxious or burned…
Are you looking for the best low stress jobs? If you currently dread going to work and are looking for something new, here’s where to start.
If your current job is too stressful, you may be thinking about switching to something less intense. Lots of jobs pay well without making you feel anxious or burned out all the time.
Whether you’re making online content, helping people get fit as a personal trainer, or organizing medical records, there are many options for a job that helps you stay calm and relaxed.
Recommended reading: 40 Best Jobs Where You Work Alone
Best Low Stress Jobs
There are many low stress jobs listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Below are the best low stress jobs.
Note: While these jobs are low stress for some, they may not be for all. There may be a certain aspect of it that may make it low stress for you, such as being able to work alone, being able to work from home, having a flexible schedule, or doing something that you enjoy. But, nearly all jobs have some sort of stress that is a part of the job, so that is something to keep in mind. And, that doesn’t mean that these jobs are easy. Many of the jobs below are still quite difficult, requiring schooling (even getting your doctorate degree!) and hard work.
1. Blogger
If you enjoy writing and sharing ideas, becoming a blogger might be the perfect low stress job for you.
As a blogger, you have the freedom to create content on topics that interest you. Whether it’s personal finance, cooking, travel, tech, or any hobby, your blog is a space to express yourself.
I started my blog, Making Sense of Cents, in 2011 without much planning. I just wanted to talk about my own experiences with money. Surprisingly, since then, I’ve made over $5,000,000 from it. And now, blogging is my main job!
I really enjoy being able to blog full-time, and it’s much less stressful than the previous day job I had. But, it is still running my own business, so there are other stresses that come along with that, of course.
But, there are many positives as well! I can work alone, I get to make my own schedule, I am my own boss, I get to do the work that I choose to do, and I can work from home. I have an amazing work-life balance, and I wouldn’t trade this job for anything else.
So, what’s a blog? Well, it’s like what you’re reading now – it’s writing on a website. You can write a blog about something you really like, something you know a lot about, or even something you want to learn more about. People like to read blogs because they get to follow along with someone’s real experiences and journeys!
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
2. Sell printables
Selling digital printables online is a great way to work from home with less stress and make money.
Creating printables can be a less stressful job because you only need to make one digital file for each product, and then you can sell it many times. It’s also not expensive to start because all you need is a laptop or computer and an internet connection.
Plus, you can do all of this from home and on your own time.
Printables are things you can get on the internet and print at home. They could be games for a bridal shower, lists for groceries, planners for managing money, invites for events, quotes you can hang on your wall, or designs you can use for crafting.
I recommend signing up for Free Training: How To Earn Money Selling Printables. This free workshop will give you ideas on what types of printables you can sell, how to get started, the costs of starting a printables business, and how to make money.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
3. Bookkeeper
Bookkeepers handle money matters for businesses, and they write down sales, keep track of expenses, and create financial reports.
This job allows you to work independently, earning a typical salary of $40,000 or more each year. You’ll mainly work with numbers instead of interacting with people.
Many bookkeepers like their jobs because they work regular hours and don’t have as much pressure as some other jobs.
You don’t need a college degree to start as a bookkeeper either. This is something that you can learn to get started, as there are no education requirements.
You can join the free workshop that focuses on finding virtual bookkeeping jobs and how to begin your own freelance bookkeeping business by signing up for free here.
Recommended reading: How To Find Online Bookkeeping Jobs
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
4. Proofreader
If you already enjoy reading articles or books and spotting errors, then you may find this job interesting.
A proofreader’s main task is to read content and look for mistakes in spelling, grammar, and punctuation. They’re the last line of defense, ensuring that everything reads perfectly before it goes out into the world. Many proofreaders enjoy the flexibility this job has, as they can often set their own hours and work from where they feel most comfortable.
Many writers, website owners, and students hire proofreaders to improve their work. There’s a big demand for proofreaders, and you can find jobs on different sites.
Even the best writers can make errors in grammar, punctuation, and spelling. That’s why hiring a proofreader can be extremely helpful for almost everyone.
In fact, I have a proofreader for my blog. Even though I write all day long, I know that it is very important to have a proofreader go through everything that I write.
If you want to become a proofreader, I recommend joining this free 76-minute workshop focused on proofreading. In this workshop, you’ll learn how to begin your own freelance proofreading business.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
5. Transcriptionist
Transcriptionists listen to recordings and type out what they hear.
Becoming a transcriptionist is a low stress job if you’re looking for flexibility in terms of work schedules and the comfort of working from your own space.
