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Looking to get a better handle on your finances? You may want to consider a monthly bullet journal. Part calendar, part to-do list, part note keeper, this type of journal can help you organize your finances, track short- and long-term financial goals, and more. And because it’s highly customizable, you can modify your journal to suit your specific needs. Whether you’re trying to curb your spending, get out of debt, or improve your financial habits, read on for ways a bullet journal can help.

What Is a Monthly Log?

Having a daily to-do list is useful. But sometimes it helps to see the larger goals and tasks you’ve set for yourself, especially if you’re working to develop good financial habits. Enter the monthly log, which is a key component of many bullet journals. The log gives you a snapshot of the things you’d like to accomplish that month and the progress you’ve made so far. You may choose to include it alongside your daily or weekly to-do list or keep it on a separate page.

How to Fill Out Your Monthly Log

Figuring out what should go in the log each month may take some time. You might find it helpful to make a big list of all upcoming events and tasks. Then, place each item in the correct month’s log, and be sure to add details such as important dates and milestones. You may also decide to categorize and color-code each entry for easy skimming.

Here are some different ways you can tackle financial stress through journaling:

•   Get control of bills by listing when each bill is due, how much is due, and the payment method you plan on using.

•   Keep tabs on your savings plan by noting when you intend on putting money into your savings account, how much you’re depositing, and where the money is coming from, such as your checking account or paycheck.

•   Track your progress on paying down student loans, car loans, personal loans, credit cards, and other debt.

You can also use a monthly log along with your budget or a spending app to help you better understand your spending habits.

Benefits of Using a Bullet Journal

There are plenty of reasons why people turn to bullet journaling to help them keep their finances on track. For starters, recording things like your expenses and spending, household budget, or savings goals can help you stay organized and increase productivity. There’s also the thrill of watching your savings balance go up or debt balance go down — and celebrating those accomplishments.

Visual learners may find monthly logs especially useful, particularly if they decide to color-code entries. But even just jotting down important details about your financial life can help keep your goals top of mind.

4 Monthly Bullet Journal Ideas

Here’s the beauty of a bullet journal: You can try out strategies others use or create a bespoke system for yourself. It can be as simple or complex as you’d like, and you may even find that it evolves over time. Here are four ideas on how to use bullet journaling in your financial life.

Use a Bullet Journal to Control Spending

You don’t have to have the classic signs of a shopaholic to want to curb your spending. A bullet journal can be a great tool to help you rein in the number of purchases you make.

One idea is to create a weekly bullet journal where you set how much you’ve allotted for discretionary spending that week and track any purchases made. Understanding how and where your money is going could help you avoid the bottom-dollar effect. This is when you may feel less satisfied with the last item you were able to buy with your budget.

Another option is the kakeibo budgeting method. This simple but effective strategy requires you to create a line item budget at the start of each month based on how much you plan on earning and spending, plus your savings goals. Throughout the month, you track every single penny you spend. At the end of the month, review the log to see if you stayed on track spending-wise and are making progress on your savings goals.

Recommended: 10 Tips for Spending Your Money Wisely

Use a Bullet Journal for Financial Education

Despite what you may think, you can learn about finance without having a finance background. In fact, boosting your financial literacy could improve how well you spend, save, and invest your money. And a bullet journal might help get you there. You can use it to track your progress in an online financial literacy course, for example, or as a place to write down the books or podcasts that will help build your personal finance knowledge.

Use a Bullet Journal to Land a Job

Whether you’re searching for your dream job or just the next gig, consider devoting a few pages of your bullet journal to your job search. You may want to start by listing your goals in an easy-to-see spot so you can refer to them throughout the process. Use other areas to note the roles you apply for, key details about the positions, notes on the companies you researched, and any upcoming interviews. You can also try creating daily, weekly, or monthly to-do lists in your journal to help you stay on track.

Recommended: How to Make Money Even With No Job

Use a Bullet Journal to Track Progress on Long-Term Goals

Say that you’re saving for a big-ticket item, like a house or car, or setting a long-term goal, such as paying off a large credit card bill. Bullet journaling lets you set those goals and track your progress. You can also break the goals down into smaller, easier-to-manage tasks that you set on a daily, weekly, monthly, or quarterly basis.

The Takeaway

Bullet journals allow you to record tasks, deadlines, responsibilities, and more in a format that combines a to-do list with a calendar. Though it can serve a wide variety of purposes, a bullet journal can also help you organize your finances and maximize your productivity. Common ideas include journaling to control spending, boost your financial literacy, help with a job search, and work on short- and long-term financial goals.

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.

