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Applying for scholarships can be overwhelming, especially if you’re required to submit multiple forms and write in-depth essays. However, there are scholarships out there that do not require you to write any essays. Some just ask for basic info, while others might let you submit a video instead.

Keep reading to learn more about the top no-essay scholarships for 2026 and how you can apply.

What Are No Essay Scholarships?

As the name suggests, no-essay scholarships do not require you to write an essay. You typically just need to fill out some basic information about yourself to enter. However, some no-essay scholarships might ask for a video, photo, or other creative entry instead.

Standard scholarships usually come with more hoops to jump through. For example, some may require you to have a specific GPA, provide letters of recommendation, and/or write an essay. No-essay scholarships can give you a break from all that while providing an alternative way to receive extra money for school.

It’s important to note that since this type of scholarship is usually more straightforward to apply for, no-essay scholarships often attract more applicants. Therefore, you may have more competition for the scholarship money.

Recommended: SoFi’s Scholarship Search Finder

How Can I Increase My Chances of Winning a No Essay Scholarship?

No-essay scholarships can be an easy way to get free money for school, but it’s important not to rely on them completely. Since they’re so simple to apply for, they attract a lot of applicants, which means more competition.

To improve your chances, try applying every time a no-essay scholarship opens up, whether it’s monthly or quarterly. Some even let you submit a video, which can help you stand out with a little extra effort and creativity.

It’s also smart to apply for a mix of scholarships and other financial aid options, not just no-essay ones. You can think of no-essay scholarships as a quick and easy break from the more time-consuming applications.

Recommended: How to Pay for College

Is There a Good Time to Apply for a No Essay Scholarship?

No-essay scholarship application deadlines vary — there’s no set “season” like there is for college and FAFSA deadlines. Each scholarship has its own timeline, so it’s important to keep an eye out throughout the year.

Whether or not a scholarship requires an essay, it’s a good idea to start applying as early as possible. For high school students, the summer between junior and senior year is a great time to begin. Remember, the more applications you send out, the better your chances of winning scholarship money.

If I Win a No Essay Scholarship, What Can the Funds Be Used For?

No-essay scholarships may have set rules for how you can spend your scholarship award, similar to how colleges and scholarship programs have specific application requirements.

Generally speaking, scholarship funds are meant for college expenses like tuition, fees, textbooks, and school supplies. However, some independent scholarships are more flexible and might let you use the money for things like housing, meal plans, or even technology.

Keep in mind that your scholarship might not cover expenses like transportation, groceries, off-campus dining, and clothing. And if you have any money left over, it’s a good idea not to spend it on unrelated expenses.

Sometimes, you may need to repay your award money if you use it on unrelated costs. Make sure to review the scholarship rules and guidelines before deciding how to use your scholarship money.

Types of No Essay Scholarships

There are usually two types of no-essay scholarships available for students: sweepstakes and video scholarships.

Sweepstake Scholarships

A scholarship sweepstakes is a type of no-essay scholarship where winners are chosen randomly, much like a lottery. As long as you meet the basic requirements and apply on time, you have a chance to win money to put toward your higher education costs.

Most of these scholarships don’t require extra materials, like transcripts or letters of recommendation, and many are awarded monthly or several times a year.

Keep in mind, though, that you often need to enter each month to stay eligible. So don’t just submit once and forget about it. Setting a reminder in your calendar can help you stay on track and improve your chances.

Recommended: Enter SoFi’s Monthly $2,500 Sweepstakes

Video Scholarships

Not all no-essay scholarships are entirely hassle-free. Instead of writing an essay, you might need to create and edit a five-minute video, which can take just as much time.

Choose the type of scholarship that plays to your strengths. If making videos is your thing, go for it. If writing is more your style, stick with that. Many scholarships offer flexibility in how you choose to express yourself.

Top No Essay Scholarships 2026

Here are a few top no-essay scholarships you can apply for in 2026.

“Be Bold” No Essay Scholarship

The “Be Bold” No-Essay Scholarship is a $25,000 award for students of any education level, field of study, state, or GPA. It’s an easy scholarship to apply for and the winner is the one who creates the “boldest” profile — one that is earnest, determined, and moving.

Project Yellow Light Hunter Garner Scholarship

The Project Yellow Light Hunter Garner Scholarship is an $8,000 award open to high school and college students who create a winning video that discourages distracted driving, especially phone use while driving. Project Yellow Light also offers a $2,000 scholarship for a radio competition and another $2,000 scholarship for a billboard competition.

Elks National Foundation Legacy Awards

The Elks National Foundation Legacy Awards is a $4,000 scholarship for high school seniors who are children or grandchildren of living Elks members or Lodge charter members (including stepchildren and legal wards).

