Sacramento is a growing city that presents a unique balance of urban amenities and suburban comfort. Sacramento is known for its proximity to both the Bay Area and Lake Tahoe, offering residents the best of both worlds.
If you’re thinking about moving to Sacramento, it’s important to weigh the city’s specific advantages and disadvantages. Here’s an in-depth look at some of the most prominent pros and cons of living in Sacramento.
Sacramento at a glance
Walk Score: 49 | Bike Score: 67 | Transit Score: 34 Median Sale Price: $508,000 | Average Rent for 1-Bedroom Apartment: $2,152 Sacramento neighborhoods | Houses for rent in Sacramento | Apartments for rent in Sacramento | Homes for sale in Sacramento
1. Pro: Affordable by California standards
Living in Sacramento is generally more affordable than other major California cities like San Francisco or Los Angeles. Housing costs, while rising, remain significantly lower, and everyday expenses are more manageable, making it attractive to those seeking a budget-friendly option in California.
2. Con: Summers can be uncomfortable
Sacramento’s summer temperatures frequently climb above 90 degrees, often hitting triple digits. The heat can be intense, especially for those unaccustomed to long stretches of high temperatures, and it can make outdoor activities less enjoyable during the summer months.
3. Pro: Close proximity to pristine nature
Sacramento is perfectly placed for outdoor enthusiasts. The Sierra Nevada Mountains, Lake Tahoe, and Napa Valley are all within a two-hour drive, providing plenty of opportunities for hiking, skiing, and wine tasting. The nearby American River also supports kayaking, biking, and other outdoor activities.
4. Con: Limited public transportation
While Sacramento has a public transportation system, it isn’t as extensive or efficient as systems in larger cities. Buses and light rail services are available, but they don’t always reach suburban areas, making owning a car a necessity for many residents.
5. Pro: Solid government and healthcare jobs
As the capital of California, Sacramento has a strong job market in government-related industries. Additionally, the healthcare industry is a significant employer, with large hospitals and medical centers like UC Davis Health providing job opportunities for those in the medical field.
6. Con: Traffic congestion during peak hours
Like many cities, Sacramento struggles with traffic congestion, particularly during rush hour. The commute along I-5, Highway 50, and I-80 can be frustrating, with bottlenecks forming on key routes into downtown. Driving times can increase significantly during peak hours.
7. Pro: Easy access to iconic local landmarks
Living in Sacramento means being surrounded by historical landmarks and attractions. The city is known for its Gold Rush history, Old Sacramento’s preserved brick buildings, and the State Capitol. Residents can easily immerse themselves in California’s past while exploring museums and historical sites.
8. Con: Air quality issues
Sacramento occasionally suffers from poor air quality, especially during wildfire season. Smoke from nearby forest fires can blanket the city, leading to air quality advisories that impact outdoor activities and health. Those with respiratory issues should be aware of this periodic challenge.
9. Pro: Farm-to-table dining
Sacramento is known as America’s Farm-to-Fork Capital, boasting access to fresh, local produce year-round. The city has a flourishing food scene, where restaurants pride themselves on sourcing ingredients from nearby farms. You’ll find farmers’ markets, seasonal events, and plenty of locally-sourced restaurants.
10. Con: Housing market becoming more competitive
Though Sacramento remains more affordable than other larger California cities, its housing market is becoming increasingly competitive. Many people are relocating from the Bay Area, driving up demand and prices for homes. Renters and buyers may find it more difficult to secure affordable housing than in the past.
11. Pro: Active arts and music scene
Sacramento boasts an active arts and music community, with galleries, theaters, and music venues scattered throughout the city. Events like Aftershock Music Festival and Second Saturday Art Walk highlight local talent, offering residents opportunities to engage with the arts.
12. Con: Occasional flood risk
Due to its location near the confluence of the Sacramento and American Rivers, the city is at risk for flooding during heavy rains or rapid snowmelt from the Sierra Nevada Mountains. While flood control measures are in place, residents should be aware of this potential risk, especially in certain neighborhoods.
13. Pro: Access to professional sports teams
Sacramento is home to the Sacramento Kings, providing fans with the chance to watch professional basketball locally. Additionally, the city’s close proximity to the Bay Area allows residents easy access to see teams like the San Francisco Giants and Golden State Warriors.
14. Con: Car dependent in suburbs
While Sacramento’s downtown area is walkable, many suburban neighborhoods are car-dependent. Public transportation doesn’t reach all areas efficiently, so residents in these neighborhoods often rely on driving for errands, commuting, and leisure activities.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
A drop of 50 points in your credit score can be alarming, especially if you haven’t changed your financial behavior. While it’s not always clear what causes a drop, several factors could cause a decrease, including your history of debt payments, mix of credit, and age of your accounts. It’s also possible that your scores dropped as a result of a credit reporting error or identity theft.
Getting to the bottom of why your credit score dropped 50 points can help you address the situation and take steps to improve your score.
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Why Did Your Credit Score Drop 50 Points?
You checked your credit scores and noticed a big decline. Now you’re wondering, “Why did my credit score drop 50 points when nothing changed?”
Credit scores often fluctuate as the credit bureaus receive new data from creditors. A drop of 50 points is significant, though, and there’s a reason behind the change. Some common explanations include late payments on loans, an increase in your credit utilization, or the closure of an old credit card or other account.
Reasons Your Credit Score Went Down
If your credit score dropped seemingly out of nowhere, one or more of these reasons might explain why.
• You were late on a loan or credit card payment: If you’re 30 or more days late on a payment, your creditor will likely report it to the credit bureaus. And late payments can hurt your score. If you need help managing bills, consider using a tool like a money tracker app.
• Your credit utilization went up: Your credit utilization is the amount of credit you’re using compared to what’s available to you. Using more than 30% of your available credit can cause your score to drop. Creating a budget with a spending app can help you keep tabs on where your money is going.
• Your credit limit went down: Even if you’re not charging more to your credit cards, your credit utilization could increase if your credit limit goes down. For instance, a credit card company could decrease your credit limit from $10,000 to $5,000, which would increase your credit utilization rate even if your balance stayed the same.
• You closed an old account: The age of your credit accounts influences 15% of your credit score. Closing an old account in good standing could cause your score to drop.
• You paid off a loan in full: Paying off a loan is healthy for your finances, but it could ding your credit score, as it reduces your “credit mix.”
• There’s a mistake on your credit report: If none of the above reasons applies to you, the drop in 50 points could be due to an error on your credit report.
• Your identity was stolen: In the worst-case scenario, your credit score could be dropping because you were the victim of identity theft.
Should You Be Worried About Your Credit Score Dropping?
Seeing a big drop in your credit score is worrisome, and it’s important to get to the bottom of what happened. A low credit score can make it difficult to qualify for a loan or rent an apartment. Even if you can get a loan, you could get stuck with a higher interest rate and fees.
A sudden drop of 50 points or more also indicates a potential issue with your finances. Maybe you forgot about a balance on an old credit card that’s now racking up interest and fees. Or perhaps you’re late on loan payments and need to address the situation before the debt goes into collections.
As mentioned, a decline in your credit score could also suggest a mistake on your credit report or identity theft. Whatever the case may be, you’ll want to take action to fix the situation.
What Can You Do If Your Credit Score Dropped by 50 Points?
If your credit score dropped by 50 points, your first order of business is to find out why. Check your loan and credit card statements to see if you’ve missed any payments.
Review your credit card balances and limits to estimate your credit utilization. Reducing your credit utilization by paying down balances or requesting a credit limit increase could help improve your score.
Review a free copy of your credit report from AnnualCreditReport.com for derogatory marks or reporting errors. If you spot an error, submit an official dispute with the credit reporting company.
If you discover that someone stole your identity, place a fraud alert on your credit profile. You can freeze your credit as well to prevent scammers from opening new accounts in your name.
Finally, file an identity theft report with the Federal Trade Commission, and dispute any inquiries on your credit report that someone else made in your name.
Recommended: Why Did My Credit Score Drop After a Dispute?
How to Build Credit
There are several steps you can take to improve your credit score after a drop. Here’s how to build credit:
• Make on-time payments on your loans: Your payment history makes up 35% of your score, so making on-time payments on all your loans and credit cards can help build your score back up over time.
• Pay down credit card balances: If you’re carrying a high balance on your credit cards, pay it down as much as possible to decrease your credit utilization and improve your credit score.
• Request a credit limit increase: Asking your creditors for an increase to your credit limit could also reduce your credit utilization without much extra effort on your part. It’s still important to pay down balances, though, to avoid hefty interest charges.
• Avoid several hard inquiries at once: Try not to apply for lots of new credit at once, as all those hard credit checks could ding your score and be a red flag to lenders.
• Considered a secured credit card or credit-builder loan: If your credit score is poor, consider opening a secured credit card or taking out a credit-builder loan to improve it. Both of these products are designed to help you build credit over time with on-time payments.
Allow Some Time Before Checking Your Score
Fixing a damaged credit score doesn’t happen overnight. You might see some improvement in about a month at the earliest. However, it can take several months to a year to see a significant change. While a credit score monitoring service can help you track your progress, it will take some time to see your credit-building efforts pay off.
Recommended: How Long Does It Take to Build Credit?
What Factors Impact Credit Scores?
