The Mercury Rewards Visa Card, issued by First Bank & Trust, was launched in August 2022 by Mercury Financial, a technology company that aims to help its customers build credit.
The Mercury credit card earns rewards and forgoes pesky fees — two features that are nice to see in a card for people with thin credit histories. But the card’s website is lacking in some useful information about the product’s features, making it difficult to comparison shop when you’re looking for a credit card. (Efforts to reach the company with questions and clarifications were unsuccessful.)
Here are five things to know about the Mercury Rewards Visa Card.
1. You have to be invited to apply
There’s no prominent “apply now” button on the Mercury credit card’s website. Instead, Mercury mails out preapproved offers with reservation codes. These preapprovals are based on information in your credit profile.
If you misplaced your reservation code, or just want to see whether you were preapproved, you can input your last name, ZIP code and last four digits of your Social Security number on Mercury’s website.
2. It’s inexpensive to carry
When you’re newer to building credit, many card options pile on the fees. Annual fees are the most common, but some also charge monthly maintenance fees, one-time processing fees and more. The cost of carrying cards like these can add up quickly.
The Mercury Rewards Visa Card charges none of those fees. Just be mindful that there are fees for things like late payments or purchases in foreign countries.
3. The card earns cash back
The Mercury Rewards Visa Card earns cash-back rewards on every qualifying purchase, according to the card’s website. Missing from the site is how many rewards each purchase will earn, which would be useful information to have as you consider getting the card.
It’s also not easy to find out how much points are worth when redeemed, or how you can redeem them. Blink and you’ll miss it on the website, but you can redeem points for a statement credit, or use them to shop on Amazon.com, at a value of 1 cent per point. If there are other redemption options available, they’re not mentioned.
4. The app provides helpful tools
The Mercury Cards app is available on both the Apple and Google Play app stores. You can use it to not just check your balance and pay your bills, but also to get tips on how to attain your personal financial goals, compare different payment and interest scenarios, split larger payments up into smaller ones, and more.
It’s far from the only app out there that allows you to manage your card. But anything that makes tracking and goal-setting simpler for those who are building credit is a good thing.
5. Beware of the interest rate
As of this writing, cardholders will pay 29.99% to 30.24% variable APR if they get into credit card debt — well above the average of 22.77% among credit cards assessing interest as of August 2023, according to the Federal Reserve. Credit cards for people with no credit or bad credit tend to charge higher interest rates, since you’ve yet to prove yourself to lenders as a thoughtful user of credit.
Still, roughly 30% APR is a number to be mindful of as you use the Mercury credit card. If you’re unable to pay your bills in full, the resulting credit card debt can quickly spiral out of control. An alternative could be a credit-building card with guardrails. These cards require you to open a funding account, but they limit how much you can charge to what’s in that account so you can’t overspend. Plus, your bills are automatically paid in full each month, so you can’t get into debt.
However, the Mercury Rewards Visa Card functions more like a traditional credit card, so when you’re ready to graduate to other options from different issuers, you’ve had more practice managing such a card.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Information in this piece is accurate as of August 2023.
The best credit cards provide you with cash back rewards, points you can redeem for purchases at your favorite stores, travel miles and much more. Each credit card is fine-tuned with specific perks and benefits, and you’ll find plenty here that will fulfill your needs.
We’ve reviewed 25 credit cards from our partners that not only provide great rewards, but we’ve found the best credit cards for people with no credit, bad credit and fair credit. We’ve also provided a complete guide to help you better understand how credit cards work, as well as some tips to assist you in choosing the right one.
Table of Contents:
Best Overall Cards From Our Partners
The best credit cards bring in new customers by providing various perks, bonuses and benefits. The following credit cards have some of the best sign-up offers that come in the form of cash back rewards and travel miles.
Best for: Repairing credit
Secured Chime Credit Builder Visa® Credit Card
Apply Now
on Chime’s secure website
Annual fee
Recommended credit score
You can qualify for the Secured Chime Credit Builder Visa® Credit Card with a $200 direct deposit
or more, and all you need is a checking account. As you use this secured credit card, you can
build your credit score—and there’s no minimum security deposit.
see more details
Pros
Helps build credit
No security deposit required
No interest
Cons
Needs Chime checking account
Best for: Low APR
Upgrade Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Cash Rewards Visa® card has a flat rate rewards program for all purchases, which go on
your card when you make your monthly payments. The card also comes with peace of mind from its free
fraud liability program.
see more details
Pros
No annual fee
Fraud liability
Flat rate rewards
Cons
No debt card for welcome bonus
Balance Transfer
Balance transfer credit cards allow you to transfer debt from one account to another, and the best ones come with little to no fees.
Best for: Bonus categories and balance transfers
UNITY® Visa Secured Credit Card – The Comeback Card™
Apply
Now
on OneUnited Bank’s secure website
Annual fee
Recommended credit score
The UNITY® Visa Secured Credit Card – The Comeback Card™ is not only a balance transfer card, but
it’s a secured credit card as well, so there’s no minimum credit score required. This card has a
9.95% balance transfer rate for six months and a low fixed-interest rate of 17.99%.
see more details
Pros
No minimum credit score required
Low fixed interest rate
Fast approval
Cons
Annual fee
$250 deposit to open account
No Interest
Low interest is great, but having 0% interest is even better. These cards have their advantages and disadvantages, such as the advantage of not needing a good credit score, but their usage may be limited.
Best for: No interest
Merit Platinum Card
Apply
Now
on Merit Platinum’s secure website
Annual fee
Recommended credit score
The Merit Platinum Card does have an annual fee broken into monthly payments of $14.77, but their 0%
APR makes up for this. They also allow for a seven-day risk-free trial. With this card, you’ll gain
access to a $750 line of credit for Horizon Outlet and have other member benefits like roadside
protection and credit report monitoring.
see more details
Pros
0% APR
$750 line of credit
Works with bad or no credit
Cons
Annual fee
Can only use at Horizon Outlet
Doesn’t report to credit bureaus
Best for: No interest
Net First Platinum
Apply
Now
on NetFirst Platinum’s secure website
Annual fee
Recommended credit score
The Net First Platinum is a credit card that you can get approved for without any credit as well as
if you have bad credit. It provides you with a $750 line of credit for Horizon Outlet, and you also
receive member benefits like legal assistance, roadside protection and identity theft insurance.
see more details
Pros
0% APR
$750 line of credit
Works with bad or no credit
Cons
Annual fee
Can only use at Horizon Outlet
Doesn’t report to credit bureaus
Best for: No APR
Freedom Gold Card
Apply
Now
on Freedom Gold’s secure website
Annual fee
Recommended credit score
The Freedom Gold Card gives cardholders a $750 line of credit for Horizon outlet, which sells a wide
range of products as well as clothing. There’s no credit check or employment check required to get
approved, either. It also comes with additional member benefits like roadside protection.
see more details
Pros
No activation fee
$750 credit limit
No credit check
Cons
Annual fee
Can only use at Horizon Outlet
Lowest Interest
One of the primary factors people look for in a credit card is a low annual percentage rate (APR). This is the interest you pay on purchases after the introductory rate.
Best for: Bonus categories and balance transfers
UNITY® Visa Secured Credit Card – The Comeback Card™
Apply
Now
on OneUnited Bank’s secure website
Annual fee
Recommended credit score
The UNITY® Visa Secured Credit Card – The Comeback Card™ is not only a balance transfer card, but
it’s a secured credit card as well, so there’s no minimum credit score required. This card has a
9.95% balance transfer rate for six months and a low fixed-interest rate of 17.99%.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card provides you with a credit limit of up to
$5,000 and has no minimum requirement for your credit score. You can open an account with a deposit
as low as $200.
see more details
Pros
Low fixed APR
High max credit limit
Cons
Annual fee
Cash Back
Cash back credit cards put money back in your pocket based on your spending. This can be either a flat rate or for specific categories like dining, entertainment or retail shopping.
Best for: Auto, home and health spending
Upgrade Triple Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Triple Cash Rewards Visa® credit card provides 3% cash back for auto, home and health
categories. This is a quality choice if you’re doing home upgrades, repairing your car or purchasing
medications and using a gym membership
see more details
Pros
Up to 3% cash back
Umlimited rewards
Fraud liability coverage
Cons
Niche reward categories
Need debit card for welcome bonus
Best for: High percentage rewards
Petal® 2 Card
Apply Now
on Petal’s secure website
Annual fee
Recommended credit score
The Petal 2 card has no fees and is the perfect card for individuals with credit scores from poor to
excellent. You’ll receive 1% to 1.5% cash back on all purchases and up to 10% cash back when
shopping at certain stores.
see more details
Pros
No fees
High cash back rewards
No minimum credit score
Cons
No introductory offer
High APR
Travel
For those who travel, travel cards with top-tier rewards may be the right choice for you. You can get free airline miles along with other perks like points for rental cards and hotel stays.
Best for: Travel
Mastercard® Black Card™
Apply
Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Black Card™ is a travel card that has 2% airfare redemptions with no blackout dates
or seat restrictions. You’ll also receive enrollment in Priority Pass™ Select, with access to 1,300+
airport lounges worldwide with no guest limit.
see more details
Pros
Low ongoing
Lounge access
Luxury travel benefits
Cons
High annual fee
Best for: Low APR and travel
Mastercard® Titanium Card™
Apply Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Titanium Card™ is a travel card with a low ongoing APR of 19.24%. You’ll receive 24/7
Luxury Card Concierge® as one of the benefits along with 2% for airfare demptions with no blackout
dates or seat restrictions.
see more details
Pros
Luxury Card Travel® benefits
Airfare rewards
Cell phone protection
Cons
Annual fee
Best for: Low APR and travel
Mastercard® Gold Card™
Apply
Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Gold Card™ has 2% airfare redemptions with no blackout dates or seat restrictions and
2% cash back. You also receive lounge access at over 1,300 airports worldwide and additional
benefits at hotels like room upgrades and free wifi.
see more details
Pros
Luxury Card Travel® benefits
Airfare rewards
Lounge access
Cons
High annual fee
Bad Credit
In order to build credit, you need a history of good credit—these are our top picks for credit cards if you’re working on improving your mid- to low-range credit score by adding more positive payments to your credit report.
Best for: Groceries and gas
Aspire® Cash Back Reward Card
Apply
Now
on Aspire’s secure website
Annual fee
Recommended credit score
The Aspire® Cash Back Reward Card gives cardholders a credit line of up to $1,000, and you’ll also
receive 1% cash back on all of your purchases. When shopping for groceries or getting gas, you can
earn up to 3% cash back as well.
see more details
Pros
Up to 3% cash back
1% flat-rate on other purchases
Up to $1,000 credit limit
Cons
Annual fee
High APR
Fair Credit
If your credit score falls within the 630 to 689 range, while not an excellent credit score, there are still plenty of cards you can apply for.
Best for: Building credit
Avant Credit Card
Apply
Now
on Avant’s secure website
Annual fee
Recommended credit score
The Avant Credit Card allows people with a credit score of 580 to 669 begin building their credit
score. It can be difficult to get a credit card with a fair credit score, so this card can be quite
helpful—they alsoregularly review your payment history for potential credit line increases.
see more details
Pros
Fast and easy application
Soft inquiry for credit check
Cons
Annual fee
High APR
Best for: Low APR
Upgrade Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Cash Rewards Visa® card has a flat rate rewards program for all purchases, which go on
your card when you make your monthly payments. The card also comes with peace of mind from its free
fraud liability program.
see more details
Pros
No annual fee
Fraud liability
Flat rate rewards
Cons
No debt card for welcome bonus
Secured Credit Cards
Secured credit cards are a great option for those with no credit or bad credit. They work by providing you a credit line that uses your own money. You simply make a deposit, which becomes your credit limit, and you raise your score as you use your card and make your monthly payments.
Best for: Repairing credit
Secured Chime Credit Builder Visa® Credit Card
Apply
Now
on Chime’s secure website
Annual fee
Recommended credit score
You can qualify for the Secured Chime Credit Builder Visa® Credit Card with a $200 direct deposit
or more, and all you need is a checking account. As you use this secured credit card, you can
build your credit score—and there’s no minimum security deposit.
see more details
Pros
Helps build credit
No security deposit required
No interest
Cons
Needs Chime checking account
Best for: Repairing credit
PREMIER Bankcard® Secured Credit Card
Apply
Now
on PREMIER Bankcard®’s secure website
Annual fee
Recommended credit score
The PREMIER Bankcard® Secured Credit Card doesn’t require a checking account, and you can have a
credit limit of however much you deposit, up to $5,000. Regardless of your credit score, you can use
this card to begin building or repairing your credit.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card provides you with a credit limit of up to
$5,000 and has no minimum requirement for your credit score. You can open an account with a deposit
as low as $200.
see more details
Pros
Low fixed APR
High max credit limit
Cons
Annual fee
Best for: Secured credit
The First Latitude Platinum Mastercard® Secured Credit Card
Apply Now
on First Latitude’s secure website
Annual fee
Recommended credit score
The First Latitude Platinum Mastercard® Secured Credit Card offers lines of secured credit between
$100 and $2,000. During your first year, they have an introductory offer for a $25 annual fee, which
changes to just $35 per year after that.
see more details
Pros
Low first-year annual fee
No credit score requirement
Low minimum deposit
Cons
Annual fee
*FICO scores and credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any credit offer.
