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5 Common Bank Account Bonuses

Bank account bonuses let you earn money or other rewards just by banking, though there may be certain conditions you’ll need to meet.

Typically, bank account bonuses are offered one time, for opening a new account. However, some institutions give ongoing rewards as an incentive for doing business with them. Many bank bonuses require account holders to deposit or maintain a minimum amount of money or meet other qualifications.

Bank bonuses could be a good way to earn or save a little extra, especially if you’re already considering opening a new account or moving your money around.

How Do Bank Bonuses Work?

While the specifics depend on the bank, bank account bonuses are typically offered to new banking customers and they come with some specific stipulations.

Along with minimum account balances or opening deposits, bank sign-up bonuses may also require certain actions—such as making a certain number of debit card transactions or receiving a monthly threshold of direct deposits for several months running.

Once the account holder has opened the account and done whatever actions are required, the welcome bonus is usually deposited directly into their account.

Because some of the required actions may take time to be completed (and due to the bank’s processing procedures), it might be awhile before the account holder sees the bonus—sometimes 60 days or even as long as 120 days. In other words, a bank account bonus isn’t necessarily quick.

What’s more, bank bonuses frequently change as financial institutions review their needs and update their marketing strategies.

Why do banks offer these bonuses in the first place? By offering attractive bonuses, banks can distinguish themselves from the competition and perhaps win customers. They may specifically aim for clients who make large or regular deposits and transactions, all of which are good for the bank’s business.

Recommended: Pros and Cons Of Online and Mobile Banking

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5 Common Bank Account Bonuses

These are some specific types of bank bonuses you may come across when shopping around to open a new bank account.

1. Sign-Up Bonuses

One of the most common types of bank account bonuses are those designed for new customers of the bank in question.

Bank account sign-up bonuses, also sometimes called welcome deposits, range from about $100 to more than $500—though larger bonuses generally carry more stringent eligibility requirements. For instance, the bonus seeker may need to open both a checking and a savings account, and meet large minimum balance requirements.

Other common eligibility requirements include setting up direct deposit (and receiving a certain minimum threshold in direct deposits on a monthly basis for a specified number of consecutive months), making a certain number of debit card transactions within a given time frame of opening the account, and depositing a minimum amount into the account.

There are almost always stipulations and eligibility requirements for bank bonuses—which is why it’s important to read the fine print.

2. Bonuses for Upping the Ante

Another way banks might structure their bonus offers is to give higher rewards to those who are able to deposit more money into their accounts.

These institutions sometimes offer bonuses on a tiered system, with higher rewards available for those who are able to meet more strenuous eligibility requirements.

For other customers, a bank might offer a “basic” system of some sort, in which the new account holder will earn a small bonus for opening a new checking account and meeting relatively easy qualifications.

For instance, you might earn $200 if you’re able to fund your account with $5,000 and maintain that minimum balance for 60 consecutive calendar days.

That same bank might also offer a $400 reward for new customers who open both a checking and savings account and who can up that minimum balance to $15,000—or a $700 reward for those who can meet a minimum balance requirement of $50,000.

Higher tiers may come with additional privileges, such as waived fees, along with the bonus incentive.

3. Direct Deposit Bonuses

As mentioned above, many bank account bonuses require setting up—and receiving —direct deposit payments into the new account.

The direct deposits may need to reach a certain minimum amount per month or happen within a given time frame of opening the account. Each deposit may need to meet a certain minimum as well.

For example, one bank might require new account holders to receive $2,000 in direct deposit funds within 60 days, while another might require at least two direct deposits of $250 or more within 90 days of opening the account.

For some banks, simply setting up direct deposit is enough, but again, all this critical information will be in the fine print of the offer.

4. Checking and Savings Combo Bonuses

In some cases—as with the tiered rewards system outlined above—a bank may offer additional incentives to those who open both a checking and savings account.

For instance, a new customer might be able to earn $200 for opening a checking account and $150 for opening a savings account, totaling a welcome bonus of $350.

Of course, as with the other bonuses listed here, these rewards will likely come with stipulations and minimums, which could vary for each account.

Because of the nature of savings accounts, new account holders probably will need to maintain high minimum balances to qualify for the reward.

5. Waived Bank Fees

While it’s not the same as an extra $100 placed into an account, many banks offer the opportunity to waive monthly maintenance fees and other costs by maintaining certain minimum account balances or having a specific minimum number of direct deposits per statement cycle.