Your credit score is based on the following factors:
• Payment history (35%): How you pay off your loans is the most important factor in your credit score. On-time payments help build a score, while late payments drag it down.
• Amounts owed (30%): The amount you owe also impacts your score. Try to keep your credit utilization below 30%.
• Length of credit history (15%): Having a longer credit history generally has a positive impact on your credit score.
• Credit mix (10%): Having a mix of credit, such as credit cards and installment loans, can help your credit — as long as you keep your credit utilization low and pay your bills on time.
• New credit (10%): Opening several new accounts at once can harm your score, especially if you don’t have a well-established credit history.
Closing a Credit Card Account Can Hurt Your Score
Your length of credit history makes up 15% of your score, and the more established your history, the better. That’s why closing an old credit card account can harm your credit score, as it could reduce the age of your accounts.
If your old credit card is charging you an annual fee, consider asking the credit card company to downgrade you to a card without a fee. Switching to a different card with the same company shouldn’t impact your credit score.
How to Monitor Your Credit Score
There are several ways to check your credit score without paying, though buying a service is also an option. Here are some ways to keep tabs on your credit score:
• Use a free credit monitoring service: You can monitor your credit score with a free service, such as SoFi’s Relay, Experian’s free credit monitoring, or CreditWise from Capital One.
• Pay for a credit monitoring service: There are also paid credit monitoring services out there, which may come with additional identity theft tracking features.
• Check with your credit card company: Some credit card companies also offer free credit scores when you sign into your account.
• Order scores from myFICO.com: You can track your FICO® scores for free or with a paid plan directly from the source at myFICO.com.
Along with getting credit score updates, review your credit report periodically. Although your credit report won’t reveal your credit score, it will give you a bird’s-eye view of your accounts and payment history.
Pros and Cons of Tracking Your Credit Score
Credit monitoring can help you preserve your financial health, but it can also have some downsides. Here are some pros and cons of tracking your credit score.
Pros
• Instant notifications for changes to your credit score and report
• Updates on new inquiries and potential fraud
• Features to protect you from identity theft, such as Social Security number tracking
• Analysis of factors that are affecting your credit score
• Potential assistance with disputing errors on your credit report
Cons
• May charge monthly or annual fees
• Could cause stress or frustration with too many real-time notifications
• May not track your reports from all the major credit bureaus
• Will not guarantee that you don’t become a victim of identity theft or fraud
• May show you different types of scores (for instance, some services track your VantageScore, which could be different than the FICO Score that most lenders rely on)
The Takeaway
Seeing your credit score drop by 50 points overnight is stressful, but there are steps you can take to figure out what happened. Understanding what affects your credit score can help you root out what the issue is and take steps to fix the situation. If someone has opened accounts in your name, you’ll also want to act ASAP to place a fraud alert and freeze your credit. As you take steps to build your credit back up, consider using a credit-tracking service.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
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FAQ
Why did my credit score drop 50 points out of nowhere?
There are several reasons why your credit score may have dropped 50 points out of nowhere. Some common culprits include a late loan payment, increased credit utilization, or closure of an old account. A mistake on your credit report or identity theft could also cause your credit score to drop.
Why has my credit score gone down when nothing has changed?
Even if you haven’t changed your financial behavior, your credit score could go down if your creditors decreased your credit limit. That would cause your credit utilization to go up. It’s also possible that you forgot about a loan payment or have been charging more than usual to your credit cards. Some consumers may also see their credit score go down due to identity theft or a reporting error on their credit report.
Why is my credit score going down if I pay everything on time?
While paying your loans on time makes up a big portion of your credit score, it’s not the only factor. Some other factors that can influence your score include your credit utilization, credit mix, and age of your accounts. Applying for new credit can also impact your score if the creditor runs a hard inquiry to check your credit.
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SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
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The latest monthly national housing survey from Fannie Mae revealed an interesting contradiction.
Last month, a new survey-high 39% of respondents said they expect mortgage rates to go down over the next 12 months.
At the same time, fewer expect home prices to go up over the same period. And more believe home prices will fall.
So despite a home purchase becoming more affordable thanks to a lower interest rate, consumers don’t think prices will increase.
What does this say about home buyer demand as mortgage rates go down?
But We Were Told Bidding Wars Would Return When Mortgage Rates Fell
Fannie’s monthly Home Purchase Sentiment Index (HPSI) did increase very slightly (0.6 points) to 72.1 in August from a month earlier.
But it remains very low, with most of the 1,000 respondents saying it’s a poor time to buy and also an increasingly bad time to sell.
Just 17% said it was a “good time” to buy a home in August, which has remained relatively flat for several months and remains just above all-time survey lows.
Meanwhile, 83% said it was a “bad time” to buy a home, the highest share since the survey’s inception.
At the same time, only 65% say it’s a good time to sell, while 34% say it’s a bad time. Since August 2021, the “net good time” to sell has fallen from 54% to just 31%.
So it appears no one is happy with the current state of the housing market, which continues to be characterized by a mismatch between buyers and sellers.
Sellers are being told they aren’t realistic in terms of what they’re asking, and buyers are saying it’s too expensive. But nobody is budging.
There’s also a lack of inventory in most markets, so there’s little to choose from and often not what a prospective buyer is looking for.
Taken together, we’ve seen a big drop in home sales, especially once you factor in the ongoing mortgage rate lock-in effect.
It’s also odd to see this sentiment given the narrative we’ve heard for some time that the housing market would turn into a frenzy when mortgage rates fell.
Well, they’ve fallen from around 8% a year ago to just above 6% at last glance. You’d think that would be enough to get the ball rolling.
It’s the Economy (and Maybe High Home Prices Too!)
As I wrote last week, it’s no longer a mortgage rate story. Most consumers are on board the “rates are going lower” bandwagon.
Yet they’re also saying it’s not an ideal time to buy. So then you need to look elsewhere for your answer.
Are home prices just too high, even with mortgage rates nearly 2% below their peak a year ago?
Or is the economy becoming more of a concern, with the Fed dancing with a recession and lots of rate cuts now expected over the next year and change?
Most of the consumers surveyed by Fannie Mae said they weren’t concerned about a job loss (78%), which has drifted down from 82% in 2021 but remains high.
But respondents have been more pessimistic about their household income compared to a year ago, with more saying it’s “significantly lower” than “significantly higher.”
This could also reflect the purchasing power of their dollars, which have eroded thanks to the inflation of just about everything.
So you start to wonder if consumer outlook is worsening as the economy shows signs of slowing, all while unemployment is rising.
This is what matters more than rates. And really explains why mortgage rates and home prices don’t have an inverse relationship.
If mortgage rates are expected to fall due to slowing economic conditions, couldn’t you argue that home price growth might also?
I’ve argued that home prices and rates can fall in tandem for this reason, despite nominal declines being rare.
But it at least bucks the idea of a home buyer frenzy when rates fall. Of course, rates have fallen during the slower time of the year. And they’re still markedly higher than they were as recently as early 2022.
So perhaps we just need rates to continue falling and for the 2025 spring home buying season to come about.
Then we’ll have a better idea of where this housing market goes next.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
A substitute check is a legal copy of a check created by a bank from a digital image of the original check. Creating substitute checks allows banks to process checks electronically instead of sending paper checks through the system, which speeds up the process and cuts costs.
Not all copies of checks qualify as substitute checks, though. The images of checks you may get with your bank statement are not substitute checks; nor are the photos you take of a check when making a mobile deposit. As a result, substitute checks are often a source of confusion to consumers. Here, we shed light on what substitute checks are, how they work, and what happens to the original checks you write or deposit into your account.
Defining a Substitute Check
A substitute check is a special copy of an original check that contains all of the same information, including signatures, dollar amount, account numbers, and the MICR (magnetic ink character recognition) line. Banks create these checks by using high-speed scanners that capture the front and back of the original check. These checks are good for the same amount of time as the original check.
Once generated, the substitute check can be sent electronically to the payer’s bank. This process is faster than the old method of physically transporting paper checks. If a paper check is needed for certain processing or record-keeping purposes, a substitute check can be printed from that electronic image.
Banks can use photos of an original check to make a substitute check. But in order to be valid, the duplicate must be made by the bank. When you create an image of a paper check to complete a mobile check deposit into your bank account, your financial institution converts those images into a substitute check using their check-processing software platform.
Recommended: Guide to Outstanding Checks
Substitute Checks vs. Original Checks
A substitute check looks similar to the original but has a few differences: It will be slightly larger than the original and the front of the check will feature this statement: “This is a legal copy of your check. You can use it the same way you would use the original check.”
While substitute checks look somewhat different from the original checks, they are considered legally equivalent. This means that banks are no longer required to keep the original physical checks, as long as they have an authorized substitute check. In some cases, a bank will destroy original paper checks right away; in others they will store original checks for a set period of time and then destroy them.
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Legality and Usage of Substitute Checks
The Check Clearing for the 21st Century Act (often referred to as the Check 21 Act) authorized the use of substitute checks when it was passed in 2003. The act was designed to improve the efficiency of the check-clearing process by allowing banks to use electronic images of checks instead of physical paper. This legislation aimed to reduce costs, expedite check processing, and minimize the risks associated with transporting paper checks.
Thanks to the Check 21 act, checks now typically clear within one or two business days, providing faster access to funds for consumers and businesses. Due to the swift processing speed for checks, you want to be certain you have sufficient funds in your checking account before writing a check.
