How to Manage Multiple Credit Cards in 2023

How to Manage Multiple Credit Cards in 2024

Having multiple credit cards brings certain benefits. On average, Americans use two to three credit cards at a time, often to take advantage of various perks and rewards programs. Another reason to own multiple credit cards is they can boost your credit score when managed sensibly.

That said, juggling credit lines can get out of hand, and it’s easy to fall behind with payments and face hefty interest charges. Here’s a guide to managing multiple credit cards: when to use certain cards, how to know if you have too many, and more.

Steps for Managing Multiple Credit Cards

Here’s how to manage your credit cards wisely and the steps to take to avoid unnecessary interest charges and fees.

Keep Track of Terms

Know what you are signing up for when you apply for a credit card. While a card may offer perks like sign-up bonuses, free vacations, and 0% interest rates initially, it may also charge high fees and exorbitant interest rates later on. Every credit card has different terms and conditions that are often buried in the small print.

Before applying for a new credit card, check the interest rate, or APR. Also look for penalty APRs, purchase APRs, and cash advance APRs. A penalty APR is charged if you don’t comply with the card’s terms and conditions. A purchase APR is the interest rate charged for purchases or carrying the balance over to the next month. A cash advance APR applies if you use your credit card to borrow cash.

A card may also offer an introductory 0% APR, for a limited period. However, once that period is over — or if you miss a payment — the interest rate can skyrocket. Many cards also charge an annual fee for card ownership, a maintenance fee, cash advance fees, foreign transaction fees, returned payment fees, and late payment fees.

If a card offers cash back, find out how much you need to spend to accumulate points or cash back. Check the fine print to find out what types of purchases are qualified and if there are any caps on earning cash and points. Also, read the rules on redeeming rewards, such as when they might expire or be forfeited.

For a sign-up bonus, you might be ineligible if you have owned the same card previously or another family member has the same card.


💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Pay on Time and in Full

You will likely incur fees if you miss payments due on your credit card. Also, if you make only the minimum payment on your credit card, you will increase your debt and pay unnecessary interest. But if you pay off your balance in full each month, you are in effect getting a free loan.

If you have multiple credit cards to juggle, it will take dedication to monitor the balances and due dates to avoid late payments, interest charges, and fees. However, managing credit cards responsibly can build your credit history.

Set Up Autopay

Once you understand the terms, conditions, and payment due dates of your various credit cards, set up automatic payments to avoid missing a payment. Missing a payment will mean that you are charged interest, and depending on the balance on the card, the interest payments can be steep.

Set Reminders

Managing multiple credit cards may require setting reminders. For example, if you signed up for a card with an initial period of 0%, you should know when that period ends. Also, keep track of when rewards expire, and when you should redeem points or rewards.

Recommended: What Is a FICO Score?

Simplify Your Payment Due Dates

You may want to change the payment due dates for your cards to make budgeting easier. For example, if the payments for multiple cards all fall on the same day or week, it can be difficult keeping enough cash on hand.

Consider scheduling due dates close to a payday or soon after a direct deposit. It might take one or two billing cycles for your request to take effect.

Know When to Use Each Card

There’s little point juggling multiple credit cards if you don’t use the right card for the right purpose. That’s why studying each card’s terms and conditions is crucial to optimizing the benefits of your cards. For example, some travel cards come with travel protections that will reimburse you if a trip has to be canceled, and co-branded airline cards may offer free checked bags or upgrades.

Keep a Record of Your Credit Card Features

Organization is the key to managing multiple credit cards. You can use a notebook, spreadsheet, or a personal finance app — whatever it takes for you to be able to access the information you need easily.

Some key data to have at your fingertips are the interest rate, credit limit, issue date, annual fees, and payment due dates, the balance from month to month, and the key facts about the rewards program (minimum spending limits, expiration dates, qualified items).

Give Each Card a Purpose

Allocating a purpose for each card will tell you what type of card you might want to get next. For example, you might have a card that offers travel rewards, another card for cash back on groceries, but you might want to also get a card that offers rewards for buying gas. Keep a record of which card serves what purpose.

Carry Only the Cards You Use

Don’t carry all your cards with you all the time. You risk losing them, plus it will make your wallet uncomfortable to carry! There’s no need to carry an airline card that you only use to book flights. Make sure you know which cards charge an inactivity fee, and set up reminders to use the card to avoid such penalties.

Recommended: Find Out Your Credit Score for Free

Use an App to Track Your Card Balances

It’s a good idea to use an app to track your card balances. Apps are particularly useful because they alert you when a payment is due or delinquent. Some apps perform free credit monitoring, help you find a credit card for a specific merchant, and track your loyalty programs.

Signs You Have Too Many Cards

How many cards is too many? That depends on how well you manage them. Here are some indicators that you should consider closing some accounts.

You Can’t Pay the Balance Off Each Month

If you can’t pay off all the balances on your cards each month, you are in danger of falling deeper into debt and having to pay interest. You also risk increasing your credit utilization ratio. When your ratio gets too high, credit card companies may turn you down and credit checks for future employment may be affected..

You’re Missing Payments

If you find it hard to keep track of your credit cards, miss payments, or lose rewards, it’s a sign you might have bitten off more than you can chew. Simplify your financial management by choosing three or four of the most advantageous cards for your lifestyle and cancel the rest.

You’re Earning Too Few Rewards

If you rarely redeem rewards, it might not be worth keeping the card. Not only are you paying a fee for a card that gives you little benefit, but you also have the hassle of keeping track of the card’s features and balance. It might be best to nix these credit cards.

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Which Cards Should You Stop Using?

When deciding which credit cards to stop using, list out the benefits of each card. Look at your spending history with that card over the past year and look at what you have gained. If you have spent little and gained little, it’s time to lose the card.

Similarly, if a card charges high annual fees and provides few benefits, don’t keep the card. Also look at the interest rate. If you have a balance on a high-interest card, pay off that debt and close down the card.

When Does It Make Sense to Close a Card?

It makes sense to close a card when you only use it to avoid an inactivity fee, if it provides few benefits, if the fees and interest rate are high, or if you are having trouble paying off the balance each month.


💡 Quick Tip: One way to raise your credit score? Pay your bills on time. Setting up autopay can help you keep your account in good standing.