The Top Cards
The best credit cards depend on what you need. Whether you’re looking for a card that has low interest, one with the most rewards or one that gives you points for traveling, we broke down the top cards into nine categories.
Using similar criteria to our overall methodology, we’ve chosen the top card from each category.
How We Chose the Best Credit Cards
To rank the best credit cards, we reviewed over 25 credit cards from our partners. The primary criteria we looked at takes into consideration aspects cardholders look at during their decision-making process and includes:
Intro APR (10 points)
Regular APR (20 points)
Fees (15 points)
Works with low credit scores (15 points)
Cash back rewards (20 points)
Bonus offers (15 points)
Additional perks (5 points)
The best credit cards depend on your specific wants, needs and circumstances based on your specific credit score. Below, we discuss more about how to choose the right credit card for your situation.
There’s a lot of information about each specific card, so we listed the top cards with each of their primary benefits below to give you an overview at a glance.
Best Overall Cards From Our Partners
Secured Chime Credit Builder Visa® Credit Card: This is a card that is for individuals with bad credit or no credit, and it also has 0% interest on purchases. There’s no minimum security deposit as well.
Upgrade Cash Rewards Visa®: For every purchases, you make with this card, you’ll receive 1.5% cash back, and it also comes with a $200 signup bonus.
Best Balance Transfer Credit Cards
UNITY® Visa Secured Credit Card – The Comeback Card™: 9.95% on balance transfers for the first six months and then 17.99% fixed APR after.
Best Credit Cards for No Interest
Secured Chime Credit Builder Visa® Credit Card: This secured credit card helps those looking to repair or build credit and comes with 0% interest. There’s also no minimum security deposit.
Merit Platinum Card, Net First Platinum and Freedom Gold Card: Each of these cards comes with the same benefit of 0% interest as well as member benefits for their $177.24 annual fee. Although the card is limited to shopping at Horizon Outlet, 0% interest is hard to beat.
Best Credit Cards for Low Interest
UNITY® Visa Secured Credit Card – The Comeback Card™: 9.95% on balance transfers for the first six months and then 17.99% fixed APR after.
Applied Bank® Secured Visa® Gold Preferred® Credit Card: This card gives cardholders a credit limit of up to $5,000, and there’s no minimum credit score required. It also has a low 9.99% fixed interest rate and is great for anyone looking to build their credit score.
Best Cash Back Credit Cards
Upgrade Triple Cash Rewards Visa®: Ongoing APR as low as 14.99% on all purchases along with 3% cash back on home, auto and health purchases.
Petal® 2 Card: The Petal® 2has one of the highest cash back percentages at 10% when you shop at select merchants, and you’ll receive 1.5% cash back on all other purchases.
Best Travel Credit Cards
Mastercard® Titanium Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Mastercard® Gold Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Mastercard® Black Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Best Credit Cards for Bad Credit
Secured Chime Credit Builder Visa® Credit Card: Secured credit card you can open with a $200 deposit or more along with a checking account.
Aspire® Cash Back Reward Card: A secured credit card option that also gives you 1% cash back on all of your purchases. You can also earn up to 3% cash back on groceries and gas.
Best Credit Cards for Fair Credit
Avant Credit Card: Can qualify with a credit score between 580 and 669.
Upgrade Cash Rewards Visa®: Ongoing APR as low as 14.99% and 1.5% flat-rate cash back on purchases.
Best Secured Credit Cards
Secured Chime Credit Builder Visa® Credit Card: Secured credit card you can open with a $200 deposit or more along with a checking account.
PREMIER Bankcard® Secured Credit Card: Secured credit card with a spending limit of up to $5,000.
Applied Bank® Secured Visa® Gold Preferred® Credit Card: Requires a $200 deposit and can go up to $5,000.
The First Latitude Platinum Mastercard® Secured Credit Card: Secured credit card with a limit of between $100 and $2,000.
A Beginner’s Guide to the Best Credit Cards
Whether you’re new to credit and credit cards or are experienced and just looking for the best options, this brief guide will provide you with additional information before choosing your new card.
How Do Credit Cards Work?
Credit cards are like taking out small loans, allowing you to buy something now and pay for it later on. You’ll need to pay back the money you borrowed on your credit card, and this comes with interest.
Some cards offer 0% interest for a certain amount of time, which means you’ll only pay back the same amount charged on the credit card.
Here’s what a basic credit card transaction looks like:
The purchase: Make a purchase with your credit card.
The authorization: The card reader used to run your card contacts your credit card company to ensure the funds are available based on your max limit.
The merchant payment: Your credit card company pays the merchant for the product or service you purchased.
The credit card payment: Each month, you’ll have a statement that shows how much you owed based on all of the purchases you made.
Learn more: How do credit cards work?
How Do Credit Card Rewards Work?
Credit cards with the best rewards will give you a high percentage of cash back or points that you can use at places you make purchases. The following are the two main types of rewards:
Cash back: Cash back rewards pay down your balance. For example, if you’re getting five percent cash back on $5,000 worth of purchases, those purchases would technically cost $250 less.
Points and miles: Rather than cash back, some cards offer points or miles. You can use points to redeem gift cards and other merchandise. With travel cards, your earned miles give you discounted or free travel, depending on how much you have saved.
The rate of the rewards come in two different forms as well:
Flat rate: Cards that offer flat rate rewards give you the same percentage on all purchases. While this is more consistent, they’re lower than tiered rewards.
Tiered rewards: The most common rewards cards offer tiered rewards, which means you receive different rates based on where you use your card. For example, you may receive five percent cash back on groceries, travel and fuel but one percent for everything else.
Which type of reward structure you choose should be based on how you spend. If a card has tiered rewards with a high percentage cash back on purchases you make regularly, that type of card may be a better option. And if you travel a lot, you may benefit more from a travel card rather than a cash back rewards card.
Learn more: 5 ways to maximize credit card rewards without overspending
How Do You Track Credit Card Rewards?
The majority of credit cards have a separate account that stores your rewards, which you can access through your credit card’s website or mobile app. Depending on the card and card issuer, you may see your rewards instantly after purchases, or they may not appear until the following billing cycle.
Here’s how the reward process looks:
You make a purchase
Your rewards are calculated based on a flat rate or tiered rewards
Your rewards are credited to your account
You redeem your rewards through the card issuer’s website or mobile app
Learn more: Ways to redeem your credit card reward points
How Does APR Work?
APR stands for annual percentage rate, which is the interest you’ll pay on your purchases. Simply put, this is what the card issuer charges you for borrowing money through your line of credit. Depending on the credit card, the APR may be fixed or changed based on the current economic conditions.
Below, we’ve listed some more helpful information about interest:
Your interest rate is generally based on your credit score, and you’ll get approved for lower rates when you have a better credit score.
While interest is shown as an annual rate, you’re charged, daily. For example, a 20 percent APR divided by 365 days in the year means you pay roughly .055 percent per day.
Your monthly statement shows how much interest you’re being charged.
Interest is not compounded, so you’ll pay your full interest cost each month.
Learn more: Help! I really don’t understand my credit card APR
How Does the Credit Card Application Process Work?
In the early days, credit card applications were done on paper, but now, you mainly do them online. When you apply for a credit card, the card issuer is evaluating your level of risk and trustworthiness based on your credit score. A good credit score indicates that you’ll pay back the money you borrow from your line of credit.
Here’s what the application process looks like:
Step 1: Fill out the application. You’ll need some personal information like your name, address and Social Security number. The card issuer may request other items.
Step 2: The card issuer runs your credit, which will check your score as well as your actual credit report. The credit score is just a number, but the report gives additional details such as how many cards you recently applied for or any additional details they may need.
Step 3: You’ll receive an approval or denial. These days, many online applications approve or deny you within just a few minutes.
If you’re approved for the credit card, you’ll typically receive the card by mail within 10 business days. Once you receive it, you can activate it and begin spending.
Learn more: How to apply for a credit card online
How Many Credit Cards Should You Have?
How many credit cards you have is really dependent on your situation and your preferences. There’s no optimal number of credit cards. Rather than the number of credit cards you have, you should take into consideration your credit utilization as well as how often you’re applying for new cards.
For example, if you have 10 credit cards but have a 20 percent credit utilization ratio, you’re doing great. But if you have three cards with a 70 percent utilization ratio, that can hurt your score. If you were to have that high of a utilization ratio with 10 cards as well, that would hurt your score. If you apply for new cards too often, this can also harm your score.
Learn more: How many credit cards is too many?
Types of Credit Cards Explained
When choosing a credit card, it’s helpful to know the various types. Different cards are beneficial for different lifestyles, purchasing decisions and personal preferences. Below, we’ve listed some of the most common types along with a brief summary of what they do.
Rewards cards: These cards pay you back via cash that you can use to pay down your credit card debt or points that you can redeem at stores or in the form of airline miles. You earn rewards by using your card.
Balance transfer cards: All credit cards have interest that you need to pay, but some have lower rates than others. Balance transfer cards allow you to move debt and give you a year or more to pay it back with no interest. This often comes with a fee, but the fee is usually less than the interest.
Low and no interest cards: These cards are some of the most popular because interest payments make purchases cost more than the original price. For those who plan on carrying their balance over to the following month, these are the ideal cards.
College student cards: Young people are just starting out with credit building, so these cards get marketed towards college students and can help with the process. They’re easier to get approved for, but you’ll still need to meet qualifications beyond being a student to receive an approval.
Small business cards: Business owners and entrepreneurs often need to make purchases with credit, and these cards offer perks that are specifically geared towards business categories.
Cards for building credit: Whether you have no credit or bad credit, these cards can help you repair or build your credit score when you use them responsibly and make payments on time. They’re easier to receive an approval for, but they sometimes come with high interest rates or deposits.
How Credit Card Companies Work
In order to understand how credit card companies work, it’s helpful to know that they’re more than just companies. Each card company works within a network, and, sometimes, they’re partnered with another brand.
Credit card issuers: A credit card company is the card issuer. This can be a bank or financial institution that maintains your account. For example, Wells Fargo, Chase and Capital One are all card issuers.
The network: On every credit card, you’ll see names like Visa, Mastercard, American Express or Discover. These are basically the go-between companies that manage the transaction.
Co-brand partners: In some cases, cards have branded partners. An example would be an airline, hotel or store credit card.
Let’s look at an example using one of the top cards from our Travel category, the Citi Premier® Card. Citi Bank is the card issuer, using the Mastercard network and doesn’t have a co-brand partner. Then, there are cards like the Hilton Honors American Express Card, where American Express is the card issuer and the network, and Hilton Hotels is the co-brand partner.
Top Credit Card Companies
There are quite a few credit card companies out there, but which one is the best? J.D. Power does a regular study to see which one is the best.
Here are the rankings of the top 10 companies from the 2022 J.D Power U.S. Credit Card Satisfaction Study based on a 1,000-point scale:
American Express (848 points)
Discover (841 points)
Bank of America (818 points)
Segment Average (814 points)
Chase (813 points)
Capital One (812)
Citi (808)
Barclays (797)
Wells Fargo (797)
U.S. Bank (791)
Remember, what’s considered “the best” is subjective, so you may want to do additional research to see which company is right for you. Some may have benefits that suit your needs and spending habits, or you may find it better to get a card through your current bank.
How to Choose the Card That’s Right for You
There’s a lot to consider when choosing the right credit card, so we’ve listed some of the primary features of various cards to help you make the best for you. It’s also helpful to remember that by improving your credit score, you’ll have more options for which credit card companies will approve your application.
Annual Fees
Many cards come with no annual fee, but the ones that do often offer some additional perks and benefits. You’ll need to see if the fee makes sense based on what you’ll use the card for.
A great example is when it comes to travel credit cards. These may come with a fee, but you might save more than enough due to the rewards you gain in comparison to the annual fee.
Other Fees
Different cards come with different fees, and they’re not always advertised front and center when you’re applying for a credit card. You’ll often need to go looking on the application page for additional information to find out which fees you’ll pay as you use your card.
Some of the most common fees include:
Balance transfer fee: A fee for transferring debt from one card to another, which is often a percentage of the amount transferred.
