U.S. Bank is offering 70,000 miles after $5,000 in spend within the first 90 days on the Korean Air SKYPASS Select Card
Card Details
Annual fee of $450, not waived fist year
$200 annual statement credit on travel purchases (this is based on a card member year, not calendar)
TSA PreCheck/Global Entry Credit of up to $100
10,000 bonus miles on card anniversary, must spend $35,000 in the prior year or 5,000 miles when you spend $15,000
Get 5% off Korean Air tickets 2X yearly, available for you and a companion
Card earns at the following rates;
3x miles per $1 spent on Korean air purchases
2x miles per $1 spent on Airline ticket, Car Rental & Hotel purchases
1x mile per $1 spent on all other purchases
Discount coupon for $100 off Korean Air ticket
2 Korean Air In-Flight Duty Free coupons of $25 each
2 KAL Lounge coupons each year
Our Verdict
Benefits aren’t really worth it for the $450 annual fee, but it could be worth getting the first year just for the miles but even then it’s hard to justify. Think this is an easy pass for most people but better than the standard 60,000 miles offer. We won’t be adding this to the best credit card bonus page.
U.S. Bank is preparing to roll out a credit card that can pay as much as 4% cash back on every purchase for banking customers who meet eligibility requirements. Flat-rate cash back credit cards tend to top out at 2% on purchases, meaning this card could be twice as lucrative as alternatives — if you qualify.
2% to 4% cash back
The U.S. Bank Smartly™ Visa Signature Card, which is currently in wait-list status, will pay a base rate of 2% on every purchase. Customers who have a Bank Smartly® Savings account and at least $5,000 in combined accounts with U.S. Bank can rack up a “Smartly Earning Bonus” on top of that rate:
If you have $5,000 to $49,999 in balances: You earn a 25% bonus on the rewards you earn, making your effective rewards rate 2.5% cash back.
If you have $50,000 to $99,999 in balances: You earn a 50% bonus on your rewards, making your effective rewards rate 3% cash back.
If you have $100,000 or more in balances: You earn a 100% bonus, making your effective rewards rate 4% cash back.
To qualify for those higher rates, a cardholder must have or open a Bank Smartly® Savings account with a minimum deposit of $25 and maintain the necessary combined balances in checking accounts, savings accounts, money market savings accounts, CDs, IRAs, U.S. Bancorp Investments and personal trust accounts. Business and commercial accounts don’t qualify, and only primary cardholders’ accounts are considered (not accounts owned by authorized users).
To determine bonus eligibility, the bank looks at your average daily combined balance for the preceding three months.
Rewards get full value when deposited
Rewards are earned as points. The base rate is 2 points per dollar, with the bonuses adding on 0.5 points, 1 point or 2 points per dollar. When you deposit your rewards into an eligible U.S. Bank deposit account, points are worth 1 cent apiece, giving you the full cash-back value of 2% to 4%. Other redemptions, including for statement credit, may result in a lower value per point.
There’s no limit on the total amount of rewards you can earn, and rewards points don’t expire unless there is no activity in the account for 12 billing cycles.
Important disclosures from U.S. Bank
Net Purchases are Purchases minus credits and returns. Not all transactions are considered to be Purchases and eligible to earn rewards, such as transactions posting as Convenience Checks; Balance Transfers; Advances (including ATM withdrawals, wire transfers, traveler’s checks, money orders, foreign cash transactions, betting transactions, and lottery tickets); interest charges and fees; credit insurance premiums; and transactions to (i) fund certain prepaid card products, (ii) buy currency from the U.S. Mint, or (iii) buy cash convertible items. Upon approval, see your Cardmember Agreement for details. Purchases qualify for rewards based on how merchants choose to classify their business and we reserve the right to determine which purchases qualify.