The Takeaway

Having various cards can be advantageous because you can benefit from rewards and loyalty programs, build your credit history, and take advantage of interest-free credit if you pay off the balance each month. However, each credit card charges various fees, and managing multiple credit cards can be a headache.

When opening a new credit card, make sure the fees, rewards, limitations, and penalties that come with the card make sense for you. Also consider if you can manage the card and pay off the balance each month on time. Lastly, review your portfolio of cards regularly in case it makes sense to close down an account.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.


See exactly how your money comes and goes at a glance.

FAQ

How do I manage multiple credit cards?

Managing multiple credit cards comes down to organization. Keep track of all your cards and their various features, including due dates, what you should use them for, the rewards they offer, balances, interest rate, and penalties and fees. There are apps and online tools that help you to manage cards and monitor your credit score.

What is the 15/3 credit card rule?

The 15/3 credit card rule is a strategy to lower your credit utilization ratio. A credit utilization ratio of 30% or below makes you more attractive to lenders. Most people make one credit card payment a month by the due date, but with this strategy, a cardholder makes two payments each month, which reduces your credit utilization ratio significantly. Even if you regularly pay your credit card balance in full each and every month, you may still be carrying a large balance throughout the month, and your credit score may be affected.

How many credit cards is too many?

How many credit cards you should have depends on your lifestyle and how well you manage them. Feeling overwhelmed and making mistakes like not paying off balances on time are indicators that you cannot keep track of your cards. Other indicators that you may have too many credit cards are that you are not seeing much benefit in the way of rewards but are paying high fees, or you have a significant balance on a card with a high interest rate.


Photo credit: iStock/Sitthiphong

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Foreclosure Rates for All 50 States

Foreclosure Rates for All 50 States in February 2024

In the dynamic realm of U.S. real estate, the foreclosure market often unveils key trends that will shape the future of home ownership. According to property data provider ATTOM , the number of housing units with foreclosure filings in February was 32,938, a 1% drop from the previous month but a 8% rise from the previous year. Rob Barber, CEO of ATTOM, emphasizes the potential impact on homeowners and market strategies due to this annual uptick.

Foreclosure completion numbers dipped in 28 states, with significant repossession drops seen in states like Georgia, New York, and North Carolina. Notably, South Carolina, Delaware, and Florida stood out with the highest foreclosure rates, while major metropolitan areas such as Chicago, Philadelphia, and New York lead in terms of completed foreclosures (REOs). Foreclosure starts also saw a monthly and annual increase, with states like Florida, California, and Texas experiencing the highest numbers. Borrowers should stay up to date on their mortgage payments and work closely with their lenders to explore options for assistance if needed.

Read on for the foreclosure rates in February 2024 – plus the five counties, or county equivalents, with the highest rates within those states.

50 State Foreclosure Rates

As previously noted, foreclosure rates dropped slightly compared to last month, but rose moderately compared to last year. Read on for the February foreclosure rates for all 50 states — plus the District of Columbia — beginning with the state that had the lowest rate of foreclosure filings per housing unit.

District of Columbia

Ranking in population between Vermont and Alaska, the country’s second and third least populous states, Washington, D.C. observed 143 foreclosures in January, up about 44% from the previous month. With a total of 350,372 housing units, the foreclosure rate of the nation’s capital was one in every 2,450 households, putting it in between the states of Delaware (#2) and Florida (#3).

50. North Dakota

The Peace Garden State’s foreclosure rate was one in every 28,644 homes. This puts the fourth-least populous state — with 372,376 housing units and 13 foreclosures — into 50th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Hettinger, Morton, Williams, Stark, and Ward.

49. Montana

Listed as 44th in population, the Treasure State rated 49th for its foreclosure rate this month. With 24 foreclosures out of 517,430 housing units, Montana’s foreclosure rate was one in every 21,560 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Daniels, Phillips, Beaverhead, Mineral, and Powell.

48. South Dakota

The Mount Rushmore State nabbed the 48th spot for highest foreclosure rate in February. Having 393,150 total housing units, the fifth-least populous state had a foreclosure rate of one in every 18,721 households with 21 foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Custer, Codington, Pennington, Lincoln, and Minnehaha.

47. West Virginia

Ranked 39th in population, the Mountain State claimed the 47th spot this month. It has a total of 859,142 housing units, of which 56 went into foreclosure. This means that the foreclosure rate was one in every 15,342 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Roane, Wetzel, Marion, Fayette, and Pocahontas.

46. Kansas

The Sunflower State ranked 46th for highest foreclosure rate in February. With 1,278,548 homes and a total of 94 housing units going into foreclosure, the 35th most populous state’s foreclosure rate was one in every 13,602 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Trego, Republic, Ness, Haskell, and Allen.

45. Washington

Sorted as 13th in population, the Evergreen State ranked 45th for its foreclosure rate this month. Of its 3,216,243 housing units, 261 went into foreclosure, making the state’s foreclosure rate one in every 12,323 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Columbia, Yakima, Cowlitz, Pierce, and Island.

44. Vermont

In 49th place for population, the Green Mountain State ranked 44th for its foreclosure rate in February. Of the state’s 335,138 housing units, 28 homes went into foreclosure at a rate of one in every 11,969 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Grand Isle, Bennington, Essex, Orleans, and Washington.

43. Nebraska

Ranking 37th in population, the Cornhusker State placed 43rd this month with a foreclosure rate of one in every 10,872 homes. With a total of 848,023 housing units, the state had 78 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Webster, Polk, Sheridan, Scotts Bluff, and Kearney.

42. Hawaii

The Paradise of the Pacific, and the 40th most populous state, came in 42nd for highest foreclosure rate. Of its 560,873 homes, 52 went into foreclosure, making for a foreclosure rate of one in every 10,786 households. Only four of the five counties in the state saw foreclosures. They were (from highest to lowest): Hawaii, Honolulu, Maui, and Kauai.

41. Colorado

The 21st most populous state ranked 41st for highest foreclosure rate in February. Of the Centennial State’s 2,500,095 housing units, 235 went into foreclosure, making for a foreclosure rate of one in every 10,639 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Cheyenne, Lake, Washington, Lincoln, and Logan.

Recommended: Tips on Buying a Foreclosed Home

40. Wisconsin

With 260 foreclosures out of 2,734,511 total housing units, America’s Dairyland and the 20th most populous state secured the 40th spot with a foreclosure rate of one in every 10,517 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Pepin, Kewaunee, Kenosha, Douglas, and Sauk.