When Substitute Checks May Be Used
Banks use substitute checks to facilitate the check-clearing process, as these checks are accepted as legal tender by other financial institutions. While account holders typically don’t use substitute checks to make payments, they can be used as proof of payment. Upon request, your bank can provide you with a substitute check. They may provide one for free or it may involve a fee.
Recommended: Where to Cash a Check Without Paying a Fee
Advantages of Using Substitute Checks
Here’s a look at two of the main benefits of using substitute checks.
Faster Processing of Check Transactions
One of the biggest advantages of using substitute checks is that it allows for more convenient and faster processing of check transactions. Instead of having to send, track, and store the physical checks, banks can use electronic images of substitute checks to facilitate payments.
Easier Handling of Electronic Check Images
Substitute checks make it easier for banks and businesses to manage large volumes of checks without the need to physically transport or store them. Electronic check images can be transmitted, retrieved, and stored more efficiently than paper checks. This digital approach improves record-keeping and reduces the chances of checks getting lost or damaged. If a paper check is required for legal or practical reasons, a substitute check can be printed on demand from the stored image.
Potential Drawbacks of Substitute Checks
While substitute checks benefit banks and customers alike, they come with a few potential drawbacks. Here are two downsides to consider.
Authenticity Concerns
Since substitute checks are created from electronic images, it may be harder to verify their authenticity compared to original paper checks. While the Check 21 Act includes measures to ensure that substitute checks are legally valid, there is still the possibility of errors and check fraud. An inaccurate or altered image could lead to disputes or financial losses. In rare cases, fraudulent substitute checks may be used to manipulate transactions or deceive people.
Readability Issues
The process of converting a check into a digital image and then printing a substitute check may result in a lower-quality reproduction. In some cases, the substitute check may be difficult to read, especially if the original check had poor handwriting, smudges, or damage. This can lead to errors in processing or disputes if the substitute check cannot be interpreted accurately.
Handling Substitute Checks as a Consumer
Since substitute checks are now commonplace, you may occasionally encounter them in your banking activities. As a result, it’s important to understand your rights regarding substitute checks and how to handle any issues that may come up.
Your Rights Regarding Substitute Checks
Under the Check 21 Act, substitute checks are considered legally equivalent to original checks, which means that consumers and businesses can use them as proof of payment or for other legal purposes.
If you experience any errors or problems related to a substitute check (such as a discrepancy in the check amount or a transaction that appears incorrect), you have the right to file a dispute with your bank. The bank is required to investigate the issue and either correct the error or explain why the substitute check is valid.
Disputing Errors Involving Substitute Checks
If you notice an error involving a substitute check, such as an incorrect amount being withdrawn from your account or money being withdrawn for a check more than once, it’s important to contact your bank as quickly as possible. The bank is obligated to investigate and respond to your dispute within a reasonable timeframe. In some cases, you may be entitled to a refund if the substitute check was processed incorrectly, including any fees that may have been charged as a result of the error (such as a bounced check or non-sufficient funds fee) or any lost interest.
The Takeaway
Substitute checks have revolutionized the way checks are processed, making transactions faster and more efficient. By allowing physical checks to be converted into digital images and then reproduced as substitute checks, the Check 21 Act has modernized the check-clearing process.
While substitute checks look slightly different from original checks, they are considered the legal equivalents. If you have any concerns about a substitute check, or if you feel any errors were made in processing a check, it’s important to contact your bank.
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FAQ
What is the difference between a substitute check and an electronic check?
A substitute check is a copy of a check used by banks in place of the original. While a substitute check is usually processed electronically, it is not the same as an electronic check. An electronic check (e-check) is a completely digital version of a check where no paper copy exists. E-checks are processed electronically from start to finish, without any physical checks involved.
Are substitute checks legally valid as proof of payment?
Yes, substitute checks are considered the legal equivalent of the original check and contain all the essential information, including the check number, account information, and payer/payee details. Because substitute checks are considered the equivalent of original checks, they can be used in disputes, for record-keeping purposes, or as evidence of payment.
Can a substitute check be used in place of the original check?
Yes, a substitute check can be used in place of the original check. Under the Check 21 Act of 2003, a substitute check is considered legally equivalent to the original and can be used for all the same purposes, such as clearing transactions, providing proof of payment, or resolving disputes.
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SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
If you own a small business that frequently issues invoices to customers and vendors, you may have encountered times when an invoice is late or goes unpaid. It can be frustrating and worrisome when expected income is unavailable, leaving your business short on cash flow for necessary expenses.
There are options like business lines of credit or short-term business loans to provide cash flow. But in this case, you might also consider invoice factoring to quickly access cash for your immediate needs. This type of financing allows you to leverage your unpaid invoices without applying for an actual loan.
Let’s walk through what invoice factoring is, how it works, and what business cases are a good fit for this type of funding.
What Is Invoice Factoring?
Invoice factoring, also known as accounts receivable factoring, is a form of small business financing in which you sell your unpaid invoices to a factoring company. The factoring company gives you a percentage of the invoice up front and pays you the rest of the invoice once it’s paid by the customer (minus fees charged by the factoring company).
With this type of financing, you no longer own the invoices — the factoring company does. As a result, it’s important to choose a reputable company that you can trust to treat your customers with respect.
What Is a Factoring Company?
A factoring company is a financial institution that purchases a business’s outstanding invoices at a discount to provide immediate cash flow. The factoring company then takes on the responsibility of collecting payments from the business’s customers.
Factoring companies can be independent firms or divisions within larger financial institutions such as banks or credit unions. They specialize in providing working capital to businesses with long receivables cycles or that need quick cash for operational expenses. By selling your invoices to a factoring company, you can receive up to 90% of the invoice value up front. The company pays you the remaining balance, minus a factoring fee, once the customer settles the invoice.
Factoring companies typically cater to industries with extended payment terms, such as manufacturing, trucking, and staffing agencies. These lenders evaluate the creditworthiness of the business’s customers rather than the business itself, making this an accessible funding option for businesses that have poor or limited credit.
How Does Invoice Factoring Work?
Invoice factoring involves selling your unpaid invoices to a factoring company, which then takes ownership of the invoices. Invoice factoring is technically not a business loan, as you are selling your invoices to the lender.
Factoring companies will pay you a percentage of the invoice amount up front, which reflects the advance rate. Advance rates are typically based on how risky the invoice factoring is for the factoring company.
Some industries, such as the medical industry, may be seen as higher risk, thus offering lower advance rates — often ranging from 60% to 80%. Other types of businesses, such as staffing agencies, may receive advance rates from 80% to 90%.
Once the factoring company receives full payment from your customers, they provide you with the remaining invoice amount minus a factoring fee.
Here’s a quick look at the steps involved in factoring invoices:
1. Choose a factoring company: It’s a good idea to shop around and pick a reputable company to work with.
2. Submit invoices: To apply for factoring, you’ll need to provide invoices for approval.
3. Receive advance: If approved, you’ll get an upfront payment (typically 60%–90% of invoice value).
4. Company collects payments: The factoring company collects payments from your customers.
5. Receive balance: After full payment is collected, you receive the remaining amount minus fees.
Recommended: Getting a Cash Flow Loan for Your Small Business
Recourse vs. Non-Recourse Factoring
You might be wondering: What happens if customers don’t pay their invoices?
With recourse factoring, the business is liable for paying the factoring company for any invoices that are left unpaid. This type of invoice factoring is most common because it’s less risky for the factoring companies.
With non-recourse factoring, the factoring company takes on most of the risk associated with unpaid invoices. Since the invoice factoring company is assuming more risk with non-recourse factoring, they may tack on a higher factoring rate. Carefully consider whether the higher rate is worth the cash advance amount and compare factoring companies to see what terms they offer.
Example of Invoice Factoring
To give you a better understanding of how invoice factoring works, let’s imagine you own a clothing store that sells large quantities of T-shirts to other companies.
1. Complete sale and issue invoice: You sell $100,000 worth of t-shirts and invoice your customer with a due date in 60 days. If you wait 60 days for repayment, your business could be left with a cash flow shortage, threatening the well-being of your operation. So, you decide to look into options to help manage cash flow.
2. Explore your options: You could use an online business loan or a credit card to get cash quickly. But your customers are reliable and pay invoices in a timely manner, so invoice factoring is a suitable option.
3. Sell to a factoring company: You sell the $100,000 invoice to a factoring company and agree to pay a flat factoring fee (sometimes called a factoring rate) of 5% of the invoice value per month. Within 24 hours, the factoring company provides you with 80% of the invoice amount. You now have $80,000 to supplement cash flow and regular business operations.
80% of $100,000 = $80,000
4. Collection of funds: The customer pays the factoring company within 30 days. Once it receives full repayment, the factoring company pays you for the remaining invoice amount ($20,000) minus the factoring fee of 5%.
$20,000 – $5,000 (5% of $100,000) = $15,000 back to you
Keep in mind that this hypothetical is an example to illustrate how invoice factoring may work in a practical situation. Different invoice factoring services may offer various terms and conditions, which can affect how much money you receive up front and the final payment amount.
Invoice Factoring Rates and Fees
Invoice factoring companies generally make money through the factoring rates and fees they charge. Typically, you will see invoice factoring structured with one of the following:
• Flat rate/fee: You pay a fixed percentage of the invoice to the factoring company. The rate doesn’t usually change — even if the customer pays late. Flat rates are generally less common than tiered or variable rates.