FAQ

What should be in a monthly bullet journal?

Monthly bullet journals are flexible, so use them to suit your needs. For instance, if you want to monitor and manage your personal finances, you can use the bullet journal to track when bills are due, when you plan to deposit money into a savings account, how much debt you have, and more.

How do you make a monthly bullet journal?

You can purchase ready-made bullet journals or make your own by simply buying a notebook you like and personalizing it. It’s a good idea to create an index that you can update when needed, as well as a log to list your future goals. You can also create sections for monthly and daily logs, where you can add more details.

What are monthly spreads for?

A monthly spread is another name for a monthly log. This is where you lay out the tasks you have for a particular month. Typically, a spread runs two or more pages, but do whatever works best for you.

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SoFi Coach offers users the ability to connect SoFi and external accounts using the Plaid service. When you use the service to connect an account, you authorize SoFi to obtain account information from external companies 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 your needing to connect additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, nondelivery or failure to store any user data, the loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. Your 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.

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Some days off are meant for purely relaxing. Others are meant for checking things off our to-do lists that we can’t get done during the course of the work week.

If you’re looking for productive things to do on your day off, including ideas that may improve your money mindset and financial fitness, we have 21 good ways to get started.

How Staying Productive Can Improve Your Money Mindset

If you have a lazy day off, it might wind up costing you. The temptation to spend when bored is real. When you have nothing to do, you may turn to online shopping, dining out, or other pricey leisure activities to fill your time.

There is of course a time and place for spending on leisure, but there’s a big question to ask yourself before spending that money. Specifically, are you plunking down that cash because you will get something out of the experience or purchase or are you simply doing so because you’re bored?

Staying productive on days off can be a form of financial self-care. It can help you avoid unnecessary spending which, in turn, can make other leisure time feel even more enjoyable.

Productive Things to Do on Your Day Off

Not sure what to do on a day off? Consider checking one or more of these positive activities off your to-do list. Any of them can help you feel more organized and in control of your life.

1. Planning a Vacation

Instead of going out and spending money, consider staying home and planning your next vacation. The money you save can go toward your upcoming trip. Not only that, research and advance planning can help you spend less on your vacation and make sure everything goes smoothly. You might even open a travel fund account and begin saving.

2. Checking Your Credit Card Statements

If you get paperless statements, you may not regularly look closely at your credit card spending. This can be a smart thing to check off on your day off. Simply log into your account and scan your recent statements. Make sure all the charges are accurate, and see if your spending is in line with your budget. If you’re carrying a balance, you might hatch a plan to pay it off.

3. Taking Quality Time for Yourself

Quality time means different things to different people. For you, taking time for yourself might mean pursuing a hobby such as painting, reading a good book, going for a long run, or taking a long bath. There are plenty of relaxing activities to enjoy that don’t cost any money and recharge you for the work days ahead.

Recommended: 30 Fun and Inexpensive Hobbies

4. Reviewing Your Career Goals

While it may not sound fun to sit down and think about work outside of working hours, there’s a lot of value to be found in peaceful reflection. Spending time reviewing career goals when there are no Monday-to-Friday stressors or distractions can make it easier to find clarity.

5. Starting a Side Hustle

Whether you could use some extra income or you’re thinking about changing careers, you might use some of your day off to investigate freelance opportunities and other types of side hustles. Look into options that you might enjoy that also provide the opportunity to learn new skills.

6. Catching Up on Important Errands

Running errands isn’t always fun, but not having them hanging over your head almost always feels good. If you have a day off, you might want to use a couple of hours in the morning to tackle errands. This can leave the rest of the day wonderfully free. Plus, you’ll get that “I’ve got this!” boost from knowing you’re in control of those to-do’s.

7. Exercising

Getting in a workout or just some physical activity can boost your mood and energy level and lead to a happier and more productive day off.

8. Mapping Out Your Money Goals

Similar to setting career goals, a day off can be the perfect time to think about your money goals. Consider what you’d like to accomplish in the next several years, such as buying a car, going to Europe, or putting a down payment on a home. Then figure out how much you’ll need to save each month to do it. You might even open a high-yield saving account and set up an automated monthly transfer to help accomplish your goal.

9. Getting a Haircut

A fresh haircut can put a bit of pep in anyone’s step, and it’s a definite self-esteem booster for most of us.

10. Volunteering

Giving back to your community can be a great way to spend free time. There are so many different causes worth getting involved in, from food banks to animal shelters to park cleanups. Volunteering can also expand your network and help you learn new skills, which could pay off in other ways down the line.