39. Oregon

The 27th most populous state ranked 39th for highest foreclosure rate in February. Of the Pacific Wonderland’s 1,818,599 homes, 182 went into foreclosure, making for a foreclosure rate of one in every 9,992 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Klamath, Morrow, Crook, and Clatsop.

38. Alaska

The Last Frontier saw 34 foreclosures this month, making the foreclosure rate one in every 9,339 homes. This caused the third-least populous state, with a total of 317,529 housing units, to claim the 38th spot. The boroughs with the most foreclosures per housing unit were (from highest to lowest): Southeast Fairbanks, Nome, Anchorage, Kenai Peninsula, and Matanuska-Susitna.

37. Idaho

Ranked 38th in population, the Gem State received the 37th spot due to its 87 housing units that went into foreclosure this month. With 758,877 total housing units, the state’s foreclosure rate was one in every 8,723 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lincoln, Payette, Clearwater, Teton, and Caribou.

36. Mississippi

Ranked 34th in population, the Magnolia State experienced 161 foreclosures out of 1,324,992 total housing units. This puts the foreclosure rate at one in every 8,230 homes and into the 36th spot this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Clay, Greene, Copiah, Leflore, and Smith.

35. Arkansas

Listed as the 33rd most populous state, the Land of Opportunity ranked 35th for highest foreclosure rate this month. The state contains 1,371,709 housing units, of which 167 went into foreclosure, making its latest foreclosure rate one in every 8,214 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lincoln, Crittenden, Poinsett, Arkansas, and Jefferson.

34. Missouri

Coming in at 19th in population, the Show-Me State took the 34th spot for highest foreclosure rate in February. Of its 2,795,030 homes, 347 went into foreclosure, making for a foreclosure rate of one in every 8,055 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Scott, Mississippi, Laclede, Henry, and Atchison.

33. New Hampshire

The Granite State, and the 41st most populous state in the U.S., ranked 33rd for highest foreclosure rate. New Hampshire saw 83 of its 640,335 homes go into foreclosure, making for a foreclosure rate of one in every 7,715 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Belknap, Coos, Strafford, Cheshire, and Carroll.

32. Wyoming

The country’s least populous state claimed the 32nd spot for highest foreclosure rate this month. With 273,291 housing units, of which 37 went into foreclosure, the Equality State’s foreclosure rate was one in every 7,386 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Weston, Big Horn, Sweetwater, Campbell, and Carbon.

31. Tennessee

Ranked 16th in population, the Volunteer State endured 415 foreclosures out of its 3,050,850 housing units. This puts the foreclosure rate at one in every 7,351 households and in 31st place this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Meigs, Humphreys, Trousdale, Fentress, and Sequatchie.

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30. Virginia

With 518 homes going into foreclosure, the 12th most populous state ranked 30th for highest foreclosure rate in February. Having 3,625,285 total housing units, the Old Dominion saw a foreclosure rate of one in every 6,999 households. The counties and independent city with the most foreclosures per housing unit were (from highest to lowest): Galax City, Lancaster, King William, Buckingham, and Appomattox.

29. Rhode Island

The eighth-least populous state placed 29th for highest foreclosure rate this month. A total of 72 homes went into foreclosure out of 483,053 total housing units, making the foreclosure rate for the Ocean State one in every 6,709 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Kent, Washington, Providence, Bristol, and Newport.

28. Maine

Ranked 42nd in population, the Pine Tree State placed 28th for highest foreclosure rate in February. With a total of 741,803 housing units, Maine saw 117 foreclosures for a foreclosure rate of one in every 6,340 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Oxford, Somerset, Penobscot, Knox, and Piscataquis.

27. Minnesota

Ranked 22nd for most populous state, the Land of 10,000 Lakes obtained the 27th spot for highest foreclosure rate in February. It has 2,493,956 housing units, of which 399 went into foreclosure, making the state’s foreclosure rate one in every 6,251 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Watonwan, Lake, Chisago, Faribault, and Sherburne.

26. North Carolina

The ninth-most populous state claimed 26th place for highest foreclosure rate. Out of 4,739,881 homes, 768 went into foreclosure. This puts the Tar Heel State’s foreclosure rate at one in every 6,172 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Gates, Perquimans, Northampton, Lee, and Jones.

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25. New Mexico

The 36th most populous state claimed the 25th spot for highest foreclosure rate this month. Of the Land of Enchantment’s 943,149 homes, 153 went into foreclosure, making for a foreclosure rate of one in every 6,164 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Torrance, Catron, Eddy, Valencia, and Sandoval.

24. Arizona

Sorted as 14th in population, the Grand Canyon State withstood 524 foreclosures out of its total 3,097,768 housing units. This puts the foreclosure rate at one in every 5,912 homes and into the 24th spot for the second month in a row. The counties with the most foreclosures per housing unit were (from highest to lowest): Pinal, Mohave, Cochise, Yuma, and Gila.

23. Oklahoma

The Sooners State landed the 23rd spot this month. With housing units totaling 1,751,802, the 28th most populous state saw 303 homes go into foreclosure at a rate of one in every 5,782 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Washita, Garfield, Canadian, Coal, and Le Flore.

22. Louisiana

Sorted as 25th in population, the Pelican State placed 22nd for highest foreclosure rate this month. Louisiana had a foreclosure rate of one in every 5,188 households, with 401 out of 2,080,371 homes going into foreclosure. The parishes with the most foreclosures per housing unit were (from highest to lowest): West Baton Rouge, Tangipahoa, Pointe Coupee, Livingston, and St. Bernard.

21. Kentucky

With a total of 1,999,202 housing units, the Bluegrass State saw 387 homes go into foreclosure, thus landing in 21st place this month. This puts the foreclosure rate for the 26th most populous state at one in every 5,166 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Greenup, Martin, Marshall, Jefferson, and Metcalfe.

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20. Utah

The Beehive State placed 20th for highest foreclosure rate in February. Of its 1,162,654 housing units, 236 homes went into foreclosure, making the 17th most populous state’s foreclosure rate one in every 4,927 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Beaver, Tooele, Weber, Box Elder, and Sevier.

19. Alabama

Listed as 24th in population, the Yellowhammer State came in 19th for highest foreclosure rate this month. Of its 2,296,920 homes, 483 went into foreclosure, making for a foreclosure rate of one in every 4,756 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Conecuh, Talladega, Montgomery, Chambers, and Mobile.