Online transcriptionists typically earn between $15 to $30 per hour on average, with new transcribers usually starting at the lower end of that range.
A helpful free training to take is Free Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
6. Software developer
A software developer is a person who designs, creates, tests, and keeps up software applications, systems, and programs. They’re good at programming languages and frameworks, using their skills to make solutions that meet specific needs or solve problems.
Software developers work in different fields like technology, finance, healthcare, and entertainment. They work with other team members like designers, engineers, and project managers to finish software projects well and meet the needs of users.
I know many software developers who enjoy what they do. While it is a hard job, many of them are able to work from home, travel whenever they want, and they tend to enjoy solving complex technical issues.
Other less stressful jobs in a related field include becoming a computer systems analyst, software architect, computer hardware engineer, and web developer. For these jobs, you may need a bachelor’s degree in software engineering, computer science, or a related field.
7. Massage therapist
If you’re looking for a stress-free job that lets you help others, think about being a massage therapist. Massage therapists use their hands to ease pain, help people relax, and help people feel less stressed.
Massage therapy might be a little less stressful for you because the atmosphere at work is usually calm (after all, that’s why people are going there – to relax!), and you don’t bring work home with you (so, no late night phone calls from clients!).
Massage therapists usually work in places like spas, wellness centers, or chiropractic clinics. Some may also have their own private businesses or have mobile services, which lets them have a more flexible schedule and be their own boss.
To become a massage therapist, you will need to go to school for massage therapy and pass a state exam. This typically takes around 6 months to 2 years to complete (it depends on the state you live in).
8. Personal trainer
Personal trainers help people with their fitness and being more healthy, which can mean creating workout plans, motivating them to work out, or showing the right way to lift weights.
Personal trainers work in a gym, hospital, or even go solo as a freelancer.
This job has some flexibility, which is something that many personal trainers like. You get to choose who you train, where you work, and when you have sessions. Plus, you’re not stuck at a desk all day, which keeps things fresh and fun.
9. Dental hygienist
Dental hygienists clean teeth, check for things like cavities or gum disease, and teach patients the best ways to brush and floss.
You can start this career with an associate’s degree, which usually takes about two years to finish. Plus, you may be able to make over $75,000 a year as a dental hygienist.
10. Medical records technician
If you’re in the job search for low stress jobs in healthcare, then becoming a medical records technician may be for you.
Medical records technicians handle health information data, and they make sure that all the records (both electronic health records and paper files), such as patient history, test results, and treatments, are accurate, accessible, and secure.
It’s low stress because, unlike some roles in medicine, you won’t be on the front lines dealing with emergencies. Your work environment is typically calm, allowing you to focus on your tasks without the pressure of patient care.
To become a medical records technician, you typically only need a high school diploma, but some employers may want to see a certificate related to the field or higher education.
11. Optometrist
An optometrist is an eye doctor who helps people see better. They check your eyes, find out if you need glasses, and help keep your eyes healthy.
You may like being an eye doctor because:
You usually work regular hours. People don’t typically have optometrist emergencies.
The pay is great.
It’s usually a relatively calm job.
Plus, according to the Bureau of Labor Statistics, the median salary for optometrists is over $125,000 a year, and there is expected to be a 9% job growth outlook over the next decade.
12. Physicist
Physicists study the laws and principles that govern the universe, like gravity and motion, and how they apply to everyday life.
Most physicists work in research and development. Some work in offices, while others spend time in laboratories. There are also those who teach at universities.
The job comes with a reasonable stress level, as physicists frequently engage in deep thinking rather than dealing with tight deadlines or high-stress situations, and they typically conduct research. This can make for a fulfilling and low-pressure work environment if you enjoy physics.
To be a physicist, you will likely need a Ph.D. That means a lot of school, but it’s worth it if you love science and discovery.
13. Statistician
Being a statistician might be a perfect choice for your career if you love numbers and data.
Statisticians analyze data and identify patterns, such as by taking a bunch of numbers and turning them into useful information that companies can use to make decisions. Statisticians also might collect data from surveys and experiments.
Statisticians usually have pretty regular hours and it’s normally a quiet place to work, so you can focus just on your tasks without a bunch of noise. Plus, it’s not a job that is typically rushed, so you can take your time.
14. Mathematician
If you love numbers and problems that make you think, a related field to the above may be becoming a mathematician.
Mathematicians use mathematics to unravel patterns and address significant questions.
Mathematicians are needed in many different fields like academia, government, finance, and technology.