Edvisors Scholarship

Edvisors Scholarship is a monthly, $1,000 scholarship open to students who are at least 17 years old and planning to attend or currently attending college in the U.S. Bookmark the page so you can come back each month and enter.

Niche No Essay Scholarship

The Niche No-Essay Scholarship allows high school and college students to apply for a chance to win $25,000 toward college expenses. Niche offers many additional scholarships you can look into, as well.

CampusReel Scholarship

To sign up for the CampusReel $2,000 no-essay scholarship, students must watch one student-led virtual tour, and then simply provide their name and email address.

SoFi Scholarship Giveaway

Enter SoFi’s monthly scholarship for a chance to win $2,500. This sweepstakes scholarship is for students over 17 enrolled or accepted in a college or university.

Sallie Mae College Scholarship

Sallie Mae also offers a $2,000 sweepstakes scholarship that’s awarded monthly and is open to high school juniors, seniors, and all college students.

Smart Owl No Essay Scholarship

The Smart Owl No-Essay Scholarship is a $1,000 award given out each month to four students. It is open to U.S. residents who are high school or college students aged 16 and older.

The “No Sweat” Scholarship

The Cirkled In “No Sweat” Scholarship is a $2,500 cash scholarship that’s open to students aged 13 and older. The application is quick and easy, taking just two steps to enter and complete your portfolio.

Who Can Apply for No Essay Scholarships?

Almost anyone in school can usually apply for no-essay scholarships. Whether you’re in high school, working on your undergrad, or even pursuing a graduate degree, there are options available for you.

For example, the Sallie Mae Scholarship is open to students at all levels. Plus, Sofi offers $2,500 no-essay scholarships to students every month.

Are Video Scholarships Easier to Apply for Than No Essay Scholarships?

With the rise of platforms like Instagram, YouTube, and TikTok, creating videos might feel more natural than writing essays. However, they may require more effort in planning, filming, and editing compared to no-essay scholarships.

But keep in mind, some video submissions may require a script, so a little writing could still be a part of the process. Writing a script can be similar to writing an essay — it might take a few tries to get it just right. That said, it can be a fun and creative alternative.

Do I Have to Be in College to Apply for a No Essay Scholarship?

You don’t have to be in college to apply for no-essay scholarships. In fact, starting your search early can improve your chances of winning. Some scholarships are even open to middle school students, so it’s never too soon to begin. Ideally, you should start exploring your options as early as freshman year of high school.

If you’re already in college, don’t worry. There are still plenty of scholarships you can apply for as long as you haven’t graduated.

The Takeaway

If you’re running low on financial aid for the school year, applying for no-essay scholarships can help cover some of your college costs. Some are like sweepstakes and pop up every month, so the more you apply, the better your chances. Others might need a bit more effort, like a video entry. Even though the award amounts might be small, the applications can be quick and give you a break from writing essays.

In addition to no-essay scholarships, you can apply for regular scholarships, grants, federal student loans, and private student loans. A combination of these, in addition to cash savings, can be used to cover the cost of college.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can current college students apply for no essay scholarships?

Yes, no-essay scholarships are usually open to all students, from high school students up to graduate students. Whether you’re an undergrad or working toward a graduate degree, there are plenty of no-essay scholarship opportunities available to you.

Can you get scholarships without essays?

Yes, you can get scholarships without writing essays. No-essay scholarships typically require you to share some basic personal information, and sometimes you might have the choice to submit a video instead of an essay.

Has anyone actually won a no essay scholarship?

Students win no-essay scholarships all the time. However, keep in mind that some require exceptional talent, while others act more like sweepstakes contests with fewer requirements but more competition.

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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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Almost half of all Americans carry a balance on their credit card, month after month. If you’re among their ranks, you know that the combination of high prices and high credit card interest rates can make it challenging to pay that debt off in full.

Many cardholders have seen their interest rates creep up in recent years, in line with the Federal Reserve’s recent rate increases. That means interest payments are gobbling up a bigger share of credit card balances. And those credit card balances can be major. This kind of debt hit a staggering $1.23 trillion in late 2025, according to data from the Federal Reserve Bank of New York.

But the situation isn’t hopeless, however. If you’re one of the cardholders who can’t pay credit card debt in full, here are five steps you can take to address it.

Step 1: Check your Credit Card Interest Rate

If you haven’t carried a credit card balance before, you may not be aware of what interest rate your credit card is charging. But it’s important to know exactly how much you’re getting charged so if you need to, you can budget for interest expense as well as your purchases.

Average credit card interest rate ranges from 20%-25% currently. (Depending on what type of credit card you have, your credit score, and your credit history, you may have a higher or lower interest rate than the average.)

With interest rates this high, it can be a real financial setback to carry a balance for an extended length of time, making only the minimum credit card payment. You may find that you are only paying interest and making little headway in paying off what you actually spent.