18. Michigan

Ranked 10th in population, the Wolverine State secured the 18th spot with a foreclosure rate of one in every 4,549 homes. With a total of 4,580,447 housing units, the state had 1,007 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Calhoun, Oceana, Hillsdale, Lapeer, and Berrien.

17. Georgia

Ranked eighth in population, the Peach State took the 17th spot for highest foreclosure rate this month. Of its 4,426,780 homes, 989 were foreclosed on. This puts the state’s foreclosure rate at one in every 4,476 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lanier, Bleckley, Wheeler, Dawson, and Brooks.

16. Pennsylvania

The Keystone State had the 16th highest foreclosure rate in February. The fifth-most populous state saw 1,305 homes out of 5,753,908 total housing units go into foreclosure, making the state’s foreclosure rate one in every 4,409 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Philadelphia, Montgomery, Perry, Wyoming, and Columbia.

15. New York

With 1,947 out of a total 8,494,452 housing units going into foreclosure, the Empire State claimed the 15th spot this month yet again. The fourth-most populous state’s foreclosure rate was one in every 4,363 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Orange, Putnam, Nassau, Suffolk, and Richmond.

14. Massachusetts

The 15th most populous state ranked 14th for highest foreclosure rate this month. Of the Bay State’s 2,999,314 housing units, 695 went into foreclosure, making for a foreclosure rate of one in every 4,316 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hampden, Plymouth, Berkshire, Worcester, and Bristol.

13. Texas

The Lone Star State withstood 2,894 foreclosures in February. With a foreclosure rate of one in every 4,027 households, this puts the second-most populous state in the U.S., with a whopping 11,654,971 housing units, into 13th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Liberty, Roberts, Armstrong, Hood, and Atascosa.

12. Iowa

The Hawkeye State had the 12th highest foreclosure rate this month. With 359 out of 1,417,064 homes going into foreclosure, the 31st most populous state’s foreclosure rate was one in every 3,947 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Tama, Wayne, Page, Jones, and Davis.

11. Indiana

The 17th largest state by population, the Crossroads of America landed the 11th spot this month with a foreclosure rate of one in every 3,571 homes. Of its 2,931,710 housing units, 821 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Grant, Randolph, Fountain, Howard, and Madison.

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10. California

The country’s most populous state ranked 10th for highest foreclosure rate in February. Of its impressive 14,424,442 housing units, 4,079 went into foreclosure, making the Golden State’s foreclosure rate one in every 3,536 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Calaveras, Trinity, Mendocino, and Shasta.

9. Maryland

Ranked 18th for most populous state, America in Miniature took ninth place for highest foreclosure rate in February. With a total of 2,531,075 housing units, of which 824 went into foreclosure, the state’s foreclosure rate was one in every 3,072 households. The counties and independent city with the most foreclosures per housing unit were (from highest to lowest): Kent, Baltimore City, Caroline, Allegany, and Calvert.

8. Nevada

Ranked 32nd in population, the Silver State took the eighth spot for highest foreclosure rate this month. With one in every 3,068 homes going into foreclosure, and a total of 1,288,357 housing units, the state had 420 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Lincoln, Pershing, Clark, Lander, and Nye.

7. New Jersey

With a foreclosure rate of one in every 3,061 homes, the Garden State ranked seventh for highest foreclosure rate this month. The 11th most populous state contains 3,756,340 housing units, of which 1,227 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Salem, Warren, Gloucester, Sussex, and Camden.

6. Illinois

The Land of Lincoln claimed the sixth spot for highest foreclosure rate in February. Of its 5,427,357 homes, 1,839 went into foreclosure, making the sixth-most populous state’s foreclosure rate one in every 2,951 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Pulaski, Macoupin, Boone, Edgar, and Marshall.

5. Connecticut

With 531 of its 1,531,332 homes going into foreclosure, the Constitution State had the fifth highest foreclosure rate at one in every 2,884 households. In this 29th most populous state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Windham, New Haven, Hartford, Litchfield, and Fairfield.

4. Ohio

The Buckeye State placed fourth in February with a foreclosure rate of one in every 2,828 homes. With a sum of 5,251,209 housing units, the seventh-most populous state had a total of 1,857 filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Muskingum, Marion, Highland, Ashtabula, and Crawford.

3. Florida

The third-most populous state in the country has a total of 9,915,957 housing units, of which 3,768 went into foreclosure. This puts the Sunshine State’s foreclosure rate at one in every 2,632 homes and into third place this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Osceola, Hamilton, Polk, Charlotte, and Baker.

2. Delaware

The sixth-least populous state in the country, the Small Wonder nabbed second place in February. With one in every 2,428 homes going into foreclosure and a total of 451,556 housing units, the state saw 186 foreclosures filed. Having only three counties in the state, the most foreclosures per housing unit were (from highest to lowest): New Castle, Kent, and Sussex.

1. South Carolina

The 23rd most populous state had the highest foreclosure rate of all 50 states with one in every 2,248 homes going into foreclosure. Of the Palmetto State’s 2,362,253 housing units, 1,051 were foreclosed on this month. The counties with the most foreclosures per housing unit were (from highest to lowest): Barnwell, Marion, Richland, Orangeburg, and Dorchester.

The Takeaway

Of all 50 states, California had the most foreclosure filings (4,079), and North Dakota had the least (13). As for the states with the highest foreclosure rates, South Carolina, Delaware, and Florida took the top three spots, respectively.

The Mideast region had the largest presence among the 10 states that ranked the highest for foreclosure rates. These states were (from highest to lowest): Delaware, New Jersey, and Maryland.

The Plains region had the largest presence among the 10 states that ranked the lowest for foreclosure rates. These states were (from highest to lowest): Nebraska, Kansas, South Dakota, and North Dakota.

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How Much Has College Tuition Outpaced Inflation?

How Much Has College Tuition Outpaced Inflation?

College tuition inflation since 1980 has been rising. In fact, widely cited statistics have consistently shown college tuition rising faster than inflation.