• Tiered or variable rate/fee: A percentage of the invoice amount is regularly charged until the factoring company receives full repayment. The longer invoices go unpaid, the more you’ll owe in factoring fees. For example, a factoring company may charge a factoring fee of 1% every 10 days until the invoice is paid; if it takes your customer 60 days to pay, the factoring company would keep roughly 6% of the invoice amount. Some factoring companies may increase the variable rate the longer repayment takes.
Factoring rates and fees can be affected by:
• The industry your business is in
• Your customers’ ability to pay their invoices
• The number and amounts of the invoices
• Your business’ stability and creditworthiness
Additional Fees
Some factoring companies may also charge additional fees, including:
• Application fees. These are charges for processing your application and setting up the account.
• Invoice processing fees. These fees help cover the cost of things like credit checks and record keeping.
• Service fees. These are charged in intervals to cover costs related to maintaining a current account with your factoring company.
• Automated Clearing House (ACH) or bank wire fees. When funds are transferred between banks, there may be fees passed on to you from the factoring company.
• Early termination fees. Some invoice factoring companies may charge a fee if you cancel your contract before the termination date.
• Due diligence fees. This covers the cost of verifying the creditworthiness of the customers paying the invoices.
Invoice Factoring vs. Invoice Financing
While they sound similar, invoice factoring and invoice financing are two different financial products.
With invoice financing, your invoices are used as collateral to receive a cash advance rather than sold to a factoring company. You receive access to a percentage of the invoice amount either in the form of a line of credit or loan. Like other types of business loans, you pay interest on the amount you borrow.
Another key difference between invoice factoring and invoice financing: With invoice financing, you and your business are still responsible for collecting payment from your customers. As a result, invoice financing allows you to retain control over your invoices and the collections processes, which may be more favorable if you prefer to deal with your customers directly.
Pros and Cons of Small Business Invoice Factoring
Invoice factoring can be a useful tool for business owners in certain situations. However, it’s important to carefully consider the pros and cons of factoring invoices to avoid unnecessary expenses or added stress for your business.
Pros of Invoice Factoring
• No collateral: With invoice factoring, your invoices serve as collateral. In most cases, you do not have to offer additional forms of collateral to be approved.
• Maintain healthy cash flow: You can receive immediate cash to cover expenses and maintain healthy cash flow between invoice payments.
• An option for those with lower credit scores: Even if you don’t have good enough credit to get a business loan, invoice factoring may still be an option. Invoice factoring companies generally focus more on the value of the invoices and the credit scores of the businesses that owe those invoices than on the credit score of your business.
• Outsource invoice collection: FFor some businesses, it may be helpful to pass the responsibility of collecting invoices to a factoring company so they can focus on other responsibilities.
• Spend on what you need: Unlike other types of small business loans (e.g., equipment financing), you aren’t restricted to spending the funds you receive on specific business expenses.
Cons of Invoice Factoring
• Factoring companies have control: After you sell invoices to a factoring company, they may interact with your customers directly. You’ll want to make sure that the company is reputable and behaves ethically in their dealings with customers.
• It’s typically expensive: With various fees and relatively high rates, invoice factoring can be costly — especially if customers delay payment.
• Recourse if unpaid: Since there’s no guarantee that an invoice factoring company will be able to collect on unpaid invoices, they may expect you to pay for or replace the invoice, possibly with additional fees.
• Approval may depend on customers: Invoice factoring companies want to ensure they will receive payment on the invoices they purchase from you. If your customers have a less-than-perfect repayment history, you may have a more difficult time getting approved.
Recommended: Working Capital Loans: Compare Top Options
How Do Businesses Qualify for Invoice Factoring?
Factoring companies evaluate a few different things to determine if a business is eligible for this type of financing.
• Invoices: Businesses must have outstanding invoices to sell to a factoring company, and the invoices should be from reputable clients with a history of timely payments.
• Client creditworthiness: Factoring companies focus on the likelihood of timely payments from your clients rather than the credit history of your business. Therefore, clients that consistently pay their invoices on time are a must.
• Business bank account: An established business bank account is essential to qualify for invoice factoring. Your business bank account will be used for the factoring company to deposit the advance and the remaining balance once the invoice is paid.
• Accounts receivable reports: Detailed and accurate accounts receivable reports are necessary to demonstrate your business’s invoicing practices and the payment behavior of your clients. These reports help factoring companies assess the risk involved.
While the primary focus is on the creditworthiness of clients, factoring companies also look for signs of business stability. They consider factors like time in business, industry, and overall financial health. It’s also important for businesses to ensure there are no existing liens on their receivables. Factoring companies need a clear right to collect on the invoices, so any existing liens or claims can disqualify the business.
You can improve your chances of qualifying by maintaining good relationships with your clients, ensuring they are creditworthy and have good payment histories. Keeping financial records organized and accurate is also important, as it makes the evaluation process smoother and faster.
Alternatives to Invoice Factoring
Invoice factoring is one of many options that can help businesses maintain cash flow and address funding needs. Here’s a look at some alternatives.
• Inventory financing: This type of financing is used to pay for products that will be sold at some time in the future. The inventory acts as collateral for the loan.
• Equipment financing: This is a type of loan used specifically to purchase machinery, vehicles, or other business-related equipment.
• SBA loans: These are small business loans backed by the U.S. Small Business Administration (SBA) and offered by banks and approved SBA lenders.
• Personal loans: An unsecured personal loan is based on your personal credit history (not business credit). Some, though not all, lenders will allow you to use funds from a personal loan for business expenses.
• Commercial real estate loans: This type of business loan is specifically designed for purchasing real estate for business use, such as an office space, warehouse, or storefront.
• Business line of credit: With this flexible form of business financing, you have access to a maximum amount of funding, or credit. You can borrow what you need (up to your credit limit) as you need it, and only pay interest on what you borrow.
• Online business loans: Online lenders offer loan options similar to those traditional banks offer but typically have a faster approval process and may have more options for people with lower credit scores.
• Merchant cash advance: This type of funding allows small businesses (“merchants”) to get a cash advance for business expenses in return for a portion of their future sales or receivables.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What are the disadvantages of invoice factoring?
The disadvantages of invoice factoring include high fees, potential impact on customer relationships, loss of control over accounts receivable, and the requirement of having creditworthy clients.
What is the average rate for invoice factoring?
The average rate for invoice factoring ranges from 1% to 5% of the invoice value per month.
Who can use invoice factoring?
Generally, any business with outstanding invoices and creditworthy clients can use invoice factoring. However, this type of financing tends to be more common in industries like manufacturing, trucking, and staffing.
Photo credit: iStock/Jirapong
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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.
When looking for funding for your small business, there are plenty of types of loans to consider, including term loans. A term loan provides a borrower with a lump sum of cash they repay on a fixed repayment schedule.
Term loans can be helpful for businesses looking to expand, buy more real estate, update equipment, or purchase more inventory in advance.
So, what are term loans exactly? Read on to learn more about small business term loans, their advantages and disadvantages, and the different types of term loans available.
What Is a Business Term Loan?
A business term loan is a type of small business financing that provides a lump sum of money up front you then pay back over a set period of time, called a term. Payments are often monthly but could be weekly, bi-weekly, or even quarterly.
Part of each payment goes toward the principal, lowering the remaining loan balance, and part goes toward interest. Interest rates on business term loans may be fixed or variable. Repayment terms can range anywhere from 12 months to 25 years, depending on the loan amount, lender terms, and the borrower’s creditworthiness.
Term loans aren’t just used for small businesses, though. Mortgage loans, auto loans, and student loans are also all types of term loans.
What Can a Term Loan Be Used For?
Common uses of term loans for businesses include:
• Buying real estate or upgrading property you already own (the real estate would likely serve as collateral)
• Buying new equipment or repairing equipment you already own (the equipment could serve as collateral)
• Restocking inventory
• Buying vehicles for work
• Meeting payroll and other expenses
• Covering employee wages
What Are Different Types of Business Term Loans?
Most small business owners factor in two things when considering term loans — the purpose of the loan and the term length (there are short-, intermediate-, or long-term business loans).
Payments may be higher with short-term loans than long-term loans, though this depends on how much the business borrows. When considering what your business can qualify for and pay back with its available cash flow, remember to factor in how the length of your loan term affects the payment amount.
Short-Term Loans
Short-term loans typically have a length of less than one year but can extend up to 18 months. Businesses that don’t qualify for a line of credit might find short-term loans helpful. Though these loans are typically easier to qualify for, they tend to have higher interest rates.
It’s important to note that short-term loans may come with a balloon payment, meaning the last payment is much larger than the rest. Keep this in mind when deciding whether a short-term loan is right for your business.
Recommended: The Cost of Capital
Intermediate-Term Loans
Intermediate loans typically have terms between one and three years. Because of their slightly longer payoff time, they may be an option if you’re hiring a new salesperson, for instance, and know there might be some lag time before they start bringing in revenue.
Like short-term loans, intermediate business term loans may also have a balloon repayment structure.
Long-Term Loans
Long-term loans typically have terms of five to 10 years, but they may extend up to 25 years. They typically require collateral, such as real estate or equipment, and may come with lower interest rates than short- and intermediate-term loans.