💡 Quick Tip: With credit card interest rates rising in recent years, calls for credit card interest caps have been in the spotlight. Those carrying high-interest credit card debt, however, may find debt relief by switching to a fixed, lower-interest personal loan. A SoFi personal loan for credit card debt may provide a cheaper, faster, and predictable way to pay down debt.

Step 2: Understand How Your Grace Period Works

If you pay your credit card statement balance in full by the due date, a credit card grace period will usually take effect for the next billing cycle. That means you won’t owe interest on new purchases until the due date for the next billing cycle. If you pay that statement balance in full by the next due date, the grace period will continue into the next cycle, and on and on.

But, if you make only the minimum payment or a partial payment on the full statement balance by the credit card due date, you’ll get charged interest on the remaining balance and lose your grace period for the next billing cycle. This means you’ll owe interest on any purchase immediately. Even if you go back to paying the full balance, your grace period may not renew for several more cycles, depending on the specific terms of your credit card.

If you’re in a position where you can’t pay credit card bills and must move to partial payments, make sure you’re aware of the additional interest expense you’ll incur on the remaining credit card balance. Try your best to stop making new purchases with that card since interest will be charged on those purchases immediately.

Recommended: What Is a Charge Card

Step 3: Look at Changing Your Due Date

If you’re feeling overwhelmed because many of your bills are due at the same time, talk to your credit card company about changing your due date. You might be able to move your credit card due date to a day of the month that works better for your budget, so the payments you owe are a bit more staggered.

While this switch might not help immediately to pay down credit card debt, it could offer some relief in the long run.

Recommended: How to Avoid Interest On a Credit Card

Step 4: Explore Ways to Pay Off Your Balance Faster

You may find that with higher interest rates and inflationary spending, you need a more efficient way to pay off your credit card debt, such as by refinancing credit card debt. Luckily, there are some options for how to pay off credit card debt, though keep in mind the best way to pay off credit card debt will depend on your financial specifics.

Balance transfer credit cards that offer a limited time low or sometimes even 0% interest rate can help — especially if you think you can pay the balance in full during the promotional low-rate period.

Another option you might consider is applying for a low-interest personal loan to pay off credit card debt in full. This could help you secure a lower interest rate, and by consolidating your credit card debt, you’d have fewer due dates to keep track of. Keep in mind, however, that there are pros and cons of personal loans to pay off credit card debt.

Recommended: Tips for Using a Credit Card Responsibly

Step 5: Consider Using a Budgeting Tool

If you’re finding it hard to make your credit card payments, that can be a signal it’s time to take a close look at your spending, perhaps with the help of one of the many online budgeting tools available.

Personal finance tools can help you understand just how much your cost of living has risen in recent months and make it easier to flag places you can cut back. Some can help to pinpoint fees you may be paying unwittingly or the automatic payments you’re making on your credit card that could get trimmed. Cutting these costs can then make it easier to pay off credit card debt.

The Takeaway

If you’re struggling with a credit card balance you can’t pay off, taking steps to pay off credit card debt faster and budget smarter can help. These can involve understanding your rate, changing your payment due date, and other moves.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

What is a fast way to pay off credit card debt?

You might be able to use a balance-transfer credit card and pay down your debt during the 0% APR promotional period. Or you might consider securing a personal loan to pay off the debt. You would then pay off the personal loan, which could have a lower interest rate.

Can you change your credit card payment due date?

You may be able to change your payment due date. See if your card’s website or app allows this kind of shift, or contact customer service.

Do most Americans carry credit card debt?

According to recent data, approximately 49% of Americans carry credit card debt.

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Photo credit: iStock/Sneksy

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.

SoFi Credit Cards are 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.

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Anyone who’s ever had a credit card knows they have an interest rate, which represents the cost consumers pay for borrowing money. What you may not know is that interest rates come in two forms: fixed and variable interest rates.

Fixed interest rates stay the same over time and are generally tied to your creditworthiness. Variable interest rates, on the other hand, may change over time and are connected to economic indexes. Read on to learn how to determine if the interest rate of a credit card is fixed or variable, as well as why it’s important to know.

What Is Credit Card APR?

A credit card’s annual percentage rate, or APR, represents the cost a consumer pays to borrow money from credit card issuers, represented as a yearly cost.

When a cardholder doesn’t pay off their credit card balance in full each month, they’ll owe credit card interest charges on the remaining balance, with the rate based on their APR.

Credit card APRs vary among credit card issuers, individual cardholders, and credit card categories. Currently, the average credit card interest rate stands at 22.8% APR.

Recommended: Pros and Cons of Charge Cards?

Types of Credit Card APRs

Your credit card payment is impacted by what type of APR your credit card has. Let’s have a look at how a fixed rate credit card and a variable rate credit card may affect your credit experience.