Although they’re generally small, monthly maintenance fees can eat into the account holder’s income, so having them waived can be a nice incentive.

Recommended: How Much Money Do You Need to Open a Bank Account?

The Fine Print

Bank bonuses can come in different types with different requirements, so it’s important to always read the fine print carefully. That’s where account holders will learn what exactly they have to do to get the bonus.

Also, there may be rules about what happens if you close your account early. Some banks will take back their bonus if you close your account shortly after meeting the bonus requirements, for instance.

These kinds of clauses mean it might not be wise—or even possible—to open multiple bank accounts to get a variety of bonuses.

It may be smarter to use bank sign-up bonuses as one factor to consider when you’re evaluating your options for switching banks.

The Takeaway

Although bank bonuses can certainly be valuable, they’re not always easy to earn. Depending on your personal financial situation, bank bonuses may or may not be worth it, especially if it means tying up a significant amount of your income to maintain high monthly minimums.

What’s more, as nice as a one-time bonus is, there are accounts that offer continual benefits to their clients over time. For instance, with SoFi Checking and Savings, you’ll earn a competitive APY, pay no account fees, and have no minimum balance to meet.

Bank smarter, and reap rewards, with SoFi Checking and Savings.



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

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

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

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

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

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


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

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

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How to Plan a Family Reunion Trip

The hardest part is knowing where to start. We’ll walk you through planning timelines, money-saving tips, and ideas for when, where, and how long your reunion trip should be.

Benefits of a Family Reunion Trip

The benefits of a family reunion trip are many: It’s a rare chance to reconnect, strengthen relationships, and make new memories. Sure, you’ll see one another at the next wedding, graduation, or funeral, but a dedicated family reunion is an opportunity for multiple generations to simply be together, without the pressure of pre-scheduled events.

Family reunions are especially important for the oldest and youngest family members. Grandparents and great grandparents won’t be around forever. Little ones may not immediately appreciate the time they spend with older relatives, but they will be sure to appreciate these memories — and group photos! — years down the line.

How to Plan a Family Reunion Trip

Organization is crucial when it comes to destination family reunion planning. After all, you’re planning a vacation for potentially dozens of people of varying ages and interests. Maybe you’re a spreadsheet and travel aficionado, in which case, bon voyage! If not, read on for everything you need to consider when planning a family reunion trip, then divide and conquer.

Where, When, and How Long: Guidelines

Every family has diverging interests. Maybe the younger generation love long hikes, but Uncle Mike prefers antiquing, your grandmother could splash in the pool all day, and your brother is practically a vampire. A well-planned destination family reunion vacation will offer something for everyone.

Recommended: How Families Afford to Travel

How Long Should A Family Reunion Trip Be?

Is your family thinking of a week-long vacation or a weekend getaway? Keep in mind that not everyone has the same vacation time from work, and some people may have other obligations they must allocate vacation days to. It’s also important to find out which families may be traveling with pets.

The length of a reunion is often determined by budget. Whoever the lead organizer is should simply ask the group (more on how to do that below) what everyone’s maximum budget is and go from there.

When and Where to Take a Family Reunion Trip

Agreeing on a time of year for your reunion may be easier than you think. First, take into account how many attendees have school-aged kids. For them, winter and summer breaks will be the most convenient times to travel, but also the most expensive. Instead, consider using a shoulder-season school holiday, like Indigenous Peoples’ Day in October or Memorial Day in May, and taking a long weekend trip. Bonus: The weather in many destinations will be pleasant, but prices won’t yet be sky-high.

When evaluating destinations, contemplate: How many people are coming? Will you fly or drive? Is it easier to stay somewhere walkable, or does the group prefer renting cars? Ask select family members for their top (realistic) destination ideas.

Recommended: How to Balance the Urge to Travel and the Need to Save

How to Save On A Family Reunion Trip

Accommodations tend to take a big bite out of travel funds. For most groups, sharing one or more houses or apartments will be much more affordable than booking hotel rooms. In Montana, for example, you may well find two nearby houses that can hold a dozen people each. In Fort Lauderdale, you’re more likely to find three- to four-bedroom condos.

Sharing accommodations can also make it easier to prorate costs, allowing those on a tight budget to select a smaller room or pull-out couch. (Also keep in mind credit card rewards, which are sometimes applicable to vacation home sites.)