Long-term loans are often more difficult to qualify for, requiring proof of revenue and a solid credit history. However, they can provide helpful capital for business investments, making them a valuable option for established businesses planning for growth.
Recommended: Merchant Cash Advance for Bad Credit
How Do Business Term Loans Work?
Once you’ve determined the amount you need to borrow and the purpose, you can approach financial institutions to explore their available programs, interest rates, and loan terms.
You’ll also want to find out what documentation you’ll need to apply, what collateral might be required, and whether they can supply the funds on your timeline. Be sure to check what small business loan fees may apply.
Once you’ve evaluated the above factors, compare multiple lenders and choose the one that suits your needs. The loan application process typically happens online, but you may be able to apply in person if the loan is through a bank.
Rates and terms offered vary based on the lender, your personal and business credit history, your time in business, and your financial health and history. Pay particular attention to whether the loans you research are secured and how the interest rates are structured:
• Secured vs. unsecured loans: Secured loans require collateral or a personal guarantee, meaning that your assets will be used as payment if you can’t pay your loan. Unsecured loans do not require this collateral and are therefore riskier for the lender, so they often have higher costs and shorter terms than secured loans.
• Fixed vs. variable interest rates: A fixed interest rate remains stable over the entirety of the term loan. A variable interest rate fluctuates throughout the life of the loan, depending on the prime rate — the rate that commercial banks charge their most creditworthy borrowers.
If you’re approved for the loan, you are free to use the funds once disbursed. From there, you’d make regular payments based on the loan agreement.
Recommended: How to Check Your Credit Score for Free
Deciding If a Business Term Loan Is Right for You
It can be challenging to decide which kind of loan is the right fit for your business. There’s a lot to consider. Here are a few questions to ask before applying:
• Why do I need funding?
• How does this help me reach my business goals?
• How healthy are my business finances?
And if any of these apply to you, it may not be time to consider term loans just yet:
• Your business is new
• You have poor credit
Business Term Loans: Pros and Cons
Like any other loan, business term loans have advantages and disadvantages that are important to consider when deciding whether they’re right for you. Below, we’ve outlined the pros and cons of term borrowing to help you determine whether term loans are a good fit.
Advantages of Business Term Loans
Pros of term loans include:
• You may be able to borrow a large amount of money.
• Multiple types of term loan programs may be available when you look at different lenders.
• Interest rates are typically lower than credit cards, payday loans, and other short-term funding options.
• As you pay the term loan back on time, you can boost your business credit score.
Note: Check with your accountant or tax professional to see what tax benefits you may realize. Term loan interest may be tax-deductible.
Recommended: What Are the Tax Benefits of a Limited Liability Company (LLC)?
Cons of Term Loans
As with any financial product, there are downsides to consider, as well. Cons of term loans include:
• You may be able to borrow a large amount of money.
• Multiple types of term loan programs may be available when you look at different lenders.
• Interest rates are typically lower than credit cards, payday loans, and other short-term funding options.
• As you pay the term loan back on time, you can build your business credit score.
Note: Check with your accountant or tax professional to see what tax benefits you may realize. Term loan interest may be tax-deductible.
Recommended: What Are the Tax Benefits of a Limited Liability Company (LLC)?
Disadvantages of Business Term Loans
Cons of term loans include:
• You may be entering into a long-term debt.
• The loan application process may take longer than you’d like.
• Some business term loans come with prepayment penalties, which means you can’t prepay to reduce the amount of interest paid over the loan’s life.
• If your credit isn’t the best, the interest rates you’re offered may not be, either.
Recommended: Debt-to-Income Ratio
How to Apply for a Business Term Loan
Assess your business goals and lenders’ eligibility requirements as you choose the best option for your company. Here’s how:
1. Compare Small Business Term Loans
Comparing lenders’ terms can help improve your chances of qualifying for a loan. That way, you don’t spend valuable time applying for options for which you’re not eligible. On top of that, it helps keep you from overpaying on rates and fees or endangering your business cash flow with a repayment schedule that’s too aggressive.
2. Look at Each Lender’s Eligibility Requirements
It’s helpful to examine these requirements side by side:
• Personal and business credit
• Time in business
• Annual revenue
• Collateral
• Down payment
• Personal guarantee
3. Scrutinize the Lender’s Fees
Also look at the fees side by side:
• Interest rate and APR
• Origination fees
• Late payment fees
• Early payoff penalty
4. Review the Repayment Schedule
Important questions to ask:
• Are payments made daily, weekly, monthly, or quarterly?
• Are payments automatically deducted from a business bank account?
Many lenders have strict repayment terms for their business term loans, meaning you need to make sure you can meet those standards. That way, you don’t overdraft your accounts, accrue late fees, or damage your credit score.
Recommended: Long-Term Small Business Loans
5. Gather the Required Documents and Apply
When applying for a loan, documents often requested by lenders include:
• Bank statements (personal and business)
• Tax returns (personal and business)
• Business legal documents, including licenses and permits
• Personal identification
• Business plan
• Revenue statements
• Accounts receivable reports
• Accounts payable reports
Because the exact documentation required varies by lender and loan type (and whether collateral is involved), you’ll need to clarify what the lender you choose will need.
Also, it can be worthwhile to explore business grants since those do not need to be paid back.
Recommended: What Are Small Business Grants?
The Takeaway
When businesses seek funding, term loans are worth considering. With a business term loan, the company borrows a certain amount of money in a lump sum and then pays it back in regular installments at either a fixed or variable interest rate. Terms can range from short (even under a year) to long (perhaps as long as 25 years), with the funds used for a variety of purposes.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What does “term loan” mean for a business loan?
Like other term loans, a business term loan provides a borrower with a lump sum of cash they repay on a fixed schedule over the set period of time, or term. The interest rate can be either fixed or variable.
What is an example of a term loan?
An example of a term loan is a small business loan of $50,000 from a bank that has to be paid over three years in monthly payments, with fixed interest.
What are the three main types of term loans?
There are short-term, intermediate-term, and long-term loans.
Photo credit: iStock/pikselstock
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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.
Looking to get some extra cash from your old electronics? You’re not alone! Many people have used electronics lying around, and selling them can be a great way to make some extra income. Plus, finding the best places to sell used electronics is also a great way if you need to make money fast, such…
Looking to get some extra cash from your old electronics? You’re not alone! Many people have used electronics lying around, and selling them can be a great way to make some extra income.
Plus, finding the best places to sell used electronics is also a great way if you need to make money fast, such as if you are looking to make money in one day.
There are many places where you can sell your used electronics quickly and easily. Whether you’re upgrading your tech or just decluttering, finding the right platform is key to getting the best value. You’ll want to know where to go and what to expect to make the process smooth and profitable.
I have sold many of my used electronics over the years, including a cell phone, a laptop, and a camera. And, there are many more you can sell as well, such as gaming systems, smart watches, fitness trackers, headphones, speakers, and tablets.
Best Places To Sell Used Electronics
Below are the best places to sell used electronics.
1. Decluttr
Decluttr might be the perfect solution for you if you want to sell electronics online instantly as this is one of the best selling apps for electronics. You can trade in your devices like phones, game consoles, iPads, tablets, MacBooks, DVDs, and more.
I have personally sold a cell phone on Decluttr and I found the process to be very easy, and that is why this is my top choice if you are looking to sell your used electronics easily and hassle-free.
To sell on Decluttr, you just head to the Decluttr website and answer the prompts about what you would like to sell. They will want to know the type (phone, gaming console, laptop, etc.), the condition (they accept items in “Excellent,” “Good,” and “Poor” conditions), the storage capacity, and more.
Decluttr will then give you a price and you’ll be given a shipping label if you accept. You will then have to find a box to put the item in.
Once Decluttr receives and processes your items (usually the next day after receiving them), you’ll get paid by direct deposit or PayPal.
Decluttr also accepts broken electronics. Even if your device is water-damaged or has cosmetic issues, you can still sell it by marking the condition as “Poor.”
You can check out Decluttr by clicking here.
2. Gazelle
Gazelle is a popular option if you want to sell your used electronics quickly and easily. They buy a variety of devices including iPhones, Samsung Galaxy phones, iPads, and more.
To get started, tell Gazelle about your device. They will give you an estimated price. If you accept, you send your device to them for free.
Once Gazelle gets your device, they inspect it to make sure it matches what you described. After that, you get paid quickly. This process is simple and fast, which makes it convenient for many sellers.
You can check out Gazelle by clicking here.
3. Amazon Trade-In
Amazon Trade-In is a simple way to sell your old electronics if you are just learning how to sell your stuff. You can get an Amazon gift card or a promotional discount for your device. The process is quick, and you can do it online.
Amazon accepts many types of electronics like phones, tablets, and smartwatches and from brands like Amazon, Apple, Samsung, Microsoft, Google, Sony, Arlo, Foscam, NETGEAR, Bose, ASUS, TP-Link, and more. You answer a few questions about your item, and then Amazon gives you an estimate.
If you agree with the estimate, Amazon provides a free shipping label. You can mail your device or drop it off at a participating location.
Once Amazon gets your device, they will verify its condition. If it matches what you described, you get your gift card or discount. If the condition is worse than expected, you can choose to have the device returned or accept a lower value.
Amazon offers Instant Payment for some trade-ins. This means you get your gift card right away. If you don’t qualify for Instant Payment, you will get your gift card once Amazon processes your device, which can take up to 15 business days.