Fixed Interest Rate

Fixed rate credit cards have an interest rate that generally doesn’t vary over the course of your credit card contract. Rather than being tied to economic indexes, fixed interest rates are generally determined based on payment history and creditworthiness, as well as any ongoing promotions.

However, just because the term “fixed” is used, doesn’t mean a fixed interest rate can never change. While a fixed rate credit card’s interest rate won’t change based on factors like the prime index, increasing credit card APR can occur if payments are late or missed or if your credit score dips. If that occurs, the credit card company must notify the cardholder at least 45 days before the adjusted rate takes effect.

While fixed rate credit cards offer the benefit of predictability, one downside is that their rates are, on average, higher than variable credit card rates.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Variable Interest Rate

A variable rate credit card offers interest rates that can shift over time. There’s a reason for that, as variable card rates are tied to major benchmark interest rates, like the U.S. prime rate.

Since major benchmark rates change, so will variable interest rates. That’s why banks and other major financial institutions often shift rates for things like credit cards, home mortgages, auto loans, and student loans. When major interest indexes change, the rates for loans change with them.

What does that mean for a cardholder? For starters, there’s more risk with variable interest rates. Rates can go up, and credit card payments increase when interest rates rise. Conversely, variable rates may go down, which works in favor of the credit cardholder, who will then pay less in interest.

Credit card consumers should check their credit card contracts for the specific conditions that can trigger a variable rate change. Credit card issuers don’t have to notify you of interest rate changes with variable rate cards, so it’s up to the consumer to keep a sharp eye out for changing interest rates.

Recommended: When Are Credit Card Payments Due

When Do Variable APRs Change?

As mentioned, the interest rate on a variable rate credit card changes with the index interest rate, such as the prime rate. If the prime rate goes up, so will your credit card’s APR. Similarly, if the prime rate goes down, your APR will drop.

How often your interest rate changes will depend on which index rate your lender uses as a benchmark as well as the terms of your contract. As such, the number of rate changes you may experience can vary widely, often multiple times a year.

Details on how a card’s APR may fluctuate over time will appear in a cardholder’s agreement, which you can generally find on the card issuer’s website. If you’re unable to locate it, you can request a copy from your card issuer.

Differences Between Fixed and Variable Credit Card Rates

Both fixed and variable credit card rates have pros and cons. Here’s a look at the major differences with a credit card with a variable or fixed interest rate.

Fixed Interest Rate	Variable Interest Rates
The interest rate usually remains the same	Variable rates change on an ongoing basis
Fixed rates are calculated with payment histories in mind	Rates are based on a benchmark index, like the U.S. primate rate
The card provider is required to let you know when the rate does change (usually for late or missed payments)	The credit card issuer is not required to let you know when rates shift

How Credit Card Interest Rates Are Determined

Credit card interest rates are generally determined based on your creditworthiness — meaning, your payment history and credit score — as well as prevailing interest rates and the card issuer and card type.

For instance, a basic card may have a lower rate than a premium rewards card. Additionally, credit cards can have different types of APRs, such as an APR that applies for credit card charges and another rate for cash advances or balance transfers.

Another factor that can impact credit card rates is promotional offers. Sometimes, credit card issuers may offer low or no interest periods. After that period ends, the card’s standard APR will kick in, and the card’s rate will go up.

Once determined, how and why a credit card’s interest rate changes over time depends on whether the interest rate is fixed or variable. A fixed rate will generally stay the same, though it may increase if payments are late or missed, or if the cardholder’s credit score takes a dive. Meanwhile, variable rates fluctuate depending on current index rates.

Recommended: Tips for Using a Credit Card Responsibly

Reducing Interest Charges on Credit Cards

Perhaps the easiest way to reduce interest charges on credit cards is to pay your statement balance in full each billing cycle. By doing so, you’ll avoid incurring interest charges entirely.

Of course, this isn’t always feasible. If you may end up carrying a balance and want to decrease how much a credit card costs, there are ways to do so. For one, you can call your credit card issuer and request a lower rate. Of course, for this to be successful, you’ll likely have needed to stay on top of payments and have a history of responsible credit card usage.

Perhaps the surest way to secure a better interest rate on your credit card is to build your credit score. In general, lower interest rates are awarded to those who have higher credit scores and follow the credit card rules, so to speak.

You can build your credit score by making your payments on time, every time, and by keeping your credit utilization ratio (how much of your available credit limit you’re using) well below 30%. You might also avoid applying for new credit accounts, which results in hard inquiries and temporarily lowers your score.

And if you simply feel in over your head with credit card debt and a skyrocketing APR, you may choose between credit card refinancing or consolidation as potential solutions.