11. Updating Your Online Resume

If you’re looking for a new job, the weekend can be a great time to update any resumes you have posted on social media platforms or job-searching websites. There are loads of templates online that can help you spiff up your resume, too.

12. Reading a New Book

With so many distractions on busy days, it’s hard to find the time to read. Why not make reading a new book (or an old favorite) a priority on your next day off? There’s nothing like the escape of a good story, whether it’s historical fiction, a murder mystery, or whatever else catches your attention.

13. Taking an Online Class

Whether you want to learn a new work-related skill or explore a personal interest, there’s likely an online class out there that can help you productively use your time off. From coding to cooking, almost any topic is available these days.

Recommended: Can You Take Online Classes While Working?

14. Spending Time With Loved Ones

Productivity can mean a lot of different things, including spending time with loved ones. Maintaining connections with the people you care about most can help you build a support system and provide personal gratification.

15. Unsubscribing From Unwanted Emails

Have half an hour to kill before meeting up with friends? Chip away at unsubscribing from all those unwanted emails. The lack of digital clutter can be super freeing, even if you don’t achieve inbox zero just yet.

16. Updating Your To-Do List

Want to get things done on a day off but don’t know where to start? Sit down with a pen and some paper (or your phone or laptop) and write an updated to-do list. Of course, it’s not necessary to tackle the entire list in one day, but do try to schedule when you’ll tackle each item on your list.

17. Checking How You’re Doing With Your Budget

Budgets only work if you check in periodically to see how well you’re sticking to the plan. Every few months, it’s a good idea to look at your bank statements and make sure your spending and saving aligns with your goals. You can also use a budgeting app to simplify the process.

Recommended: Guide to Emergency Funds

18. Planning for Next Week

Another good use of free time is to get organized for the week ahead so it feels less stressful and intimidating. Do meal prep, clean up the house, organize your bills, and make sure all work clothes are washed and ready to wear.

19. Finding Networking Opportunities

Nowadays, you can do a lot of professional networking from home online. If you have some downtime, consider hopping on LinkedIn, checking your notifications, and sending some connection requests or messages to help broaden your network.

20. Adjusting Your Tax Withholding if It’s Not Right

Sick of owing taxes each year? Check your tax withholdings to make sure the correct amount is being deducted from your paycheck. Adjust it accordingly if needed. That quick move could save you some money headaches when tax season rolls around.

21. Cleaning Your House

A good cleaning session can help make your home more comfortable, efficient, and enjoyable to live in. Imagine your place freshly vacuumed or the bathroom scrubbed as motivation.

The Practical and Financial Benefits of Being Productive

We all need downtime, but being productive on a day off also has numerous benefits, including feeling happier, less stressed, and more in control of your life. It can also have a positive impact on your finances. For one, being productive can help beat the boredom that can lead to filling your time with shopping or other expensive activities. And if you use your free time to organize and stay on top of your finances, it can help you make the most of your money and reach your financial goals.

The Takeaway

As you can see from this list, there’s no shortage of productive things to do on your day off. Whether you choose to spend your free hours taking an online class, reviewing your budget, or outside running, putting your time to good use can leave you feeling less stressed and more in control over your personal, professional, and financial life.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

What is considered wasting time on your day off?

When deciding what things to do on a day off, only you can decide what’s a waste of time or what’s not. For one person, organizing their receipts is a waste of time, but for another, it’s productive. The same holds true for reading a book. The key is to find a way to balance productivity and relaxation as you define them.

How can I productively treat myself on my day off?

There are numerous ways you can treat yourself on a day off while also being productive. Examples include going for a hike, listening to a podcast, reading a new book, or taking a class online. All of these options have positive benefits in terms of self-care and fun but don’t cost much (if anything).

Is traveling considered productive?

Traveling and gaining new experiences and insights beyond your local community can indeed be productive. Travel can help us learn, grow, relax, and return home with a new, refreshed perspective.

Photo credit: iStock/MesquitaFMS

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A check hold is the period of time that your bank or credit union hangs on to your check before the funds are released and available in your account. Check holds allow both the sending and receiving financial institutions time to validate a check.

It might seem annoying to have to wait for your money, but the process can help avoid check fraud and bounced checks, which can sometimes result in fees for the account holder. Fortunately, check holds are governed by laws that limit most such holds to two business days (though there are some exceptions, explained below).

Here’s what you need to know.

How Does a Check Hold Work?

When your bank receives a check — be it through the mobile deposit feature on its app or at the physical bank branch — it doesn’t necessarily receive the full credit for the dollar amount on the check. Instead, many checks first go through the Federal Reserve or a private clearing house. This can contribute to a situation in which a check is on hold.