Foreign transaction fee: When you’re out of the country, many cards charge up to 3% for using your card while traveling abroad.
Cash advance fee: Some credit cards allow you to use them like an ATM card for a cash advance, but these come with high interest rates as well as a fee.
Late fees: Credit cards usually have a grace period for making your payments, but these may also come with a late fee.
Learn more: How much does one late payment affect credit scores?
Introductory Rates
Credit card companies make money by charging interest, but many have promotional offers where you’ll receive low interest on purchases for a certain amount of time. Some are as low as 0% interest.
Regular Rates
Regular rates, also called “ongoing rates,” are the interest rates you pay once the introductory period is over. You can find this rate in the terms and conditions on the application, so you can use it to compare it to other cards.
Rewards
We’ve gone over the various types of rewards, such as flat-rate, tiered and points. This is where comparing cards gets specific to your lifestyle. If you travel a lot, a card with travel rewards may be right for you, but if you don’t, you may want to look at cards that give you cash back at places where you shop. You may also get a sign-up bonus with some credit cards that come as cash back rewards or points.
Perks
In addition to rewards, there are sometimes additional perks like cell phone insurance, identity theft security, rental car coverage and more.
How to Get a Credit Card in Six Steps
Now that you have all the knowledge you need to choose the right card, we’re going to put it all together in six simple steps:
Step 1: Check your credit score to know what types of cards you can apply for.
Step 2: Research various cards that sound like they might be the right ones for you
Step 3: Narrow down your options so you don’t apply for too many cards. Remember, each application may trigger a hard inquiry on your credit report, which can temporarily drop your credit score.
Step 4: Apply for the card through the card issuer’s website.
Step 5: Wait for a decision.
Step 6: If you’re approved, you should receive your card within 10 business days, and then you can start using the card for purchases once the card is activated.
FAQ
The following are some additional questions people have about finding the best credit cards.
What’s the Best Credit Card?
There’s no single best credit card. The card that’s the “best” will vary from person to person based on their needs, credit score and lifestyle.
What’s the Best Credit Card Company?
According to J.D. Power’s 2022 survey, American Express is the best credit card company. This is based on criteria like customer satisfaction based on a specific sample size, so some people may prefer a different card issuer.
When is it Time to Get a New Credit Card?
Here are a few reasons you may want to get a new credit card:
To increase your credit limit
To increase your credit utilization ratio
To accommodate a lifestyle change like traveling more often
Improve Your Odds of Getting the Best Card
To get the best credit cards and have endless options, improving your credit score should be your top priority. The best credit cards with the most rewards and best perks typically look for applicants with a score of 690 or higher—falling within the “good” to “excellent” range.
Credit.com has a wide range of services like our ExtraCredit program, which can help you learn more about credit and may lead to better credit health. If you’re unsure of your credit score, get your credit score for free here.
As anyone savvy in personal finance knows, it’s never too early or too late to start thinking about retirement. An individual retirement account, or IRA, is a retirement account that allows you to save money for your golden years in a tax-advantaged way.
There are several types of IRAs—Traditional, Roth, SEP, and SIMPLE—with varying rules and benefits. With the right account, you can grow your savings, manage your tax burden, and prepare for a comfortable retirement.
6 Best IRA Accounts
Check out our top 6 picks for 2023‘s best IRA accounts. Let’s examine each one so you can decide quickly and easily which is best for you.
Charles Schwab
Charles Schwab offers one of the best IRA accounts available thanks to its superior customer service. The company offers 24/7 customer support as well as extensive resources about retirement planning.
Charles Schwab recently eliminated its commissions on stocks, EFT, and options trades. Standard trades are $4.95. So, you can begin investing commission-free, and there’s no account minimum to get started.
The company also offers a robo-advisor called Schwab Intelligent Portfolios. The company will invest your money in up to 20 different asset classes at no annual charge.
This feature alone makes Charles Schwab one of the best options for new investors and anyone who is looking for a low-cost investing option.
Merrill Edge
Merrill Edge is one of the best brokerages for hands-on investors. The company is owned by Bank of America, so it’s a great option for anyone who is already a customer of the bank.
And this means Merrill Edge customers also have the option to receive in-person customer service. If you live near any of the bank’s locations, you can receive in-person assistance at the bank.
Merrill Edge offers unlimited $0 online stock and ETF trades with no trade or balance minimums. The company also offers mutual funds for $19.95 per purchase, though some mutual funds are available for free.
And the online broker doesn’t have a minimum deposit requirement to open an account. So, it’s an excellent option for new investors and anyone who is looking for in-person customer support.
Betterment
Betterment works to automate and simplify the investment process and offers traditional, SEP, rollover, and Roth IRAs. This robo-advisor makes managing your IRA extremely hands-off while helping you save money on excessive fees.
What’s the pricing structure like?
You have two levels of service to choose from. The first is the Digital level, which comes with a 0.25% annual fee and no minimum balance. So if your first year’s balance is $5,000 your fee would be $12.50.
Because Betterment is a robo-advisor, it offers automatic rebalancing so that you’re always hitting your target allocations, even with a shifting market.
Their portfolios are globally diversified, and you can adjust your risk tolerance based on your preferences. Plus, Betterment implements automatic tax-loss harvesting to boost your after-tax returns.
Need to talk to a certified financial planner?
No problem, you can chat online with a licensed expert with no limit on the number of questions you ask. If you want even more advice and support, you can upgrade to the Premium level. The annual fee jumps to 0.40%, and you’ll need at least $100,000 to start your retirement account.
But you get holistic advice on all of your financial questions, not just those related to your Betterment investments. So in addition to chatting about retirement, you can also talk to your advisor about joint financial goals with your spouse.
You can also discuss college savings plans for your children, and new and existing investments.
If you’re interested in a “set it and forget it” mentality for your IRA, Betterment certainly provides that option.
Ally Invest
Ally Invest is a great option if you’re just starting to build out your IRA rather than rolling over existing funds. It’s also directed to individuals who want to manage their own investments.
There’s no account minimum to get started, and you can choose from multiple types, including Roth, traditional, rollover, SIMPLE, and SEP IRAs.
Account fees are fairly limited as well. You don’t have to pay anything to set up the account, and there’s no minimum account opening, so it’s easy for anyone to start saving. Ally also doesn’t charge an annual fee or an inactivity fee.
There’s a $50 fee if you decide to terminate your IRA account with Ally Invest. If you transfer your funds, you’ll have to pay an additional $50 as a transfer fee — plus the first $50 termination fee. There’s also a $50 conversion fee if you want to change from a traditional IRA to a Roth IRA or the other way around.
If you’re an active trader even with your IRA, then you’ll appreciate Ally’s low trading fees.
Stocks and exchange-traded funds (ETFs) are $4.95 per trade, but you can get that lowered to $3.95 if you trade at least 30 times each quarter or have a balance of $100,000 or more. Options fees start at $4.95 each plus $0.65 per contract, and that price also lowers with heavy quarterly trading activity.
If you don’t want the burden of actively trading your IRA portfolio, then look elsewhere for an IRA account. But if you like handling your investments regularly, then Ally Invest could be a strong contender for your IRA account.
Wealthfront
Wealthfront is a robo-advisor that’s growing quickly. Your first $10,000 is managed for free. Thereafter, you’re charged an annual management fee of 0.25%, regardless of how much you have in your account.
You do have to open an IRA with at least $500. The more friends you refer to Wealthfront, the more you access free services, like getting an additional $5,000 managed for free. You can choose from a few different IRA types, including traditional, Roth, SEP, and rollovers.
Where does Wealthfront shine?
The answer is in retirement analytics. Wealthfront has a retirement planning tool called Path. It lets you integrate your various retirement accounts across financial institutions so you can see an accurate and comprehensive picture of your overall retirement plan.
Wealthfront economists use projects for things like inflation and Social Security to help plan for a realistic future.
Considering a major life event or financial change?
Wealthfront’s Path program lets you see potential impacts of these types of scenarios, so you’re not surprised at how your retirement savings are affected. Plus, like other online robo-advisors, all Wealthfront investments provide tax-loss harvesting and portfolio rebalancing.
You don’t have to worry about tracking individual stocks and funds. Instead, you get to invest passively while Wealthfront’s analytics keeps track of your portfolio. With IRA options and other tools at your disposal, Wealthfront is a solid choice for hands-off retirement investing.
E*TRADE
E*TRADE offers a ton of financial products, and their IRA offerings are straightforward with low fees.
There’s a great balance of getting access to in-depth research and resources, while also having the option to let E*TRADE take on your account management.
You can choose from a traditional IRA, Roth IRA, rollover IRA, or one-stop rollover IRA. That last one lets you transfer existing IRA funds in a diversified ETF that is managed by professionals.
This adaptive portfolio takes advantage of the automation processes. It requires a $5,000 minimum deposit to get started and comes with an annual advisory fee of 0.30%.
If you’re an avid ETF trader, you can trade for free on more than 100 funds; otherwise, it’s $6.95. Like Ally, that number drops if you make 30 or more quarterly trades, costing just $4.95 per trade at that point.
Stock trades also cost $6.95 each, with the same discount available as ETFs. Fees vary on mutual funds, but E*TRADE offers more than 4,400 no-transaction-fee mutual funds.
If you’re happy working with certain restrictions on the funds you choose, you can get away with a lot of fee-free trading via E*TRADE. Plus, you don’t have to worry about a minimum opening balance for most IRA accounts.
The company has been around for decades and consistently gets strong ratings from external sources, so they have a strong reputation in the industry, which can be comforting for beginning investors.
Understanding Different Types of IRAs
Now that we’ve explored the best IRA accounts of 2023, it’s crucial to understand the differences between the various types of IRAs. Each one comes with distinct advantages and rules tailored to unique financial circumstances and retirement goals.
Whether you’re just starting your retirement journey or you’re well on your way, familiarizing yourself with these options can help you make informed decisions about your future. Here, we delve into Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
Traditional IRAs
Traditional IRAs provide a way to save for retirement with tax-deductible contributions. The contributions you make to a traditional IRA may lower your taxable income, meaning you’ll pay less income tax in the year you make the contribution.
You’ll pay taxes on your withdrawals in retirement. This type of IRA might be beneficial if you anticipate being in a lower tax bracket during retirement than you are now.
Roth IRAs
With Roth IRAs, you make contributions with after-tax dollars. This means you pay income taxes on contributions upfront, but qualified withdrawals in retirement are tax-free. Roth IRAs are attractive if you expect to be in the same or higher tax bracket in retirement.
Additionally, Roth IRAs don’t have required minimum distributions (RMDs) during the owner’s lifetime, a feature that can provide significant tax advantages.
SEP IRAs
SEP (Simplified Employee Pension) IRAs are for self-employed individuals and small-business owners. They work like a traditional IRA, allowing you to contribute pre-tax money, which grows tax-deferred until you withdraw it in retirement.
SIMPLE IRAs
SIMPLE (Savings Incentive Match Plan for Employees) IRAs are also for small businesses and self-employed individuals. They offer higher contribution limits than traditional and Roth IRAs but come with mandatory employer contributions.
Criteria for Selecting the Best IRA Accounts
As you embark on IRA investing, there are a few key factors you should consider when selecting the best IRA accounts.
Fees: Look for IRA providers with low or no annual account fees, low expense ratios on mutual funds or exchange-traded funds (ETFs), and no transaction fees. Even small fees can add up over time, eroding your investment returns.
Investment options: The best IRA accounts offer a broad array of investment options, including mutual funds, index funds, ETFs, bonds, and individual stocks. More options mean more opportunities to create a diversified portfolio.
Minimum balance requirement: Some providers require a minimum deposit to open an account, while others don’t have account minimums. This can be a barrier for new investors who want to start small.
Customer support: Excellent customer support can be invaluable, particularly if you’re new to investing. Look for providers that offer easy-to-use platforms, comprehensive educational resources, and responsive support.
Additional services: Some IRA providers also offer services like automated investing, financial planning, and wealth management, which can help you craft and stick to a retirement savings strategy.
Taxation: Understanding how different IRAs are taxed can help you optimize your retirement savings. For instance, traditional IRAs provide a tax deduction on contributions, but you’ll pay taxes upon withdrawal. Roth IRAs, on the other hand, don’t offer a tax deduction on contributions, but the growth and withdrawals are tax-free.
How to Open an IRA Account
Opening an IRA account is a fairly straightforward process, similar to opening a regular savings or brokerage account.
Choose an IRA provider: Decide whether you prefer an online bank, an investment firm, a robo advisor, or a traditional bank for your IRA. Each of these financial institutions offers unique benefits, so choose the one that fits your needs best.