In academia, they work as professors and researchers, studying both theoretical and practical math ideas. Government agencies like NASA and the NSA hire mathematicians for jobs like exploring space and analyzing statistics. Financial companies hire mathematicians to make algorithms for things like evaluating risk, pricing items, and creating trading strategies. Also, big tech companies like Google and Microsoft use mathematicians to develop algorithms and analyze data.
15. Librarian
Becoming a librarian is a great job for someone who likes quiet places and books.
Being a librarian is not just about checking out books. It’s a role that’s all about helping people find information and enjoy reading.
Your main job as a librarian would be to help people find the books or online resources they need. You also get to put together fun programs, like story time for kids or book clubs. Keeping the library in tip-top shape is part of your work too, like putting books back on the shelves, managing schedules for employees and volunteers, and making sure everything is where it belongs.
Libraries are usually calm and quiet, which can make it stress-free for you. This makes your workplace quite relaxing, which is great if loud and busy spots make you feel stressed. Plus, you get to have a regular schedule.
Most librarian jobs need a bachelor’s degree at the minimum and sometimes, you will most likely need a master’s degree in library science (MLS) from an accredited program.
Librarians work in many places, such as public libraries, schools, law firms, universities, and more.
16. Orthodontist
One of the best high-paying jobs for people who don’t like stress is becoming an orthodontist.
An orthodontist is a specialized dentist who focuses on fixing teeth and jaw alignment problems. They help patients get straighter smiles and better oral health using treatments like braces, clear aligners, and retainers.
Orthodontists get extra training after dental school to become experts in diagnosing and treating issues like misaligned bites and other dental problems.
By carefully checking each patient, orthodontists make personalized plans to straighten teeth properly, leading to better-looking smiles and improved function of the teeth and jaws.
Being an orthodontist can be pretty low stress since they usually have a set schedule, seeing patients for regular appointments instead of dealing with sudden dental emergencies.
17. Groundskeeper/gardener
Becoming a groundskeeper or a gardener could be a great fit for you if you like being outside and want a stress-free job. You get to work with plants and make outdoor spaces look beautiful. This job is perfect if you’re looking for something that lets you enjoy fresh air and doesn’t have you sitting at a desk all day.
Here are some things that a groundskeeper or gardener may do:
Take care of plants and grass by watering, weeding, and trimming.
Make sure gardens look neat and are healthy.
Sometimes work with tools and machines, like lawn mowers and trimmers.
Shovel snow or take care of indoor plants.
This is one of the best low stress jobs because it is usually quiet, which makes it great for people who get overwhelmed by noisy places.
Recommended reading: 15 Outdoor Jobs For People Who Love Being Outside
18. Audiologist
Audiologists help people with their hearing, and this includes testing hearing, picking out hearing aids, and teaching people how to use them.
This is typically a low stress career choice because you get to work in an office and do similar tasks each day. You are not usually rushing around, instead you have a lot of calm one-on-one time with patients.
Audiologists work in different places like hospitals, clinics, private practices, schools, and research institutions.
19. Pet sitter
Becoming a pet sitter is a great job if you like animals and enjoy caring for them. This is a job that doesn’t typically have a lot of stress because it is not fast-paced. Plus, if you like pets, then you probably enjoy being around them, which can make the job fun.
A pet sitter’s main job is to look after pets while their owners are away. This might mean feeding them, giving them water, and playing with them. It’s important to make sure the pet feels happy and safe when their owner isn’t home.
You might have pets come to your home, or you can go to their owners’ place (this is something that is agreed upon beforehand). Dog walkers typically earn around $20 for every hour they spend walking a dog. Taking care of someone’s pet overnight can earn a person around $25 to $100 or even more each day.
I have used many pet sitters over the years for my dogs, and they all seemed to love what they do. Plus, my mother-in-law is a pet sitter as well, and she enjoys her time with the dogs that she takes care of.
20. Stock photo photographer
Stock photo photographers take photos of things like people, businesses, animals, and more, and sell them for other people to use.
Stock image sites are some of the most popular platforms for photographers to sell their pictures. These websites allow customers to purchase images for purposes such as websites, TV shows, books, and social media accounts. You can take a look at some of the stock photos I’ve purchased within this blog post as examples.
Stock photo photographers typically work by themselves, and this job can be done without much interaction with others. Most of the tasks involve using a camera and then uploading photos to a website.
As a stock picture photographer, you get to set your own schedule. This means you can choose when and where you work.