Only after this process is complete does the recipient bank have full access to the funds.

Although some checks may clear immediately, others may not, which means the account holder cannot yet dip into those funds. In some cases, you may have access to a portion of the money you deposited to your checking account, but not the entire check amount, until the hold ends.

In terms of timing, most “local” checks (i.e., those deposited into a United States financial institution from a United States financial institution) must be made available within two business days. There are, however, some exceptions.

Reasons for Check Holds

Banking processes may require holding a check for a variety of reasons, including mitigating the risk of check fraud. Here’s the scoop.

Risk Mitigation

While check fraud is no longer as common as credit card fraud (likely because checks themselves are used less often), it can happen. Forged signatures, “paper hanging” or “kiting a check” (purposefully writing a check without sufficient funds), and plain old counterfeiting are all ways checks can be risky for both banks and their customers. Having a check on hold means there’s more time to review and verify it. This, in turn, mitigates the risk of attempts at bank fraud.

Regulatory Compliance

As mentioned above, some check holds are actually related to the Federal Reserve’s clearing process, as opposed to a policy written solely by the bank itself. In those cases, the check clearing process may be, quite literally, out of the bank’s hands.

Bank Policies

Individual banks may have their own policies on the books as far as how long to hold different types of checks internally. Of course, such policies are subject to the laws that limit check holds, described below.

Check Hold Time Frames

Thanks to the Expedited Funds Availability Act of 1987 (also known as the EFAA), funds from most checks written in the United States must be made available within two business days. However, in some cases, the time frame may be extended to six business days, including instances where the check is from a foreign financial institution.

The same law requires banks to disclose their funds availability policies to account holders, so if you ever have a question about when your check should clear, you should be able to contact your bank and get an answer. This can help you understand why a bank might hold checks for a few days.

Recommended: What Is a High-Yield Checking Account?

Typical Hold Periods

The longest you should have to wait for a check hold to clear is about a week.

As mentioned, funds from most “local” checks must be made available within two business days, and some may clear more quickly than that. For instance, checks received through direct deposit often become available by the next business day, as do cashier’s checks and checks that were written from a different account at the same financial institution.

On the other end of the spectrum, if your account is newer or the check is written in a large amount, the hold may extend up to six business days.

Recommended: 50/30/20 Budget Calculator

Factors Affecting Check Hold Duration

While most check holds clear within a business day or two, there are certain factors that may extend the time it takes for your funds to hit your account. These include:

•   Account history: Those with newer accounts may be subject to longer hold times during the first 30 days of account ownership as the bank works to verify the validity and availability of incoming funds.

•   The check amount: Larger checks (defined as totaling more than $6,725 in a day) may be subject to longer holds on the amount over the $6,725 mark, though federal regulations require banks to make at least part of the funds available to you within the normal hold time.

Generally speaking, the first $275 of most checks must be available the next business day, even if the remainder is still subject to a hold.

•   The source of the check: Checks from foreign banks, other than Canada, may be subject to much longer holds of up to six to eight weeks.

•   Your bank’s policies: As noted, your financial institution, whether a traditional vs. an online bank, is typically required by federal law to list its funds availability protocols in a prominent place, and a bank representative should be able to answer any questions you have about when a check might clear.

These factors can play a key role in how long a check is on hold for.

The Takeaway

While check holds may feel like an inconvenience, they’re a safety measure that can benefit both you and your bank. They allow banks to verify deposits. In most cases, the funds will be available in just one or two business days. In some cases, a hold of up to six business days is possible.

Looking for a bank account that makes managing your money easy? See what SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

What is the maximum hold period for a check?

In compliance with federal regulations, holding a check usually cannot last longer than six business days. However, if the bank has reason to suspect fraud or your checking account is brand new, longer check hold times may be deemed “reasonable.”

Can a bank hold a check indefinitely?

No. Banks are subject to federal regulations that limit most check holds to two business days, though in some cases the hold period may extend to six business days. While longer holds are possible under certain circumstances (such as a new account or suspected fraud), the bank still must clear your funds once verification is complete.

How can I avoid check holds?

Directly deposited funds generally clear on the next business day, so signing up for direct deposit with your employer is a good way to avoid check holds on your regular paycheck. For other checks, if the amount is larger, you might ask for a certified or cashier’s check, each of which tends to clear more quickly.

Photo credit: iStock/FG Trade

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It’s possible to overdraft your account with a debit card if you have signed up for your bank’s overdraft coverage. This can enable a transaction to go through even when the account is short of the funds needed to cover it. However, you may wind up paying expensive overdraft fees on your purchase or withdrawal.