1. “Cash back” rewards are earned under the U.S. Bank Smartly Visa Signature® Card program. These rewards are earned as “Points”, and U.S. Bank will credit your U.S. Bank Smartly™ Visa Signature® Card with 2 “Points” for every $1 in eligible Net Purchases. You may earn additional Points for a Smartly Earning Bonus if you (i.e., either Cardmember if there is more than one):
Open ($25 minimum deposit required) or maintain a U.S. Bank Smartly® Savings account and
Have Combined Balances with U.S. Bank in checking account(s), money market savings account(s), savings account(s), CDs and/or IRAs, U.S. Bancorp Investments and personal trust account(s):
Between $5,000 – $49,999, to earn a total of 2.5 Points per $1 (a base of 2 Points plus the Smartly Earning Bonus of 0.5 Points),
Between $50,000 – $99,999, to earn a total of 3 Points per $1 (a base of 2 Points plus the Smartly Earning Bonus of 1 Point), or
$100,000 or more to earn a total of 4 Points per $1 (a base of 2 Points plus the Smartly Earning Bonus of 2 Points).
Combined Balances are based on the average daily balance of the previous 3 months (calculated monthly) (or, for account(s) open less than 3 months, the average daily balance of the applicable time frame). The applicable Smartly Earning Bonus will be determined by reviewing the Combined Balances in the qualifying accounts of each Cardmember (if there is more than one) and using the total Combined Balances of the individual whose accounts have the highest total. If a U.S. Bank Smartly Card account has an Authorized User(s), the U.S. Bank balances of the Authorized User(s) will not be reviewed and will not qualify for determining the Smartly Earning Bonus. Note: Balances in business accounts, commercial accounts, and the Trustee only client relationship do not qualify. The Smartly Earning Bonus that will be applied to your Account is determined within the first 5 days of each month, which means that the bonus applied to your Account may vary during a billing cycle. The Smartly Earning Bonuses are calculated when Net Purchases are posted to your Account (which may not be the transaction date). Points will expire if there is no reward, purchase, or balance activity on your account for 12 consecutive statement cycles.
2. This card earns cash back rewards in the form of Points. To redeem as Cash Back in the values noted in this advertisement, rewards Points must be redeemed as a deposit into an eligible U.S. Bank deposit account. Other redemptions, such as statement credits and gift cards, may be at a reduced redemption rate.
Chase just sweetened the pot for the Ink Business Unlimited® Credit Card. Starting Sept. 5, new cardholders can earn a $900 sign-up bonus when they spend at least $6,000 in the first three months. That’s $150 more than the previous bonus, but with the same spending requirement.
You won’t find a better, or more attainable, bonus from a cash-back business card — especially one with no annual fee.
Chase
Ink Business Unlimited® Credit Card
NerdWallet Rating
Bonus Amount
$900
How you’ll get your bonus
While the Ink Business Unlimited is a cash-back card, rewards are delivered as Chase Ultimate Rewards® points. You can redeem your points as cash via a statement credit or deposit it into a checking or savings account.
Ultimate Rewards points can also be redeemed for travel, gift cards, shopping or dining. The value of your points will depend on how you use them.
Cash back: 100 points = $1.
Chase Travel: 100 points = $1.
Pay with Points (Amazon.com and PayPal): 100 points = $0.80.
Shop Apple (via Chase): 100 points = $1.
Gift cards: Redemption value varies.
You can also transfer Chase Ultimate Rewards® points — to another Chase card or an external travel partner — to squeeze even more value out of each point.
Transfer your new Ink Business Unlimited welcome bonus to your Chase Sapphire Preferred® Card, for example, and that $900 bonus becomes a $1,125 bonus when redeemed via Chase Travel.
Should you get the Ink Business Unlimited?
The Ink Business Unlimited® Credit Card is hands down one of the best business credit cards. Its combination of simplicity and value makes this uncomplicated card an excellent choice for new businesses and established companies, alike. Cardholders get unlimited 1.5% cash back, pay no interest on purchases for 12 months (then ongoing APR of 18.49%-24.49% Variable APR), and can net one of the best bonuses out there.
Few other business cards can match it. The Wells Fargo Signify Business Cash℠ Card comes close, with a 12-month intro APR period and unlimited 2% cash back. But its sign-up bonus is $400 less than the new Ink Business Unlimited offer.
If simplicity isn’t your top priority, the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® is also worth a look — especially if you count gas, office supplies, cell phone service and restaurants among your top expenses. The Triple Cash earns 3% back in those categories and matches the intro APR offers from Chase and Wells Fargo. You also get a $100 annual credit for recurring software subscriptions and an excellent welcome offer: Earn $750 in cash back. Just spend $6000 on the Account Owner’s card in the first 180 days of opening your account.