4. Apple Trade In
I recently traded in my old laptop to Apple and made around $300 for a laptop that was around 5 years old (and was actually broken with a flashing screen). I did it all right on the Apple website and it was very easy to sell.
Apple Trade In lets you trade your old device for credit toward a new one. You can do this either online or at an Apple Store. If your device isn’t worth any money, no worries. Apple will still recycle it for free.
You can trade in an iPhone, iPad, Mac, or Apple Watch.
You can use trade-in credit toward a purchase or get an Apple Gift Card. I was buying another laptop, so I just got store credit and put it toward my purchase.
Now, you may be wondering if your data and privacy are safe if you’re selling your laptop (which probably has a lot of passwords and documents that you would like to keep secure). Apple makes sure that your data is safe throughout the process, and they guide you on how to back up and erase your data.
5. eBay
I have sold many, many items on eBay over the years, from clothing to electronics and more.
EBay is a great place to sell your used electronics because it’s a huge marketplace with millions of buyers.
You can list almost any device, from old phones to gaming consoles. The auction format can help you get the highest price for your items.
Creating a listing is simple on eBay and you just add photos, describe your item, and set your price. You can also choose to sell at a fixed price if you don’t want to wait for an auction to end.
Now, eBay does have a cost. They charge fees for listing and selling items, so you’ll want to be sure to check their fee structure to understand how much you’ll pay.
6. Best Buy Trade-In
Best Buy’s Trade-In program is a great way to get rid of your old electronics and earn some store credit. They accept a wide range of devices, like phones, tablets, game consoles, and more.
Once you bring in your used electronics, they will evaluate them and give you a Best Buy gift card in return. You can use this gift card to shop for new electronics or accessories at any Best Buy store or on their website.
You need to be at least 18 years old to take part in this program. If you live in Alabama or Nebraska, you need to be 19 years old.
Best Buy also offers convenient options for trading in your devices. You can bring your items to a store or use their website to get a trade-in estimate and mail your items for free. This makes it easy to trade in your devices from the comfort of your home.
7. Swappa
Swappa is a popular choice if you want to sell your used electronics. It’s known for being safe and easy to use. You can sell phones, laptops, tablets, and more.
One of the best things about Swappa is that you deal directly with other users. There is no middleman, which means you can get more money for your items.
All you have to do is create a listing, similar to how you would with eBay.
8. Facebook Marketplace
Facebook Marketplace is a great place to sell your used electronics near you. It’s easy to use and connects you with buyers in your local area, and you can sell items like phones, laptops, cameras, and video game consoles.
One of the best things about Facebook Marketplace is the convenience. You just need to take a few pictures of your item, write a short description, and set your price.
You can also reach many potential buyers quickly since Facebook has millions of users, so this increases your chances of selling your electronics fast and at a good price.
For safety, I do recommend that you meet buyers in public places during the daytime. You are selling electronics after all, so it could be something that someone may want to steal. Many people will meet in a police department parking lot to make sure everything is safe.
9. OfferUp
OfferUp is a popular app where you can sell your used electronics and it’s easy to use, plus you can list almost anything, from phones to TVs.
With this site, you will have to create a listing, along with a description and a price. Buyers can then make offers or ask questions directly through the app.
OfferUp merged with Letgo, which means more potential buyers see your listing. The app also has a rating system for both buyers and sellers and this helps you know who you are dealing with.
You can choose to meet buyers in person or ship the item. OfferUp gives you the flexibility to decide what works best for you. Remember to meet in a public place for safety if you choose the in-person option.
10. Craigslist
Craigslist is a great place to sell your used electronics. It’s free to list your items, which means you get to keep all the money from your sale. No hidden fees!
I have sold many items on Craigslist, and like Facebook Marketplace, I recommend that you meet somewhere safe, such as a police department parking lot.
One of the best things about Craigslist is its simplicity. You just need to create an account, write a quick description, add a few photos, and set a price.
Many people use Craigslist because it’s local. Buyers can arrange to meet you in person, which can be safer and faster than shipping items.
Also, you will want to watch out for scammers. If a deal seems too good to be true, it probably is. Trust your instincts and avoid sharing any personal information. There are a lot of scams on Craigslist, unfortunately.
11. Gizmogo
If you want to sell your used electronics, Gizmogo is a good choice. They make the process quick and easy, and you can get an instant quote online by entering your device’s details.
Gizmogo pays competitive prices for many types of electronics. These include smartphones, laptops, tablets, and gaming consoles. They also accept cameras, drones, and smartwatches.
Shipping is free with Gizmogo. They provide a prepaid label, so you don’t have to pay for shipping. Your device is insured during transit, which adds an extra layer of protection.
Once Gizmogo receives your device, they inspect it quickly. You get paid fast, either in cash or online payment.
12. BuyBackWorld
BuyBackWorld is a great place to sell your used electronics. They make selling easy and quick, and you can sell items like phones, tablets, laptops, and more.
To get started, you simply just go to their website and get an instant price quote for your items. This helps you know how much money you will get. The best part is that you don’t have to guess the value.
After you get your quote, you ship your items for free. BuyBackWorld even provides the shipping label. You just pack up your items and send them off.
Payment is fast. Once BuyBackWorld gets your items and checks them, they pay you quickly. You can get paid through PayPal, a check, or a direct deposit.
13. Pawnshop
Pawnshops can be a great place to sell your used electronics quickly. They buy a wide range of items, from phones and laptops to gaming consoles and cameras.
The main advantage of selling to a pawnshop is the speed of the transaction. You can walk in with your item and walk out with cash in hand, usually within minutes, so this makes it a convenient option if you need money fast.
However, there are a few things to keep in mind when selling your electronics to a pawnshop. First, they typically offer less money compared to other selling options. Pawnshops need to make a profit when they resell your item, so they’ll often give you around 30%-60% of the item’s resale value.
It’s important to research the value of your electronics beforehand so you have an idea of what a fair offer might be. Also, be prepared to negotiate, as many pawnshops expect some haggling.
14. ItsWorthMore
ItsWorthMore.com is a great place to sell your old electronics. It’s easy to get started. You just go to their website, get a quote, and see how much your device is worth.
Shipping is free and they give you a prepaid label, so you don’t have to pay anything.
Once they get your item, they check it out. If it matches your description, you get paid. They send the payment fast, often within a week. You can choose to get paid by PayPal or check.
Frequently Asked Questions
Below are answers to common questions about how to sell your used electronics.
What is the best website to sell electronics?
The best website to sell your electronics often depends on what you’re selling. Decluttr and Gazelle are great for quick sales and you don’t have to create a listing. Facebook Marketplace and eBay can also be good options, especially if you want to reach a large number of buyers.
What’s the easiest way to sell my used computer monitor?
Selling a used computer monitor is easiest through websites like Decluttr or Gazelle. These services provide free shipping and fast payment. You can also try local selling through Facebook Marketplace for convenience and quick cash.
How do I sell my laptop?
To sell your laptop, start by choosing a platform like Decluttr, Gazelle, or Amazon Trade-In. If you have a Mac laptop, then you may want to trade it in to the Apple Trade-In program.
What to do before selling a used laptop?
Always back up your data before selling your laptop. Then, perform a factory reset to erase all personal information and don’t forget to remove all accessories like SIM cards and SD cards. I also recommend that you clean your laptop to make it look presentable.
What is the best place to sell used electronics near me?
For local sales, such as if you want to sell your used electronics near you, I recommend using sites like Facebook Marketplace, Craigslist, or local buy and sell groups. A pawnshop is another option if you want to sell used electronics locally, but you usually can’t get as much money.
What is the best place to sell used electronics online?
Decluttr and Gazelle are top choices for selling used electronics online due to their simple process and quick payments. Amazon Trade-In and eBay are also great options if you prefer more control over your selling price.
Best Places To Sell Used Electronics – Summary
I hope you enjoyed this article on where to sell old electronics for cash.
You can sell many types of electronics such as cell phones, laptops, tablets, and gaming consoles. They don’t have to be brand new either, they can be years old in many cases.
And, sometimes, they don’t even need to work. Yes, even your broken, used electronics may bring you some money. In fact, I personally recently sold my laptop that was 5 years old and broken, and I still made around $300.
Selling old electronics helps you get some money back. Instead of leaving gadgets in a drawer, turn them into cash.
By selling, you also help the environment. Electronics have materials that can be harmful if not disposed of properly. Selling them means someone else can use them, reducing e-waste.
Wondering how to decide what the best place is to sell your used electronics after reading the list above? I recommend thinking about how much money you’ll get, how fast you need the money, and how much effort you want to put toward selling it.
I hope you are able to make some extra money selling your used electronics. I think it’s definitely worth it instead of having it just sit around your home taking up space.
What do you think are the best places to sell used electronics?
Memphis, often referred to as the “Home of the Blues,” is a city full of history, music, and Southern charm. With its iconic landmarks like Beale Street, vibrant neighborhoods, and a cultural scene that resonates with the rhythms of blues, soul, and rock ‘n’ roll, it’s no wonder that so many people dream of calling Memphis their home. However, life in this historic city comes with its own set of challenges. So whether you’re looking for a modern apartment in Downtown Memphis or a cozy apartment in Cooper Young, you’ve come to the right place.