One great thing about stock photo sites is that they can be a great form of passive income. You can take pictures, upload them, and continue to earn money from those photos for months or even years into the future. Since everything is online and mostly automated, there’s no need to talk with anyone directly.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
21. Freelance writer
Freelance writers create content for clients, including blog posts, advertising materials, and more.
It’s common for freelance writers to work independently, receiving topics from clients and submitting their completed work. Occasionally, they may receive feedback, such as suggestions for improvement, but this is usually the extent of human interaction they’ll have.
This is one of the best low stress jobs from home where you work alone.
I have been a freelance writer for many years and I enjoy this job a lot. I get to work from home, make my own hours, work alone, and choose the topics that I write about.
Recommended reading: 14 Places To Find Freelance Writing Jobs As A Beginner
22. Graphic designer
A graphic designer is someone who creates designs for individuals and businesses.
They create things such as images, printables, planners, T-shirt designs, calendars, business cards, social media graphics, stickers, logos, and more.
Graphic designers tend to have the freedom to set their own schedules, especially if they work as a freelancer. This job allows you to work at your own pace, and most of the time, you don’t have to deal with rush hour traffic or crowds since a lot of graphic designers can work from home.
23. Hairstylist
We’ve all been to a hairstylist, so I don’t think I need to describe this job too, too much. Hairstylists cut, style, and take care of hair.
Hair styling is lower stress because you work with clients in a relaxed setting. Also, you don’t have to sit at a desk all day – you move around and talk with people.
Plus, you can set up your day the way you like it. If you want, you can take breaks between clients. This means you won’t feel rushed and can enjoy your work more.
24. Social media manager
Social media managers engage with people online and share news, pictures, and videos on behalf of a company.
You may find this to be a low stress job because you mostly type on a computer or phone as a social media manager. So, if talking in front of people makes you nervous, this could be the perfect job. Plus, you can often work from home.
25. Virtual assistant
One of my first side gigs was working as a virtual assistant, and it was both enjoyable and flexible for earning income.
While you have a boss as a VA, many of the tasks you handle will require you to take the lead and complete them independently, usually from your own home.
A virtual assistant is someone who assists people with office tasks remotely, whether from home or while traveling. This could involve tasks such as responding to emails, scheduling appointments, and managing social media accounts.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
26. Litter cleanup worker
This is one of the least stressful jobs.
If you have a business, it’s important to keep it clean and neat. No one likes seeing trash scattered about when they’re shopping, correct?
That’s why some business owners pay someone to tidy up before their business opens. A clean space makes the place look inviting and pleasant for customers.
This low stress job without a degree can be started all by yourself, and you can earn around $30 to $50 for every hour you work. It’s quite straightforward too. All you’ll need is a broom, a dustpan, and some tools to help you pick up litter more easily.
People like this job because they can work alone and it’s easy to clean an area up.
Recommended reading: How I Started A $650,000 Per Year Litter Cleanup Business
27. Economist
Economists examine how goods and services are made, shared, and used within an economy. They use different tools, like math and stats, to grasp and predict economic patterns and actions.
Economists might work for the government, giving advice to policymakers on things like money policies and taxes. They also help businesses by explaining market trends, so they can make good decisions about prices, production, and investments.
A somewhat related field to this would be becoming an economics professor.
28. Astronomer
Astronomers study objects and events in space beyond Earth’s atmosphere, like stars, planets, galaxies, and cosmic happenings such as black holes and supernovas.
They use a mix of observations, data analysis, and theoretical models to learn about the origins, changes, and behaviors of these objects. Astronomers usually use advanced telescopes, both on the ground and in space, to observe and gather data from far-off parts of the universe.
They also work with physicists, mathematicians, and engineers to create new technologies and tools for exploring space. Through their work, astronomers help us understand big questions about the universe, like how old it is, what it’s made of, and what will happen to it in the future.
Unlike many jobs, being an astronomer means regular hours with few surprises. Plus, the quiet of a lab or observatory is perfect for staying focused and calm.
29. Actuary
Actuaries assess and handle financial risks by using math and stats to analyze data and forecast future events.
They mainly work for insurance companies, pension funds, and financial consulting firms. Actuaries examine how likely events like death, illness, accidents, and natural disasters are to happen, and what impact they could have on insurance policies and pension plans.
Based on their analysis, they help create insurance policies, decide on premiums, and suggest investment plans to make sure these financial products stay stable and have enough coverage for customers.
If you enjoy numbers and are looking for a job that’s pretty easy on stress, becoming an actuary could be a smart move. Actuaries help businesses look into the future and protect against loss.