Other advantages of a rental house are space to spread out, doors that can be closed when kids are sleeping but adults are up late talking, and the ability to prepare meals — another huge cost saver.

Family Reunion Planning Timeline

Your planning timeline will vary depending on your destination. If the gang is flying to Hawaii from across the country, you’ll want to book flights many months in advance and keep your eye on hotel prices. If everyone is driving, you can book accommodations a few months out and then wait to plan activities.

6–12 months out: Use a free online poll tool or the poll feature in messaging apps like Whatsapp and Telegram to vote on when and where to go. The group chat can be your best friend and worst enemy (btw, you may want to mute it), but it is useful for soliciting opinions. It’s important to confirm budgets and expectations now.

4–5 months out: Once a destination is decided, pull a few accommodation options to fit the group’s needs, whether that’s a block of hotel rooms, a few condos, or a rental house. Reconfirm everyone’s budget, as financial circumstances can change.

If your family reunion trip requires flights, compare the price of a ticket in miles vs. cash so you can decide whether to use a credit card that gives credit card miles vs. cash back.

2 months out: Keep the momentum going by booking any activities, whether you need lift tickets, plan to take tours, or want to go snorkeling. With major logistics out of the way, this is the fun part.

1 month out: Everything that needs to be booked in advance is done, and the countdown is on. Now is the time to look into nearby grocery stores, where people might eat if they arrive late, whether strollers and carseats can be rented or should be packed, etc.

Do’s and Don’ts for a Fun, Memorable Reunion

•   Don’t overschedule your family reunion trip: Try booking only one major activity per day for those who want to participate, whether that’s a beach excursion, a museum, or a walking tour.

•   Do respect peoples’ natural rhythms: Aunt Sue may be ready for 5am bird-watching, but your college-age cousins are more likely to roll out of bed several hours later. Everyone is more cheerful when they get enough sleep, so don’t wake people at the crack of dawn with a megaphone.

•   Don’t feel compelled to capture every moment. The pressure to take a million perfect photos is very real, but try to live in the moment. You may not see some of these people again for several years.

•   Bring an instant camera: These tangible memories are the perfect family reunion souvenir, and instant camera film colors are universally flattering.

•   Pack games: Uno, travel Scrabble, Code Names, even simple packs of cards provide entertainment after dinner and on rainy afternoons.

•   Make videos: Film older relatives talking about their lives. Prompt them with questions about their childhood, who their friends were, what they ate, what they dreamed their adult lives would be. This is a wonderful way to memorialize older generations.

After the Event

•   Create a place for everyone to share photos, like Google Drive or Dropbox.

•   Print a few of the best photos and mail them to your family with a short note; it’s a treat to get snail mail.

•   If people have suggestions for the next family reunion trip, note them.

•   Use an expense tracker to organize who owes whom for shared costs.

The Takeaway

A family reunion is a unique chance for relatives across generations to meet for the first time or reconnect. Summer is generally the easiest time for families with young kids to travel, but it’s also the most expensive. If your family reunion trip works for a long weekend within driving distance, this is the most budget-friendly option. While it takes some coordination — and maybe a little stress — be assured that it is worth the trouble.


Photo credit: iStock/ferrantraite

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Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details, please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

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

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How the Average Cost Per Year of Raising a Child Has Changed Since the Early 2000s

Having children can be rewarding, but thanks to higher rates of inflation, it’s also getting more expensive. Today, parents can expect to spend around $310,000 to raise a child from birth up to age 17, according to a recent Brookings Institution analysis of data from the USDA.

If you’re considering growing your family, understanding all the costs involved can help you prepare financially. Let’s take a closer look at the average annual cost of raising a child in the U.S. and how that figure has changed over the past two decades.

What Is the Cost of Raising a Child in the US in 2022?

Adjusting for higher future inflation, the Brookings Institution estimates it costs $310,605 for a middle-class family to raise a child born in 2015 up to age 17. Of course, the amount you end up spending depends on a number of factors, including household income, the cost of childcare, and where you live.

If you want more personalized insights to help you plan your spending, consider using an online calculator.

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A Comparison of the Cost of Raising in Child in 2000 vs 2022

The average cost of raising a child in 2000 looked much different than it does now, thanks in large part to the recent surge in inflation rates.