💡 Quick Tip: Credit card interest rate caps have recently been proposed in response to rising interest rates. However, one option already available to borrowers is securing a fixed, lower-interest rate loan. A SoFi credit card consolidation loan may offer a lower interest rate, set terms, and a transparent pay-off plan.

Fixed vs Variable Interest Rate Cards: Which Is Right for You?

In a word, choosing between a fixed rate or variable rate credit card comes down to whether you prefer stability or risk versus reward.

A fixed rate credit card offers a known quantity — a rate that stays the same over time, as long as you pay your credit card bill on time. On the other hand, a variable rate credit card offers an element of risk and reward. If the rate goes up, the cardholder usually spends more money using the card. If card rates go down, however, the cost of using the card usually goes down, too, as interest rates are lower.

Of course, cardholders can largely negate the impact of credit card interest rates by paying their bills in full every month. Of, for those who don’t quite feel ready to tackle the responsibility, there’s always the option of becoming an authorized user on a credit card of a parent or another responsible adult.

The Takeaway

As you can see, it’s important for a number of reasons to know whether a credit card is fixed or variable. Fixed interest rates offer more predictability (though there’s no guarantee they’ll never change), but rates also tend to be higher compared to variable rates. With variable rates, your interest rate will fluctuate over time based on market indexes.

As you shop around for credit cards, interest rate is critical to pay attention to. It can have an impact on your ability to pay your credit card bill and use credit responsibly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Do all credit cards have fixed interest rates?

No, actually most credit cards come with variable interest rates tied to major interest rate indexes. That connection to interest rate changes enables card companies to keep rates competitive on a regular basis.

How do I get notified of an interest rate increase?

By law, credit card companies must notify cardholders in writing at least 45 days ahead of an interest rate change taking effect. Card companies are not allowed to change interest rates during the first year an account is open.

Can I control whether I have a fixed or variable interest rate?

Yes, you can opt for a fixed or variable rate credit card, but know that most credit cards come with variable rates. It’s tougher to find a fixed rate card, but banks and credit unions, which are more likely to offer both, are a good place to start your search.

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Photo credit: iStock/AlekseiAntropov

SoFi Credit Cards are 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.

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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From airlines to banks to retailers, many of the best-known companies now offer loyalty programs. The details of these programs vary widely, but they all serve the same purpose: to attract new followers and reward repeat customers with special membership perks.

Since membership rewards programs are so widespread, it’s worth understanding how they work. Here’s an overview.

What Are Membership Rewards?

Membership rewards are incentives that a company offers its customers as encouragement to use its products or services again and again.

Companies find membership rewards systems—known as loyalty programs—to be effective in identifying, wooing, and keeping customers. In fact, the vast majority (85%) of consumers say loyalty programs make them more likely to continue shopping with those brands.

Some loyalty programs are free, while others charge their members a subscription fee. A membership subscription to SoFi Plus, for example, costs $10 a month to subscribe, or you can qualify for complimentary membership through eligible direct deposit or qualifying deposits through March 2026.¹

Many loyalty programs have membership tiers or status levels. Members who qualify for a higher tier can access more valuable rewards. To ascend to those tiers, however, a member may have to earn a certain number of rewards points, pay higher fees, or both.

How Do Membership Rewards Work?

Despite their many variations, membership rewards programs are all fundamentally similar. The core principle is simple. Consumers enroll in loyalty programs to gain rewards, which they earn by accumulating rewards points.

Members can typically rack up rewards points by taking actions: making purchases, referring friends, engaging with online events, and so on. Those who earn a given number of rewards points can trade them for benefits as set out in the membership agreement. (We’ll touch on specific benefits later in this article.)

Aside from points, members may also qualify for cash back rewards or discounts on merchandise or services. Premium membership tiers—possibly requiring a higher fee—may give them access to special benefits such as free shipping or priority service.

Credit cards in particular emphasize loyalty programs. Cardholders can gain credit card points by spending a specified amount of money each month or quarter.

And opportunities to earn points are easy to find. Members can pile up points by using a rewards credit card regularly for shopping, dining out, travel costs, household expenses, and other things.

Some people try to game the membership rewards system by credit card churning. Churning involves opening a credit card account to snag sign-up rewards and then promptly closing it. The practice isn’t illegal, but it is risky. Not only could multiple hard credit pulls in a short time be harmful to your credit score, but also, issuers are likely to deny future card applications if you’ve opened too many accounts in the last year or two.

Recommended: 10 Credit Card Rules You Should Know

Benefits of Membership Rewards Programs

Rewards programs don’t work unless they can attract and hold members. So the benefits need to be noteworthy, useful, and not too hard to earn.

For example, the SoFi Plus Smart Card rewards users with points equal to 5% cash back rewards² on money spent at grocery stores.

