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What a person does with their money is their business, right? Not always. Lenders are indeed interested in how borrowers plan to use the funds they’re loaned — in fact, the reason for a loan is one of the application questions.

But does loan purpose really matter? Yes. In some cases, your loan purpose can impact whether or not you receive the loan, as well as your loan terms.

Here’s what you need to know when it comes to different uses and types of personal loans, and the best reasons to give for the purpose of your loan.

What Is the Purpose of a Loan?

At its most basic, the purpose of a loan is the reason the applicant wants to borrow money. Even though there are many acceptable uses of personal loan funds, including consolidating debt, paying for a large purchase, or covering the cost of a home renovation, the loan application will likely include a section asking why the applicant is requesting the loan.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

Why Does the Purpose of a Loan Matter?

Banks consider a number of factors when evaluating an applicant for a loan, such as the amount asked for and the applicant’s credit and employment history, to assess the potential risk of lending money to an individual.

But the borrower’s reason for needing a loan can be a significant factor, too. One reason why is that many financial institutions have certain limitations on how the money they lend can be used. For example, a lender may not allow the proceeds of a personal loan to be used to pay for college tuition, repay another student loan, purchase a home, or start a business. As a result, the best reason to give when applying for a personal loan is one that the lender allows.

The purpose of the loan you’re seeking can also impact the size of the loan the lender will grant, as well the interest rate and term of the loan.

Recommended: What Are the Common Uses for Personal Loans?

How Does Loan Purpose Affect Your Loan?

Your reason for getting a personal loan not only helps determine whether or not you’ll be approved, but can have an influence on the type of loan you can get, as well as the loan amount, and even the interest rate.

Some lenders focus on loans for certain purposes, such as credit card consolidation, while others offer an array of personal loan products that are each tailored to specific use, such as home improvement loans, medical and dental loans, wedding loans, or IVF loans. Each loan type will have loan amounts and terms designed to fit that particular need.

Does the Purpose of a Loan Influence Interest Rates?

It can. Some lenders may set interest rates based solely on the loan amount, the loan term, and the creditworthiness of the applicant. Other lenders might use those factors, plus have interest rate ranges for different loan purposes. For example, a lender might offer better rates (and longer terms) for home improvement loans than they do for debt consolidation loans.

To make sure you’re getting the best deal, you’ll want to shop around and compare interest rates, terms, and fees from lenders that are offering personal loans that match your needs. It’s also a good idea to review credit requirements, such as your credit score, history and income qualifications to ensure you meet the lender’s minimums.

Recommended: Typical Personal Loan Requirements Needed for Approval

Common Reasons for Getting a Loan

People typically have something particular in mind when they decide to borrow money. And while every person sees themselves and their individual needs as unique, it turns out the reasons for taking out a personal loan tend to fall into some fairly common buckets. Here a closer look at some of the most common reasons for getting a personal loan.

Debt Consolidation

The goal of debt consolidation is to save money on interest payments by consolidating high-interest credit card debt with a personal loan with a lower interest rate. If you have strong credit, you may be able to get a debt consolidation loan for a significantly lower rate than you are paying on your credit card balances.

Medical Bills

While health insurance can help pay for expected and unexpected medical bills, it usually doesn’t cover everything. And even when a medical expense is covered, insurance can still leave you with a significant portion of the bill to pay on your own. If that’s money you don’t have on hand right now, a medical loan can help ease the strain on your personal finances.

If you already have several medical debts, a low-interest personal loan could be a good way to consolidate those payments.

Recommended: How To Pay for Medical Bills You Can’t Afford

Home Improvements

While you might first consider a home equity loan or line of credit to cover a home repair or improvement, in some cases, a personal loan might be a better choice. This might be the case if you only need a smaller amount, or you need cash quickly (say your air conditioning or heating system goes out), since you can often get the funds from a personal loan within a few days.

Home improvement loans are also unsecured, making them less risky than home equity loans or credit lines, which use your home as collateral.


💡 Quick Tip: With home renovations, surprises are inevitable. Not so with SoFi home improvement loans. There are no fees required, and no surprises.

Something Else

There are many other reasons for taking out a personal loan, such as helping a family member, funding a move, or paying for a wedding or funeral.

Planned vs Unexpected Expenses

Some expenses can be expected and planned for accordingly, while others come up out of nowhere and require a sudden influx of cash. Either way, a personal loan can be a convenient way to finance these expenses without disrupting your savings or relying on high-interest credit cards.

What to Consider

Planned expenses, such as home renovations, weddings, or vacations, can benefit from a personal loan’s predictable repayment schedule. You can budget for the monthly payments and avoid dipping into your savings or using high-interest credit cards. However, you’ll want to factor the cost of the loan into the total cost of your purchase or project to see if it makes sense to finance it now or wait until you have enough savings.