30. Radiologist
If you’re interested in a career in the medical field that is both high-paying and considered to have lower stress, you might want to think about becoming a radiologist.
Radiologists specialize in diagnosing and treating diseases and injuries using medical imaging techniques like X-rays, CT scans, MRI scans, ultrasound, and nuclear medicine. They analyze images to find any abnormalities and give detailed reports to other doctors, helping with patient diagnosis and treatment plans.
Radiologists work closely with other healthcare professionals to make sure they understand the imaging results and can provide the best care for patients.
31. Data entry clerk
Data entry is one of the easiest low stress jobs without a degree needed.
Data entry clerks input, edit, and verify data in databases or spreadsheets. They enter details like numbers and names into computers to maintain organization and records.
This job can often be done remotely and independently, with little supervision or interaction with customers. For some people, this is key to having a stress-free job, and I completely get it – this is what I want as well!
Data entry positions generally pay around $15 to $20 per hour.
Recommended reading: 15 Places To Find Data Entry Jobs From Home
32. Yoga instructor
If you love helping others relax and stay fit, being a yoga instructor could be the perfect job for you if you want to find fun low stress jobs.
Yoga instructors lead classes and sessions in practicing yoga, a holistic discipline involving physical postures, breathing exercises, relaxation techniques, and meditation.
They help students through different yoga poses, focusing on correct alignment, breath control, and mindfulness. Yoga instructors create a welcoming environment where students of all levels can explore and improve their practice.
33. Dietitian
A dietitian talks to clients about their eating habits and helps figure out the best way to eat healthy.
Being a dietitian is usually not too stressful. You get to chat with people one-on-one or in small groups. You don’t have to rush around or handle dangerous equipment.
They can work in places such as hospitals, clinics, schools, community health centers, and food service establishments.
Frequently Asked Questions
Below are answers to common questions about how to find low stress jobs.
What’s the least stressful job?
The least stressful job will depend on your personality, as everyone is different. Some less stressful jobs include writing online, gardening, selling printables, and data entry. For me, I really like blogging, and I think it’s a great stress-free career that you can do at home.
How do I find a peaceful job?
If you want a peaceful job that doesn’t have a lot of stress, then I recommend first thinking about what you would find peaceful in a career, such as by looking for jobs with fewer deadlines and less contact with lots of people. Jobs where you can set your own pace, like a blogger or a freelancer, tend to have a peaceful workday. Think about what makes you feel calm, and then look for jobs that match that feeling.
What job is the easiest and pays the most?
Some jobs that are pretty easygoing and also pay well include orthodontist and optometrist. These jobs usually have regular hours and don’t need you to rush around. Plus, they pay more than enough to help you save for those things you love to buy.
What types of work-from-home jobs are low stress?
Working from home can be really laid back when you’re doing something like freelance writing, blogging, transcribing, or graphic design. You can pick the jobs you want and work when it suits you best.
What are the best low stress jobs for introverts?
If you’re quiet or introverted, then you might be interested in jobs where you can work solo or with just a few people. Jobs like a bookkeeper, transcriptionist, or data entry let you focus on your work without having to talk to many people.
What are high-stress jobs?
Some of the most stressful jobs include being a nurse, police officer, surgeon, social worker, anesthesiologist, firefighter, lawyer, airline pilot, paramedic, and in the military.
Best Low Stress Jobs – Summary
I hope you enjoyed this article on the best low stress jobs.
Nowadays, people are realizing how important it is to balance work and personal life and to take care of their mental health while lessening their anxiety about work. Some occupations, like software development and data entry, have this balance and a sense of calm.
Professionals such as dental hygienists, librarians, and dietitians also enjoy low stress roles with predictable schedules.
You don’t have to give up peace of mind to have a career. By thinking about what you’re good at and what you enjoy, you can find jobs that meet your goals while keeping stress levels low.
For me, I personally love having a career that has low stress. While it is still hard, I love that I can work from home, choose the work I do, and have a flexible schedule – all things that help me be less anxious and happier about the work that I do.
If you’re an 18-year-old with no credit history, you can get a loan, but your choices may be more limited. You may have to tap into alternative options and sources, such as loans with a cosigner.
That’s because lenders like to lend to people with a history of borrowing and on-time payments. Oftentimes, young people just starting out have no credit history. This means they have no credit accounts in their name or haven’t used credit for a long period of time and the information has been removed from their credit history. Without credit, it can be difficult to access loans or credit cards, rent an apartment or buy a house, and obtain certain subscriptions.