In this ApartmentGuide article, we’ll explore the various pros and cons of living in Memphis, helping you decide if this soulful Southern city is the right place for you.
Fast facts about living in Memphis
Known for: Rich music history, including Beale Street and Graceland
Fun fact: Memphis is home to the world’s largest barbecue cooking contest, the Memphis in May World Championship Barbecue Cooking Contest
Population: Over 630,000 residents
Average rent: $1,145 per month for a one-bedroom apartment
Median home sale price: $190,000
Public parks: Over 160, including the expansive Shelby Farms Park
Languages spoken: Predominantly English and Spanish
Proximity to Nashville: About 210 miles northeast
Restaurants: A thriving food scene with a focus on barbecue, soul food, and Southern cuisine
1. Pro: Affordable cost of living
The cost of living in Memphis is 10% lower than the national average, making it an appealing choice for those seeking an affordable lifestyle. Housing is particularly budget-friendly, with costs 17% less than the national average. The median sale price for a home in Memphis is around $190,000, and the average rent for a one-bedroom apartment in Memphis is approximately $1,145 per month. Additionally, utilities are 13% less expensive, transportation costs are 11% lower, and healthcare is 14% below the national average. While groceries are on par with the national average, lifestyle expenses such as dining out and entertainment are 7% lower, further enhancing the overall affordability of living in Memphis.
2. Con: Limited public transportation
Memphis has limited public transportation options compared to larger cities. While the city does have a bus system and the MATA trolley service in the downtown area, most residents rely on personal vehicles for commuting. The public transit system is not as comprehensive or frequent as in other metropolitan areas, which can be a drawback for those who prefer not to drive. Additionally, Memphis is not particularly walkable or bike-friendly, with many areas lacking the infrastructure to support pedestrians and cyclists effectively.
Memphis transportation scores
Walk score: 35
Transit score: 22
Bike score: 41
3. Pro: Rich cultural heritage
Memphis is a city steeped in cultural heritage, especially when it comes to music. As the birthplace of blues, soul, and rock ‘n’ roll, the city is home to iconic music landmarks such as Beale Street, Sun Studio, and Graceland, the home of Elvis Presley. The city’s rich history also includes significant contributions to the civil rights movement, with the National Civil Rights Museum serving as a pivotal site.
4. Con: Extreme weather conditions
Memphis experiences a variety of weather conditions, with hot, humid summers and mild, occasionally cold winters. Summers can be particularly challenging, with temperatures often reaching the 90s and high humidity levels, making outdoor activities uncomfortable. The city also experiences severe thunderstorms and the occasional tornado, which can be concerning for residents.
5. Pro: Thriving food scene
Memphis is renowned for its vibrant food scene, particularly its world-famous barbecue. The city boasts a variety of dining options, from iconic barbecue joints to upscale Southern cuisine restaurants. Whether you’re in the mood for ribs, pulled pork, or something with a modern twist, Memphis has a dining experience to satisfy any palate.
Popular restaurants in Memphis
Central BBQ
The Rendezvous
Gus’s World Famous Fried Chicken
The Beauty Shop
The Arcade Restaurant
6. Con: Infrastructure challenges
Memphis faces challenges with aging infrastructure, including roads, bridges, and public utilities. The city’s infrastructure has struggled to keep up with growth and maintenance needs, leading to issues such as potholes, traffic congestion, and occasional water service disruptions. These challenges can affect the overall quality of life for residents and require ongoing attention from local government.
7. Pro: Outdoor recreation opportunities
Memphis offers a wealth of outdoor recreation opportunities, with over 160 parks, green spaces, and the expansive Shelby Farms Park. Residents can enjoy activities such as hiking, biking, fishing, and kayaking, all within the city limits. The Mississippi River also provides scenic views and opportunities for riverfront recreation.
Popular outdoor recreation areas in Memphis
Shelby Farms Park
Tom Lee Park
Overton Park
Wolf River Greenway
Mud Island River Park
8. Con: Limited job market diversity
While Memphis has a stable economy, it is heavily reliant on a few key industries such as healthcare, logistics, and transportation. Major employers include FedEx, St. Jude Children’s Research Hospital, and the University of Tennessee Health Science Center. However, those seeking opportunities in other industries, such as technology or finance, may find fewer options available, leading to longer job searches or the need to commute to nearby cities.
Top employers in Memphis
FedEx
St. Jude Children’s Research Hospital
International Paper
AutoZone
Methodist Le Bonheur Healthcare
9. Pro: Strong sense of community
Memphis is known for its strong sense of community and Southern hospitality. The city hosts numerous festivals, events, and community gatherings that bring residents together. From the Memphis in May festival to neighborhood block parties, there are plenty of opportunities to connect with others and build lasting relationships.
10. Con: Air quality concerns
Due to its location in the Mississippi River Valley and its industrial history, Memphis can experience air quality issues, particularly during the summer months. High levels of pollen, ozone, and humidity can contribute to poor air quality, which may be a concern for residents with respiratory conditions.
11. Pro: Vibrant arts and cultural scene
Memphis has a vibrant arts and cultural scene, with numerous galleries, theaters, and music venues. The city is home to a thriving community of artists, musicians, and performers, contributing to a lively and diverse cultural landscape. Annual events like the Beale Street Music Festival and the Indie Memphis Film Festival attract visitors and celebrate the city’s creative spirit.
12. Con: Urban sprawl
As Memphis has grown, it has experienced significant urban sprawl, with the city expanding outward rather than upward. This has led to longer commutes, increased traffic, and a reliance on cars for most daily activities. The spread-out nature of the city can also make it challenging to develop a strong sense of place in certain neighborhoods.
13. Pro: Access to healthcare
Memphis is home to some of the best healthcare facilities in Tennessee, including St. Jude Children’s Research Hospital and Methodist Le Bonheur Healthcare. The city offers a wide range of medical services, specialists, and healthcare providers, making it a convenient place to access quality healthcare.
14. Con: Limited public school performance
While Memphis has several reputable private and charter schools, the performance of the city’s public schools varies widely. The Shelby County Schools district has faced challenges related to funding, resources, and academic achievement. Individuals moving to Memphis should carefully research schools and consider the educational opportunities available.
Personal loans are a type of lending instrument offered through banks, credit unions, and online lenders. They’re paid back, with interest, in installments, and there are few limitations to how the loan funds can be used. They’re also typically unsecured, meaning you don’t have to put up any property as collateral for the loan.
A personal loan is an important financial tool if you can find one from a reputable lender at a reasonable interest rate, and you can commit to making loan payments on time. However, if you only qualify for a loan with a high-interest rate or you feel you may have trouble paying it back, you may want to think twice before applying.
Are Personal Loans Bad?
Not necessarily. There are both advantages and disadvantages to personal loans. Here’s a look at some of the benefits of taking out a personal loan:
• Personal loans generally offer a wide range of borrowing limits, typically between $1,000 and $100,000.
• There is flexibility in how the funds can be spent, unlike a mortgage, which you must use to buy a house, or an auto loan, which must be used to purchase a car.
• Proceeds of personal loans can be used for a variety of purposes, from paying down credit card debt to making home improvements and more.
• Unsecured personal loans are offered by many lenders. There is no need to put any of your assets up as collateral for the loan, nor do you risk losing them should you default.
It’s important to weigh these benefits against potential disadvantages, and determine if it’s bad to get a personal loan for your financial needs. Here’s a look at some of the downsides of taking out a personal loan.
• Personal loans may not offer the lowest possible borrowing option. For example, you might be able to get a better rate on a home equity loan or a home equity line of credit (HELOC) if you have enough equity in your home. That said, both of those lending instruments use your house as collateral, so if you default, you could risk losing your home.
• Personal loans sometimes have fees or penalties that can increase the cost of borrowing. For example, origination fees on personal loans tend to be between 1% and 5%. Some lenders may charge prepayment penalties to ensure they don’t lose future interest payments if you pay off your loan early.
• When you take out a personal loan, you’re increasing your overall debt. If you have other debts, comfortably affording all your monthly payments can become a challenge. And missing payments or making late payments can have a negative impact on your credit score.
Recommended: What Is Considered a Bad Credit Score?
Pros and Cons of Personal Loans
Here’s a look at the pros and cons of personal loans at a glance:
Pros of Personal Loans
Cons of Personal Loans
Wide range of loan amounts, usually between $1,000 and $100,000.
Interest rates may be higher than other types of loans, such as home equity loans or HELOCs.
Use of funds is flexible. Borrowers can use money from personal loans toward almost any purpose.
Fees and penalties can make borrowing more costly.
They are generally unsecured loans, which is beneficial to those who don’t want to put up collateral.
They increase your debt, potentially putting a strain on your budget.
When Can It Be a Good Idea to Get a Personal Loan?
So when is a personal loan a good idea?
Debt Consolidation
One reason to take out a personal loan is as a credit debt consolidation loan to pay down high interest credit card debt. The average credit card interest rate as of August 2024 is 27.62%. The current average personal loan interest rate, on the other hand, is 12.38% (if you have excellent credit you may pay less; if you have poor credit, you could pay more).
Consolidating high interest credit card debt with a lower-interest-rate personal loan may make your monthly payments more manageable and potentially save you money in interest payments over the life of the loan.
If you use a personal loan to pay down credit card debt, it’s a good idea not to use those credit cards to incur even more debt.