Unexpected expenses, on the other hand, by nature arise suddenly and without warning. Medical emergencies, car repairs, or home repairs are examples of unexpected expenses that may require immediate financial assistance. Personal loans can provide a quick source of funds to cover these expenses, but it’s essential to carefully review the terms and conditions of the loan.

Smaller vs Larger Expenses

How much money you can get with a personal loan will depend on the lender, your credit score, income, debt-to-income ratio, and other factors, but the max amount you can typically get ranges from $500 to $100,000. This wide range can make a personal loan a viable source of financing for both small and large expenses.

What to Consider

When using a personal loan for smaller expenses, it’s important to borrow only what you need and can afford to repay. You generally want to avoid taking out any more than needed, as this can lead to unnecessary debt. It’s also a good idea to compare loan offers to find the most competitive interest rates and terms.

For larger expenses, such as home renovations or debt consolidation, personal loans can provide a lump sum of money with a fixed interest rate and repayment term. This can help you budget for the expense and avoid the pitfalls of high-interest credit card debt. But be sure to compare loan offers and choose the one that best suits your needs.

Recommended: 11 Types of Personal Loans & Their Differences

One-time vs Ongoing Expenses

Personal loans can also be used to cover one-time expenses, such as a major purchase. They can also be used to cover ongoing expenses, like a wedding, medical bills, or a home renovation. However, for ongoing expenses, you might want to consider a personal line of credit as opposed to a personal loan.

What to Consider

Funds from a personal loan are disbursed in one lump sum, and interest is paid on that sum according to a fixed repayment schedule.

If the loan purpose is an expense that is ongoing or variable, a personal line of credit might make sense financially, since interest is only charged on the amount drawn at any one time, and money borrowed can be repaid on a more flexible basis. Lines of credit tend to come with variable instead of fixed interest rates, however, so the overall amount due may be hard to predict.

Loans To Pay Off Other Loans

A common use for personal loans is to consolidate high-interest debt. By taking out a personal loan to pay off other loans or credit card debt, you can potentially lower your overall interest rate and simplify your monthly payments.

What to Consider

When using a personal loan to pay off other loans, consider any origination fees or prepayment penalties associated with the new loan. It’s also important to calculate the total cost of the new loan, including interest rates and fees, to ensure that it offers a better financial solution than your existing debt. Additionally, consider your repayment ability to ensure that you can comfortably afford the new loan payments.

Personal Loan Approval

The length of time from application to personal loan approval can vary by lender. On average, approval can take up to three business days for an online lender and up to seven business days for a bank or credit union. Some online lenders, though, offer same-day approval.

Some things that can make this a quicker process are making sure your credit report is free of errors and having required documents ready when the lender requests them. Loan applications that don’t have unusual circumstances, e.g., self-employment income verification or a high debt-to-income ratio, are more likely to be approved faster than those that do.

Once a personal loan application has been approved by the lender, the funds may be made available to the borrower in just a few days or up to a week, depending on the type of lender. Some online lenders may disburse funds the same day as approval.

The Takeaway

There are, indeed, different types of loans for different purposes. Applicants may have their own reasons for wanting a loan, but lenders will want to know what the funds will be used for. There may be certain loans better suited to certain funding needs than others, and a lender will likely want to make sure the loan suits the purpose.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Why is it important to know the purpose of a loan?

Lenders may want to know the purpose of a loan so they can assess the risk of lending. Also, some lenders have limitations on how the money can be used. Borrowers will also want to consider the purpose of a loan to make sure they apply for the right type of loan for their needs.

What are examples of the purpose of a loan?

There are many reasons why people apply for personal loans. These include: debt consolidation, medical and dental expenses, IVF treatment, home repairs/improvements, weddings, large purchases (like appliances or furniture), car repairs, and more.

What happens if I use my loan for a different purpose?

Some loans are meant to be used for a certain purpose, such as auto loans or mortgages. Personal loans, however, can be used for many purposes, and a lender may not check to see if the funds are being used as intended on the loan application. But it’s a good idea to review the loan application to understand any restrictions on the use of the funds.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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.

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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Consumers may not know it, but financial institutions often rely on “bundled” credit reports to make more fully informed decisions before lending an individual money.

That process is known as a tri-merge credit report (also known as a three-in-one credit report.) The merged report can give the lender a more complete picture of an applicant’s financial situation, since each credit report may contain slightly different information.

You can’t request a merged credit report on your own but you can ask a lender to share their tri-merged report with you. Read on to learn more about what tri-merged credit reports are and how they can impact your chances of getting a loan.

What Is a Tri-Merge Credit Report?

A tri-merge credit report simply combines three credit reports from the three largest credit reporting bureaus — Experian, Equifax, and Transunion — and consolidates them into one credit report for creditors and lenders. They are most commonly used in the mortgage lending sector where more information is required to properly assess larger loans.

Creditors often rely on three-in-one credit reports because they want a thorough review of an applicant’s credit history, an outcome a lender may not get with input from just one credit reporting agency.


💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.

How Do Merged Credit Scores Work?