Let’s take a closer look at loans for 18-year-olds.
Benefits of Loans for 18-Year-Olds
Two important benefits of getting a loan as an 18-year-old include gaining access to funds and building up credit history.
Access to Funds
The obvious benefit of getting loans as a young person is that you will have access to the money you need. Depending on the type of loan you get, you may be able to use the funds for a variety of purposes, including:
• Education
• Purchasing big-ticket items, such as a car
• Personal expenses, such as medical or wedding expenses
Build Up Your Credit History
Loans allow you to start building up your credit history, which can help you meet goals such as:
• Getting a cellphone
• Accessing utilities in your name
• Qualifying for a credit card
• Getting good rates on insurance, a mortgage, or auto loan
Plus, establishing a strong record of borrowing and repayment can position you well for future borrowing.
💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.
Cons of Loans for 18-Year-Olds
While there are benefits to getting a loan when you’re 18, there are downsides to consider as well. Let’s take a closer look at a few.
Limited Loan Amounts
You may not be able to borrow a large loan amount when you’re young and just starting out. For example, if you want to purchase a $500,000 home as an 18-year-old and have no credit history, you’ll likely have difficulty qualifying for this type of loan.
Potentially High Rates
It’s possible to get a loan with no credit as a young person, but lenders may charge a higher interest rate than if you had an established credit history.
Why is that the case? Lenders try to assess your risk level when you apply for anything from a personal loan to a credit card. If they can’t see evidence that you have successfully made loan payments, they may not grant you a loan or they may compensate for that risk by charging you a higher interest rate.
Some lenders consider other aspects of your profile beyond credit history, including whether you can comfortably afford your payments.
Risk of Getting Into Debt
According to a consumer debt study conducted by Experian, Generation Z (those aged 18-26) had a non-mortgage debt average of $15,105 in 2023. This includes credit cards, auto debt, personal loans, or student loans.
While carrying any level of debt can be stressful, there are also financial implications to consider. For starters, if you don’t pay off your balance in a timely way, interest can start to build. Credit cards tend to carry higher interest rates than home or auto loans. This means wiping out credit card debt could take a long time if you only pay the minimum amount.
Then there are potential penalties to be mindful of, such as late fees. You may also face collection costs if you don’t pay your bills, which will remain on your credit report and potentially impact your credit score for years.
Recommended: Why Do People Choose a Joint Personal Loan?
Is a Co-Signer Required When Applying for Loans as an 18-Year-Old?
Not all lenders require a cosigner, so be sure to ask if you’ll need one. In most cases, a loan without a cosigner will likely have a lower loan amount and a higher interest rate.
What exactly is a cosigner? Simply put, it’s a person who agrees to take responsibility for a loan alongside the primary borrower. If one person fails to make payments, it will affect the other person’s credit score.
Applying for a loan with a co-borrower or cosigner can be a quick way to get accepted for a loan.
Understanding Your Loan Status
Like many financial processes, applying for a loan involves multiple steps. Here’s a general idea of what’s involved:
• Pre-approval: Pre-approval means that your lender takes a look at your qualifications (including a soft credit check). A soft credit check is an inquiry of your credit report.
• Application: In this part of the process, you submit a formal application, and your lender will verify your information.
• Conditional approval: You may also get conditional approval for your loan, which means the lender may likely approve you to get a loan as long as you meet all the requirements.
• Approval or denial: Finally, you’ll either get approved or denied for the loan.
Your lender should be clear with you at every step of the application process.
Recommended: How to Get Approved for a Personal Loan
Private Lender Loan Requirements for 18-Year-Olds
There are no hard-and-fast requirements that encompass private lender requirements. However, lenders generally look at an applicant’s credit score, debt, and income.
Credit Score
There’s no universally set minimum credit score requirement for a loan because rules can vary by lender. It’s worth noting that low-to-no-credit borrowers may be able to access a loan.
Debt and Income
Lenders will check to see how much debt you have and calculate your debt-to-income (DTI) ratio, which ideally should be less than 36%. To figure out your DTI, lenders add up your debts and divide that amount by your gross income.
Lenders will also look at your income to ensure you can make monthly payments on your loan. This can include income from your job, a spouse’s income, self-employment, public assistance, investments, alimony, financial aid for school, insurance payments, and an allowance from family members.
Tips for Getting Loans as an 18-Year-Old
If you’re ready to get a loan as a young person, you can take steps to help boost your odds of getting approved.