Decide the type of IRA: Choose between a Roth IRA and a Traditional IRA based on your current income, future income predictions, and tax considerations. If you’re self-employed or a small business owner, you might consider a SEP or SIMPLE IRA.
Open an account: Visit your chosen provider’s website and select ‘open an account.’ You’ll need to provide some personal information, including your Social Security number, date of birth, mailing address, and employment information.
Fund your account: Decide how much you want to contribute to your account. Be mindful of the annual IRA contribution limits set by the IRS. You can fund your account through a transfer from a bank account or rollover from another retirement account.
Select your investments: Choose how your money is invested. Depending on the provider, you might be able to choose individual stocks and bonds, or you might select from a list of mutual funds or ETF trades. Some providers also offer target-date funds, which automatically adjust your asset allocation based on your age and retirement timeline.
Set up automatic contributions: If possible, set up automatic contributions to your account. Regular, consistent contributions can help your retirement savings grow over time.
Remember, it’s essential to regularly review your IRA to ensure it aligns with your retirement goals. Over time, you may need to adjust your contributions or rebalance your investment portfolio.
Common Mistakes to Avoid When Investing in an IRA
Procrastinating on opening an account: The sooner you open an IRA and start contributing, the more time your money has to grow. With the power of compounding, even small contributions can grow significantly over time.
Not contributing enough: Try to contribute the maximum amount to your IRA each year to take full advantage of the tax benefits and growth potential. If you can’t afford the max, aim to increase your contributions over time.
Investing in high-fee funds: Fees can eat into your retirement savings. Be sure to understand the expense ratios, management fees, and any transaction fees associated with your investments.
Not considering your tax situation: The tax benefits of Traditional and Roth IRAs are different, so consider your current and future tax situation when choosing an account. If you anticipate being in a higher tax bracket when you retire, a Roth IRA may be a better choice since withdrawals are tax-free.
Ignoring the income limits: Roth IRAs have income limits that can affect your ability to contribute. If you earn too much, you may be unable to contribute directly to a Roth IRA, though you might still be able to contribute to a Traditional IRA or execute a backdoor Roth IRA conversion.
Failing to update your beneficiary designations: Life changes, and so should your beneficiary designations. Make sure to review them regularly, especially after major life events like marriage, divorce, or the birth of a child.
Bottom Line
When it comes down to picking your IRA account, two of the most important factors are cost and your preferred management style. The two generally go hand in hand.
Do you want a DIY IRA that lets you do your own trading? You’ll need to compare online brokers and robo-advisors that offer free trades or lower-cost trade fees based on your trading activity.
Prefer a hands-off style? Think about how much money you’re likely to invest in the near term. Then, pick an IRA account that lets you go on autopilot while charging a flat annual fee.
For these types of IRA accounts, you’ll definitely want to dig deeper into how the financial advisors’ portfolios are chosen and whether their investment styles agree with your own.
Having any type of IRA can help you prepare for retirement. You can always transfer or roll over your funds into another IRA. However, choosing the best account in the first place can help prevent unnecessary fees.
And once you’re ready to retire, you’ll have a healthy nest egg helping you to finance your daily expenses.
Frequently Asked Questions
What is the maximum contribution limit for IRAs in 2023?
The maximum contribution limit for IRAs in 2023 stands at $6,500 for individuals who are under 50 years of age, and it’s $7,500 for those who are 50 or older. This represents a $500 increase from the 2022 limits for all age groups. It’s important to remember that these contribution limits apply collectively to your contributions to both traditional and Roth IRAs.
Can I have both a traditional IRA and a Roth IRA?
Yes, you can have both a traditional IRA and a Roth IRA. However, the total amount you can contribute to both accounts combined cannot exceed the annual contribution limit.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy for people whose income exceeds the Roth IRA income limits to still contribute to a Roth IRA. It involves contributing to a traditional IRA and then converting that contribution to a Roth IRA. There may be tax implications with this strategy, so it’s recommended to consult a certified financial planner or tax advisor.
Is the money I contribute to an IRA protected from loss?
No, the money you contribute to an IRA is not protected from loss. The value of your IRA is subject to market fluctuations and the performance of the investments within the account. It’s important to diversify your investments and align them with your risk tolerance and retirement goals.
Can I withdraw money from my IRA before retirement age?
Yes, you can withdraw money from your IRA before reaching retirement age. However, early withdrawals are subject to income tax and potentially a 10% early withdrawal penalty. There are some exceptions to the penalty, such as using the funds for qualified education expenses or a first-time home purchase. Be sure to understand the rules and potential tax implications before making an early withdrawal.
Are there any penalties for not taking distributions from my IRA?
Yes, there are penalties for not taking required minimum distributions (RMDs) from your traditional IRA. The penalty is 50% of the amount you should have withdrawn but didn’t. Roth IRAs, on the other hand, do not require minimum distributions during the owner’s lifetime.
Editor’s Note: Due to major changes coming to the FAFSA, the form for the 2024-2025 academic year is delayed until December 2023. This article reflects the most recent information, but final details will not be available until the new FAFSA form is released.
Students who are enrolled at least half-time at an eligible school, are a U.S. citizen or eligible non-citizen, and meet other requirements can receive financial aid through the Free Application for Federal Student Aid (FAFSA®).
According to Education Data Initiative, the average cost for undergraduate students attending a four-year private nonprofit institution is $38,768 in tuition and fees per year. For students attending in-state public four year institutions, the average is $9,678 in tuition alone. Living on campus bumps these numbers up to $55,840 and $26,027 per year, respectively.
If you can’t afford to pay for this cost out-of pocket, understanding the FAFSA requirements can help you possibly fund this worthwhile expense.
What Is FAFSA?
The FAFSA is the official application form to request financial aid for higher education from the U.S. government. It determines whether undergraduate and graduate students are eligible to receive federal grants, work-study, and federal student loans. Federal aid can only be used toward qualifying college expenses.
It’s also often used by states and schools to see if you’re eligible for its student aid programs. Some private entities might also use it to determine your eligibility for their own financial aid programs.
Recommended: What Costs Does a Student Loan Cover?
How FAFSA Works
Students must complete the FAFSA before each college year. Applications must be received by the June 30 deadline. However, you can begin submitting your FAFSA for the following school year starting on October 1 (for the 2024-25 FAFSA, the FAFSA will be available in December 2023), and states and colleges often have earlier deadlines for state- and school-sponsored aid.
Some federal aid is granted on a first-come, first-served basis. Many of the aid programs are based on need, though some — like Direct Unsubsidized Student Loans and Direct PLUS Loans — are not.
To start, you’ll have to create a Federal Student Aid (FSA) ID online. If you’re a dependent student, one of your parents also needs to create their own FSA ID. While filling out the FAFSA, you may need to reference or submit supporting documentation, such as your Social Security number, bank account statements and tax return details, and possibly a parent’s financial paperwork, too.
After submitting the FAFSA, you’ll receive a Student Aid Report (SAR), which is an overview of the information you included on your FAFSA. Once your FAFSA is processed, you’ll receive a financial aid offer from your school. It will outline the types of federal student aid you’re eligible for, the amounts, and instructions on how to accept the award offer.
After you’ve selected the financial aid options you want to accept, the funds will be sent directly to your school. Then, your school will apply the funds to your unpaid account balance.
The FAFSA may also be used to apply for financial aid for summer classes.
Recommended: 2024-2025 FAFSA Changes, Explained
FAFSA Requirements
FAFSA qualifications include academic and financial criteria. Although some federal aid programs, like the federal Pell Grant, require you to demonstrate financial need, you might still qualify for other federal aid options if you meet the remaining FAFSA eligibility requirements.
Education Requirements
The level of education you’ve completed must meet the minimum requirements to qualify for a college or career school program. This includes a high school diploma or General Education Development certificate from a state-approved school or setting.
Citizenship or Residency and Social Security Number
Another of the FAFSA eligibility requirements is that students must be a U.S. citizen or U.S. National with an active Social Security number.
Eligible non-citizen students might still be eligible for federal aid if they have:
• A permanent resident Green Card (Form 1-551, I-151, or I-551C)
• An arrival-departure record (I-94)
• A T-VISA
• Battered Immigrant Status
Be Enrolled or Accepted
Students must also be enrolled as a regular student at a degree- or certificate-granting school. To meet FAFSA qualifications for a Direct student loan, you must be enrolled at least half-time.
Maintain Satisfactory Academic Performance
Returning students who are applying for federal financial aid must maintain Satisfactory Academic Progress (SAP).
Each school determines its own SAP criteria, which includes minimum GPA, minimum passing grades for courses, number of required course credits or hours, and the timeline it deems necessary to advance toward a degree or certificate.
Age and Dependency Status
Your dependency status determines whose information you’ll need to include on your FAFSA. Dependent students are required to provide their parents’ financial information on their FAFSA while independent students might not need to.
Generally, you’re considered an independent student if at least one of the following applies to you:
• For the school year you’re applying for aid, you’ll be 24 years old by January 1.
• You’re married or separated (but not divorced).
• You’re a graduate-level student.
• You have children and provide more than half of their support.
• You have other dependents in your household whom you provide more than half of their support.
• You’re in the U.S. armed forces and on active duty (non-training).
• You’re a U.S. armed forces veteran.
• Since turning age 13, your parents were deceased, you were in foster care or a ward or dependent of the court.
• You’re an emancipated minor or are in a legal guardianship.
• You’re an unaccompanied homeless or self-supporting youth at risk of homelessness.
Income Limits
A common misconception is that students or their parents must earn below a certain income to meet FAFSA eligibility requirements. However, there is not a FAFSA income limit for student applicants and their families.
Required Documents to Submit FAFSA
Although you won’t need to submit copies of additional documents with your FAFSA, you’ll need to refer to certain documents to complete your application. It may also be helpful to keep these documents on file in case your school requests to see them.
Social Security Number
You’ll need your Social Security number to include on your FAFSA form. If you’re a dependent, the form also asks for your parents’ Social Security number. If they don’t have one, enter all zeros without dashes.
W-2s and Untaxed Income Records
A main FAFSA requirement to successfully complete the application is reporting your income, and your parents’ income, if applicable. Make sure to reference all W-2s and untaxed income documentation, like interest income, child support, or other noneducation benefits.
If you are a dependent student, you’ll need to provide information from both yours and your parent’s W-2.
Tax Returns
You’ll need to reference your most current tax return information as well as your parents’ tax returns if you’re a dependent student. If you’ve already filed your tax return for the year, you might be eligible to use the IRS Data Retrieval Tool to transfer your tax information into the FAFSA.
Asset Records
You’ll also need to include your and your parents’ deposit account balances, like checking and savings, on your FAFSA. Similarly, investments, like stocks, bonds, and real estate that isn’t your primary home, must be included on your FAFSA form.
Alternatives to Federal Aid
Outside of the FAFSA application, there are other avenues to secure funds to pay for your higher education.
Savings
Consider tapping into existing savings, if your financial aid award comes up short. Doing so might help you avoid taking on more student loan debt.
There are certain accounts such as 529 savings plans that are designed to help parents and families save for their child’s education.
Grants
Research non-federal grants from your state, school, nonprofit, or other private organization. These funds don’t need to be repaid.
Scholarships
Scholarships are another aid source that doesn’t need to be repaid after leaving school. Find state-, school-, or private-sponsored scholarships to find more cash. There are online databases such as Scholarships.com that aggregate information on available scholarships. Take a look to review eligibility criteria and application requirements.
Part-Time Work
If you can manage balancing schoolwork with a part-time job, earning an income while enrolled in school can help you pay your way through your education.
Private Student Loans
Private student loans are available through private lenders, like banks, credit unions, and online institutions. These loans come with varying terms and interest rates, and can help cover the gap between your cost of attendance and existing financial aid.
When comparing private student loans and federal student loans, know that private lenders aren’t required to offer the same benefits or protections as federal student loans. As a result, private student loans are generally considered an option only after other sources of financing have been exhausted.
The Takeaway
Regardless of your or your family’s income, it’s generally worth submitting an application if you meet the FAFSA requirements. Since it’s a free application, there’s nothing to lose and much to gain if you’re eligible for aid, including scholarships and grants that don’t need to be repaid.
If you still need financial aid after submitting your FAFSA and searching for scholarships, consider a SoFi private student loan. It’s a zero fee loan option that offers competitive rates for qualifying borrowers.
Get pre-qualified in just a few minutes.
FAQ
How much or little income do you need to qualify for aid through FAFSA?
There are no income requirements for FAFSA applicants. Instead, a variety of factors determine whether a student is eligible for federal aid, including the school’s cost of attendance, the student’s year in school, their dependency status, family size, and more.
What is the maximum amount of money FAFSA gives?