It’s no secret: College tuition is on the rise, and it has been for years. According to the most recent data from the National Center for Education Statistics, during the 2021-2022 academic year, tuition and fees costs at undergraduate institutions were:

•   $9,700 at public institutions

•   $17,800 at private for-profit institutions

•   $38,800 at private nonprofit institutions

Between 2008-2009 and 2018-2019, costs rose 28% at public institutions and 19% at private nonprofit institutions. However, the costs for private for-profit institutions have reduced 6% in 2018-2019 compared to 2008-2009.

In comparison, public institutions cost $9,100 in 2010-2011, private for-profit was $19,400, and nonprofit institutions cost $34,000 in the same year, according to NCES , a subagency of the U.S. Department of Education.

Why has college tuition outpaced inflation, anyway? We’ll walk you through a complete guide to understanding college tuition vs inflation and the reasons college tuition has outpaced inflation over time.

What Is the College Tuition Inflation Rate?

First of all, inflation refers to a decrease in how much individuals can purchase with their money, based on increases in the prices of goods and services. According to Macrotrends, the general U.S. inflation rate for 2022 was 8%. Inflation peaked at 13.55% in 1980, at its highest levels since 1960.

Each college has its own tuition rate increase per year, so to get an accurate measure of an individual college’s tuition inflation rate, you can use the Bureau of Labor Statistics (BLS) inflation rate calculator to calculate the current inflation of college tuition rate for each institution based on previous tuition costs.

Ultimately, the average cost of tuition has increased nearly 180% over the past 20 years, even after accounting for inflation.

How Does Inflation Affect College Tuition?

When the cost of goods goes up, colleges and universities offset the increased cost of operating by increasing tuition costs.

The Higher Education Price Index (HEPI), which measures the price changes of items that allow universities to stay afloat, doesn’t align exactly with the Consumer Price Index, which refers to what consumers pay for goods.

It can be difficult to make an apples-to-apples comparison between rising tuition at colleges and universities and changes in inflation because the HEPI is affected by more than just the cost of goods. For example, administrators, professors, financial aid professionals, admission counselors, and others also require salary increases on top of the miscellaneous expenses associated with keeping college and university facilities running.

Why Is the Cost of College Rising?

There are other reasons that cause tuition, room, board, and fees to increase from year to year. In the next section, let’s explore the reasons that it becomes more expensive to run a school. We’ll discuss state funding availability, demand, and financial aid.

Less State Funding

Declining state funding has influenced tuition costs at state universities as health care and pensions increase for state employees.

As a direct result of the last two economic recessions, education appropriations remain 6% and 14.6% below 2008 and 2001 levels, respectively, according to the 2022 State Higher Education Finance (SHEF) report produced by the State Higher Education Executive Officers Association (SHEEO).

However, state funding for financial aid has increased steadily for two decades. State and local funding reached $100 billion for higher education for the first time in fiscal 2019.

More Demand

As demand rises, costs increase as well. More than five million more students attended U.S. colleges in 2017 than in 2000, though between fall 2010 and fall 2021, total undergraduate enrollment decreased by 15% (from 18.1 million to 15.4 million students), according to the most recent data from NCES.

Despite recent statistics, it’s still evident that the demand for higher education has continued to increase over the past few decades. The dependence on a highly skilled workforce and growing wage differences between college and high school graduates means more students choose to attend college and drive up the demand for higher education. Higher education prices must increase in response to a growing student population.

More Federal Aid

The 1987 Bennett hypothesis (named after President Ronald Reagan’s secretary of education, William Bennett), stated that colleges will raise tuition when financial aid increases, especially subsidized federal loans that offer low interest rates. In other words, the theory was that colleges can raise prices because federal financial aid will cover the excess costs and students can offset the cost increase with federal student loans.

Is the Bennett hypothesis still a worry today?

The New York Federal Reserve compiled a 2015 study that supports that finding. It found that student credit expansion of the past fifteen years has risen with college and university tuition.

Why Has College Tuition Outpaced Inflation?

It’s not easy to pinpoint one single reason for the rise in college tuition — you might be quick to blame governments that face deep deficits and cannot subsidize the full costs of higher education. However, the truth is that the costs of outpaced inflation are multifaceted.

Colleges often attempt to raise tuition to appear competitive with similar institutions, increasing costs across the board. University presidents also face enrollment demands and increases in HEPI also inflate budgets. That’s why high school students, together with their families, may want to carefully plan for the costs of attending a particular institution.

Some options for students who are looking into financing their education might include finding work during the summer, applying for financial aid, or looking into payment tuition plans.

College Tuition Inflation Since 1985

According to data from the NCES, since 1985 the average college tuition at all institutions has increased nearly $20,000 from $4,885 to $24,623 during the 2018-2019 school year. That number is even higher when considering the cost of attending a four-year institution, which in 1985 was $5,504 and during the 2018-2019 school year increased to $28,123

College Tuition vs Inflation

The increase in college tuition and fees have outpaced the rise of inflation for decades. According to Forbes, the cost of attending a four-year college or university during the 2021-2022 school year was increasing at double the rate of inflation. The cost of attending a two-year community college is increasing a third faster than the rate of inflation.

However, in light of the COVID-19 pandemic, this has changed slightly. From the 2020-2021 school year and the 2021-2022 school year, tuition and fees increased by about 0.6% on average, while overall prices in the U.S. increased by 3.2%, according to Bloomberg based on data from the BLS.

The Takeaway

College tuition has increased dramatically — increasing by nearly 180% in the past 20 years. The reasons for such an rise in tuition can be attributed to a variety of factors including less state funding, an increase in demand, and even an increase in the amount of federal aid awarded.

Despite the seeming downsides to inflation and college costs, SoFi can offer some major perks to help you pay for school with our private student loans. Note because private student loans don’t offer the same benefits as federal student loans (like income-driven repayment options), private student loans are generally considered only after students have carefully reviewed all other sources of funding and financial aid.

But, if private student loans seem like an option, you can check your rates and apply in minutes and easily add a cosigner if you so choose.* Borrowers can choose from four flexible repayment options and there are no fees.

Get a quote for a private student loan in just a few minutes.

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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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6 Strategies for Becoming Debt-Free

Many people aspire to live a “debt-free” life. And for good reason: Getting out of debt means that your take-home pay is completely your own (since you won’t be sharing any of it with creditors). Having more money to work with can help you achieve your goals, whether it’s building an emergency fund, sending your kids to college, or being able to retire some day. Knocking down debt can also improve your day-to-day life by relieving stress and boosting your mental health.