The information related to the Wells Fargo Signify Business Cash℠ Card has been collected by NerdWallet and has not been reviewed or provided by the issuer or provider of this product or service.
U.S. Bank is set to launch the Smartly Visa Signature card and this will earn up to 4% back on all purchases. Card details as follows:
Earn 2% cash back on all purchases
Earn up to an additional 2% cash back when paired with a U.S. Bank smartly savings account.
Earn 2.5% total cash back when you have a qualifying balance of $5,000 – $49,999
Earn 3% total cash back when you have a qualifying balance of $50,000 – $99,999
Earn 4% total cash back when you have a qualifying balance of $100,000+
There are a few things that are unclear such as whether there is an annual fee, is there a cap on the additional up to 2% cash back and if there will be a sign up bonus or not. The Smartly account itself earns 4.1% APY when you also have a Smartly checking account and a balance of $25,000+ so this is competitive with the best high yield savings accounts, can also have the money in their investment account. This has the potential to be big, worth signing up for the wait list in case they offer a better than normal sign up bonus for those that do.
Update 8/27/24: reader Physicist points out that you’ll still be able to get a full $.01 per point when redeeming into a U.S. Bank bank account, or when redeeming for travel either in the Altitude Rewards Center or redeeming for travel with Real Time Rewards.
Update 4/10/24: Landing page also says that GigSky benefit will be removed on 8/31/2024.
Original Post:
U.S. Bank has announced major changes coming to the Altitude Connect card, effective September 9, 2024:
Biggest changes:
The $95 Annual Membership Fee will be removed.
Points are going down in value from 1 cent-per-point to .8 cents per point. This is true for cash back, Real-Time Rewards, U.S. Bank Rewards Card, Shop with Points at Amazon.com and Paypal. You can still get 1 cent per point in the Altitude Rewards Center when redeeming for travel.
The $30 credit for annual streaming service purchases will be discontinued.
Points Earnings:
4X points at gas stations and EV charging stations will be limited to your first $1,000 each quarter.
The card earns 2X points on dining, streaming services and at grocery stores. Beginning September 9, 2024, discount stores/supercenters and wholesale clubs are excluded.
You will continue to earn 5X points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center and 4X points on travel purchases.
Other Changes:
New benefit: Points can be redeemed for a monetary charitable contribution across a variety of nonprofits and U.S. Bank will match your contribution at 100%.
The cell phone protection benefit will no longer be available with your card.
Final Thoughts
All other benefits remain unchanged. Notably, the card will keep the Precheck or global entry credit. The card also offers complimentary Priority Pass Select membership with 4 free visits. These are sweet perks for a no-fee card.
Altitude Go Card
It’s not clear to me of what changes are happening to the Altitude Go card. It appears from this page that the card will maintain its $15 streaming credit. I’m not sure if points are going down to .8 cents per point on that card.
The Robinhood Gold Card was unveiled in March 2024 by the investment app Robinhood and issuer Coastal Community Bank.
Made of stainless steel and weighing in at 17 grams, the card aims to keep up with fancy premium metal credit cards that offer lucrative benefits — and it can certainly deliver that, earning an industry-leading 3% cash back on most purchases. Historically, a 2% flat rate on everything has been as good as it gets for products in this class, especially among no-annual-fee cards like this one.
Still, there are hurdles to accessing the Robinhood Gold Card. First, you must be a Robinhood Gold member to qualify for it, and that’s not free — although with a 3% rewards rate, it won’t be difficult to offset that cost. Secondly, as of this writing, if you’re interested in applying you must “reserve your spot” online and wait for an invitation “when it’s time.” The card has been slowly shipping to those who joined that waitlist when it debuted, but the rollout has been uneven, and it’s not clear when applicants can expect to receive their cards.
And despite that juicy 3% rate, one thing you won’t get with the card? A lucrative sign-up bonus.
Here’s what you need to know about the Robinhood Gold Card.
1. It offers an uncommonly high rewards rate
As a cardholder, you’ll earn an uncapped 3% cash back on all purchases, aside from travel booking completed through Robinhood’s travel portal, which earns 5% back.