A tri-merge credit report gives those lenders what they need – a comprehensive overview of a credit applicant using information from three credit reports, instead of one or two credit reports.

By combining all three credit scoring formulas and outcomes into a single credit report, creditors can get an expanded and more complete look at a credit applicant’s financial history (including payments and credit usage), based on the information included in the tri-merge credit report.

Recommended: Common Credit Report Errors and How to Dispute Them

Why Do You Have More Than One Credit Score?

Each credit scoring company has its own formula for calculating credit scores and one model may place more importance on one factor, such as payment history, while another may not. Also, different types of loans have different scoring methods.

The most commonly used credit scoring model is the FICO® Score, a base score that has a range of 300 (lowest score) to 850 (highest score). But within the FICO models, there are industry-specific ranges.

•   FICO® Auto Score Range is 250 to 900

•   FICO® Bankcard Score Range is 250 to 900

•   FICO® Mortgage Score Range is 300 to 850

VantageScore is another credit scoring model used by all three major credit reporting bureaus.

FICO Score and VantageScore base their calculations on different aspects of a person’s financial history.

•   FICO uses factors that are in a credit report, such as payment history of credit accounts, how much debt a person has, how long credit accounts have been open, how often new credit inquiries happen and how often new credit accounts are opened, and the mix of credit account types.

•   Vantage uses the same criteria as FICO, but places different levels of importance on each. Vantage also looks at additional factors that might not appear on a person’s credit report, such as rent and utility payments. Using factors such as these makes it possible for people who don’t have much of a credit history to have a credit score and be able to access consumer credit.

Lenders use credit scores and other information in the loan approval process.

What Does a Tri-Merge Credit Report Look Like?

Tri-merge credit reports offer creditors the same look and feel as a standard consumer credit report, with a few differences.

For starters, the third-party provider creating the three-in-one credit report culls the credit reports from each of the three primary credit-reporting firms (Experian, Equifax, and TransUnion) and pulls the most pertinent information for use in the tri-merge credit report.

In its final form, the tri-merge credit report includes the following sections.

•   An upfront summary that provides information on the credit applicant in capsule form.

•   A full section on the credit applicant’s financial accounts, focusing on larger accounts like mortgages, credit cards, auto loans, and any types of personal loans.

•   Data on the applicant’s credit payments history, any open accounts, any history of late or no credit payments, any tax liens or bankruptcies, and the applicant’s credit utilization ratio (i.e., the applicant’s outstanding credit balance divided by the total amount of revolving credit the applicant has available).

A tri-merge credit report may also include a specific credit report from any of the three major credit reporting agencies, based on the specific credit analysis needs of the mortgage lender who uses the three-in-one report.

Why Do Personal Loan Lenders Look at Your Tri-Merge Credit Report?

Tri-merge credit reports are more commonly used in mortgage lending than personal loan lending. But if you’re applying for a large personal loan — some lenders offer personal loans up to $100,000 — the lender may look at a tri-merge credit report to get a comprehensive picture of your creditworthiness. The tri-merge credit report will include any current or past personal loans and your payment history on those. The lender will use that information to determine approval for the loan you’re applying for.


💡 Quick Tip: Choosing a personal loan with a fixed interest rate makes payments easy to track and gives you a target payoff date to work toward.

How Does a Tri-Merge Credit Report Affect Your Loan Application?

Different lenders approach the risk of lending money with different tolerance levels, just as they each have different credit score requirements. A loan applicant whose credit reports don’t include late payments and unmanageable debt loads will likely be approved for a loan with favorable terms and lower interest rates.

Alternatively, a loan applicant whose credit report shows a large amount of existing debt and a history of late or missed payments may be offered a high interest rate and less favorable terms.

Because lenders that use a tri-merge credit report to assess an applicant’s creditworthiness are looking at a comprehensive picture, it’s in the best interest of the applicant to clean up their credit reports from each of the three major credit bureaus before they begin applying for a loan.

Recommended: Typical Personal Loan Requirements Needed for Approval

Is a Tri-Merge Credit Report a Hard Inquiry?

Any official lender review of a tri-merge credit report will be a hard inquiry and will temporarily impact your credit score. In general, each hard credit inquiry can decrease a credit score by five points.

The severity of any credit score decline due to a hard pull largely depends on the applicant.

A consumer with a strong credit report may see less of a credit scoring decline than one with a weak credit report. Multiple credit report hard inquiries can be a reason why a consumer with a weak credit history may see their credit scores decline moderately.

Recommended: Soft vs Hard Credit Inquiry: What You Need to Know

Can I Order My Own Tri-Merge Credit Report?

Tri-merge credit reports are available to lenders, but not generally to individuals. A lender may be willing to share with you the tri-merge credit report they pulled in your application process. A credit counselor who offers first-time homebuyer programs may also be able to pull a tri-merge credit report for you in a credit review process, but there may be a fee for that service.