In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17. In 2022, that same family would spend $310,605, according to the Brookings Institution analysis, which adjusted the USDA’s most recent estimates for higher expected future inflation. Note that this amount doesn’t include extras like summer camp or birthday parties, nor does it factor in the cost of college.

Top Expenses of Raising a Child in 2022

When it comes to the average cost of raising a child from birth to 17, middle-income families can expect to spend around $17,255 per year. The following table shows where that typically money goes.

Cost category

Average percent (%) of spending

Housing 29%
Food 18%
Child care and Education 16%
Transportation 15%
Healthcare 9%
Miscellaneous 7%
Clothing 6%

Source: USDA’s Expenditures on Children by Families, 2015

Top Expenses of Raising a Child in 2000

Average middle-income parents in 2000 spent around $9,201 per year on child-rearing costs. As the chart below shows, housing and food were the biggest expenses. But compared to 2022, parents spent less on other things, like healthcare and child care and education.

Cost category

Average percent (%) of spending

Housing 33%
Food 18%
Transportation 15%
Miscellaneous 11%
Child care and Education 10%
Healthcare 7%
Clothing 6%

Source: USDA Expenditures on Children by Families, 2000

How to Reduce the Cost of Raising a Child Today

No matter when you become a parent, you’ll likely have some major expenses. The good news is, it is possible to save money while raising kids. Here are some tips to consider:

•   Look for ways to lower housing expenses. Housing is the number-one expense for families, so finding ways to trim expenses there can really help you save. For instance, if you’re planning to move, you may want to expand your search to include smaller, less expensive homes located in neighborhoods with lower property taxes.

•   Purchase secondhand clothes. Kids tend to outgrow their clothing quickly. Rather than spend a lot on new outfits, shop secondhand whenever possible. Tag sales, thrift stores, and consignment sites are all good places to explore.

•   Make the most of your local library. Are expensive streaming subscriptions eating away at the family budget? Consider canceling some of those streamers and heading on over the local library. Not only can you check out books and audiobooks for free, you can also rent DVDs and enjoy free events.

•   Shop generic. When it comes to basics like diapers, toiletries, and household cleaners, skip the fancy brand names and go for less-expensive generic versions.

Recommended: From One Child to Two: How to Financially Plan

More Financial Tips for Parents

Whether you’re looking to start a family or add to your brood, there are also some smart financial habits you can start today that can make it easier to afford raising children. As a bonus, these habits can also help you teach your child about money management.

•   Pay down debt quickly. When a borrower takes on debt, they repay not only the amount they borrowed, they also owe interest and fees to the lender in exchange for borrowing the money. That’s why it’s so important to pay off debt quickly. The sooner you erase your debt, the less interest you’ll have to pay.

•   Create a budget that grows with your family. Coming up with a budget — and adapting it to meet your current needs — can help your finances roll with whatever changes life has in store. It’s a good idea to sit down once a month to evaluate what’s working in the budget, what can be improved, and what new expenses are on the horizon. A spending app can also help you keep tabs on where your money is going.

•   Prioritize savings. When you’re raising a family, it’s easy to let long-term savings goals fall by the wayside. One way to make saving second nature is to sock away a portion of each paycheck into a savings account or investment account. By paying yourself first, you’re better positioned to reach your financial goals, whether that’s putting multiple children through college, investing, or saving for retirement.

Recommended: Creating an Investment Plan for Your Child

The Takeaway

Having a family can be rewarding — and expensive. The average middle-class family today will pay around $310,000 to raise a child to age 18. Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals.

If you need help organizing your finances, consider using a money tracker app. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

How much does it cost each year to have a child?

The average middle-class family will spend around $17,255 per year to raise a child.

How much does it cost to raise a child to 18 in 2023?

According to a 2022 Brookings Institution analysis of data from the USDA, a middle-class family will spend $310,605 to raise a child to the age of 18.

How much does a baby cost on average?

The average middle-income household family can expect to spend around $12,680 a year to raise a child from birth to 2 years of age, according to the most recent USDA data.


Photo credit: iStock/Prostock-Studio

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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.

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

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

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Guide to Cleaning Credit Cards

When you think of everything in your life that needs to be cleaned regularly, your credit card is probably not near the top of the list. But the truth is, during the course of a day, your card can pass through many hands and see plenty of action in credit card readers and ATMs. These exchanges increase the odds of your card picking up dirt, debris, and germs.