The question is, how do you get there? If you’re currently living under a mountain of student loans, credit card debt, medical debt, and/or other types of debt, it can be hard to see a way out or, frankly, even a ray of sunlight. But don’t give up. We’ve got six ideas that can help you whittle down your debt and get on the road to financial independence and freedom.

What Does It Mean to Live a Debt-Free Life?

Living “debt-free” can mean different things to different people. In the purest sense, being debt-free means having absolutely zero debt — including no credit card debt, no car or student loans, and no mortgage.

However, some people subscribe to a looser definition of “debt-free,” where you’re free of so-called “bad debt,” such as high-interest credit cards and payday loans, but recognize that some debt is “good.”

A low-interest mortgage or student loan, for example, can be considered good debt, since it can help you increase your net worth or generate future income. This looser definition may work to your advantage because it allows you to achieve milestone goals like owning a home without high-interest debt burdening your monthly finances.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

Benefits of Living Debt-Free

However you define debt-free living, knocking down your debt comes with a wide range of benefits — some expected and some, perhaps, surprising.

•   More money to spend: Interest charges eat away at your income, giving you less money for other things. Once you pay off your debts (particularly those with high interest rates), you’ll have a lot more money in your pocket.

•   Financial stability: By freeing up cash, you’ll have money available to build your emergency fund (your best defense against running up costly debt in the future). You’ll also be able to put money towards other goals and investments.

•   Less stress and anxiety: Dealing with debt isn’t just a financial challenge — it also impacts mental health. In a recent Forbes Advisor survey, 54% of adults said they often or always feel stressed by their debt circumstances; another 32% said they sometimes feel stressed because of their debt.

•   A happier marriage: In the Forbes survey, 60% of respondents said financial stress has led to disagreements in their relationships. Money fights are a common cause of divorce.

•   Increased self-esteem: Eliminating debt isn’t easy — it takes hard work, discipline, and determination. Reaching your debt payoff goals can give you a huge sense of accomplishment that leads to greater self-confidence.

6 Ways to Climb Out of Debt

Having a lot of debt can feel overwhelming. The key to gaining control over the situation is to approach it one step at a time. Here are six strategies that can help.

1. Creating a Workable Budget

A smart debt-payoff plan begins with a realistic budget. Having a basic budget will help you live within your means (so you don’t get into more debt) and free up extra cash to put towards your debts each month.

The first step in creating a budget is understanding your monthly expenses. This includes everything from rent or mortgage payments, utility bills, groceries, and transportation costs to smaller expenses like subscriptions, leisure activities, and dining out. By assessing your expenses over the last several months, you may be surprised by how much you are spending in certain categories. You may also immediately find some places to cut back, such as canceling membership to a gym you rarely use and/or giving up streaming services you rarely watch.

If the idea of tracking every penny has been a barrier to budgeting, or if you’ve tried and failed in the past, try keeping things simple. The 50/30/20 rule is a simplified budgeting strategy that’s gained traction because it limits the number of spending categories you need to establish and track.

With this approach, you divide your take-home pay (what’s left after paying taxes) into three buckets:

•   50% goes to needs, including minimum debt payments

•   30% goes to wants

•   20% goes to savings and debt payments beyond the minimum

Keep in mind that these percentages are just a guideline, and can be tweaked to fit your situation. The key to becoming debt-free is to make a budget that’s strict but still doable.

2. Making More Money

Yes, this is easier said than done. But before rolling your eyes and moving on, consider the possibilities. Is it time for a pay raise? If a bump is overdue, it might be time to have a talk with the boss.

Consider any potential ways to make extra income from home. Do you always have nights or weekends off? Maybe a friend does catering, landscaping, house painting, or some other work and could use an extra hand from time to time.

If you have a marketable skill, like website design or creating social media content, you may be able to pick up freelance work. If you’re crafty, you might look into selling your wares online or at craft fairs and flea markets. If you love animals, you might want to offer dog walking or cat sitting services.

If you could earn an extra $500 per month, in 12 months, you’d be able to pay off an additional $6,000 of debt.
Even selling things you no longer need can bring in a nice lump sum of cash that you can use to knock down debt.

3. Applying Extra Money Towards Debt

If you get an unexpected windfall (such as a bonus at work, cash gift, tax refund, or inheritance), instead of living it up while the money lasts, consider using it to pay down some debt.

You might not think a few hundred dollars will make much of a dent, but every dollar you pay over the minimum can help reduce the interest you owe on a credit card or loan.

To get some idea of how paying even a little extra toward a bill can help, consider playing around with the numbers using a credit card interest calculator. It can be scary to see how much money you’ll pay in interest if you continue to pay only the monthly minimum, but it can also motivate you to divert as much extra money as you can toward getting that debt paid off once and for all.

4. Focusing on One Debt at a Time

Seeing progress can be inspiring. Think about how good you feel when you lose a little weight from changing your diet or gain some muscle from working out. Even small wins can be motivating.

How does that apply to downsizing your debt?

Two of the commonly recommended approaches to debt repayment are the snowball and avalanche methods. These strategies focus on making extra payments towards one balance at a time instead of trying to put a little extra money toward all your balances at once.

The Snowball Debt Payoff Method

The snowball method directs any excess free cash you might have to the debt with the smallest outstanding balance. Here’s how it works:

•   List all of your outstanding debts based on how much you owe, from the smallest balance to the largest. (Disregard interest rates.)

•   Pay as much as possible toward the debt with the smallest balance, while making the minimum payment on all other debts.

•   After you pay off the smallest debt, turn your attention to the next-lowest balance. Keep going until you are debt-free.

The Avalanche Debt Payoff Method

The avalanche method focuses on paying off debts based on interest rate. It can take longer to get a win with this approach but, ultimately, it will save you more money than the snowball method. How it works:

•   List your debts in order of interest rate, from highest to lowest. (Disregard balance amounts.)

•   Pay as much as you can each month towards the debt with the highest interest rate, making the minimum payments on all other debts.

•   Once you’ve paid off the highest-interest debt, focus on the debt with the next-highest rate, and so on, until you’re debt free.

Though the methods are different, both plans provide focus, and as each balance disappears, momentum grows.

A newer approach, the fireball method, may be a better fit for modern-day debt, which could include a large amount of low-interest student loan debt.