Rewards are issued as points you can redeem at a value of 1 cent apiece for a cash deposit into a Robinhood brokerage account, a statement credit, travel booked through Robinhood’s portal, gift cards purchased through the portal, and shopping with eligible retailers through the portal. To redeem points in these ways, you must have downloaded and installed the latest version of the Robinhood credit card app. (Note that the credit card app is separate from Robinhood’s primary investing app.)
A flat and unlimited 3% rate on most purchases is almost unheard of for cards like this, with the possible exception of some smaller banks and credit unions. That means rewards will accumulate faster if you use the Robinhood Gold Card to cover most purchases — as long as you pay off the card in full each month to avoid interest charges. With an APR that can range as high as nearly 30% (as of August 2024), carrying a balance on this card will be costly.
If you’re looking for cards with even higher rewards rates, you can find them, at least in certain spending categories. The U.S. Bank Cash+® Visa Signature® Card, for instance, gets you 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose (from a list of 12); 5% back on prepaid air, hotel and car reservations booked directly in U.S. Bank’s Rewards Center; 2% back on an everyday category you choose; and 1% back on all other eligible purchases. It has a $0 annual fee and comes with a sign-up offer for new cardholders: Earn a $200 rewards bonus after spending $1,000 in eligible purchases within the first 90 days of account opening.
2. There’s a waitlist
Getting on the waitlist to reserve the Robinhood Gold Card doesn’t require much effort. You can visit the card’s website to get in line by providing your email address. No other information is required at that stage.
The company has begun rolling out the card to people on the waitlist who are Robinhood Gold members, but it has not yet provided a specific date as to when all applicants can expect their cards to arrive in the mail. It’s also unclear as to whether the waitlist will remain a requirement for all applicants.
If you don’t want to wait for a credit card with good rewards on everyday spending, consider other $0-annual-fee products like the Capital One SavorOne Cash Rewards Credit Card or Wells Fargo Active Cash® Card. The Capital One SavorOne Cash Rewards Credit Card offers 3% back on dining, eligible streaming services, grocery stores and entertainment, as well as 1% back on all other purchases. The Wells Fargo Active Cash® Card offers 2% cash back on all purchases.
3. A Robinhood Gold membership is required
The Robinhood Gold Card doesn’t have an annual fee, but you will have to be a Gold member to qualify for it, and that comes with a $5 monthly fee. If you opt to pay annually, the cost is $50.
The card’s 3% rewards rate alone makes it easy to offset the cost of that fee, and that’s before considering the other perks that Gold membership can offer, such as a 5% APY on uninvested cash, a 3% match on Robinhood retirement IRA contributions, a 1% deposit boost on new eligible deposits, and more. Terms apply.
4. Features increase safety and convenience for shopping
The Robinhood Gold Card offers a variety of helpful features — some not always available on other cards — that make it easier to manage your spending. As a cardholder, you can expect access to these options:
Virtual cards: The card comes equipped with disposable card numbers that may be used as virtual cards that provide an added security option when shopping online.
Options to simplify free trials and subscriptions: The card offers a way to cancel subscription payments, end free trials automatically, and authorize cards for one-time use.
Family-friendly features: You can add up to five family members to the account as cardholders, regardless of their age. Everyone added receives their own card, and you can set spending limits, track their spending and lock lost cards instantly.
An app with helpful visuals: You’ll manage the card in an app that, again, is separate from Robinhood’s main investing app. Through the app you can get a financial overview of your spending patterns, real-time spending insights and more.
5. Travel-friendly features
While the Robinhood Gold card can be an ideal cash-back credit card, it also has elements of a decent travel credit card. In addition to the 5% back on travel through Robinhood’s travel portal, the card offers a lengthy list of travel benefits, and it doesn’t charge foreign transaction fees.
As of August 2024, you’ll get trip interruption reimbursement, an auto rental collision damage waiver, extended warranty protection, return protection, roadside dispatch, travel and emergency assistance, Visa Signature concierge service, and purchase security. As is the case with any credit card, though, these benefits may change over time.
If, however, you want a truly travel-focused card with more perks, consider the $95-annual-fee Chase Sapphire Preferred® Card. It earns 5 points per dollar spent on all travel purchased through Chase; 3 points per dollar spent on dining, select streaming services and online grocery purchases; 2 points per dollar spent on travel not purchased through Chase; and 1 point per dollar spent on all other purchases. The card also comes with a $50 annual credit on hotel stays purchased through Chase, plus points take on more value when you redeem them for travel through Chase. On top of that, you’ll get access to multiple travel partners, which can help your points go further. And unlike the Robinhood card, there’s a generous sign-up bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠.