Fortunately, there are many ways you can keep your credit card clean without worrying about damaging the plastic, chip, or magnetic strip. Even better, most cleaning methods take less than 30 seconds.

Let’s take a look at some different ways you can practice good credit card hygiene.

Why Clean Your Credit Card?

It’s common knowledge that most paper money and coins carry germs, but credit and debit cards aren’t any cleaner. In fact, microbes, bacteria, and viruses typically stay active longer on hard surfaces like plastic and metal, sometimes for days or even weeks.

If you touch your bacteria- or virus-laden card and then touch your mouth, eyes, or nose, you could be introducing unwanted germs into your body. Washing your hands after handling your card can prevent the spread of germs. So can washing your credit card.

Besides wiping away bacteria, microbes, and viruses, scrubbing your card can also remove dust, dirt particles, and grime. These elements can make your card’s surface feel greasy, gritty, and sticky, and they can accumulate on or around the raised credit card numbers or letters.

Recommended: Cash vs Credit Card: Key Differences to Know

How to Clean Credit Cards

There is no one way to clean your credit cards. The method you use depends on personal choice and the cleaning materials you have on hand. If you’re worried about getting your card wet, rest assured plastic and metal credit cards are meant to be waterproof.

Whatever your cleaning method, there are a couple rules of thumb to keep in mind. The first is to be gentle. Too much elbow grease or force may cause the card to wear down prematurely and could wipe away the ink. The second rule is to dry the card completely before you put it back in your wallet or use it.

Here are some effective ways to clean your credit cards:

Soap and Water

You can wash your credit card as you would your hands — with good old soap and water. Simply suds up your card with hand or dish soap and warm water, and gently clean for 20 seconds before rinsing it off completely. Wipe dry with a paper towel, soft rag, or lint-free microfiber cloth.

Rubbing and Isopropyl Alcohol

Both types of alcohol can be used to clean your cards. Simply wet a cotton ball, tissue, paper towel, or soft cloth with the alcohol and wipe the card. To remove stubborn gunk trapped around the raised letters or digits of your card, try using a cotton swab dipped in alcohol.

Antibacterial or Sanitizing Wipes

The same wipes you use to clean surfaces at home can also be used on your credit cards. These products work to rid your card of any bacteria and viruses hanging out on your credit or debit card.

Multi-surface household cleaner

An all-purpose cleaner will also do the trick of cleaning your card. It’s better to spray the solution onto a cotton ball, paper towel, or clean rag instead of directly onto your card. Vinegar, which also works as a household cleaner, is another option.

UV Light Sanitizer

These devices use ultraviolet light to kill any viruses and bacteria found on nonporous surfaces. Often used to kill germs on cell phones, many of these machines sanitize credit cards as well.

One caveat: If you have a credit card made of metal or a metal composite, you may need to follow a different cleaning regimen. Apple, for example, warns against applying certain products or methods when cleaning the titanium Apple Card. On the list are household or window cleaners, compressed air, ammonia, and abrasive cleaners. If you have a metal card and aren’t sure what material it’s made of, check with your credit card issuer before cleaning it.

How to Clean the Chip and Magnetic Strip on a Credit Card

There may be times when you insert a credit card into a chip reader or swipe it at the card reader machine, but can’t complete the transaction. This could be because your credit card’s chip or magnetic strip needs to be cleaned.

You might think getting the chip or strip wet would damage the card, but in reality, the chip reader and magnetic strip can be cleaned with the methods mentioned above. However, you don’t want to soak your card in any liquid — even soapy water — or scrub the chip or strip too hard. Doing so can damage it over time.

There are also ways to de-gunk a chip or strip that don’t involve cleaning products. For instance, after gently wiping off your card, you can use a rubber eraser to lift any remaining strip residue. Another option is to place a piece of clear tape over a dirty strip or chip and then peel it off.

5 Things to Avoid Doing When Cleaning a Credit Card

Not all cleaning methods are created equal. In fact, some could damage your card. Here are five to avoid.

1. Scrubbing with a rough sponge

You don’t need to apply too much pressure or scour your card with an abrasive sponge. Both could damage the card, especially the chip and magnetic strip.

2. Your washing machine

You might think throwing your card into the wash with your clothes is harmless. But the harsh chemicals found in most laundry detergents could do more harm than good. For one thing, they can cause the card’s protective coating to peel off.

3. Hand sanitizer

While hand sanitizer can work in a pinch, it isn’t the best product to use when cleaning off your card. The moisturizing ingredients in the gel or liquid can leave behind a residue.