Show Your Savings
Show the lender what you’ve saved in your accounts, which may include:
• High-yield savings accounts
• Certificates of deposit (CDs)
• Money market account
• Checking or savings accounts
• Treasuries
• Bonds, stocks, real estate, and other investments
Demonstrating savings can help you show that you can repay your loan.
Show Proof of Income
Lenders will likely require you to provide proof of income so they can see how you’ll pay for your loan. But remember, this doesn’t mean just the money you earn from a job. Consider other types of income you receive. For instance, you may not initially think of alimony as a source of income, but a lender might.
Apply for a Lower Amount
Lenders may deny your loan if you choose to borrow more money than you can realistically repay. So if you’re young and have no credit history, you may be able to increase your chances of getting a loan if you apply for a lower amount. You may also want to consider this strategy if you’re denied for a loan and want to reapply.
💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
The Takeaway
While most 18-year-olds don’t have a large income or lengthy credit history, that doesn’t mean you can’t qualify for a personal loan. Just remember that funding choices may be more restricted, and you might not qualify for a large amount. If you’re having trouble getting approved, you may want to consider asking someone to cosign the loan, showing proof of income and savings, or applying for less money.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Are there loans for 18-year-olds without a job?
You can get a loan without a job. However, you’ll need to show a lender that you have some form of consistent income, such as through investments, alimony, financial aid, or another source of cash flow.
Are there loans for 18-year-olds without credit?
Yes, loans do exist for 18-year-olds with no credit history. But note that even if you qualify for a loan without credit, it may be a lower amount than you could qualify for if you had a lengthy credit history. You may also not be able to get a low interest rate.
Can I get a loan as an 18-year-old?
Yes, 18-year-olds can get a loan. Your age matters less than your credit history and credit score — or the availability of a cosigner. Keep in mind that you may have trouble getting a loan if you don’t meet a lender’s qualifications. Contact a lender to learn more about your options.
How can I build credit as an 18-year-old?
If you want to start building credit, it may be worth exploring a secured credit card. Similar to a debit card, this type of credit card requires you to put down a cash deposit to insure any purchases you make. For example, putting down a $1,000 deposit, and that becomes your starting credit line on your card.
Photo credit: iStock/SeventyFour
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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.
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.
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Personal loans are useful tools because you can use them for just about anything. From covering emergency car repairs to paying for home renovations to consolidating high-interest credit card debt, personal loans can be a game-changer for your finances. But, as with any kind of loan, personal loans typically come with fees.
But are loan fees bad? Not always. In fact, you may be able to secure a lower interest rate on your personal loan by paying a fee upfront — which will save you money in the long run.
Here, you’ll learn about personal loan options and the impact each can make on your finances so you can decide what suits you best.
Personal Loan Origination Fees, Explained
Personal loan origination fees serve as startup costs for initiating a loan. These are one-time fees that lenders charge to cover costs such as applications and underwriting. These fees often range from 1% to 6% but may go as high as 10%.
Not every personal loan has an origination fee, however. Often, borrowers with an excellent credit score can qualify for personal loans without fees (or at least much lower fees).
Some lenders make origination fees optional. At first glance, this might seem like a no-brainer. You might think, “Why should I pay a loan fee if I don’t have to?” But often, lenders may offer you a lower interest rate if you pay an origination fee upfront. This can save you money in the long run.
• A smart strategy: Look at the loan annual percentage rate (APR), which represents the true cost of the loan. The origination fee and interest rate are both bundled into this rate. This makes it easier to compare loans with and without origination fees to determine which is actually the better deal.
💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.
Personal Loan Origination Fee Example
To see how an origination fee affects your loan, here’s an example — one loan with an origination fee and one without.
In this scenario, your personal loan terms are as follows:
• Amount borrowed: $50,000
• Interest rate: 10%
• Loan term: 5 years
With an origination fee of 0%, you’d pay a total of $63,741.13 over the next 60 months, which is the term of the loan.
But what if there’s a 5% origination fee? You’ll still pay $63,741.13, but you’ll either pay $2,500 out of pocket upfront or have $2,500 deducted from the loan amount — borrowing only $47,500.
But remember, some lenders may offer you a lower interest rate in exchange for paying an origination fee. In this instance, in the scenario above, the lender may drop the interest rate from 10% to 7%. In that case, your total loan would look like:
• Amount borrowed: $50,000
• Interest rate: 7%
• Loan term: 5 years
The total payments over 60 months would be $59,403.60, or $4,337.53 less by paying the $2,500 origination fee. So that equals a savings of $1,837.53 once you deduct the fee. In this way, you can see why the answer to “Are loan fees bad?” may be “Not necessarily.”