(Update: readers note that Bank of America does a similar thing on their business cards.)
A lot of us who signed up for a U.S. Bank business card gets confused about this so I thought it worth a post:
When you sign up for U.S. Bank business cards, the bank opens up two unique accounts for your card. One looks like a regular card account and the other is something called a “Central Bill Account.” That Central account has a separate account number, and feeds from the regular card account; any purchase made on the card account shows up as money owed on both accounts.
I believe the idea might be that the card account details are informational – something for the employee; you won’t ever see the bank say that the card owes anything since really it’s the business who owes the money, not the employee. On the other hand, the Central Bill Account is the business account which actually owes the money.
You’ll even see differing balances on the two accounts since any amount that was billed to you gets removed from the employee card side of things. (The card account only shows the new charges, even when the old charges have not yet been paid off, whereas the Central account shows the full balance, as any other bank would do it.)
The card account will show $0 minimum payment due, even when you have a minimum payment owed. You’ll even get a statement saying that you don’t owe any minimum payment, and if you don’t make the payment you’ll get hit with a late fee since you really do owe a minimum payment. Again, I believe the idea is that ‘you’ as the employee don’t owe anything since the business owes it, and that’s billed to the Central Billing Account of the business.
My advice: Just ignore the main card account and only use the Central Billing Account for everything, including statements. There’s another option to call in and have them remove the Central Billing Account, and then your card should operate normally.
For some reason I got this Central Billing Account only on my Triple Cash business card, not on my Leverage business which I signed up a few months earlier. Reader Shawn tells us that there’s actually an option to select during card signup whether to have this Central Billing feature or not.
When you have multiple U.S. Bank business cards it’s possible to set them up that they all feed into the same Central Billing Account for simpler bill management. For our readership, I’d suggest that most of us will prefer declining the Central Billing option. I must have mistakenly signed up for it when applying for the Triple Cash, but not when applying for the Leverage card (or maybe it wasn’t yet an option then).
In the image below, the top account is my Leverage card which works normally. The bottom two accounts are both the same Triple Cash card with two separate entries in the online login (and, confusingly, differing balances). Again, I just ignore the regular card and use only the Central Billing Account.
Hat tip to reader Gerald and beenthere for reminding me about this.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Business credit cards may affect your personal credit score, depending on the card. Most card issuers will only report to the consumer credit bureaus if your account becomes delinquent.
Many business owners turn to business credit cards as a way to separate their personal and business finances. Your credit score is important, so you may be wondering, “Does my business credit card affect my personal credit score?”
While there are many benefits to business credit cards, it’s helpful to understand how they work. Here, we teach you about how business credit cards can affect your personal credit score and report and if a business credit card is right for you.
What are business credit cards for?
Business credit cards are one of the more convenient ways for a business to access additional funds. Taking a loan out for a business involves a much longer process than simply applying for a business credit card, which may be approved within a few minutes.
With a business credit card, businesses can cover operating expenses and purchase items they need for their offices. Many businesses use these cards for fuel, travel expenses like flights and hotels as well as meals.
These cards also make it easier to track business expenses. By looking at the credit card statement, you can see what’s spent and when. Some of these cards also have built-in reporting tools for even more convenience.
Some of these cards also offer company-specific rewards, so businesses can save on travel and other categories.
What effect does a business credit card have on your personal credit?
Typically, financial institutions look to credit reports as a way to assess credit risk. Although your business credit card isn’t for personal use, the bank needs to run a hard inquiry, which will show on your personal credit report.
Hard inquiries cause a temporary drop in your credit score, but as long as you’re practicing good credit habits like making your payments on time and keeping your utilization low, it should recover in time. Once you start using the business credit card, it’s reported to commercial credit bureaus. The main three commercial credit bureaus include:
Dun & Bradstreet
Experian® Business
Equifax® Small Business
Depending on the business credit card, some may report to your personal credit report as well. In some cases of delinquencies or late payments, your business credit history may be reported to the personal credit bureaus. This can also lead to derogatory marks on your personal credit report.