Some consumers accept overdraft fees as a cost of doing business with their bank or credit union, preferring them over returned or declined payment. But many wish to avoid these fees. Read on for a closer look at what a bank’s overdraft service could mean specifically for debit card transactions.

What Does It Mean to Overdraft With Your Debit Card?

Overdrafting with a debit card means spending more than you have in your account, but the bank covers the charge.

If you don’t have enough money in your bank account to cover a debit card transaction, you can expect one of two things to happen.

•   Your bank may decline your request, leaving you empty-handed at the cash register or ATM.

•   Your bank could allow the transaction to go through. Technically, you will have overdrawn your account, because your account balance will fall below zero. But you’ll be able to complete your purchase or withdraw your cash.

The second outcome may be preferable, at least in the short term. However, your bank may only let the transaction go through if you participate in its overdraft coverage or protection program, and you can be charged a fee for this service.

What Is Overdraft Coverage vs Overdraft Protection?

Many financial institutions offer overdraft programs that will let your transactions go through, at least temporarily, if you don’t have enough money in your account. But the rules and fees for this service can vary significantly from one bank and bank account to the next, so it’s important to understand what you’re signing up for.

Standard Overdraft Coverage

Many banks offer some type of standard overdraft coverage for their consumer checking accounts. Generally, if you overdraw your account with a check, automatic bill payments, or recurring debit card transactions, the bank may process the transaction anyway (at its discretion and usually up to a certain limit). But it could cost you: Your bank may charge an overdraft fee. And you’ll still have to get your account back in the black ASAP to avoid multiple fees. While this coverage can prevent transactions from being declined, it can get pricey.

Overdraft Protection

Overdraft protection services work a little bit differently. With this type of program, your bank may provide a line of credit for the overdraft or you may designate a backup account, such as a savings account or credit card to cover any shortfalls. With a linked account, the bank will automatically transfer money to your overdrawn checking account.

An overdraft protection service may still involve fees — as well as interest for a line of credit — but the fees may be less than those of standard overdraft protection. Transfers from backup linked accounts are sometimes free. Before considering any overdraft program, it’s important to understand the specific terms and fees.

How Are Debit Card Overdrafts Different?

You may not have a choice when it comes to paying fees when you overdraw your account with a check or an automated clearing house (ACH) payment. If the bank approves the transaction, you can expect to pay an overdraft fee. If it declines the transaction, you’ll likely face a non-sufficient funds (NSF) fee. This charge means that even though the transaction wasn’t completed, you still will pay for the inconvenience the bank experienced due to the situation.

But your bank can’t charge you fees for overdrafts on most debit card transactions unless you have opted in to those charges.

Opt-In vs Opt-Out Policies

Deciding whether you want to pay or don’t want to pay overdraft fees on debit card transactions can sometimes be a complicated decision. Policymakers at the Federal Reserve decided in 2010 to change the previous process that involved having to opt out of overdraft coverage (that is, customers could be automatically enrolled in the service). Since then, bank customers have to opt-in to consent to fees related to overdraft for one-time debit card and ATM transactions.

If you opt in to debit card and ATM overdraft coverage, you may expect withdrawals and purchases, up to certain limits, to go through even if you don’t have enough funds in the bank at the time of the transaction. But you may be charged a fee in exchange for this service.

If you don’t opt in to debit card and ATM overdraft coverage, you may experience one-time ATM withdrawals and debit purchases being declined if you don’t have enough money in your account at the time of the transaction.

Keep in mind, though, that even if you don’t opt in to overdraft coverage for your debit card, you could still face fees. If you’re short of funds when the bank processes an automatic payment through your debit card, you might face an overdraft fee if the bank chooses to complete the transaction. And, again, if the payment is declined, you may be charged a nonsufficient funds (NSF) fee.

Recommended: How to Get a Debit Card

Costs and Fees Associated With Overdraft Services

Federal regulators have proposed lowering overdraft fees to as little as $3, but currently, they average close to $30. And though some banks don’t charge overdraft fees on checking accounts, 94% of accounts at financial institutions still have them, according to a recent survey, and they can run as high as $38 or so.

Some banks also may charge what are known as continuous overdraft fees, or daily overdraft fees. These are charges assessed every day the account remains overdrawn, and the fees can add up quickly.

Your bank may waive the fee on a smaller purchase. Also, if it’s the first time you’ve overdrawn your account or it’s been a while since you did so, the bank might remove the fee if you call and ask.

Should You Overdraft With a Debit Card?