In general, an easy way to earn points is through credit card bonus offers to newcomers or big spenders. For instance, Discover gives new cardholders double the cash back they’ve earned during their first year.

An advantage of credit cards that are affiliated with airlines or hotels is that rewards points can often be converted to airline miles. An abundance of miles can often be redeemed for deals on flights, hotels, or vacation packages, strong incentives for the avid traveler.

People who choose cash back rewards points can use them to reduce their outstanding account balance. The value of the points will generally show up as an account statement credit.

Other benefits you can get with a membership subscription or credit card rewards might include discounts, gift cards, free merchandise, members-only content, early access to new products, or perks like free shipping.

In some cases, just being a member of a loyalty program gives you access to certain benefits. For example, SoFi Plus members are eligible to take part in SoFi Plus Experiences. Among the awards are VIP access to NFL and NBA games, concert tickets, and passes to music festivals.

Examples of Membership Rewards Programs

The countless membership rewards programs out there offer a universe of benefits. Here are several familiar variations.

Frequent flyer miles are a familiar type of membership rewards program. Members accumulate miles they can redeem for award tickets, upgrades to business or first class, free wifi, and more.

Some banks feature rewards checking accounts. (As of this writing, SoFi does not.) Account holders who meet certain conditions—such as direct deposit amounts, a defined average balance, or a minimum number of transactions—may get cash back, fee reimbursements, shopping discounts, or points you can convert to airline miles.

SoFi Plus is a paid rewards program for customers of SoFi Bank. The program provides qualifying members with extras that range from cash back and deposit matching to higher interest rates on savings accounts and professional financial planning sessions.

In another example, cosmetics retailer Sephora sponsors the Beauty Insider program, with its Insider, VIB, and Rouge tiers. Members earn points by making purchases. In return for their loyalty, they may receive trial-sized product samples, birthday gift sets, free shipping, and more.

Amazon Prime, which doesn’t issue rewards points, shows there can be a difference between subscriptions and membership. Subscribers who pay the $14.99 per month (or $139 per year) can enjoy convenience bonuses for shoppers, free fast shipping, unlimited photo storage, grocery discounts, low-cost prescriptions, and access to extensive video, audiobook, and music libraries. Additional monthly fees unlock further benefits. By contrast, membership loyalty programs foster engagement and connection among people with similar interests.

Ways to Earn Membership Rewards

After you’ve become a member of a brand, card, or store, the obvious way to earn rewards points is by making purchases in those domains. But you may find that the loyalty program offers other, more creative ways to earn rewards, such as:

•   Check-ins that give you points just for visiting the store

•   Providing personal details so that the program has a profile of you

•   Signing up for the brand’s newsletter

•   Boosting the brand’s social media presence by reposting or sharing its content

•   Reviewing products or taking surveys

•   Referring new customers who sign up or make a purchase

•   Attending members-only events or workshops

•   Doing gamified tasks that award you points or point multipliers

If you have signed up for the newsletter or subscribed to the company’s social media feed, you’ll very likely be informed about additional ways to earn rewards.

Membership Rewards Tips

•   Make sure you understand the program’s rules. To maximize credit card rewards, read through all the promotional materials for your loyalty program. You may find that it awards points for actions you hadn’t thought of.

•   Track your progress. Check in regularly to the program’s tracker app or a dedicated website to see your points tally and your progress toward premium tiers.

•   Learn new ways to earn points. You may find that you can pick up rewards points or bonuses by referring new members, reviewing products, providing survey feedback, participating in social media, or something else. Your program should keep you posted on promotional offers.

•   Keep track of expiration dates. Be sure to use accumulated rewards points before they expire.

•   Find out the easiest way to redeem rewards points. Your program will have instructions and conditions for redeeming your rewards points. You may be able to do this through a dedicated app, account page, or website portal.

•   Don’t settle for rewards you don’t care about. Instead, aim to redeem rewards points for something you actually want. This may be cash back, product discounts, or access to exclusive events such as SoFi Plus Experiences. Small perks like product samples or free delivery may be easier to earn.

The Takeaway

Membership rewards programs operate by encouraging members to accumulate points through various actions—such as making purchases or referrals—which can then be redeemed for valuable benefits such as cash back, discounts, travel miles, or exclusive experiences. Members who opt for non-cash rewards frequently get more purchasing power for their points than they’d have with cash back.

SoFi Plus is America’s most rewarding financial membership—all in one app.* Unlock extra savings, rewards, discounts, and more.
The smart way to get more from your money.

FAQ

What is the difference between subscription and membership?

In general, subscriptions offer continuous access to products or services for a recurring fee. Examples might include streaming video or meal kits. After you subscribe, you typically don’t earn points or rewards for taking any particular action.