Some business credit cards may also require a “personal guarantee.” A personal guarantee is when you agree that the card issuer can come after your personal assets if the business defaults on the debt.
Which business credit cards report to personal credit
Most of your business credit card activity isn’t reported to the credit bureaus, but there are exceptions:
Yes, but the Capital One Spark Cash Plus and Venture X Business cards only report when the account has negative information
Chase
Only accounts that are seriously delinquent
Citi
No
U.S. Bank
Only accounts that are seriously delinquent
Wells Fargo
No
Source: Nerdwallet
Do business credit cards show up on your credit report?
When you apply for a new business credit card, the issuer checks your personal credit report. This hard inquiry will show up on your credit report and will temporarily lower your credit score. A hard inquiry can impact your credit score for six months to a year, but the impact is minimal compared to derogatory marks like missed payments.
Depending on the card and the issuer, the monthly activity of your business credit card may show up on your personal credit report. Many cards only report accounts that are delinquent due to nonpayment of balances.
Whose credit do business cards affect?
Business credit cards typically only affect the primary cardholder who applied for the original card. Adding an authorized user can also affect the credit score of the original cardholder.
A business can also get employee credit cards, but these are linked to the company’s credit account. Employees may receive credit cards for business expenses to make purchases, as well as cover travel costs and other expenses. Much like a singular business card, the responsibility of paying the balance is up to the business owner or whoever applied for the original credit card account.
Staying in good standing with a business credit card can also help build business credit. When a business builds credit, it can help it get loans in the future and open additional credit accounts.
Who should get a business credit card that doesn’t affect their personal credit?
If you’re concerned about cash flow and your ability to pay your business credit card balance, you may not want a card that can affect your personal credit. Keep in mind that even if you choose a card that doesn’t report to the three major consumer credit bureaus, the card issuer may report a delinquent account to these bureaus.
It’s best to track your spending with these cards and create a budget to ensure you pay your bill on time every month.
Can I get a business credit card with bad or no personal credit?
A business credit card can help your business grow and provide convenience for various expenses. To get a business credit, you need to have a good credit score to increase your chances of approval. If you’re unsure of where your credit health stands, Lexington Law Firm can help.
Use our free credit assessment to see your score along with additional information about your credit health. We also provide a variety of other services, like challenging inaccuracies on your credit report, credit monitoring and much more, so sign up today.
A low credit score may not keep you from getting all types of loans. In fact, some lenders provide loans specifically for people with bad credit. These can include personal loans for bad credit, “buy now, pay later” plans and cash advances from mobile apps.
Here are several types of loans for bad credit (a score below 630), why they’re worth considering and their potential risks.
Personal loans for bad credit
Some online lenders tailor personal loans to borrowers with low credit scores. Bad-credit personal loans can be $1,000 to $50,000, come as a lump sum and are repaid in equal installments over about one to five years.
Why they work: Reputable personal loan lenders cap annual percentage rates at 36%, which is the highest rate consumer advocates say affordable loans can have. They can be large enough to cover expensive home repairs and are typically funded within a few days of approval, making them a viable emergency financing option.
Possible risks: Having bad credit means you’ll qualify for an APR near the top of a lender’s range. Although other bad-credit borrowing options have higher rates, a 20% or 25% APR on a $5,000 loan is still expensive.
Family loans
It may be difficult to ask a friend or family member to lend you money, but it may also be the easiest and least expensive financing option. You can draw up a formal family loan agreement that includes what the funds will be used for and how they’ll be repaid.
Why they work: A friend or family member is unlikely to have a minimum credit score requirement or charge interest, as many other lenders do.
Possible risks: Mixing relationships and money can be dicey, and a loan gone awry may cause conflict.
Small bank and credit union loans
Some banks and credit unions offer small loans of a few thousand dollars or less to customers. Major national banks like U.S. Bank, Bank of America and Wells Fargo offer small-dollar loans, and some credit unions offer payday alternative loans or similar products.
These loans cost less in interest than most other types of bad-credit loans, have repayment terms of a few months, and lenders may look beyond your credit score to qualify you.
Why they work: Because small bank and credit union loans have low rates and long repayment terms, they’re more affordable than small-dollar high-interest loans offered by some online lenders.