If you’ve opted in to debit card overdraft coverage (and any possible fees), it may seem worth the risk of an overdraft if you need some quick cash or to fill your gas tank when you’re low on funds. But if you have other resources — whether it’s a credit card or another account — you might want to use those first. Keep potential fees in mind, not to mention the stress of knowing your checking account will have a negative balance, when you consider this strategy.

Recommended: 10 Personal Finance Basics

How to Avoid Overdraft Fees

Understanding how overdraft coverage works is one way to avoid triggering unnecessary bank fees. But there are other proactive steps you may want to consider, including the following:

Choose a Bank That Doesn’t Charge Overdraft Fees

Some banks don’t charge overdraft fees and often cover you up to a specific overdraft limit. Others may offer one or two fee-free account options. (If bank fees overall are an issue for you, keep in mind that online banks often have lower costs than traditional brick-and-mortar institutions as a result of having less overhead.)

Use Credit Cards for Emergency Expenses

If you have a relatively low-interest credit card or you’re able to pay off your credit card balance every month to avoid accruing interest, it may make sense to use your credit card for emergency expenses. Taking a moment to decide whether to use a debit or credit card before an emergency comes up could help you make the best financial decision for your circumstances.

Link Accounts for Overdraft Protection

Linking your checking and savings accounts can allow your bank to quickly move funds to cover negative balances. This may be free, in some cases, or if you do pay a transfer fee, it’s often less than an overdraft fee.

Build an Emergency Fund

Having an emergency fund that can cover six months’ worth of expenses is a good goal. However, even a smaller amount of savings may be enough to cover unexpected expenses that can trigger debit card overdrafts. A high-yield savings account may also help you grow your money while also keeping it accessible.

Steps to Help You Better Manage Your Debit Card

If the convenience of using a debit card has made it your go-to tool for accessing cash and making purchases throughout the day, there are steps you can take to prevent overdrafts.

Monitor Your Accounts

Using a tracking tool to monitor your checking account and other account balances can help you avoid an overdraft.

Set Up Low Balance and Other Alerts

If your bank offers account alerts, consider setting up a notification so you know when your checking account balance is getting low.

Know When Your Bills Are Due

Putting together a budget can help you pay your bills on time and organize your payment dates. Then, you might also see if you can move some payment dates. For example, you could ask your credit card issuer to shift your date. That way, your checking account won’t be drained by multiple payments in the same week or pay period.

The Takeaway

You may be able to overdraft your debit card transactions if you have overdraft coverage. This means your bank will cover the transaction, but you may be charged a fee for this service. If you choose not to opt into your bank’s overdraft services, there’s a good chance that a debit card transaction that would take your account into a negative balance would be denied.

The rules and fees for overdrawing your account with a check, automatic payment, or debit card can vary significantly depending on where you bank, so it’s a good idea to read all the information about your account when you sign up.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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.

FAQ

What happens if I overdraw with my debit card without overdraft coverage?

If you don’t have overdraft coverage and don’t have enough money in your bank account to cover the transaction you’re trying to make, your bank will likely decline the purchase or withdrawal. You won’t overdraft your account, and you may not face an overdraft fee. However, you may be charged a nonsufficient funds (NSF) fee.

How much does overdraft coverage typically cost?

Overdraft fees can vary depending on the bank and other factors, including whether you have a backup account or credit card linked to your checking account. One recent survey found an average fee of about $27. That said, some agencies have proposed rules in the past to lower those fees.

Can I overdraft using my debit card at an ATM?

If you have overdraft coverage from your bank, your ATM withdrawal may go through (depending on the bank), even if you withdraw more than you actually have in your account. You may be charged an overdraft fee for this service. If you don’t have or opt in to overdraft coverage, the transaction will likely be declined. While you won’t be charged an overdraft fee, in this instance, you may be charged a nonsufficient funds (NSF) fee.

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For a conventional mortgage loan, you typically need a credit score of 620 or higher to indicate that you are likely to repay your debt on time and get approved. However, there are other types of loans that may be available for people with lower scores. In addition, with a higher score, you may qualify for more favorable rates and terms.

For many, buying a home is a huge financial step, representing the biggest purchase they’ll ever make in their life. Read on to learn more about how your credit score impacts your ability to access a home loan and which terms are available to you.

Average Credit Score to Buy a House

According to the National Association of Realtors® 2025 Home Buyers and Sellers Generational Trends report, 64% of mortgages are conventional loans, making these far and away the most common mortgage type. For a conventional mortgage, lenders will typically require a minimum credit score of 620. That said, homebuyers had a median FICO® credit score of 735 in Q3 2025, considerably higher than the required minimum.