Home Improvement
Using a personal loan to make improvements to your home may also be beneficial as home improvements can increase the value of your home, possibly offsetting the cost of borrowing.
When Can It Be a Bad Idea to Get a Personal Loan?
There are a number of cases when you may wonder if getting a loan is bad. Here’s a look at some situations when getting a personal loan may not be a good idea.
No Credit Check Loans
Most loans — including most personal loans — require a credit check. This helps your lender understand your creditworthiness, or how likely you are to repay your debts. Generally speaking, the healthier your credit, the more favorable your loan interest rates and terms. Those with poor or limited credit may find it difficult to qualify for a loan.
No credit check personal loans, on the other hand, look at your bank account balance or require you to pledge some asset as collateral to secure the loan.
The problem is that these loans also tend to be extremely expensive — interest rates can well exceed 100%, which is considered to be predatory. There’s a pretty good chance that borrowers who rely on no credit check loans won’t be able to pay their bills on time, which could trap them in a cycle of debt.
Recommended: How To Avoid Falling Victim To Predatory Loans
Cheaper Alternatives May Be Available
Before taking out a personal loan, consider whether there are cheaper alternatives. We’ve already mentioned home equity loans and HELOCs. You might also consider a no-interest credit card, which charges 0% interest for an introductory period typically lasting between 12 and 20 months. If you can pay off your debt in this time period, this may be a good option. But whatever balance you don’t pay off in time may revert to the card’s regular rate, which is likely high.
You Are Not Good at Managing Debt
If you’re not good at managing debt, think twice before taking on more. And if you use your personal loan to consolidate credit card debt, you’ll want to be careful about racking up new credit card bills.
Discretionary Spending
Borrowing money for discretionary spending, such as vacations or an engagement ring generally isn’t a good idea. While these things are nice, they are not necessarily worth jeopardizing your financial wellbeing. Instead of borrowing to pay for big-ticket items like these, you may be better off saving for them in advance as a part of your regular budget.
Borrowing Money for Investments
It’s generally not a good idea to borrow money to make investments. By nature, investments are risky, and you are not guaranteed a return. Should the investment lose money instead of gain, you’ll be responsible for paying off your debt regardless of the investment loss.
The Takeaway
So are personal loans bad? The answer depends on how you plan to use the loan. Personal loans can be useful tools for purposes like consolidating credit card debt, making home improvements, and more.
Any time you’re considering a loan, it’s important to understand if it will meet your needs, what it will cost you, and whether there are any better alternatives out there.
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/Morsa Images
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Salt Lake City, Utah, is a place of contrasts—a city where rugged mountains meet urban innovation, and tradition intersects with rapid growth. Nestled in the heart of the American West, this city offers a unique blend of outdoor adventure, cultural experiences, and economic opportunity. Not sure if SLC is for you? Read on to find out what to expect if you’re considering a move to the Salt Lake City area in 2024.
You know it from: The Crow: Salvation, SLC Punk
Average 1 bedroom rent: $1,566 | Salt Lake City apartments for rent, Salt Lake City houses for rent
Average home price: $639,000 | Salt Lake City homes for sale
Average cost of full-service moving services: $191/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Retail, Healthcare, Manufacturing
Move here for: The nature, summer and winter outdoor activities, and Sundance
Be sure to bring: Sunscreen, moisturizer, and all the outdoors gear you own – from skis to swimsuits to sleeping bags
1. Four distinct seasons with snowy winters
Salt Lake City experiences all four seasons in full force, which means residents enjoy snowy winters, blooming springs, hot summers, and colorful autumns. However, the dry air in winter can be challenging for newcomers, especially if you’re used to more humid climates. The city averages about 56 inches of snow per year, so investing in a good snow shovel or snow blower is a smart move. The ski resorts nearby, like Alta and Snowbird, are world-class, which makes the winter weather more of an adventure than a chore.
Moving Tip: Try to time your move to the summer or fall months unless you want to be moving in the snow. In the winter, be prepared to navigate icy roads and make sure your car is suited for the winter snow with four wheel drive or snow chains.
2. A haven for outdoor enthusiasts
If you love the great outdoors, Salt Lake City is practically paradise. With easy access to the Wasatch Mountains and a plethora of hiking, biking, and skiing opportunities, there’s always something to do outside. Whether you’re scaling the peaks of Mount Olympus or taking a scenic drive through Big Cottonwood Canyon, nature is right at your doorstep. The Great Salt Lake, while less of a swimming spot and more of a scenic wonder, adds to the natural beauty of the area. Just be aware that you might find yourself spending a lot of your free time outdoors, no matter the season.
3. A burgeoning food scene with diverse options
Salt Lake City’s culinary landscape has expanded significantly in recent years. You’ll find everything from authentic Mexican street food at Red Iguana to farm-to-table dining at Pago. Coffee lovers can rejoice too—local spots like Publik Coffee Roasters offer some of the best brews in town. The city’s diverse population has brought an array of international cuisines, making it easy to satisfy any craving.
Moving Tip: Don’t expect the late-night dining options you’d find in larger cities; most places close early, so plan accordingly.
4. The “inversion” phenomenon
One unique challenge to living in Salt Lake City is the winter inversion, where cold air gets trapped in the valley, causing pollution levels to rise. This can lead to poor air quality for days or even weeks at a time, which might be a concern if you have respiratory issues. The inversion is most common in January and February, and locals often try to escape it by heading up to the mountains where the air is clearer.
Moving Tip: Investing in an air purifier for your home can help mitigate the effects when the inversion settles in.
5. A thriving job market, especially in tech
Salt Lake City has become a hub for tech companies, earning it the nickname “Silicon Slopes.” Companies like Adobe, Qualtrics, and Domo have set up shop in the area, contributing to a strong job market. The unemployment rate is consistently lower than the national average, and the city’s economy is diversified across industries such as healthcare, finance, and education. If you’re in the tech industry, you’ll find ample opportunities here.
Moving Tip: The cost of living has been rising alongside the job market’s growth and is currently 9% above the national average.
6. The real estate market is hot
The housing market in Salt Lake City is competitive, with homes and apartments often selling or renting out quickly. Neighborhoods like Sugar House and The Avenues are particularly sought after, thanks to their historic charm and proximity to downtown. The cost of living, especially housing, has been on the rise, making it essential to act fast if you find a place you love. Renting might be a more feasible option for newcomers as they get to know the city, but be prepared for rent prices that can rival those of larger metros.
7. Public transit is improving but SLC is still car-centric
While Salt Lake City’s public transit system, including the TRAX light rail and bus services, is continually improving, the city is still largely car-dependent. Most residents rely on their cars for daily commutes, and parking can be a hassle in more densely populated areas like downtown. If you’re moving from a city with a robust public transit system, adjusting to a more car-centric lifestyle might take some time.
Moving Tip: The good news is that Salt Lake City is easy to navigate, with a grid system that makes getting around fairly straightforward.
8. Proximity to some of the best national parks
Let’s face it: the best part of living in Salt Lake City is the access to Nature with a capital N. Residents are within a day’s drive of some of the most stunning national parks in the country. Zion, Bryce Canyon, and Arches National Parks are all just a few hours away, making weekend road trips an easy escape. These parks offer a variety of outdoor activities, from hiking and camping to photography and stargazing.
Moving Tip: Be sure to plan ahead! The National Parks Service has instituted timed entry reservations for many parks, Utah’s included. Even those with American the Beautiful and annual passes are required to make reservations in advance if visiting between April 1 and October 31.
9. A growing arts and culture scene
Salt Lake City might not be the first place that comes to mind when you think of arts and culture, but the city is steadily gaining a reputation for both. The Utah Museum of Fine Arts, Ballet West, and the Eccles Theater offer a range of performances and exhibits year-round. The city also hosts the Sundance Film Festival every January, attracting filmmakers and movie lovers from around the world. The local music scene is vibrant too, with venues like The Depot and Urban Lounge showcasing everything from indie bands to big-name acts.
10. The altitude may take some getting used to
Salt Lake City sits at an elevation of about 4,300 feet, which can take some adjustment if you’re moving from a lower altitude. The thinner air means you might find yourself getting winded more easily at first, and it’s important to stay hydrated, especially during the hot summer months. Over time, your body will acclimate, but it’s something to be aware of when you first move.
Moving Tip: The high altitude also means stronger UV rays, so even in winter – sunscreen is a must.
11. A mix of modern and historic neighborhoods
Salt Lake City offers a blend of modern amenities and historic charm, with neighborhoods like The Avenues, known for its Victorian homes, and Sugar House, which has seen a recent influx of new development. Downtown has a mix of high-rise apartments and historic buildings, giving the city a unique character. The city’s growth has led to some areas being redeveloped, but there’s still a strong preservation effort for historic sites.
12. The city is rapidly growing and evolving
Salt Lake City has seen significant growth over the past decade, with more people moving in and new developments springing up across the city. This growth has brought both opportunities and challenges, such as rising housing costs and increased traffic. However, it also means more amenities, job opportunities, and cultural offerings. The city is in a state of flux, and residents are actively shaping its future. If you’re looking for a city that’s evolving and full of potential, Salt Lake City might be just the place for you.
Methodology: Average rent prices sourced from Rent.com August 2024. Home prices sourced from Redfin August 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Statistical Atlas.