Possible risks: Small bank loans and some payday alternative loans are only offered to existing customers. Though your credit score may not be the only — or even a major — factor a lender considers for these types of loans, it may carry some weight on the application.
Buy now, pay later loans
Buy now, pay later apps allow shoppers to split up a large purchase into smaller payments at checkout. The popular pay-in-four plans require a shopper to pay 25% of the cost upfront and cover the rest of the purchase in three biweekly installments. BNPL apps usually don’t do a hard credit check to approve customers.
Why they work: A BNPL plan can reduce the stress of a necessary, urgent expense like a mattress or laptop. Because the pay-in-four plans are interest-free, BNPL can be a no-cost financing option.
Possible risks: Most major retailers, including some grocery stores, offer this type of payment plan, which can make it easy to rely on them for everyday expenses. Frequent BNPL use can lead to overspending and cause people to lose track of upcoming payments. Some apps report payments to the credit bureaus, so missed payments can hurt your score.
Cash advance apps
A cash advance app is a mobile app that provides a small advance — often $500 or less — on your next paycheck. These apps use transaction history from a connected bank account to determine whether you qualify for an advance and how large it should be. There is no credit check, so your score isn’t a factor. The app takes repayment on your next payday.
Why they work: Loan apps can provide an advance within a few days after you request it, or instantly for a fee. Advances can be large enough to cover a modest vet bill or auto repair, or to bridge a brief income gap.
Possible risks: Cash advance app fees — including fast-funding fees and requested tips — coupled with short repayment terms make them difficult for some borrowers to repay without foregoing other necessary expenses or borrowing again shortly after.
Payday loans
Payday loans are small loans with high fees that are repaid quickly after you borrow. You can get a payday loan online or in person and the lender typically requires a post-dated check or access to your checking account to withdraw funds on your next payday.
Why they work: Payday loans are fast and easy to get. Lenders don’t check your credit or report payments to the credit bureaus.
Possible risks: These costly loans are difficult to repay in a short period, so borrowers often end up borrowing again to pay off the original loan or cover regular expenses. Because payday loan borrowers frequently end up in a debt cycle, these loans should be a last resort in a true emergency.
🤓Nerdy Tip
Car title loans and pawn loans are similar to payday loans. They frequently have triple-digit interest rates and short repayment terms, but they require a valuable item as collateral — your vehicle in the case of car title loans, or a personal item for pawn loans. Though these are both fast-cash options for bad-credit borrowers, they’re difficult to repay on time, and failure to pay them means losing the item you provided as collateral. NerdWallet recommends avoiding these loans if possible.
Nonborrowing options for bad credit
Payment plans: If you’re struggling to make a mortgage, utility or doctor bill payment, consider asking to set up a payment plan. Many creditors have hardship plans available for those experiencing financial difficulties, as do many utility companies and physicians’ offices. Request a payment plan before going into debt to cover bills.
Other ways to make money: If you have the luxury of time, consider ways to make quick cash. Options include selling clothes, delivering food, taking online surveys or listing a room on Airbnb.
Get help from the government: Some government programs can help with utility bills and groceries, child care and a down payment on a home.
Local financial assistance programs: A local charity, nonprofit or food bank may help cover some of your financial burden while you focus on a pressing expense. Search NerdWallet’s database of financial assistance programs for local organizations that offer relief.
Check your emails for the following offer on U.S. Bank or Elan cards:
Earn $15 cash back when you pay two or more electric, gas, water or sanitation bills with your card by October 23, 2024.
The Fine Print
This offer runs July 23 – October 23, 2024 (promotion period), and you need to enroll by August 30, 2024.
To be eligible for the offer, you must pay two electric, gas, water or sanitation bills either with the same provider twice or two different providers by October 23, 2024.
If you qualify, the $15 cash back award will be applied to your account 2-3 billing cycles after the end of the promotion period.
The maximum number of cash back awards is one. This offer is not transferable. Your account must remain open and be in good standing (not past due or overlimit) to qualify. This offer may not apply if your credit card has changed to a different type of card within the last 12 weeks or changes before the cash back award is applied. U.S. Bank cannot control how merchants choose to identify their business and/or classify purchases and reserves the right to determine which purchases qualify.