On the topic of credit scores, here’s how the FICO Score, a popular credit-scoring model, arranges its credit score ranges:

•   300-579: Poor

•   580-669: Fair

•   679-739: Good

•   740-799: Very good

•   800-850: Exceptional or excellent

Recommended: What Is the Starting Credit Score?

What Credit Score Do I Need to Buy a House?

As mentioned above, the credit score you need to buy a house will vary depending on the loan type you apply for. In general, necessary credit scores will range from 500 to 700. The higher the score, the easier it generally is to secure credit and qualify for favorable terms and interest rates.

Minimum Credit Scores by Home Loan Type

There are several different types of home loans you may apply for depending on your circumstances, including conventional loans, jumbo loans, FHA loans, VA loans, and USDA loans. Each type of loan has a different minimum credit score requirement.

Conventional Loans Minimum Credit Score

A conventional loan is a home loan that is backed by private lenders. It is not backed or insured by the government. This is the most common type of home loan and usually requires a minimum credit score of 620. If your credit score is higher than that (say, in the very good or excellent ranges), you may qualify for lower interest rates and better terms.

Jumbo Loans Minimum Credit Score

Jumbo loans are loans that are too big to be covered by conventional loans, as determined by the Federal Housing Finance Agency (FHFA). According to the FHFA, in 2026, loans bigger than $832,750 require a jumbo loan in most counties. Jumbo loans usually have a minimum credit score of 700, one of the highest credit score thresholds among mortgage options.

FHA Loans Minimum Credit Score

An FHA loan is one that is backed by the federal government. This program helps make buying a house more affordable for families with low or moderate incomes. Government backing means these loans may be extended to individuals who would otherwise likely be seen as risky by conventional lenders. FHA loans typically have a low minimum credit score requirement of 500 with a 10% down payment and a 580 credit score with a down payment of less than 10%.

VA Loans Minimum Credit Score

VA loans are partially guaranteed by the Department of Veterans Affairs. They are available to veterans, service members, and eligible surviving spouses, and some lenders will require a minimum credit score of 620. That said, there is no official minimum credit score requirement, so you may be able to access a VA loan with a lower score. If that is your situation, you may have to provide additional documentation in order to be approved.

USDA Loans Minimum Credit Score

USDA loans are guaranteed by the U.S. Department of Agriculture and are available to certain individuals in eligible rural areas. They often look for a minimum credit score of 580-620, but as with VA loans, there isn’t a strict requirement. You might qualify for a USDA loan with a lower score if a lender reviews your financials and determines you are creditworthy.

Recommended: The 52 Week Savings Challenge

How Your Credit Score Affects Mortgage Rates

Your credit score is a three-digit representation of your credit history. Higher scores demonstrate that you have been responsible with your credit, paying bills on time and avoiding taking on more debt than you can manage. Lenders see potential borrowers with high scores as being less risky than those with lower scores. If you’ve managed credit wisely in the past, you may well do so again in the future.

As a result, lenders may offer borrowers with high credit scores better terms and lower interest rates. Lenders may also extend credit to borrowers with lower scores. However, to compensate for the extra risk they are taking on, they may charge higher interest rates, which increases the overall cost of borrowing.

Here’s an example of average mortgage annual percentage rates (APR) for a 30-year fixed-rate mortgage by credit score as of mid-2026:

•   Those with a credit score of 760-850 would have a 6.70% APR.

•   Those with a credit score of 660-679 would have a 7.11% APR.

•   Those with a credit score of 620-639 would have a 7.36% APR.

While these differences among rates may not sound huge, over the life of a loan, an additional percentage point or so in interest can really add up.

Other Factors Mortgage Lenders Consider

In addition to your credit score, lenders will also likely look at some other factors:

•   Your employment status and income: They may want to see that you have a steady stream of cash to pay your monthly mortgage bill.

•   How much money you have for a down payment: The more money you put down, the less risk the lender has to take on. As a result, higher down payments may help you qualify for loans and lower interest rates.

•   Other assets you have that could be used to make debt payments in case you don’t have enough income.

•   The value of any other property you own.

•   Your debt-to-income ratio (DTI): This is a comparison of how much debt you owe versus how much money you have coming in. It’s a quick way to let lenders know whether you have enough income to cover your liabilities.

Can You Get a Mortgage With a Bad Credit Score?

The lowest credit score category is poor, which ranges from 300 to 579. With a score in this range, you may not qualify for a conventional loan.