However, you can — and it’s a good idea to do this — request a free copy of your credit report from AnnualCreditReport.com.

You can request a free copy of your credit report once a week from each of the three major credit bureaus. Reviewing all three of your credit reports will give you much of the same information as is included in a tri-merge credit report.

The Takeaway

Tri-merge credit reports can prove highly useful to mortgage and other lenders looking for a comprehensive review of an applicant’s credit history.

By merging the credit report analysis of the three major credit reporting agencies, creditors and lenders are getting a fully-formed outlook they likely wouldn’t get by relying on a single credit reporting agency.

For consumers, the key takeaway on three-in-one credit reports is simple – take a disciplined and diligent stance on your credit, review your credit reports on a regular basis, and ensure key issues like on-time payments and credit utilization rates are in good standing.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What is a tri-merge credit report?

A tri-merge credit report is a credit report combining information from the three major credit bureaus, Equifax, Experian, and TransUnion.

Is a tri-merge credit report a hard inquiry?

When a tri-merge credit report is pulled during the formal loan application process, it will be a hard inquiry on the applicant’s credit report.

Can I pull my own tri-merge credit report?

No. Tri-merge credit reports are available to lenders, not individuals, and they’re mainly used in the mortgage loan process. If you’re working with a credit counselor, you may be able to have a tri-merge credit report pulled during a credit review process.

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Photo credit: iStock/Irina Ivanova

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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.

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.

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.

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The median annual pay for travel agents is $46,400, according to the Bureau of Labor Statistics most recent data.

Travel is a passion many people share, but not many people are fortunate enough to make their love of travel their full-time job. If someone is skilled at finding the best travel deals and building the perfect vacation itinerary, they may find that working as a travel agent is a rewarding way to earn a living.

To better understand what it’s like to work as a travel agent and how much they earn, keep reading.

What Are Travel Agents?

Travel agents help their clients plan and book their trips. They may work for an individual client to plan their vacation or a corporate client to book their work travel. No two trips they manage are likely to be exactly the same, but they can help arrange everything from flights to hotels to excursions to dining reservations. Many travel agents can also give their clients access to deals through partner hotels and other travel vendors.

A travel agent can work independently. In-house at a large corporation, or for a major travel company. They may pursue this work full-time or as a side hustle. Given that a significant part of this career involves working with individuals to understand their travel aspirations and needs, it’s likely not a good job for antisocial people.

Travel agents can train in different ways: Some have a bachelor’s degree in an allied field or an associate’s degree in travel and tourism. There are many professional training programs and certifications available, such as ASTA, IATA, TIDS, and CLIA for different dimensions of travel planning.

As part of their work, travel agents may have the opportunity to visit various properties and destinations to make sure they would be a good fit for clients and learn about their selling points. This is often available at a reduced rate or for free and can be a major perk of working as a travel agent.

However, it’s worth noting that travel agents likely have to be available 24/7 and can deal with considerable stress, if, say, a client misses their flight or extreme weather ruins a vacation.


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Travel Agents Make a Year?

If you’re wondering how much money a travel agent makes, the answer will depend a lot on how experienced the travel agent in question is. For example, entry-level travel agents can earn a lot less than more experienced agents. The lowest 10% of earners in this role make less than $29,650.

The highest 10% make more competitive pay north of $64,100. And there are those travel agents who work in the luxury sector who make considerably more.

Indeed, some could make an annual salary of $100,000 or more.

What is the Average Salary for a Travel Agent?

The Bureau of Labor Statistics reports that the latest median pay per year for travel agents is $46,400 and the median hourly pay is $22.31.

Alongside experience, location can majorly impact a travel agent’s earning potential. The following table illustrates how much a travel agent’s average salary can vary by state, arranged from highest to lowest. For example, in New York, travel agents make an average annual salary of $51,002, but in Arkansas, they earn almost $20,000 less at an average of $33,194.