The Fireball Debt Payoff Method

The fireball method takes a hybrid approach to the traditional snowball and avalanche strategies. It’s called “fireball” because it can help blaze through bad debt faster by making it a priority. How it works:

•   Categorize all debts as either “good” or “bad.” “Good” debt generally refers to things that can increase your net worth, such as student loans or mortgages. (Interest rates under 6% could be considered good debt.)

•   List “bad” debts from smallest to largest based on each bill’s outstanding balance.

•   Funnel any extra cash each month toward the smallest balance on the “bad” debt list, while making the minimum monthly payment on all other debts. Once that balance is paid in full, move on to the next-smallest balance on that list. Keep blazing until all “bad” debt is repaid.

•   Pay off “good” debt on the normal schedule while investing for the future. Apply everything you were paying toward “bad” debt to investing in a financial goal.

The fireball approach can help you save money because it gets rid of your more expensive debt first, but it also provides motivation by giving you wins early in the process. These combined elements could provide an extra boost to your efforts.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

5. Consolidating Debts

If your credit is strong, a debt consolidation loan could potentially help you repay your debts at a lower interest rate, saving you money over time. It also simplifies repayment by merging multiple payments into one. With this approach, you take out a personal loan and use it to pay off multiple high-interest debts. The key is to find a lender that is willing to give you a lower annual percentage rate (APR) than what you’re currently paying. Keep in mind that the shorter your loan term, the lower your APR may be.

Another way to consolidate credit card debt is to move it to a balance transfer credit card. This can be a smart move if you can qualify for a 0% intro credit card. This way, you can avoid paying interest for the first several months and all the money you pay towards the card goes to knocking down debt. Keep in mind, though, that you may have to pay a fee when utilizing a balance transfer credit card. And, once the 0% intro period is over, you’ll have to start paying interest on the remaining balance.

6. Negotiating With Your Creditors

If your debt has become too much to handle and you’re delinquent on payments, you may want to reach out to your creditors, explain your financial situation, and see if they may be able to work with you. They might be willing to set you up on a payment plan, reduce your monthly payments, or settle your debt for less than what’s owed.

If you go this route, be sure to take notes on your conversation with the customer service rep (including the name of the person you spoke with, when you called, and what they said) and get the proposed repayment or debt settlement plan in writing before you make any payments.

Also keep in mind that debt settlement can negatively impact your credit, so this option is generally considered a last resort.

Recommended: Debt Settlement vs Credit Counseling: What’s the Difference?

The Takeaway

When it comes to debt, the deeper the hole you’re in, the longer it may take to climb out. But having the right plan in place before can help stick to a budget and methodically reduce your debt in a way that keeps you motivated and saves you money.

Becoming entirely (or nearly) debt-free comes with a substantial payoff: The money you were once spending on debt repayment each month can now go towards savings — and an opportunity to earn, rather than pay, interest.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.


SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.


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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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How to Transfer Money From One Bank to Another

If you want to transfer money from one bank to another, you have a variety of options, including online transfers, third-party services, wire transfers, and more. Which one is right for you will depend on such variables as how quickly you want to make the transfer, whether you are willing to pay a fee, and how large an amount you are moving. Your personal preference and what you find most convenient matters as well. Here, you’ll learn more about the different ways to transfer funds from one bank to another.

Key Points

•   Bank transfers move money from one bank account to another.

•   These can be done by online transfers, checks, peer-to-peer services, wire transfers, third-party companies, or bank-to-bank money transfer services.

•   There may be limits on how many bank transfers you can do in a specific time period and the dollar amount.

•   The time it takes to complete a bank transfer may vary with the method.

What Is a Bank Transfer?

Simply put, a bank transfer is a way of moving money into a bank account. If you want to pay for a purchase, for a service you are using, or simply repay a friend for brunch over the weekend, a bank transfer can make that happen.

💡 Quick Tip: Tired of paying pointless bank fees? When you open a bank account online you often avoid excess charges.

What Factors Should I Consider Before Transferring Money?

Typically, when making a bank transfer, you will want to consider these factors:

•   Timing: How quickly do you need to move the funds? This can have implications on the method you choose.

•   Cost: Some methods for bank transfers may be free; others may involve a fee.

•   Limits: Depending on the amount of money you are seeking to transfer, some methods may be more suitable than others.

There May be Limits on How Many Transfers You Can Make

You can typically make as many transfers into a savings account as you would like, but there may be some limitations when it comes to taking money out of a savings account.

Online withdrawals from savings accounts have been governed by the Federal Reserve’s Regulation D. Some banks are still enforcing the legacy limit of six withdrawals per month and will charge a withdrawal fee for each transaction over the limit. Or they might convert your savings account to a checking account. This guideline was largely suspended during the pandemic, but that’s not necessarily a universal decision.

It can be a good idea to check your financial institution’s rules before you try to transfer money from a savings account into a different account. Transfers count as one of the kinds of withdrawals that may be limited. See if your financial institution has limits on the quantity you can make in a given time period.

How to Transfer Money Between Banks

Here’s a look at different ways to transfer money to someone else or to another account that you own. You’ll also learn which method is best for each situation.

1. Directly Making an Online Transfer From One Bank Account to Another

If you have accounts at two different banks and want to transfer money from your account at Bank A to your account at Bank B, follow these steps:

•   Log into Bank A’s account, then choose the option to “add an account,” “link account,” or “add external account.” You can often find these options, or something similar, in your bank’s “customer service” or “transfers” menu.

•   Bank A will likely ask for the routing number (a nine-digit number) and account number (eight to 12 digits) for bank B. You can find these numbers on a check, typically along the bottom (the routing number comes first, followed by the account number, then the check number). If you don’t have checks, you can also find the bank’s routing number on their website and your account number on your monthly statement.

•   To prove that the account at Bank B belongs to you, Bank A may ask you to input the username and password you use for Bank B. Another way Bank A may verify the account is to make a small deposit (maybe a few cents) and ask you to confirm the amounts, a process that might take a day or two to complete.

•   Once the account is confirmed, you can choose an amount you want to transfer from Bank A to Bank B and the date on which you want it to occur. You can also choose to make it a one-time transfer or a recurring transfer (such as once a month). You can then select the option to submit your request.

These steps will work whether you are transferring funds to a brick-and-mortar bank or to an online-only financial institution.

Transferred funds typically arrive at their destination in two or three business days. The timing will depend on which banks you use and whether you are moving money internationally or domestically.