Membership programs, by contrast, tend to incorporate loyalty features. These might be rewards for repeat purchases (e.g., buy nine sandwiches and the tenth one is free), premium tiers with more valuable awards, gift cards, branded merchandise, or the like.

Do membership rewards expire?

It depends. Some programs may offer lifetime membership points to retain customers. In other cases, points may expire after a set period (such as 12 or 24 months) or on a rolling basis. Sometimes, a member with points about to expire may be able to reactivate them by taking a specified action, such as buying something with a rewards credit card.

What are some creative ways to earn membership rewards?

Depending on your loyalty program, you may be able to score more rewards points through activities such as:

•   Checking in when you visit the store

•   Providing personal details for the program’s profile of you

•   Signing up for the brand’s newsletter

•   Boosting the brand’s visibility on social media by reposting or sharing its content

•   Reviewing products or taking surveys

•   Referring new customers who sign up or make a purchase

•   Attending member-exclusive events or workshops

•   Doing gamified tasks that award you points or point multipliers

The company’s newsletter and social media feed will very likely keep you informed about new ways to earn rewards.

What is the difference between membership rewards and statement credits?

Customers earn their membership rewards, which are delivered in the form of points, cash back, or other perks and privileges. When you redeem those rewards points (or cash), you may decide to apply them to your bank or credit card account to lower its balance. You’ll see the amount recorded on your account statement as a credit.

What are some reasons to choose membership rewards over cash back rewards?

Points redeemed for non-cash rewards typically end up having greater purchasing power than cash back rewards points, according to Experian. Beyond that, it’s a question of lifestyle. Cash back is simple, but you might prefer membership rewards if you:

•   Spend enough on your credit card that the value of the rewards exceeds the annual fee

•   Travel frequently enough that you appreciate benefits like airport lounge access and travel insurance

•   Value elite amenities and upgrades such as business class flights and luxury hotels

•   Don’t mind actively managing your points and overall spending for best results

Naturally, you’ll want to check the loyalty program agreement first for information. It should spell out the value of your rewards points and mention any affiliates with additional benefits.

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Photo credit: iStock/FreshSplash

¹SoFi Plus: SoFi Plus is a premium membership that gives members access to our best rewards, benefits, and more when they pay the SoFi Plus Subscription Fee. Between 12/9/25–3/30/26, members with Eligible Direct Deposit or Qualifying Deposits will receive complimentary access to SoFi Plus. Benefits are subject to change and may not be available to everyone. All terms and conditions applicable to the use of SoFi Plus apply. To learn more about SoFi Plus and available benefits and terms, please see the SoFi Plus page.

*Based on a series of blinded surveys of financial memberships across banking, borrowing, investing, and credit cards. A nationally representative sample of 900 consumers were asked to rank offerings based on the question “Which financial membership brand is most rewarding?” Results as of January 2025. See sofi.com/plus-survey for details.

²5% Cash Back Rewards Program
Earn 5% cash back rewards on eligible grocery store purchases with the SoFi Smart Card. Cash back rewards are issued in the form of SoFi Member Rewards points. Members earn 5 points for every dollar spent on eligible grocery store purchases. SoFi, in its sole discretion, determines grocery store eligibility. Superstores like Walmart and Target, warehouse clubs like Costco and Sam’s Club, convenience stores, grocery delivery services, and meal-kit delivery services are not considered grocery stores. This benefit is subject to continued paid SoFi Plus subscription. All terms and conditions applicable to the use of SoFi Member Rewards apply. To learn more about SoFi Member Rewards, please see the SoFi Member Rewards page. No rewards points will be earned with respect to reversed transactions, returned purchases, cash advances, or other similar transactions. SMC_200.0

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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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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If you don’t pay your credit card bill, you could face more severe consequences than you might think. Though it will depend on your credit card issuer, you can generally expect to be charged a late fee as well as a penalty interest rate which is higher than the regular purchase annual percentage rate, or APR.

Life happens, and, from time to time, payments are missed, especially if you’re dealing with emergencies such as losing a job or a family crisis. In the event you have skipped a credit card payment, it’s crucial you understand what consequences you may face. That way, you can take steps to reduce the odds of it having a major impact on your financial health.

What Happens If You Don’t Pay Your Credit Card?

Consequences for missed credit card payments could include being changed late fees and possibly losing your grace period. It may also negatively affect your credit score since issuers report your payment activity to the credit bureaus — in most cases after 30 days.

There may be other consequences depending on how late your payment is and whether it’s your first time missing a payment.

Accruing Interest

When you don’t pay your credit card, interest will accrue and will continue to do so as long as you have a balance on your card. In essence, you are paying more for your initial purchase thanks to that interest.