What is the Average Travel Agent Salary by State for 2023

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
New York	$51,002	$4,250	$980	$24.52
Pennsylvania	$46,702	$3,891	$898	$22.45
New Hampshire	$45,667	$3,805	$878	$21.96
New Jersey	$44,975	$3,747	$864	$21.62
Wyoming	$44,490	$3,707	$855	$21.39
Washington	$44,429	$3,702	$854	$21.36
Wisconsin	$44,110	$3,675	$848	$21.21
Massachusetts	$44,109	$3,675	$848	$21.21
Alaska	$43,993	$3,666	$846	$21.15
Oregon	$43,637	$3,636	$839	$20.98
Indiana	$43,568	$3,630	$837	$20.95
North Dakota	$43,557	$3,629	$837	$20.94
Hawaii	$42,711	$3,559	$821	$20.53
Arizona	$42,667	$3,555	$820	$20.51
New Mexico	$42,402	$3,533	$815	$20.39
Colorado	$42,122	$3,510	$810	$20.25
Minnesota	$42,111	$3,509	$809	$20.25
Montana	$42,024	$3,502	$808	$20.20
Nevada	$41,598	$3,466	$799	$20.00
Alabama	$41,499	$3,458	$798	$19.95
South Dakota	$41,167	$3,430	$791	$19.79
Vermont	$41,101	$3,425	$790	$19.76
Ohio	$41,077	$3,423	$789	$19.75
Rhode Island	$40,418	$3,368	$777	$19.43
Iowa	$39,934	$3,327	$767	$19.20
Delaware	$39,881	$3,323	$766	$19.17
Connecticut	$39,806	$3,317	$765	$19.14
Virginia	$39,419	$3,284	$758	$18.95
Mississippi	$39,257	$3,271	$754	$18.87
Tennessee	$39,219	$3,268	$754	$18.86
Utah	$39,017	$3,251	$750	$18.76
Illinois	$38,900	$3,241	$748	$18.70
Georgia	$38,659	$3,221	$743	$18.59
Maryland	$38,651	$3,220	$743	$18.58
California	$38,534	$3,211	$741	$18.53
Nebraska	$37,909	$3,159	$729	$18.23
Maine	$37,734	$3,144	$725	$18.14
Missouri	$37,456	$3,121	$720	$18.01
South Carolina	$37,087	$3,090	$713	$17.83
Kansas	$36,952	$3,079	$710	$17.77
Idaho	$36,789	$3,065	$707	$17.69
Louisiana	$36,765	$3,063	$707	$17.68
Oklahoma	$36,712	$3,059	$706	$17.65
Texas	$36,475	$3,039	$701	$17.54
North Carolina	$36,322	$3,026	$698	$17.46
West Virginia	$36,068	$3,005	$693	$17.34
Kentucky	$34,977	$2,914	$672	$16.82
Michigan	$34,895	$2,907	$671	$16.78
Florida	$34,212	$2,851	$657	$16.45
Arkansas	$33,194	$2,766	$638	$15.96

Source: ZipRecruiter

Travel Agent Job Considerations for Pay & Benefits

Working as a travel agent can be very flexible. While full-time positions are available in this role, some travel agents choose to work part-time or for themselves as entrepreneurs.

When working full-time for a travel advisory firm, travel agents can expect to gain access to benefits like health insurance and retirement contribution matching. If they work part-time or are self-employed, they will need to provide themselves with those benefits, which can eat into their take-home pay.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Travel Agent Salary

The main disadvantage of a travel agent’s salary is that the median annual salary is on the lower side at just $46,400. That being said, one of the main advantages of this salary is that it can come with hefty bonuses based on travel bookings with partners that offer commissions to travel agents. Also, travel agents often get discounts and freebies as they themselves travel to check out new resorts and attractions.

Travel agents who work for themselves can also choose to set their own rates and can potentially earn more. Or those who cater to high net-worth individuals may be able to raise their income.

Recommended: Work-from-Home Jobs for Retirees

The Takeaway

A travel agent who is super organized and passionate about travel can help make their client’s lives easier and their trips more enjoyable. In exchange for their savviness, some travel agents earn good salaries doing work that they truly enjoy and have perks that involve more travel at lower or no cost for their own purposes.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a travel agent?

While most travel agents don’t earn $100,000 per year, those who choose to work for themselves and set their own rates or cater to an elite clientele can possibly make six figures. Many travel agents work on commission, so they can also stand to earn more if their clients book a lot of expensive trips.

Do people like being a travel agent?

Many people like working as a travel agent because it’s a fun way to put their love of travel to use. It tends to be a good job for those who consider themselves to be a “people person” since there’s lots of interaction with clients. Also, it’s good for people who can “roll with the punches” since travel plans often change for various reasons.

Is it hard to get hired as a travel agent?

The demand for travel agents is on par with the average of other professions. So, while it’s not seeing a surge in need, there should be availability of jobs as a travel agent.

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Photo credit: iStock/Dimensions

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

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It may seem as if having a bank account is a given in life, but actually, it’s not: Some people get rejected and have to work hard (really hard) to attain that privilege. There’s a situation called being blacklisted by banks, and it’s a tough one to overcome.

Granted, for many, having enough money for a deposit and valid ID gives you all you need to open a bank account.

But if you’ve had problems with a bank account before and your screening report reveals those issues, you could be denied. But all is not lost: Take a deep breath and read on. We’ll share:

•   What it means to be blacklisted

•   Why this happens

•   What you can do to earn back the ability to access the financial products and services you need

What Does It Mean to Be on the ChexSystems Blacklist?

Unless you’ve had trouble opening a bank account, it’s possible you’ve never even heard of ChexSystems. Think of ChexSystems as being akin to the credit reporting agencies that determine your all-important FICO credit score. Except instead of keeping track of how well you manage debt the way Equifax, Experian, and TransUnion do, ChexSystems records how well you manage your banking life.