4. Soaking in rubbing alcohol

While you can wipe down your card with rubbing alcohol, experts warn against submerging your card in it because it can be corrosive.

5. Using heat

Heat and hot water can kill off germs, but using very high temperatures to clean or sterilize your credit card can actually damage it. Using a blow dryer, a clothes dryer, or boiling water to blast off any germs can cause the card’s plastic to soften or warp.

Cleaning vs Disinfecting a Credit Card

Both cleaning and disinfecting your credit card are effective, but they aren’t synonymous, and one step should precede the other.

According to the Centers for Disease Control and Prevention, you should clean first and then disinfect. Why? Washing a surface before you do anything else removes impurities like dirt, whose presence may make it harder for the chemicals in sanitizers and disinfectants to reach and kill germs.

How Often Should Credit Cards Be Cleaned?

How often you should clean your card largely depends on how often you use it. Ideally, you should clean your credit cards after every use, though that can be difficult if you’re out and about and using your card at different places. Generally, aim to clean your card once a day if you use it regularly, or once a week if you don’t.

Recommended: 7 Tips to Help You Use Your Credit Cards Wisely

Other Credit Card Maintenance Tips

Your wallet can get pretty dirty, making it harder to keep your credit card clean. Try storing it in a plastic photo holder or a card protector sleeve. Your credit card company may have issued your card in one, or you can make your own by wrapping a credit card-sized piece of paper around the card and taping the ends together. Another option is to purchase a separate credit card holder.

You may also want to use contactless credit card payments, which allow you to avoid swiping or inserting your card into a reader. One way to do that is with a contactless credit card. These cards feature an icon that resembles the wi-fi symbol and let you “tap and pay” at a payment machine.

You may also decide to store your credit card in a mobile wallet, which is a virtual wallet that lives on your cell phone, smartwatch, or other mobile device.

Recommended: 11 Tips for Cleaning Up Your Finances

The Takeaway

Any time your credit card changes hands or is inserted into card readers and ATMs, it can pick up dirt and germs that can live on the surface for days or even weeks. Cleaning your credit cards regularly can help protect you from bacteria, viruses, and other germs. Using soap and water, rubbing alcohol, antibacterial wipes, or multi-surface household cleaners may all help you keep your card in tip top shape. Using a contactless credit card or mobile wallet are other ways to cut down on your card’s exposure to germs.

If you’re looking for a new credit card, consider a rewards card that makes your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.

The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1



Take advantage of this offer by applying for a SoFi credit card today.

FAQ

Can credit cards survive being washed?

They can, as long as you use gentle methods and surface-friendly products. Things to avoid: using an abrasive sponge and scrubbing too hard; submerging your card in potentially corrosive liquids like rubbing alcohol; and running the card through the washing machine.

Why do people clean their credit cards?

Credit cards can accumulate dirt and germs whenever they change hands or are inserted into a card reader or ATM. Cleaning your credit cards gets rid of bacteria and viruses that can stay on your cards for a period of time. But it can also remove stubborn grime that can scrape or otherwise damage your chip or magnetic strip.

Can you clean a magnetic strip on a credit card?

You can clean a magnetic strip with soap and water, an antibacterial wipe, rubbing alcohol, a safe household cleaner, or a UV light sanitizer. You can even use a pencil eraser or a piece of clear tape to remove dirt from a magnetic strip.


Photo credit: iStock/Khosrork

1Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, a statement credit, or pay down eligible SoFi debt.

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

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

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Why Do I Have Different Credit Scores?

Every consumer has multiple credit scores. Why on earth is that? Because the major credit bureaus — Experian, Equifax, and TransUnion — may have slightly different credit information on any one person, and credit scoring models vary.

Credit scores are an important financial metric to keep track of throughout the year. The three-digit number can help people qualify for everything from mortgages to student loans and apartment rentals.

Here’s why credit scores vary and how to keep track of each.

What Is a Credit Score?

A credit score is a three-digit number assigned to each consumer that businesses use to measure the risk of lending to that person. It’s not the only thing lenders consider, but it is one of the most important metrics, if not the most important.

Your credit score is based on a bunch of factors, including if you typically pay your bills on time, what your debt is relative to your income, how long you’ve carried credit, how many loans or lines of credit you have at once, and if you have ever had a negative financial event, including bankruptcy.