The longer you go without paying your credit card, the more you risk your rate going up. Your credit card issuer may start imposing a penalty annual percentage rate (APR), which tends to be higher than your regular purchase APR. If this happens, you’ll end up paying more in interest charges. The penalty APR may apply to all subsequent transactions until a certain period of time, such as for six billing cycles.

Collections

Depending on your credit card issuer, your missed payments may go into collections if it goes unpaid for a period of time. You’ll still continue to receive notices about missed payments until this point.

More specifically, if you don’t pay your credit card after 120 to 180 days, the issuer may charge off your account. This means that your credit card issuer wrote off your account as a loss, and the debt is transferred over to a collection agency or a debt buyer who will try to collect the debt.

Once this happens, you now owe the third-party debt buyer or collections agency. Your credit card issuer will also report your account status to the major credit bureaus — Experian®, TransUnion®, and Equifax®. This negative information could stay on your credit report for up to seven years.

It’s hard to tell what third-party debt collectors will do to try and collect your debt. Yes, they may send letters, call, and otherwise attempt to obtain the money due.

Some collections agencies may even try to file a lawsuit after the statute of limitations expires. In rare cases, a court may award a judgment against you. This means the collections agency may have the right to garnish your wages or even place a lien against your house.

If your credit card bill ends up going to collections, take the time to understand what your rights are and seek help resolving the situation. Low- or no-cost debt counseling is available through organizations like the National Foundation for Credit Counseling (NFCC).

Bankruptcy

You may find that you have to declare bankruptcy if you still aren’t able to pay your high credit card debt and other financial obligations. This kind of major decision shouldn’t be taken lightly. You will most likely need to see legal counsel to determine whether you’re eligible.

If you do file for bankruptcy, an automatic stay can come into effect, which protects you from collection agencies trying to get what you owe them. If you successfully declare bankruptcy, then your credit card debt will most likely be discharged, though there may be exceptions. Seek legal counsel to see what your rights and financial obligations are once you’ve filed for bankruptcy.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Making Minimum Payments

A minimum payment is typically found in your credit card statement and outlines the smallest payment you need to make by the due date. Making the minimum payment ensures you are making on-time payments even if you don’t pay off your credit card balance. Any balance you do carry over to the next billing cycle will be charged interest. You can also avoid late fees and any other related charges by making a minimum payment vs. not paying at all.

If you find you’re regularly struggling to make the minimum payment, or preferably, more than the minimum payment, it may be time to consider finding a lower interest rate. Carrying a balance longer-term on a high interest credit card can cause your debt to spiral.

💡 Quick Tip: Credit card interest rate caps have recently been proposed in response to rising interest rates. However, one option already available to borrowers is securing a fixed, lower-interest rate loan. A SoFi credit card consolidation loan may offer a lower interest rate, set terms, and a transparent pay-off plan.

What Happens if You Miss a Payment

If you can’t pay your credit card for whatever reason, it’s best to contact your issuer right away to minimize the impact. Let them know why you can’t make your payment, such as if you experienced a job loss or simply forgot. For the latter, pay at least the minimum amount owed as soon as you can (ideally before the penalty or higher APR kicks in).

If this is your first time missing a payment but you have otherwise paid on time, you can try talking to the credit card company to see if they can waive the late fee.

Some credit card issuers may offer financial hardship programs to those who qualify, such as waiving interest rates, extending the due date, or putting a pause on payments (though interest may still accrue) until you’re back on your feet.

Recommended: Breaking Down the Different Types of Credit Cards

15/3 Rule for Paying Off Credit Cards

The 15/3 payment method can help you keep on top of payments and lower your credit utilization — the percentage of the credit limit you’re using on revolving credit accounts — which can impact your score.

Instead of making one payment when you receive our monthly statement, you pay twice — once 15 days before the payment due date, and the other three days beforehand. This plan is useful if you want to help build your credit history and pay on time.

The Takeaway

Missing your credit card payment may not be a massive deal if it just happens once or twice, but it can turn into one if you continue to ignore your bill. Late fees, a higher penalty APR or, worse still, having your account go to collections could result. That’s why if you are having trouble paying your bill (or simply forget to), you should contact your credit card issuer ASAP.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

How long can a credit card go unpaid?

The statute of limitations, or how long a creditor can try to collect the debt owed, varies from state to state, which can be decades or more.

What happens if you never pay your credit card bill?

If you never pay your credit card bill, the unpaid portion will eventually go into collections. You could also be sued for the debt. If the judge sides with the creditor, they can collect the debt by garnishing your wages or putting a lien on your property.

Is it true that after 7 years your credit is clear?

After seven years, most negative remarks on your credit report, such as accounts going to collections, are generally removed.

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Photo credit: iStock/MStudioImages

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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 .

This article is not intended to be legal advice. Please consult an attorney for advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SoFi Credit Cards are 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.

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