Do you have a history of bouncing checks, overdrawing your account, failing to pay bank fees, suspicious activity, or have had your account closed by a financial institution? If so, it’s likely ChexSystems knows about and is keeping track of those negative activities. Approximately 80% of banks use these agencies’ screening reports when deciding whether to approve a consumer’s application to open a checking or savings account.

Along with your report, banks also may use your ChexSystems Consumer Score to assess your potential risk as a new or returning customer. A score can range from 100 to 899 — and a higher score signifies lower risk.

There’s no official point or score at which consumers are automatically “blacklisted” by ChexSystems or the banks that use its services. Each financial institution determines independently how much risk is acceptable when deciding to open a new account for a client. But if your score is in the lower range, you should be aware that your application could be refused. The reason why: You don’t appear to be someone who will use your bank accounts responsibly.

If you’re planning to open an account and you’re wondering what your current ChexSystems Consumer Score is, you can request it at the ChexSystems website. You’re able to get one free report per year.

What to Do If You Are Blacklisted

So let’s say you’ve applied for a bank account and got rejected. That can be an upsetting feeling. After all, bank accounts — especially checking accounts — are the hub of most people’s financial lives. Paychecks are deposited there, and bills and other debts are paid out of that same account. You may wonder how you will ever get a bank account after being blacklisted.

We have good news: If a financial institution denies your request to open an account, there are a few things you may be able to do to improve your standing. Here are four steps to take.

1. Request a Consumer Disclosure Report

The bank or credit union that declined to open an account for you should inform you which reporting agency (ChexSystems or another) generated the report it used when considering your application. You can then contact that agency by phone, mail, or online to request a free copy of the report. You’ll then take a look at exactly what’s on your record.

2. Report Any Discrepancies

Once you receive a copy of your file, you should be able to see which banks or credit unions provided negative information about you to the reporting agency. If the report doesn’t match up to your experiences, there may have been an error, or the problem could be connected to identity theft. Either way, it’s a good idea to check your own records for any discrepancies and prepare to address what you may uncover.

3. Dispute Any Errors Found

Consumer reporting agencies must comply with the federal Fair Credit Reporting Act. That means they are required to ensure the information they provide is as accurate as possible. What’s more, by law, they can’t include certain types of negative information that’s more than seven years old. (ChexSystems typically keeps negative information on a report for five years.)

If you feel your banking report has errors, is incomplete, or that some negative information is out of date, your next move may be to file a dispute. The Consumer Financial Protection Bureau (CFPB) provides sample letters for contacting both the financial institution that supplied the incorrect data and the agency that included it in its report. Or, you can file your dispute on the ChexSystems website.

Under the Fair Credit Reporting Act, ChexSystems must verify the negative information within 30 days or delete it from your ChexSystems report.

You also may want to get an updated credit report from one or all three of the major credit bureaus to see if there are similar problems there. You can request those reports for free at annualcreditreport.com. If you find anything amiss, you can dispute those credit report errors.

To be clear, your ChexSystems score is not the same as the FICO credit score lenders look at when you apply for a credit card or loan. And the banking reports ChexSystems provide do not include the same information as credit reports. But if there’s inaccurate information in a report about your checking account activity, there may be similar issues with your credit reports — especially if you’ve been the victim of identity theft. If you can catch discrepancies early, you may be able to head off future questions about your creditworthiness.

4. Pay Off Outstanding Debts and Fees

Of course, there is the possibility that the black marks on your report are valid. Maybe you bailed on an account that was overdrawn or had another negative situation. If information on your report was accurate, you still may be able to improve your chances of opening an account. You will probably want to show that you are trying to rectify past problems.

Check with the bank that declined your recent application for an account. A banker there may have some suggestions. It could help, for example, if you can pay off any old fees you still owe to ChexSystems’ member institutions. Once those past bad debts are taken care of, you can ask the bank or credit union that provided the negative information to update that item on your ChexSystems report.

You still may have to wait five years for the negative information to be completely removed from your report. But ultimately, it’s up to each individual bank — not ChexSystems — to decide if a customer’s application will be approved or denied. If the bank sees you’re making an effort to right old wrongs, it may reconsider your application. That’s why connecting with a banker to explain what steps you’re taking can be a move in the right direction.

How to Avoid Being Blacklisted by ChexSystems

Obviously, the best way to avoid getting a low ChexSystems Consumer Score or a negative report is to avoid the activities that could make you a riskier bank customer. If you want to be a good checking and savings account customer, avoid such things as:

•   Bouncing checks or running up too many overdraft fees

•   Having an account closed involuntarily

•   Committing ATM or debit card abuse

•   Being suspected of fraud or illegal activity

•   Opening and closing multiple accounts in a short period of time

But there are other steps you can take to further secure your finances and your financial reputation. Consider these options as well to boost your standing as a banking customer. They can help you avoid being blacklisted.