The maximum amount of aid you can receive through the FAFSA depends on which federal aid programs you qualify for. Different programs have varying limits.
For example, the maximum Pell Grant award changes annually; for the 2022-23 award year the limit is $6,895. Direct Loans also have their own annual and aggregate borrowing limits.
How does parent income affect FAFSA aid?
Parent income that’s reported on a student’s FAFSA is used to calculate the applicant’s Expected Family Contribution (EFC). The EFC is a number on an index that helps schools determine your financial need if you attend its school. It also identifies your eligibility for certain financial aid programs like the Pell Grant or Direct Subsidized Loans.
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As borrowers gear up for federal student loan bills resuming this fall, they face a revamped landscape that includes a new repayment plan, servicer switches and long call wait times. Another imminent concern: scammers who want to take advantage of the moment.
“Whenever there’s confusion in the marketplace, that’s when the criminal fraudsters get active,” says Clayton LiaBraaten, senior executive advisor at Truecaller, an app that blocks spam calls.
Borrowers need to protect themselves, even as regulators crack down on scammers. In August, the Federal Trade Commission (FTC) caught a group of scammers who brought in roughly $8.8 million with false promises of “Biden Loan Forgiveness” in exchange for hefty upfront fees. The group claimed to be affiliated with the U.S. Department of Education and primarily targeted borrowers via calls and texts, the FTC said.
If you receive an unsolicited call or text about your student loans, it’s probably a scam. Here’s how to spot and avoid a student loan repayment scam — and what to do if you think you’re a victim of one, according to experts.
What to watch out for
Student loan scams vary widely, but they often contain a few key ingredients. Here are some common red flags.
Advertising from the ‘government’
Scammers will often use the word “federal” in their communications, LiaBraaten says. They might claim federal or government affiliation, or they could claim to be connected with the Education Department or your student loan servicer.
Aggressive advertising language can also indicate that communication isn’t from the government.
“If you are a student loan borrower, you need to be aware that the federal government isn’t soliciting you,” says Leslie Tayne, a financial debt attorney. “If it sounds like a sales pitch with guarantees and promises, that’s not coming from the federal government.”
Relief that costs money
If someone asks you to pay an upfront or monthly fee to access debt relief, it’s a scam.
It’s always free to enroll in or benefit from any legitimate federal student loan relief, such as income-driven repayment (IDR) plans, borrower defense to repayment, Public Service Loan Forgiveness and the IDR account adjustment.
And if you have questions about your loans or repayment options, you can call your servicer for free guidance.
Promises that are too good to be true
Keep your guard up if you receive calls with promises of instant student loan relief. Most federal relief programs require at least a decade of payments to qualify — and no company or person has the ability to negotiate a special deal with your loan servicer or the government, warns the Education Department.
“Legitimate loan forgiveness programs usually have these strict eligibility criteria, so any sort of instant forgiveness is a red flag,” says Ally Armeson, program director of the nonprofit Cybercrime Support Network. Scammers see an opportunity with people panicking around repayment and try to position themselves as saviors, she says.
How scammers reach you
Student loan scammers can get creative with their contact methods. Here are a few to watch out for.
Robocalls
Think twice if your phone rings with an unknown number. In the first half of September, scammers placed more than 350,000 student loan-related robocalls, according to Transaction Network Services, a financial infrastructure firm.
“Beware of unsolicited calls or communication,” Armeson says. “That is the number-one way that a scammer will weasel into your life.”
Snail mail
Scammers may also send letters through the mail. Read them closely. Even if it seems official or formal, a scam letter will often include grammatical or spelling errors, the Education Department says.
Texts and social media
Increasingly, scammers are also targeting borrowers with texts and social media messages, Tayne says. Scams that began on social media have accounted for $2.7 billion in reported losses since 2021, more than any other contact method, the FTC said earlier this month.
Official Education Department text messages will only come from the numbers 227722 or 51592.
Email
Scammers may try to sneak into your inbox. If an email looks suspicious, double-check the sender.
Legitimate emails from the Education Department will only come from these senders:
Protecting yourself from a student loan scam
Don’t engage if you receive a call about your student loans out of nowhere. Hang up if it’s a robocall; if a person is on the other side, quickly end the call.
“If someone says they are from a specific agency, department or loan servicer, just say, ‘you know what, let me hang up and do my research, and I’ll go from there by myself,'” Armeson says.
If you get an email or text about your student loans, don’t click on any links.
Use strong passwords and enable two-factor authentication on all of your online financial accounts, including your StudentAid.Gov and student loan servicer accounts, LiaBraaten says.
Never share your login information. With just your username and password, scammers can sign legally binding student loan documents electronically and make changes to your federal student loan account.
The Education Department and your servicer will never ask for your password.
What to do if you’re a student loan scam victim
If you believe a scammer has targeted you, immediately stop communicating with them. Then, take the following steps to get help and protect yourself from any further harm:
Contact your student loan servicer. Call your servicer and tell them what happened. Check the status of your loan and ask if the scammer did anything to your account.
Call your bank and credit card company. Ask them to stop any payments to a scammer.
Change your passwords. Change all passwords associated with your financial accounts and student loans, like your StudentAid.gov and servicer accounts.
Monitor your finances. Check to see if anyone has opened an unauthorized account or line of credit in your name.You can check your credit report for free each week on AnnualCreditReport.com.
Consider freezing your credit. If you think the scammer may have personal information, like your Social Security number, freeze your credit to prevent identity theft and fraud.
Save all communication records. If the scammer has texted or emailed you, save these records to send the information to the FTC and other law enforcement agencies.
Report possible scams to the FTC, which may use the report to spot trends, educate the public and bring cases against fraudsters in partnership with more than 2,800 law enforcement organizations.
If scammers took your money, the FTC will also give you advice on how to recover it. “The quicker you act, the better your chance of getting your money back,” the FTC website says.
You can also report the student loan scam to your state’s attorney general’s office or the Consumer Financial Protection Bureau for further assistance and investigation.
If you are looking for the best online jobs for teens, then you have come to the right place. Here are the best online jobs for teenagers, even if you have no experience. There are many ways to make money online, and as a teenager, you may be interested in learning how you can as…
If you are looking for the best online jobs for teens, then you have come to the right place. Here are the best online jobs for teenagers, even if you have no experience.
There are many ways to make money online, and as a teenager, you may be interested in learning how you can as well.
Whether you are 13 years old or 19 years old, there are many different legitimate online jobs for teens that you may be interested in learning more about.
Related content:
Online Jobs For Teens
There are many online jobs for teens listed below. If you want to skip the list, here are some virtual jobs for teens that you may want to start learning more about first:
Start a website
While I was around 21 years old when I started my blog, I know of a few people who started theirs as teenagers.
A blog can be a great online job to start when you’re young, as you can decide how to build your blog, how you earn an income, and the schedule you put toward it.
Blogging has allowed me to travel full-time, work from home, have a flexible schedule, earn a high income, and love what I do.
You can easily learn how to start a blog with my free How To Create a Blog Course.
Here’s a quick outline of what you will learn:
Day 1: Why you should start a blog today
Day 2: What topic to blog about
Day 3: Tutorial on how to start a blog on WordPress
Day 4: How to make money with your blog
Day 5: How to make passive income on your blog
Day 6: How to get pageviews to your blog
Day 7: Tips to see success with your blog
Out of all of these online jobs for teens, blogging is by far my favorite. It does take a little more time to start making money, but it’s very flexible and fits with any kind of schedule.
Create a TikTok account
You have most likely heard of TikTok.
There are over 1.5 billion users on TikTok, and many people are able to earn an income on this social media platform doing many different things.
From personal finance tips to comedy, day in the life to travel, and more, there are many different topics you can cover on your own TikTok account through making social media content.
If you want to learn how to make money online for teens, this is a fun one.
You can learn more at How I Make Money On TikTok – How I Grew To 350,000 Followers and Made $60,000 In 6 Weeks.
Begin a YouTube channel
Everyone has heard of YouTube, and pretty much everyone has watched at least one YouTube video in their life.
In fact, according to YouTube, there are over 2 billion people who watch at least one video on YouTube each month.
Many people have goals of starting a YouTube channel and making money, but not many people ever actually start.
You can learn more at How I Grew From 0 Subscribers To Over $100,000 On YouTube In Less Than One Year.
Resell items online
If you are looking for a flexible job as a teenager, one to look into may be reselling items online, such as on Craigslist, eBay, or Facebook Marketplace. There are many other online marketplaces as well.
Plus, it’s something that anyone can start because many of us own things that we could probably sell.
And, there are always things that you can buy for a low price and possibly resell for a profit. Or, you may even be able to find free things that people are throwing away and sell that as well.
This is such a profitable idea that my friend was able to make $133,000 in one year through buy-and-sell flipping and with working only 10-20 hours per week.
Since then, they have turned this into an even bigger and more profitable business!
Some of the best items that they’ve resold include:
Something they bought for $10 and flipped for $200 just 6 minutes later
A security tower they bought for $6,200 and flipped for $25,000 just one month later
A prosthetic leg that they bought for $30 at a flea market and sold for $1,000 on eBay the very next day
A lift that they found in the trash (and asked the owner for permission to take) that they sold online for $7,500
You can learn more at How I Made $40,000 In One Year Flipping Items.
They also have a helpful free webinar, Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days. I recommend checking it out.
Sell printables on Etsy
If you are looking for a way to make money at home and be your own boss, then creating printables may be for you.
A printable is a digital product that can be downloaded and printed at home. You make them once and then sell them on a website such as Etsy for people to buy. You wouldn’t have to print anything, instead, you are simply selling the download.
Items such as grocery shopping checklists, weekly meal plans that someone puts on their fridge, gift tags, and quotes to be framed are all printables.
This can be a great way to make money at home as a teenager because you create one digital file download per product, and you can then sell them an unlimited amount of times.
You can sign up for this free ebook that helps you figure out where to start when it comes to selling printables on Etsy.
I recommend reading about this further at How I Make Money Selling Printables On Etsy to learn more about one of the best jobs for stay-at-home moms.
Note: Etsy account owners must be at least 18 years of age to sell on Etsy. If you are between the ages of 13 and 17, you can sell on Etsy if you have the appropriate permission and direct supervision of your parent or legal guardian. Your Etsy account must be registered with the parent or legal guardian’s information.
Create and sell stickers
Another fun way to make money online as a teenager is to sell stickers.
My friend started with no graphic design skills and didn’t even know how to create stickers when she first started. It’s something she learned as she went, and she now earns over $100,000 each year with her sticker business.
I interviewed her here on Making Sense of Cents and she answered questions such as:
Do I need to be a graphic designer to make and sell stickers?
Why do people buy stickers online?
Do stickers sell well online?
How much money can I make selling stickers as a small business idea?
You can head over to How To Make $1,000+ A Month Selling Stickers Online to read more.
Make Canva templates
Canva is an online graphic design website. On Canva, you can sell premade designs to other Canva users so that they can edit and customize them.
Some examples of Canva templates include ebooks, workbooks, Pinterest pins, and more.
Creating Canva templates can be a great way to make extra money because you just need to create them once, and you can sell them an unlimited amount of times.
People all around the world use Canva to help with the graphic design side of their business, and templates make their lives so much easier.
Working just a few hours a week, I know someone who is able to earn $2,000 each month from selling Canva templates from home.
Do you have questions such as:
What is a Canva template and what is Canva?
Why would someone buy Canva templates? What is the benefit?
I have no tech skills, can I still create and sell Canva templates?
You can head to this article to learn more at How I Make $2,000+ Monthly Selling Canva Templates.
Voice over acting
Voice-over actors are of all ages, and you probably hear them all the time!
A voice-over actor is the person you hear but usually do not see on radio ads, YouTube videos, documentaries, e-learning courses, audiobooks, TV commercials, video games, movies, and cartoons.
This job doesn’t require previous experience or special skills – you just need to have the voice the company is looking for.
You can learn more about how to become a voice-over actor at How To Become A Voice Over Actor.
Answer online surveys
Not too long ago, one of the ways I made extra money to pay off my student loan debt was by answering paid online surveys.
You will not get rich from taking surveys, but it can help you to earn a little bit of extra money in some of the spare minutes that you may have throughout the day. Plus, you may get free items occasionally to review as well.
Companies will pay you to take surveys because they want to see what people think of their product and their company. They seek out real opinions from real people.
Here are some of the survey companies that are open to teenagers (along with their minimum age requirements):
American Consumer Opinion – Age minimum – 14 years old
Survey Junkie – Age minimum – 12 years old
MyPoints – Age minimum – 13 years old
Branded Surveys – Age minimum – 16 years old
Swagbucks – Age minimum – 13 years old
InboxDollars – Age minimum – 12 years old
Pinecone Research – Age minimum – 18 years old
User Interviews – Age minimum – 16 years old
Some of the above will even pay you to review music, play video games, or test mobile apps as a part of their research.