Recommended: Personal Loan Terminology
How Are Loan Fees Determined?
Lenders consider a number of factors when calculating origination fees for personal loans, including:
• Credit score: Unsurprisingly, your credit score plays a big role in determining your origination fee. Lenders see borrowers with strong credit as less of a risk, so fees are generally lower.
• Debt-to-income ratio: The amount of debt you have compared to the amount of money you make is your debt-to-income ratio (DTI). This helps lenders determine how capable you are of meeting your monthly loan repayment commitment. The higher your DTI, the larger risk you are perceived to be — and that may be reflected in your origination fees.
• Cosigner: Even if your credit isn’t in great shape, you can still potentially lower your origination fee (and interest rate) by having a cosigner with stronger credit.
• Loan details: The amount you’re borrowing and the length of the loan can also impact personal loan origination fees.
💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
How Are Loan Fees Paid?
If you choose a personal loan with an origination fee, you usually pay in one of two ways:
Taken Out of the Funds You Receive
In this scenario, you pay the whole amount of the origination fee at the start of the loan. Rather than dig in your pockets to come up with the cash, it’s usually subtracted from the amount you borrow.
For instance, if you borrow $20,000 and there’s a 5% origination fee, you’d owe $1,000. Lenders will typically instead give you $19,000, because they’ve taken the fee out of the funds they are lending you. However, you’ll have to pay back the full $20,000, plus interest.
Keep this in mind when taking out the loan. If you need the full $20,000, you should actually request a slightly larger loan so that, after the origination fee, you walk away with $20K.
Note: In some instances, a lender may require an out-of-pocket payment for the origination fee.
Rolled Into the Loan
Alternatively, lenders may simply roll the origination fee into the loan. In the example above, you’d receive $20,000 at the start of the loan, but with a 5% origination fee built into the loan, the personal loan principal (the amount you have to pay back) is $21,000.
Recommended: Where to Get a Personal Loan
How to Compare Loan Terms
No matter what you plan to use a personal loan for, it’s wise to comparison-shop carefully. Simply because one loan comes with an origination fee and another one doesn’t, that doesn’t mean you should go with the fee-free option. In fact, in the long run, a personal loan with an origination fee could be cheaper. Here’s how to find the best personal loan offer for you:
1. Shop Around
First and foremost, it’s a good idea to get quotes from multiple lenders. Most lenders allow you to get prequalified online, without impacting your credit score. Having a handful of offers allows you to weigh your options and make an informed decision.
2. Compare APRs
It can be tempting to see that one loan has a high origination fee, one has a moderate fee, and one has no fee at all — and simply choose the loan without the fee. However, origination fees are a part of a loan’s APR, which also includes the interest rate and gives you a better idea of the true cost of the loan.
To truly compare apples to apples, focusing on APR is your best bet.
3. Think about Loan Length
Shorter loan terms tend to have lower interest rates, but because you’re paying off the loan in a shorter amount of time, monthly payments will be higher. Conversely, you may find a lower monthly payment with an extended term, but then you’ll likely be paying more interest over the life of the loan.
It’s a good idea to play around with each loan you’re considering to see how various loan lengths will affect your monthly payments and the total amount you’ll spend over the life of the loan.
Other Types of Loan Fees
Origination fees may be the most common type of personal loan fee we consider, but there are other fees to review in the terms and conditions from a lender before signing on the dotted line. These fees may include:
• Prepayment penalties: Some lenders charge you for paying off the loan early. Why? When you pay it off early, the lender makes less money from interest, so it’s in their best interest to keep the loan active as long as possible. Many lenders, however, do not charge prepayment penalties, so shop around.
• Late fees: You have a monthly obligation to make your fixed payment on a personal loan. Just as with credit cards and student loans, you may be charged a late fee if you miss your payment date.
• Monthly service fee: Some lenders charge a service or payment processing fee, depending on how you pay each month.
The Takeaway
While the thought of paying fees on top of interest when borrowing money can be overwhelming, personal loan origination fees aren’t always a bad thing. In fact, many lenders with origination fees can offer you lower interest rates, meaning you may spend less money in the long run by choosing a personal loan with an origination fee. Experts suggest comparing multiple loans and their APRs, which reflect the total cost of the loan, to get a better idea of the right loan for you. That can help you answer the question, “Should I pay a loan fee?” by focusing on the big-picture cost of your loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
Photo credit: iStock/milorad kravic
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.