Monitor Your Financial Health

If there’s information on a ChexSystems report that you weren’t aware of, you may have been the victim of identity theft. Reviewing your accounts regularly could help you clear up problems faster. Even if you don’t have this kind of fraudulent activity on your record, it’s still a good idea to stay on top of your financial profile. Here are some key steps.

•   It’s a good idea to periodically request and scrutinize your free ChexSystems report.

•   You’ll also want to get free copies of your three major credit reports from annualcreditreport.com at least annually. Again, your goal is to make sure that everything is up-to-date and accurate and that there isn’t any fraud or identity theft occurring.

•   It’s also a good idea to regularly check your bank account and credit card statements to make sure there aren’t any transactions you aren’t aware of. Many financial institutions offer online tools and mobile apps that can make tracking your accounts easy and convenient.

•   You may want to set up a low balance alert for your checking account. That way, you’ll get a text or email when your balance reaches a certain threshold, and you’ll know to stop using the account until you make a deposit. That can help avoid overdrawing your account and bouncing checks and/or triggering fees. You also might consider setting up bank alerts for unusual activity, overdrafts, and new log-ins.

Find an Alternative to a Traditional Banking Account

If you’ve been rejected and are worried that you might be unable to open a bank account, don’t give up hope. If your ChexSystems report seems to be blocking you from getting an account, you may have other options.

•   Some banks and credit unions offer what are called “second chance” checking accounts. These typically offer fewer features and higher fees than regular bank accounts to customers who have been blocked by a ChexSystems report or score.

•   There are also some banks and credit unions that don’t use ChexSystems when making decisions on account applications. You might be able to enjoy the same benefits as other account holders, with low or no fees, if you choose to do business with one of those financial institutions. A little online research should show you which banks don’t depend upon ChexSystems.

By investing a bit of time and energy, you should be able to find an account that suits your needs even if you have been blacklisted.

The Takeaway

If a bank denied your application for a new checking or savings account, it could be that you were blacklisted due to negative information on your ChexSystems report.

You still have options, though. If the information on your report is wrong or more than seven years old, you can dispute the negative information and have your report corrected. And if it turns out the negative information is true, you can take steps to remedy the situation and possibly open an account elsewhere. The convenience of a bank account may well be within reach.

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.

FAQ

Can I open a bank account if I’m blacklisted?

You may have a few options if you’ve been blocked from opening an account. You could try to fix your old problems, and ask the bank to reconsider. You could sign up for a “second chance” account that’s geared to people with a negative banking history. Or, you could look for a bank that doesn’t base its decisions about customer accounts on ChexSystems reports.

How long are you blacklisted from banks?

Every bank has its own policies when it comes to deciding a customer’s account eligibility. But if you have negative items on a ChexSystems report that could cause a bank to decline your account application, you can expect that information to stay on your report for up to five years.

What does it mean when your bank account is blacklisted?

If someone tells you that you have a blacklisted bank account, it generally means you have enough negative information on your ChexSystems report — or a low enough ChexSystems score — that the bank sees you as a risk. They therefore decline to offer you an account.

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Photo credit: iStock/PeopleImages

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.

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.

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.

Our account fee policy is subject to change at any time.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

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Closing a checking or savings account at one bank and opening a new one at a different bank won’t affect your credit score because banks don’t check your credit or report your banking activity to the major credit reporting bureaus.

That said, there are some instances where banking activity may influence credit scores indirectly. So let’s take a look at how things play out when you are changing bank accounts and answer the following questions:

•  Is switching banks visible in your credit file?

•  Will changing banks affect your credit score?

•  Can switching banks impact your chances of getting a loan?

Ready? Let’s learn more about this important aspect of your financial life.

Will Switching Banks Be Visible on Your Credit File?

No. Your banking history is not reported to the three consumer credit bureaus (Equifax, TransUnion, and Experian), so switching banks will not be visible on your credit file.

While banks do track and report their customers’ financial activity, they report it to a different agency, which is called ChexSystems. Your ChexSystems report will include your past savings and checking account history, as opposed to your credit history. This may include negative information, such as any unpaid negative balances (from overdrafting), frequent overdraft fees, and bounced checks.

Having negative information on your ChexSystems report won’t impact your credit, but it could make it harder to open a new savings or checking account, since banks will typically pull your ChexSystems report when you apply for a new account.

Your credit reports, by contrast, contain information relating to credit accounts, including any credit cards or loans you have. It will include:

•  Personal information, such as your name, date of birth, and Social Security number

•  Credit accounts, including creditor names, account numbers, balances, and payment history

•  Credit inquiries

•  Public records and collection accounts

The information in your credit reports is used to calculate your credit scores, including your FICO® Scores. Lenders will typically check your credit scores when deciding whether to approve you for a loan or line of credit. Generally, the higher your score, the more likely you are to be approved for credit, and the better the rates and terms will be.

Does Switching Current Accounts Affect Your Credit Score?