Sell items on Amazon
We have all heard of Amazon.
It is a website full of items sold by people like you and me.
In the first year that my friend Jessica’s family ran their Amazon FBA business together, working less than 20 hours a week total, they made over $100,000 profit!
You can learn more by reading How To Make Money From Home Selling On Amazon, such as answers to questions like:
How Jessica started selling on Amazon FBA
What exactly Amazon FBA is
How to choose what to buy and sell
How much a person can expect to earn
The positives of selling on Amazon, and more
Customer service support
If you are looking for a more traditional style of online job, such as working for someone else, then finding a customer service representative job may be something to look into. This way, you can start earning money right away, right after you get hired, instead of attempting to build a business.
There are many companies that hire for customer service support at home, even if you are young. Most will want you to be at least 16 years old or 18 years old to start.
As a customer service representative, you may be responsible for tasks such as:
Answering questions from customers about a product
Troubleshooting and helping with issues that a customer may have with a product
Processing orders
Assisting with returns
Handling feedback and customer complaints
And so much more.
Virtual assistant
As a virtual assistant, you would be helping a person or small business owner with administrative and business tasks. You would be their assistant but working in your own home instead.
I have been a virtual assistant in the past, and I now have virtual assistants of my own. They are lifesavers!
You do not need to have previous experience in order to start as a virtual assistant, instead, you need to be willing to learn so that you can help a business run more smoothly.
Many, many people and companies are looking for virtual assistants, as they play such an important role.
As a virtual assistant, you may be able to start at around $15-$20 an hour, or even much more. This will depend on the type of work you are providing, the experience that you have, the field you will be working in, and more. As a full-time virtual assistant, you may be able to earn over $10,000 a month once you gain experience.
As a virtual assistant, you may be doing tasks such as:
Managing a company’s social media accounts, such as by being their social media manager
Managing a person or company’s calendar
Scheduling appointments or travel
Creating or assisting with slideshows or presentations
Email management
Communicating with clients or customers
And so much more.
Different companies and employers will need different work to be done – it simply depends on who you will be working for and what they need to be completed.
You can learn more at How I Earn $10,000 Per Month From Home as a Virtual Assistant.
Start an online store
I feel like so many young adults are starting online stores, and it completely makes sense.
It’s something you can do from home, and there are ways to do it that don’t involve storing inventory or taking up a large amount of your valuable time.
Plus, you can make extra cash or even a full-time income.
And, there are so many different things that you can sell online.
From pet items, skincare, fitness products, subscription boxes, and accessories, to clothing, crafts, and more, the list is endless.
You can learn more about this topic at How I Make Over $10,000 Monthly With My Online Store In Less Than 10 Hours Per Week.
Write an ebook
Yes, you may be able to make extra money as a teenager by writing an ebook, and you can do it all from your home.
Anyone can write an ebook, no matter how young you may be.
There are many different genres that you can choose from, such as fantasy, fiction, nonfiction, mystery, and more.
If this is one of the online jobs for teens you’d like to learn more about, read How I Make $200 Each Day In Book Sales.
Find online tutoring jobs
Are you looking for a flexible side hustle as an online tutor?
If there is a subject that you are knowledgeable in, such as math, English, science, etc., then you may want to see if you can find students that you can tutor.
To become an online tutor, you can simply create a tutor profile on a tutoring platform, create a listing on Fiverr, reach out to people that you know, and more.
Learn more at The Best Online Tutoring Jobs – A Flexible Way To Make More Money.
Freelance write
Becoming a freelance writer can be a great online job for teens because there is a growing number of jobs out there for freelance writers, and many people start with no previous experience.
A freelance writer is someone who writes for a number of different clients, such as a website, blog, magazine, and more.
You can learn more in the article How To Become A Freelance Writer.
Proofread
If you have a passion for reading and often find mistakes in written content, then you may want to learn how to become a proofreader.
Freelance proofreading is a flexible and detail-oriented job that only requires a laptop or tablet, an internet connection, grammar skills, and a good eye for finding mistakes.
Proofreaders look for punctuation mistakes, grammar, misspelled words, lack of consistency, and formatting errors.
If you want to find online proofreading jobs, I recommend watching this free 76-minute workshop all about how to get started proofreading.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
Tips for online jobs for teens
Below, I want to share some tips for you on how to manage an online job for high schoolers. Having an online job as a teenager means that you may have some questions, such as how to avoid scams, how to balance school and work, how to open a PayPal account when you are underage, and more.
How to avoid online job scams
While there are many, many legitimate online jobs for teens, there are scams as well. Due to that, I want to share my best tips so that you can avoid scams but still find an online gig.
Some of my tips to avoid scams:
Research the company and the position to make sure they are real and a company that you would like to work for.
Search on the Better Business Bureau to learn more about the company and read their reviews.
Research the company online to see if there are any mentions of it being a scam. I like to type in “Company name + Scam” into a search engine and see what pops up.
Always be careful if the company asks you to pay money.
Before you give out any personal information, such as your social security number, you should make sure it is a real job that they are offering you.
Search the Federal Trade Commission and see if they have any press releases or articles about work-from-home job scams that they may have found.
Never click on any links or download anything in a suspicious email.
And, always trust your instincts! If something seems fishy, then trust yourself. There are always other jobs out there – do not feel like you have to take one that you are unsure about.
Simply move on and look for another opportunity that fits you.
Frequently Asked Questions About Online Jobs for teenagers
Below are common questions about online jobs for high schoolers.
How can a student work from home?
If you are a teenager, then you may still be in school. If you are trying to manage school and find a way to make money, then I do want to share some of my best tips.
After all, I have been in your shoes!
Working and going to school can be tough to manage.
Below is my advice for balancing both:
Realize what your motivation is for balancing both school and having a job. This is important because at times it will be hard to manage both, and thinking about why you are making yourself so busy can help to keep you motivated. You may even want to create a vision board so that you can look at it whenever things are tough so that you can easily remember what you are working towards.
Carefully plan out your school and work schedule. To balance school and work, then I recommend creating a carefully planned out schedule. This mainly only applies if you are in college or if you have control over the hours in your school day. This may include researching when the classes you need are offered and start trying to eliminate any gaps that may fall between your classes. Having an hour or two break between each class can quickly add up.
Bulk up your class days. If you think you can do it without overtiring yourself, then you may want to have as many classes together as possible in one day so that you are not constantly having to drive back and forth between school, work, and home.
Have a to-do list. I live and breathe by my to-do list. It helps me to not forget anything and to quickly realize that I have something to do (so I should stop procrastinating!).
Please head to 9 Ways To Successfully Balance School And Work to learn more.
How to open a PayPal account when you are a teenager?
If you are under the age of 18, then you will need a parent or a legal guardian to open a PayPal account. They would be the primary account holder, and you would simply be doing transactions through their account.
So, this means that you want to choose someone that you trust as they will have full access to the money that you are earning and is being transferred to your PayPal account.
How old do you have to be to work an online job? Can I work from home at 15? How can I make money at 17 without a job?
The age will vary depending on the job that you are looking to get.
How do you get paid with an online job for teens?
The way that you will get paid will depend on what you are doing.
If you are taking paid online surveys, for example, then you may get paid in rewards, a gift card, or even PayPal or check.
For more traditional jobs and gigs, you may be getting a paycheck every two weeks. If you are working for yourself, then you may be getting paid directly to your bank account.
How can I make money online as a teenager?
There are many ways to make money as a teenager, as you learned above. These include:
Blogging
TikTok creator
YouTuber
Reseller
Printables creator
Sticker maker
Canva templates designer
Voice-over actor
Survey taker
Amazon seller
Customer service representative
Virtual assistant
Online store owner
Author
Tutor
Freelance writer
Proofreader
And the list goes on and on!
Whether you are looking to make extra cash or if you are looking for a full-time job, there are many ways for you to earn money as a teenager.
Lastly, my final piece of advice is to make sure that your parents are informed of what you are doing. For your safety, I highly recommend telling your parents about your online job and keeping them updated about what is going on and if there are any changes.
Are you looking for the best online jobs for teens?
Opening a business bank account for your LLC doesn’t just help streamline bookkeeping and operations (though it does that, too). A dedicated LLC bank account is an essential step to maintaining the legal distinction between the business and its owners, which is necessary to preserve limited liability protections. Even single-member LLCs should have one.
Follow these steps to open an account for your LLC.
1. Formalize your LLC
If you haven’t legally established your LLC and obtained an employer identification number (EIN), this is your first step. You’ll need an EIN to open a bank account in your LLC’s name, and you can receive one instantly by applying on the IRS website. Other methods, like sending an application by mail or fax, may take multiple weeks to process.
Looking for a business checking account?
See our overall favorites, or choose your business type to find the best options for you.
Learn more
on Nerdwallet’s secure site
2. Choose a bank for your LLC business account
A business checking account is the default business account for most LLCs. You can use this account for day-to-day operations, including accounts payable and receivable.
Look for an account with low (or no) monthly fees that can easily integrate with your existing business tools and supports joint accounts, if your LLC has multiple owners. And factor in other useful account features, like cash deposits, free employee debit cards, ATM rebates, free wire transfer or cash back on business purchases.
A single business checking account may suffice for smaller operations or LLCs with no employees, but larger companies may want multiple business accounts.
Your LLC may opt to use one business bank account for payroll, for example, and another for your operating account. Or you may want to leverage a business savings account to earn a higher yield on any extra cash on your balance sheet.
🤓Nerdy Tip
Having multiple business bank accounts — at multiple banks — can also help maintain access to funds if an account is compromised or your bank shuts down.
3. Apply for an LLC bank account
Depending on the bank you choose, you can apply for an LLC bank account either online, in person or over the phone. Applying is pretty straightforward, so long as you come prepared with what you need to open a business account.
Check with your bank on exact requirements, but expect to provide the following:
Business documents:
Articles of organization/formation.
LLC operating agreement.
Business license.
EIN confirmation or verification letter from the IRS.
“Doing business as” (DBA) or assumed name certificate, if applicable.
Business details:
Business name, address, phone number and EIN.
Industry, type of business and date your business was established.
Annual revenue and type/volume of transactions expected.
Personal information:
Driver’s license or passport.
Date of birth and Social Security number.
Home address, personal email and cell phone number.
Multi-member LLCs need to provide personal details and identification for anyone with 25% or more ownership in the business.
4. Set up your LLC bank account
Once approved, it’s time to fund and set up your LLC bank account. If your account has a minimum opening deposit, you’ll make that right away.
From there, gradually move your business’s assets into your newly opened account. Business accounts typically have longer deposit hold times for new accounts (up to 10 business days), and some financial institutions will flag large transactions, including deposits, for fraud — so you don’t want all your funds temporarily tied up.
You also want to log in to the bank’s online banking platform to set any alerts or preferences. Decide who will be authorized to sign on the account. This is especially important for multi-member LLCs. Add any additional users, like an accountant or employee who handles the accounts payable, and set account permissions accordingly.
If your bank offers direct integration with any business tools, connect the accounts to streamline your bookkeeping. You’ll also want to establish any recurring bill payments or invoices and download the bank’s mobile app for easy banking access on the go.
So you’re thinking it’s time to open an IRA? That’s great news! An individual retirement account (IRA) is an excellent option. It will give you tax benefits as you save for retirement.
Opening an IRA can seem like an intimidating process. But it’s really pretty simple. Here, we’ll detail the six steps you need to follow to get it done.
How to Open Your First IRA
1. Make the Roth vs. Traditional Decision
Before you can open an IRA, you need to make one major decision: Roth or traditional.
A traditional IRA is one that lets you put in pre-tax dollars. You take a tax write-off in the year of contribution (assuming you’re eligible). You don’t pay taxes on the returns that accrue in your account. But you’ll pay income taxes on withdrawals during retirement.
With a Roth IRA, you contribute after-tax dollars to the account. But when you withdraw the money, you don’t pay any taxes.
Not everyone is eligible for a Roth IRA. So check out the eligibility requirements before you put a lot of time into this choice.
Deciding between these two options can take some time. You’ll need to do some math based on your current marginal tax bracket, state and local income taxes, and projected taxes during retirement. We won’t go into all the calculations here. If you’re not yet sure whether to go Roth or traditional, read this article for a primer on how to do the math.
2. Decide What You Want to Invest In
You can narrow down the list of potential IRAs by deciding ahead of time what you want to invest in. For instance, you could invest in a combination of individual stocks and bonds. Or you could invest in mutual funds or ETFs. Another option is to invest in certificates of deposit.