However, you can get a mortgage with a low credit score as long as it meets minimum score requirements. A government-backed loan may be your best bet, since some lenders may approve a borrower with a credit score below 580 (say, 500 and up). That said, you may pay more in interest than those with higher scores. You might prefer to wait and build your score before applying for a home loan.

How to Build Your Credit Before Getting a Mortgage

It may be worthwhile to build your credit before you apply for a loan. There are several factors that affect your credit score.

One of the best ways to build your credit score can be to always pay your bills on time. This is the number-one factor in determining the most common credit scores, including FICO and VantageScore.

The second biggest factor is your credit utilization rate, or how much of your available credit you’re using. In general, the lower the better. Lenders typically prefer that you use no more than 30% of your available credit. Pay down debt to lower your utilization rate and build your score.

Recommended: How Long Does It Take to Build Credit?

Factors in Mortgage Preapproval

A mortgage preapproval is a statement from a lender that you are likely to qualify for a mortgage. It can be a helpful document to show sellers, as it demonstrates that you are serious about making a purchase and likely to receive financing.

For a preapproval, lenders typically look at such factors as credit score, income, assets, DTI ratio, and employment verification. Thanks to this financial review, being preapproved can give you a sense of confidence about your ability to go house shopping.

Credit Score Tips

Your credit score is not static. It changes over time, and your score may vary depending on the scoring system used.

The credit reporting bureaus update your score after anything happens that affects your credit. So if you are late with a payment or if your credit utilization climbs higher, you may see your score drop. On the other hand, if you were to lower your credit utilization, you might positively impact your score. These actions can all help build your score: always paying your bills on time, managing your credit utilization, not applying for too much credit in a short period of time, having a good mix of credit, and maintaining a longer credit history.

It’s also important to monitor your credit score and regularly examine your credit report for errors. (You can check your credit report without paying each week from each of the credit reporting bureaus: Experian®, Equifax®, and TransUnion®.)

If you catch a mistake, dispute the error with the credit reporting bureau immediately to prevent it from dinging your score.

You may be able to build a stronger credit score with healthy financial habits, such as budgeting and saving regularly, which can help you stay out of debt and manage payments. You might use spending apps and money tracker apps in this pursuit. A good place to start: See what your financial institution offers. You can also search online for third-party tools.

Recommended: Why Did My Credit Score Drop After a Dispute?

The Takeaway

Your credit score can impact the type of loans you qualify for, as well as the terms and interest rates lenders may offer. You will typically need a score of 620 or higher for a conventional home loan and a score of 700 and up for a jumbo loan. Government-backed loans, such as FHA, VA, and USDA loans, however, may accept credit scores in the 500s. Those with lower scores will typically pay higher interest rates.

While you may qualify for a loan with the minimum required credit score, it may be beneficial to monitor and build your score before taking out a loan to reduce the overall cost of borrowing.

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.

FAQ

What is a decent credit score for buying a house?

Homebuyers had a median credit score of 735 in Q3 2025, but you may be able to qualify for a loan with a lower score. Typically, conventional loans are available to those with scores of 620 and up. Usually, higher scores can give access to more favorable rates and terms.

Can you buy a house with a 600 credit score?

With a credit score of 600, you may be able to qualify for a government-backed loan, such as an FHA, VA, or USDA loan. Or you might choose to wait and build your score to 620 or higher, which could then give you access to a conventional home loan.

How much house can I afford if I make $70,000 a year?

To determine how much house you can afford, a common rule of thumb is that you shouldn’t spend more than 30% of your gross income each month on housing costs, including your mortgage and property taxes. With a salary of $70,000, that works out to a mortgage payment of about $1,750 each month. However, in some tight housing markets, people may spend more, with one recent study having found that more than 20% of homeowners indeed exceeded this amount.

What credit score is needed to buy a $400,000 house?

Securing a mortgage to buy a $400,000 house isn’t just a matter of your credit score versus how much the prospective home costs. Several other factors will be evaluated by lenders in addition, such as down payment amount, income, and more. For a conventional loan, you likely need a credit score of 620 or higher, though you may access a government-backed loan with a lower score (say, 500 and above) if you meet certain criteria.

Is a 580 credit score good enough to buy a house?

With a credit score of 580, you may qualify for an FHA, VA, or USDA loan. You can work with online tools and specific lenders to see what your odds of qualifying are or seek out preapproval.

How much income do I need for a $300K FHA loan?

The income you need will vary depending on the lender guidelines and other factors, such as the amount of down payment funds you may have available, your credit score, and more. It could be helpful to discuss your qualifications with a lender or use an online calculator to see what you could qualify for.

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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 .

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