Opening a new bank account and closing an old account does not affect your credit rating, as long as the account that’s closed is in good standing and you transfer any autopayments to your new bank account. There could potentially be credit score implications, however, if you’re shuttering the account with a negative balance, you forget to switch your autopay transactions, or you’re closing a credit card with the bank at the same time.

Here’s a closer look at three scenarios in which closing a bank account could indirectly impact your credit.

•  Negative bank account balances: The bank won’t report a negative balance due to an overdraft or unpaid fees to the credit bureaus, However, if your account has been closed because of an unpaid negative balance, it could go into collections. The collection agency could then take action against you, including reporting the delinquent debt to the credit bureaus and suing you for the balance due. Delinquencies, collection accounts, and judgments can all show up on your credit reports and harm your score.

  Missing loan or credit card payments: If you close a checking account that you were using to automatically pay credit accounts (such as your credit card, auto loan, or student loans) and don’t switch those payments to a new account, you could miss a payment. Late or missed credit card or loan payments could be reported to the credit bureaus and have a negative impact on your scores.

•  You close a credit card at the same time: If you have a credit card with the same bank and close both your bank account and credit card account simultaneously, it could negatively impact your credit. Here’s why: Closing a credit card could lower the amount of overall credit you have versus the amount of credit you’re using (your credit utilization ratio), which could impact your credit scores. Also, closing a credit card account you’ve had for a long time may impact the length of your credit history, which is another factor used to calculate credit scores.

Will Switching Banks Affect Your Chances of Getting a Loan?

No. Switching banks should not affect your chances of getting a loan, since it won’t impact your credit scores. Closing an old bank account won’t get reported to the credit bureaus. And when you open a new bank account, the financial institution won’t likely run a credit check. Instead, the bank or credit union will screen your banking history through ChexSystems, which isn’t connected to your credit file.

Applying for a new credit card or loan, on the other hand, could impact your credit. When you apply for a new line of credit, the lender will typically run a hard inquiry or a “hard pull” on your credit file to determine how much risk you pose as a borrower. Hard inquiries show up on your credit report and can have a small negative impact on your scores in the short-term.

Can Your Credit Score Be Affected If You Open Multiple Bank Accounts?

No. Opening multiple bank accounts will not affect your credit scores. When you open a bank account, the financial institution won’t usually run a credit check but will instead screen you through ChexSystems, which is an entirely different reporting agency.

Your credit scores are based on credit accounts, such as credit cards or loans, rather than bank accounts. Things like how much money you keep in checking and savings or how many bank accounts you have don’t affect your credit rating. What does matter to your score is how good a record you have of borrowing and repaying funds in a timely fashion.

Steps That Can Positively Impact Your Credit

If you’re concerned about your credit, opening and closing bank accounts likely won’t have any effect (positive or negative), since your banking activity isn’t reported to the consumer credit bureaus. However, there are other steps you can take to add positive information to your credit reports and, in turn, help you build your credit. These include:

•  Consistently pay your bills on time. Payment history accounts for 35% of your FICO Score, so it’s a good idea to set up autopay for all of your monthly credit payments so you never miss a due date.

•  Pay down credit card balances. This can help lower your credit utilization rate, or ratio, which measures how much revolving credit you’re using relative to your total credit limits. Credit utilization accounts for up to 30% of your FICO credit score. The lower your credit utilization, generally the better.

•  Keep older credit accounts open. While it’s fine to close unused bank accounts, the same can’t be said of unused credit accounts. Closing a credit card can negatively affect your credit by reducing the amount of revolving credit available to you (instantly increasing your credit utilization rate). It also shortens your credit history, and length of credit history is also factored into your scores.

•  Review your credit reports. Inaccuracies in credit reports are uncommon but may show up from time to time, and depending on the information involved, could negatively affect your credit score. You can get copies of your credit reports free from AnnualCreditReport.com.

The Takeaway

Opening a new checking and/or savings account could be a good move if your current bank no longer meets your needs. And you can take comfort in knowing that closing an old checking or savings account and opening new ones at a different bank won’t impact your credit, since banks don’t run credit checks or report your banking activity to the consumer credit bureaus.

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.

FAQ

Is switching banks bad for your credit?

No. Switching banks won’t impact your credit, since banks don’t run credit checks or report your activity to the consumer credit bureaus.

Is switching bank accounts a good idea?

Switching bank accounts can be a good idea if it allows you to get a better interest rate on savings (and possibly checking), reduces banking fees, and/or gives you more perks and better access to your money. Before changing banks, it’s helpful to compare features, benefits, rates, and fees to find the right banking option for your needs.

Will getting a new bank account affect my credit score?

No. Opening a new bank account and closing an old one won’t impact your credit. Banks do not report your activity to the consumer credit bureaus. Instead, they report your financial activity (like opening and closing accounts, overdrafts, and bounced checks) to ChexSystems, the banking reporting agency. Your ChexSystems report does not appear in your credit file.

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Photo credit: iStock/Passakorn Prothien

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.

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.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

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