Here a Dough Roller, we often suggest investing in mutual funds or ETFs. These can give you access to a wide, balanced range of investment options. They may be less volatile than individual stocks. And they are often less expensive.
Need more information before you can decide? Check out these articles on different types of investments:
How to Invest in Index Funds
What are ETFs (and Are They a Strong Investment Option)?
Mutual Funds vs. ETFs–Does it Really Matter?
Stocks vs. Bonds
How to Build a Bond Ladder – Create a Regular Cash Flow
3. Decide How You Want to Manage Investments
The next decision you need to make is how you’ll manage your investments. Do you want to manage them all yourself as a hands-on investor? Do you want someone else to manage them for you? Perhaps you want something in between these extremes?
This decision is somewhat less crucial than your first choice. You can change your mind later if you decide differently.
Here are some of the main options to consider:
Self-Driven Investing: So you want to take charge of your investments on your own? In this case, you may need to open your account with a brokerage like TD Ameritrade or Ally Invest. These brokerages will give you access to a variety of investments, including stocks. You could also open an IRA with a mutual fund company like Fidelity. This option lets you drive your own investments through mutual funds, rather than individual stocks. E*TRADE offers it all–you can trade stocks, bonds, mutual funds, ETFs, options, and futures. You can also open an IRA account with no minimum.
Target-Date Investing: Want to take a more hands-off approach to investing? Consider opening an IRA at a brokerage that offers target-date investing. Basically, this automatically balances your portfolio based on your estimated retirement date. As you get closer to retirement, your investments will become more conservative and, likely, stable. Mutual fund companies often offer target-date funds.
Robo-Advisors: Robo advisors like Betterment help you manage your investments in ETFs. These options start you out with a questionnaire to determine your risk tolerance. They set up your portfolio based on your answers. Then you can track and manage your investments from their online interfaces.
4. Research Your Options
Once you’ve narrowed down your choices by answering questions two and three, you’re ready to choose where you’ll open your IRA. There are some great options available these days. Some of our favorites are TD Ameritrade, E*TRADE, and Betterment. Click the links to check out our reviews on each of those options.
What, exactly, should you look for when reviewing your investing options? Here are some questions to answer before you decide where to open your IRA:
How much will they charge? It is absolutely essential that you pay attention to fees when it comes to investing. Even a single percentage point can make a huge difference over the course of your investing life. Know that you’ll likely get hit with fees for maintaining an account and trading. You may face additional fees for managed accounts and for the particular investments you choose. Some fees are inevitable. The goal is to earn good returns while paying as little as possible in fees.
What’s the minimum to open an account? This will matter less if you have a few thousand dollars available when you open your IRA. But if you’re strapped for cash, check the minimum contribution to open an account.
What investments do they offer? Obviously since you spend time in the last two questions deciding how you wanted to invest, you need to answer this question. Different IRAs will let you access different investment types, from ETFs and real estate funds to individual stocks and bonds. Be sure your choice aligns with your investing goals.
How easy is the account to manage online? If you’re like most modern investors, you’ll want to manage your account online, and maybe even through an app. Most of our favorite companies have good-to-great online interfaces. Just be sure you understand how the interface works so you can manage your investments easily.
What do reviews have to say? Finally, check out solid reviews of the companies you’re considering. Some will have better customer service than others. Some will have an easier-to-use online interface. Checking out reviews will help you find the answers to questions like these.
5. Open and Fund an Account
Actually opening an account is pretty simple once you’ve worked through the decisions. With most IRA offerings, you can apply online. You’ll need to provide some personal information, such as your name, address, and Social Security number. If you’re choosing a robo advisor, you’ll also walk through a questionnaire to help the advisor set up your portfolio.
Then, you’ll most likely be able to link your funding account to your IRA. Oftentimes, you’ll need to wait for one or two micro-deposits to hit your funding account. Once you confirm these micro-deposits, the accounts will be linked. You can then fund your IRA and get started investing.
6. Keep Going and Growing
Now that you’ve opened your first IRA, you just need to keep funding it and keep tabs on it. You can contribute just a few bucks a month. Or you can contribute all the way up to the federal maximum limit for that year. (Check here for the latest federal limits.)
If you decided to start out in a managed account whether a target-date fund or a robo advisor account–do some more research. Learn more about investing. This way, you can at least be sure you’re happy with the choices the system is making for your investments. And if you aren’t happy, you’ll be empowered to make different choices for yourself.
A Note for the Self-Employed
This article has mainly focused on the simpler topic of traditional and Roth IRAs for those in traditional employment. If you’re self-employed, though, you have a wider variety of options available to you. Your steps will be similar to those above. But you’ll first need to decide what type of IRA to open.
You can get more information on self-employment retirement options in this article. Start there. Then come back here to complete the standard five steps for opening an IRA.
How to Manage Your IRA
Track and Analyze your Investments for Free: Managing investments can be a hassle. You may have multiple IRAs, multiple 401ks, as well as taxable accounts. And then there are bank accounts. The easiest way to track and analyze all your investments, regardless of where they are located, is with Empower’s free financial dashboard.
Empower enables you to connect all of your 401(k), 403(b), IRAs, and other investment accounts in one place. Once connected, you can see the performance of all of your investments and evaluate your asset allocation.
With Empower’s Retirement Fee Analyzer you can see just how much your 401k and other investments are costing you. I was shocked to learn that the fees in my 401(k) could cost me over $200,000!
Empower also offers a free Retirement Planner. This tool will show you if you are on track to retire on your terms.
Abby is a freelance journalist who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three. She has a B.A. in English Literature from Indiana University Purdue University Indianapolis, and lives with her husband and children in Indianapolis.
Inside: Are you looking for a way to help your kids learn about money? If so, Cash App for kids is the ideal answer. This guide will teach you how to manage money simply by using apps.
Ever wondered why it’s crucial for your kids and teens to have a cashless payment option?
In this digital age, teaching money management skills early to our younger generation is vital.
Having features likeCash App for kids is a great way to introduce them to responsible spending. Not only does it provide a secure method for purchases without the need for carrying physical money, but it also serves as an excellent tool for setting spending limits and tracking budgeting habits.
Plus, it’s a win-win for parents and teens as you can visually monitor transactions while they enjoy a sense of financial independence.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is Cash App?
Cash App is a user-friendly financial services platform that allows users to instantly send, receive, and invest money.
It offers a range of services including a free custom Visa debit card and the option to receive paychecks up to two days earlier.
Additionally, with the Cash App, users can instantly buy and sell stocks commission-free and even trade in bitcoin.
Can a child have Cash App?
Yes, a child can have a Cash App account if they are 13 years old or older. However, it requires parental approval.
Remember, this gives your child the opportunity to learn money management, but it also comes with the responsibility of overseeing their spending.
Why would kids need Cash App?
Well, we are moving to a cashless world. There are thousands of stores and restaurants that only offer cash. We learned this when our son went to an MLB baseball game with his middle school. No cash. Only debit or credit cards were accepted as well as Visa gift cards.
So, we needed to give our kids an introduction to modern, simple, and secure ways of money management.
Cash App might be the perfect solution. Another great option is Greenlight for kids.
Cash App – Do More with Your Money
Cash App is a user-friendly financial services platform that allows users to instantly send, receive, and invest money.
Simple way to save on everyday spending and back the way you want.
What are the benefits of using Cash App for kids?
Education: Cash App can be an effective way to teach your children about responsible money handling and the dynamics of a digital economy.
Control: You have the flexibility to set spending limits and disable certain features, ensuring responsible use of the application.
Security: Cash App’s encrypted connection adds an extra layer of security, keeping your kid’s transactions and personal data secure.
Emergencies and convenience: It’s an incredibly handy tool for sending cash to your kid during emergencies. No need to rush, just a tap on your phone, and you can send money.
What cash apps can 13 year olds use?
In today’s cashless society, it’s more important than ever for kids to learn how to manage money digitally.
Below are some alternatives to Cash App that serve well for 13-year-olds:
Description:
The Greenlight debit card is a kid-friendly financial tool designed for comprehensive money management education.
Parents can monitor and control card usage, set spending limits, and track your child’s spending and saving habits.
Learn to earn, save, and invest together. The banking and investing app for kids and teens.
Comes with a debit card
Allows kids to make savings goals.
Limited deposit methods
Monthly fee
Starts at $4.99/month
Description:
Prepaid cards and a family finance app for kids, teens, and parents.
More than money.
A financial education.
If you want your child to learn money habits that match your values, you’re in the right place.
Description:
Cash App is a user-friendly financial services platform that allows users to instantly send, receive, and invest money.
Simple way to save on everyday spending and back the way you want.
Description:
The Greenlight debit card is a kid-friendly financial tool designed for comprehensive money management education.
Parents can monitor and control card usage, set spending limits, and track your child’s spending and saving habits.
Learn to earn, save, and invest together. The banking and investing app for kids and teens.
Comes with a debit card
Allows kids to make savings goals.
Limited deposit methods
Monthly fee
Starts at $4.99/month
Description:
Prepaid cards and a family finance app for kids, teens, and parents.
More than money.
A financial education.
If you want your child to learn money habits that match your values, you’re in the right place.
No bank account needed.
No fancy phone needed.
Affordable for all! Plus free trial!
Mobile setup is not user friendly.
No investing option.
$5.99 month or $3.33/month for 12 months
Description:
Cash App is a user-friendly financial services platform that allows users to instantly send, receive, and invest money.
Simple way to save on everyday spending and back the way you want.
Only able to spend what is loaded on Card.
Free CashApp debit card.
No maintenance or annual fees.
Not FDIC insured.
No parental controls.
Remember, each app has its own unique strengths and weaknesses. Do some research and try out a few to see which one best suits your teen’s financial needs.
How do I create a Cash App account for my child?
Teaching kids about money management is vital for their financial future.
One excellent way to do this effectively is by setting up a Cash App account for children, giving them practical experience in handling finances while under a parent’s supervision. Also, known as a sponsored account.
This guide will walk you through the process of creating a Cash App account for your child and highlight the numerous benefits it offers.
Step 1: Download Cash App
To download Cash App, click this Cash App link to make sure you are in the right spot. Both you and your teen will need to do this step.
It’s easily recognizable – look for the white dollar sign on a green background. Once you’ve found it, simply hit ‘Install’ and sit back while your phone does the work.
Remember, this green goodness is only accessible to users in the United States.
When learning which payment type is best when trying to stick to a budget, you will be pleasantly surprised at how well Cash App works.
Step 2: Create an Account
This is a simple process. Both the teen and the adult will need to do this step separately. If as the parent you don’t have a Cash App account, then you will need to do this step.
To create a Cash App account, follow these steps:
Once installed, open the application and follow the on-screen instructions to set up your account.
You will have to enter your phone number or email address.
For security certification, the Cash App will send you a secret code to verify you. Enter it.
Select a $cashtag, which is a unique username to send and receive money (similar to Venmo)
Step 3: Connect a Bank Account
For the parent account, you need to complete this step and the teen will need to wait.
Remember, in “My Cash” you’ll spot the “Add Money” option for funding.
Open Cash App; it’s the icon with a white dollar sign on a green background.
Tap the top-right profile icon.
Navigate to “My Cash” – it’s a tab on the home screen.
Click “Link a Bank,” nestled within the options.
Follow the prompts to add your bank account or debit card info.
Once your card is linked, you’re all set.
Learn where can I load my Cash App card.
Step 4: Authorization Request of a Family or Sponsor Account
Now, you must link the two accounts together. Cash App calls this a sponsored account. There are one of two ways to accomplish this.
Option #1 – Parents Initiate the Request
To invite someone 13-17, then open the app:
Tap the Profile Icon on your Cash App home screen
Select Family
Tap Invite a teen
Follow prompts to share links using text or email
Option #2 – By the Teen
On the Home Screen, tap the Cash App profile icon.
Proceed to Family Accounts and choose the option “I’m a Teen”.
Complete the Cash App for Kids application form with your details including your name and birthday.
Hit the Request Approval button.
Enter the name, email, phone number, or $CashTag of your parent/guardian.
Lastly, tap Send. This will send an authorization request to your parent or guardian’s Cash App account. They need to approve this request before you can start using the app.
Note: You can’t add funds, send payment, or request a Cash Card until this authorization is approved.
Step 5: Have Your Child Design and Order a Free Cash Card
Now, the fun part! Ordering your own Cash App Card.
Designing and ordering your Cash Card is packed with creativity and ease.
Customize your card to represent your unique personality, with choices ranging from the material, font size, and base design, to text lines.
You can seek inspiration from an array of cool Cash App Card design ideas. Notably, the glow-in-the-dark cards are quite popular among minors.
The whole process is about making your debit card unmistakably yours.