Recommended: What Is Considered a Bad Credit Score?

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*


Credit Scoring Models Vary

Though there are a number of credit scoring models out there, the majority of lenders use either FICO® or VantageScore.® Both determine a person’s credit score using the factors above, including history of borrowing, repayment history, and how much of the consumer’s credit they are currently using (known as a utilization rate).

Though both use the same factors, each one uses its own formula to weigh the worth of each factor. For example, a person’s credit history may be more important in one model than the other.

Based on the information gathered, the scoring models assign each consumer a three-digit number, which denotes that person’s lending risk compared to others.

To complicate matters, there are often multiple versions of each scoring model available from its developer at any given time. And adoption rates for updated versions can be low, meaning some lenders may be using older models that calculate a person’s score differently than an updated version. But for now, the FICO scoring model (known as FICO 8) breaks down as follows:

•   Payment history: 35%

•   Amounts owed: 30%

•   Length of credit history: 15%

•   Credit mix: 10%

•   New credit: 10%

Scoring Ranges Vary, Too

Both FICO and VantageScore calculate credit scores in a range between 300 to 850.

VantageScore 3.0 and FICO 8 are the most used scoring models and frequently mirror each other, so if your FICO number is high then your VantageScore will likely be high as well.

However, it’s important to note that the two pull the same data but weigh that individual data differently, putting greater importance on some aspects of a person’s credit history and usage than others.

While all creditors and lenders have their own standards, here are the FICO and VantageScore credit score categories:

FICO:

•   Exceptional: 800 to 850

•   Very good: 740 to 799

•   Good: 670 to 739

•   Fair: 580 to 669

•   Very poor: 300 to 579

VantageScore:

•   Excellent: 781 to 850

•   Good: 661 to 780

•   Fair: 601 to 660

•   Poor: 500 to 600

•   Very poor: 300 to 499

To put it all into perspective, in 2022, the average FICO credit score hit 714. Minnesotans reigned supreme for the 11th straight year with an average of 742.

Report Data Can Differ From Bureau to Bureau

Each of the credit bureaus collects its own data independently, and some lenders may only report data to one or two of the credit bureaus rather than all three.

To add to the complexity, the bureaus usually do not share information with one another, so none can really promise to show a consumer’s total financial picture.

Say Joanna goes into collection for her car loan, but the lender only reports this information to Experian. That means it will likely only appear on and affect her Experian credit report and may not affect her TransUnion or Equifax report. Thus her Experian report could be lower than her other two credit reports.

Scores Can Change Depending on the Lender

Lenders typically build their own relationships over time with at least one of the credit bureaus. This means they may only report information to the credit agencies they have relationships with.

Before applying for a line of credit, a car, home or student loan, or any other credit, it may be prudent to ask the lender which agencies they share information with and check in with those to see where you stand.

How Often Should You Check Your Credit?

Here’s the good news: Checking your credit won’t hurt your credit score, so go ahead and keep an eye on it. The bad news? The number a person sees when checking their score for free likely won’t match the one any lenders do.

The report a consumer has access to is a simple free report, lacking detail. But again, that’s OK, because it will show any errors or possible identity theft, which can be corrected if caught early enough.

Anyone can order a copy of their credit report from all three reporting agencies once a year for free at AnnualCreditReport.com . The report breaks down a person’s credit history but does not give a score.

However, again, this is the time to look for any mistakes and amend them ASAP. Consumers who do see an error can dispute it with the credit reporting agency and the company that holds the account.

It’s also a good idea for people to periodically check their credit to ensure it’s on the up and up.

Those interested in improving their credit scores to potentially get a better rate on loans should pay all their bills on time, limit their credit utilization ratio, and pay down existing debt.

The Takeaway

An individual’s credit scores differ for a variety of reasons. It might be a good idea to ask lenders which agencies they share information with. It’s always a good idea to periodically check your credit report to make sure everything’s kosher, to pay bills on time, and to keep credit utilization low.

Know what’s cooler than keeping track of your credit score? Keeping track of your credit score and finances at once. If you’re on the market for a money tracker tool that will let you do both, SoFi may be just the thing.

SoFi tracks all of your money in one app — at no cost. And SoFi members can work one-on-one with a financial advisor at no charge.

Ready to take control of your finances? SoFi is a great place to start.


*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.

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

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 .

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

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The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

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

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

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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