While transferring money between linked bank accounts at different institutions is often free, there might be transfer limits in the amount you can move each time or within a certain time period. It can be a good idea to check your financial institution’s rules for bank-to-bank transfer limits.

2. Writing a Check

If you want to transfer money from your bank account to someone else’s bank account, you will likely need to find an alternative bank transfer solution.

You may be asking yourself if checks are useful. Perhaps you don’t have any checks on hand and are wondering if you should order a checkbook. That may be wise; here are some ways you can use checks to move money around:

•   Writing a check is still a good way to make a bank-to-bank funds transfer. When you write a check, you are authorizing your bank to transfer funds to the recipient.

•   You can also make a check out to yourself by entering your own name as the payee. This can be a good option if you are closing out a checking account and want to transfer the remaining funds into a new account.

•   If you take advantage of mobile deposit, you can write a check from one account and deposit it into a different account without ever leaving home. That little rectangle of paper’s job is to transfer money from one bank to another, and it will get it done.

You may want to keep in mind, however, that writing a check is not an instant money transfer. It can take a few business days for a check to clear and be available in the new account.

Also, if there aren’t sufficient funds in the account to cover the amount, your check will bounce, and the payment won’t go through. You may also be charged a fee. To avoid this glitch, you’ll want to make sure you have sufficient money in your account before writing a check.

3. Peer-to-Peer Transfer

Whether you’re reimbursing your roommate for the monthly rent or splitting dinner with a friend, a peer-to-peer (P2P) money transfer service or app can be a good solution.

Services like Venmo and PayPal can offer some advantages:

•   They are easy to use, and once your bank account is linked in the app, you can quickly type in a dollar amount, select the recipient, and hit “Send.”

•   These services are typically free if you fund the payment from your bank account. There may be a fee, however, if you fund a transfer with a debit card or credit card. Many banks offer free or inexpensive P2P transfers through Zelle or a similar vendor.

Worth noting, however, is the fact that some payment apps may limit the amount you can transfer in a day or within a week, and some do not allow international transactions. Before using a P2P service, It can be a good idea to familiarize yourself with the company’s fees, timing, and limitations.

4. Wire Transfer

If you need to send a considerable amount of money to someone quickly and/or the recipient is located overseas, it’s useful to know how to wire money using a wire transfer. Here are some specifics:

•   A wire transfer is one of the fastest and most secure ways to transfer money electronically from one person to another. It can be done through a bank or a nonbank wire transfer company, such as Wise (formerly TransferWise) or Western Union.

•   Wire transfers are convenient because you can make them over the phone and online as well as in person.

•   Wire transfers can be extremely fast. If you are making a wire transfer to another bank in the US, the funds may be available within one business day or even a few hours. Sending money to a bank in another country may take more time to process.

•   There is usually a fee involved in making a wire transfer. For outgoing domestic transactions, the wire transfer fee could be as high as $25 or more; international transfers are often around $45.

Since wire transfers are not reversible, you’ll want to make sure you are sending money to the correct recipient and not being lured into a money scam. To make a wire transfer, you’ll likely need to have the recipient’s bank name, routing number, and account number.

5. Third-party Companies

Another option to send money domestically and overseas is to use a third-party wiring service like MoneyGram or Western Union. Here’s how these work:

•   These companies do not require you to have a bank account to take advantage of services such as money transfers, money orders, and bill pay. You can fund your transaction using cash or perhaps a credit card.

•   Pricing varies widely depending on factors such as where money is sent from, where it is delivered, whether it’s paid in cash or wired to a bank account, and how fast the money is delivered. International transfers tend to be more expensive than domestic transfers.

Recommended: How to Send Money With A Credit Card

6. Online Bank-to-Bank Money Transfer Service

Some banks will allow you to use an online money-transfer service that allows you to send money between bank accounts using an email address or a US-based mobile phone number. A few details to consider:

•   Recipients are notified of the transfer via email, though the funds are actually sent through traditional bank transfer channels. Zelle is a popular choice for banks to partner with to provide this service.

•   You can usually make email money transfers directly from your bank’s app.

•   These transfers are typically free (although some banks may charge a fee) and can be instantaneous, though the speed is determined by the banks involved.

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Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!


How to Transfer Money from One Bank to Another at a Glance

Here’s a quick look at your options when you want to know how you can transfer money from one bank account to another. Included are such factors as cost and timing.

Online Transfer

Check

Peer-to-peer Transfer

Wire Transfer

Third-party Transfer

Bank-to-Bank Money Transfer Service

Cost Typically fee-free. Check with your bank Banks may charge for boxes of checks Free domestically Up to $30 for domestic transfers, and up to $50 for international transfers Fees vary. May range from $5 to $50 Usually free (though some banks may add a fee)
Timing Up to three days Usually take 1-2 days to clear May take a few minutes or a few days depending on the service Typically 24 hours for domestic transfers, up to 5 days for international Speed varies by fee, from immediate to multi-day transfers Varies by bank, but often immediate

The Takeaway

There are multiple ways to transfer money from one bank to another. The best option will depend on where you are sending the money, whether or not you own both accounts, how quickly you want the funds moved, and how much (if any) in fees you are willing to pay.

Options typically include online and bank-to-bank transfer services, wire transfers, third-party services, checks, and P2P apps like Venmo. Isn’t it nice to know that there are so many bank-to-bank transfer options to help you get funds where you want them to go, at the speed and price you want to pay?

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Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.


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FAQ

What is the easiest way to transfer money from one bank to another?

Online transfers, bank-to-bank money transfer services, and P2P apps can all make moving money very convenient; no checking writing is required, nor do you need to fill out as many forms as you might have to for wire transfers or when using a third-party service.

What is the safest way to transfer money from one bank to another?

While all methods of moving money have security features, wire transfers are generally thought to be one of the safest ways to send money from one bank to another.

How do I transfer money from one bank to another bank manually?

If you are using a banking or P2P app, you typically will need to type in the details of the account you are sending money to, the amount, the date you want the transfer to occur, and then verify that the specifics are correct.

Is it free to transfer money from one bank to another?

Whether or not it’s free to transfer money from one bank to another depends on the method you select. An online, bank-to-bank money transfer service, or P2P transfer and writing a check (excluding the postage to mail it) can be free; check details with your particular provider.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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