Step 6: Limitations on Certain Features
Certain financial apps cater to teens by setting limits on transactions.
For example, a teen on Cash App can send and receive up to $1,000 every 30 days. This safeguard is designed to prevent overspending and encourage smart budgeting practices.
Furthermore, parents and guardians have the option to impose their own customized spending limits through the app according to their teen’s financial maturity. However, it’s essential to keep in mind, that these apps are not recommended to be used by teens just like regular accounts due to the risks of misspending and overspending.
Be aware that certain transactions are blocked, including bars, dating services, and rental car services
Encourage your kids to use robust, unique passwords and activate features like PIN lock and facial ID to enhance security.
You can ensure safety by setting a PIN, turning on notifications, and limiting money requests to ‘contacts only’.
This is similar to understanding the advantages of mobile phones for kids.
Step 7: Pick a unique $Cashtag
Tell your child to select a unique and fun $Cashtag for their Cash App account. It’s like a username and can be used in transactions.
Emphasize the originality of the $Cashtag as it needs to be unique.
Expert Tip: To secure their $Cashtag, avoid using personal information like birthdate or social security number. Instead, opt for quirky, fun, and uncommon word combinations.
Step 8: Send & receive money
Cash App provides an easy-to-use platform for instantly transferring money between friends and family at no cost.
A few quick taps allow users to request, receive, or send money, presenting a convenient method for paying a dinner, settling rent with roommates, or any other financial interactions.
In addition, users get a free custom Visa debit card, which they can order directly from the Cash App for both virtual and physical use. The card enables users to make purchases from any merchant accepting Visa cards.
Plus, with the Cash Boost feature, users gain from immediate discounts at select restaurants, stores, applications, and websites when they use their Cash App card.
An Alternative – Use Greenlight Debit Card for Kids
Looking for an all-in-one alternative to the Cash App for your kids?
Explore the Greenlight Debit Card for kids – a superb choice for money management and financial education.
The Greenlight debit card is a kid-friendly financial tool designed for comprehensive money management education.
Parents can monitor and control card usage, set spending limits, and track their child’s spending and saving habits.
Plus it offers 1% cash back on all purchases and up to 2% interest on savings, this card is accepted anywhere MasterCard is used and comes with built-in features that include educational programming and real-time notifications for every transaction.
Greenlight
The Greenlight debit card is a kid-friendly financial tool designed for comprehensive money management education.
Parents can monitor and control card usage, set spending limits, and track your child’s spending and saving habits.
Pros:
Offers a comprehensive financial education pathway
Broad acceptance due to affiliation with Mastercard
Parents retain control over spending limits
Real-time notifications improve security
Cashback rewards are an added bonus
Cons:
Greenlight charges a monthly fee starting from $4.99
Limitations on direct deposits
No possibility for payments from Paypal, Venmo or Apple Cash
Kids under 13 require parental access
Some transaction types are blocked
It’s an innovative and secure financial platform for kids, with plans starting at $4.99 a month.
Safety Measures for Using Cash App for Kids
Educating children about safety measures while using cash apps and debit cards is crucial in today’s digital age.
With increased online scams, it’s important that kids understand the equivalence of digital cash to real money and how to protect their accounts.
This brief overview will highlight key practices to ensure your child’s safety when handling digital transactions.
1. Know the App’s Safety Features
Knowing the app’s safety features is crucial for maintaining security while using cash apps.
These features can include password protection, two-step verification, and biometric scans such as fingerprint or facial ID. Many apps also offer robust encryption to secure data and transactions.
Keeping abreast of the app’s safety protocols not only helps safeguard against potential scams but also instills a better understanding of digital literacy. Understanding these safety measures and functionalities can greatly lessen the likelihood of falling victim to fraudulent activities.
Make sure they don’t learn how to unlock borrow on CashApp!
2. Talk to Your Kids About Money
It is essential to talk to your children about financial literacy from an early age especially if your parents never spoke about money.
Start by making them aware of the concept of saving by using tools like a piggy bank and elucidate the value of delayed gratification.
As they mature, introduce them to the functionalities of debit cards and apps like Cash App that provide hands-on experience in managing finances. Teach them about budgeting, saving, and investing in an age-appropriate manner.
Above all, impart the message that money doesn’t just grow on trees and that every purchase needs to be evaluated against future needs and plans.
3. Use Account Alerts to Stay Up to Date
Account alerts on Cash App are not only handy but critical to your kid’s financial safety. Setting them up is a breeze.
Firstly, head to the “Notification” tab in your app settings.
Thereafter, opt for “Account alerts” and switch it on. This will ensure you’re notified of all transactions.
For an added layer of security, enable “Suspicious activity” alerts; this helps to flag any odd movements swiftly.
4. Set Up a Strong Account Passwords
It is crucial to ensure that your online accounts are secured with robust and unique passwords.
Complex passwords that incorporate a mix of uppercase and lowercase letters, numbers, and special characters can provide a strong line of defense against unauthorized access. Also, you should look at changing these passwords regularly, which further enhances security.
Using a password manager, either online or paper-based, can assist in maintaining and keeping track of different account credentials, maximizing security while minimizing the risk of forgetting passwords.
However, if opting for a paper-based version, it is crucial to store it in a secure and confidential location to prevent unauthorized access.
5. Have a Conversation About Scams and Fraud
The proliferation of digital transactions and cash transfer apps has given rise to numerous scams, making it critical for users to look out for fraud.
Online scams can result in financial loss, with cash apps often not assisting in the recovery of misdirected funds due to errors or fraudulent activities.
Additionally, cybercriminals use these scams to steal personal data, leading to issues like identity theft and fraudulent transactions. Furthermore, the anonymity of digital platforms enables scammers to disappear without a trace after executing a scam, sometimes befriending and exploiting minors.
Therefore, everyone must stay vigilant about potential scams to protect their money, personal information, and overall digital safety.
Key Tips to Watch for:
Discuss current scams happening. Use reliable resources to educate them about how fraud works and precautions to take.
Teach them to *slow down* during transactions to avoid sending money to the wrong contacts.
Advise against sending money to strangers to avoid being scammed.
6. Check Bank Accounts for Any Unauthorized Payments
As a parent, it is essential to regularly check your teen’s checking accounts linked to their mobile wallet for unauthorized payments.
By staying vigilant, you can detect suspicious activity early and prevent possible instances of fraud.
Tracking their spending patterns also helps you understand if they are managing their digital money wisely or if there are sudden changes in their spending habits.
Remember, it is better to be proactive in monitoring these accounts, as most money transfer app funds are not FDIC insured, making the recovery of accidental transfers or payments a challenging task.
7. Ability to Give Your Kids an Allowance
If you choose to do so, giving your kids an allowance on Cash App is a safe and effective way to teach them about responsible money management. It provides hands-on experience while putting the power of monitoring in your hands.
To set this up, simply create an account for your minor and periodically send money to it as an allowance. They can spend or save it, while you observe their spending habits.
This is a simple way for kids and teens to start managing a small amount of money.
Cash App – Do More with Your Money
Cash App is a user-friendly financial services platform that allows users to instantly send, receive, and invest money.
Simple way to save on everyday spending and back the way you want.
Which cash app will you choose for your kids
To sum it up, equipping your kids with financial responsibility via Cash App or Greenlight is an intelligent move.
These apps provide a platform for learning about savings, investments, and the value of money.
Although risk exists its potential scams, with proper guidance, your teen can safely navigate this. The added perks of trading, direct cash exchanges, and options like BusyKid and Bankaroo can further enrich their financial literacy journey.
So, which digital wallet will you pick for your kid’s first leap into financial independence?
Know someone else that needs this, too? Then, please share!!
423 cases per 100,000 resident for state with highest identity theft
This post originally appeared on Finder.com.
As the world continues to cope with COVID-19, America is seeing cases of identity theft soar to record highs. Of the 3.2 million reports to the FTC’s Consumer Sentinel Network Data Book in 2019, 20% — or 650,572 — related to identity theft. And already in the first quarter of 2020, reports of fraud and identity theft are up 20.1% from the previous quarter.
The numbers could rise as more people continue to work from home and new reports of coronavirus-related fraud and scams come in.
Among these all-time-high cases, credit card fraud leads the charge.
I just watched a documentary on the dark web, and I will never feel safe using my credit card again!
Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.
I need that peace of mind in my life. What else do you get with ExtraCredit?
It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.
It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.
…we live in Oklahoma.
Identity Theft vs. Account Takeover
Identity theft involves the unauthorized access of personal information, such as your name and Social Security number. Account takeover is when a fraudster accesses account information, such as credit card numbers, with the intent of committing fraud on existing accounts.
In 2019, victims reported $160.3 million worth of losses resulting from identity theft, according to the FBI. Credit card fraud made up the overwhelming majority of that $160.3 million.
This number represents only what was reported through the FBI’s Internet Crime Complaint Center. However, and doesn’t account for reports made directly to field agents.
Most Common Types of Identity Theft
Swiping the competition in 2019 was credit card fraud, which accounted for 41.78% of all identity theft reports to the FBI, followed by other identity theft, which includes fraud conducted via email and social media. The least common was government documents or benefit fraud at 3.54%.
Identity Theft and Credit Card Fraud by State
The dubious honor of state with the most identity theft reports goes to Georgia, with the Peach State logging 423 cases per 100,000 people in 2019–176 of those falling under the credit card fraud umbrella.
Florida came in just south of Georgia with 154 cases of credit card fraud per 100,000 people, followed by California and Texas.
The state with the fewest number of reports was South Dakota, with 47 reports of fraud per 100,000 people, followed by Vermont and Wyoming.
Several states in the middle of the country also came in at the middle of the pack, like Missouri and Colorado, with 41 and 45 reports of credit card fraud per capita, respectively.
Credit Card Fraud by Metro Area
Georgia maintains its top spot in individual metropolitan areas, accounting for three of the five areas with the most reports of identity theft per capita–Warner Robins, Atlanta-Sandy Springs-Roswell and Macon-Bibb County. A person convicted of financial transaction card fraud of more than $100.00 within a six-month period in Georgia can be charged with a felony. The ramifications can be a fine of up to $5,000.00 or a prison term of one and five years. On the flip side, Muncie, Indiana, logged the least number of reports at 37 per 100,000 people, followed by Glens Falls, New York, and Tullahoma-Manchester, Tennessee.
Top 10 metropolitan areas with highest identity theft per 100,000 residents – data
Rank
Metropolitan area
Reports per 100,000 residents
Number of reports
1
Warner Robins, GA Metropolitan Statistical Area
661
1,281
2
Atlanta-Sandy Springs-Roswell, GA Metropolitan Statistical Area
570
33,940
3
Miami-Fort Lauderdale-West Palm Beach, FL Metropolitan Statistical Area
556
34,458
4
Macon-Bibb County, GA Metropolitan Statistical Area
455
1,045
5
Memphis, TN-MS-AR Metropolitan Statistical Area
446
6,027
6
Columbus, GA-AL Metropolitan Statistical Area
433
1,322
7
Columbia, SC Metropolitan Statistical Area
411
3,420
8
Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area
410
54,553
9
Houston-The Woodlands-Sugar Land, TX Metropolitan Statistical Area
367
25,656
10
Dallas-Fort Worth-Arlington, TX Metropolitan Statistical Area
367
27,637
Top 10 metropolitan areas with lowest identity theft per 100,000 residents – data
Rank
Metropolitan area
Reports per 100,000 residents
Number of reports
1
Muncie, IN Metropolitan Statistical Area
32
37
2
Tullahoma-Manchester, TN Micropolitan Statistical Area
34
35
3
Glens Falls, NY Metropolitan Statistical Area
34
43
4
Lewiston-Auburn, ME Metropolitan Statistical Area
38
41
5
Appleton, WI Metropolitan Statistical Area
41
97
6
Owensboro, KY Metropolitan Statistical Area
41
49
7
Wenatchee, WA Metropolitan Statistical Area
42
50
8
Bismarck, ND Metropolitan Statistical Area
41
54
9
Ogdensburg-Massena, NY Micropolitan Statistical Area
43
46
10
Eau Claire, WI Metropolitan Statistical Area
43
72
Methodology
Finder sourced all data from the Consumer Sentinel Network Data Book 2019, released by the Federal Trade Commission in January 2020. The Consumer Sentinel Network Data Book uses reports in its Sentinel secure online database available to law enforcement only. These consumer reports are about fraud, identity theft and other consumer protection topics, with more than 3.2 million consumer reports filed in 2019.
The reports in Sentinel are sourced directly from:
People who call the FTC’s call center or report online
Reports filed with other federal, state, local and international law enforcement
Organizations like the Better Business Bureau and Publishers Clearing House