A Guide to How a Credit Score Simulator Works

A Guide to How a Credit Score Simulator Works

A credit score simulator is an online tool that can help you see how certain behaviors and decisions might impact your credit score in the future. It might take your existing credit history into account and how certain actions could affect your credit score.

For example, perhaps you open a new credit card or have an account sent to collections. A credit score simulator would take these marks into consideration and help you estimate the impact they may have on your credit score.

What Is a Credit Score Simulator?

A credit score simulator is an online, interactive tool that can help you assess how certain decisions or events will affect your credit score. Because everyone has a unique credit history, these tools can only help you to estimate the impact of changes to your credit score, rather than making this determination for certain.

Nevertheless, credit simulators can be useful, especially if you are working to improve your credit. There are many actions you could take that may affect your credit score — here are just a few examples:

•   Financing a home or car

•   Using a balance transfer credit card to consolidate your debt

•   Closing a credit card

•   Declaring bankruptcy

These are just a handful of the ways your credit score could rise or fall; there are many more examples. With so many possibilities, it can be difficult to predict how changes to your credit history will affect your credit score. Once you know what a credit card is, it quickly becomes apparent how a credit score simulator can help.

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

How Does a Credit Score Simulator Work?

After gaining an understanding of how credit cards work, you can start to understand how a credit simulator works. Each credit score simulator is different, but there are some commonalities in how they work.

Some start with your current credit score provided by a credit reporting bureau, then let you see how some of the changes mentioned previously would affect your score if you were to make them. While there’s no guarantee they will be completely accurate, they should give you an idea of the potential impact on your credit score.

Other credit score simulators might guide you through several questions about your credit profile. The result estimates your current credit score based on your responses. For example, the myFICO credit score estimator asks you about things like how many credit cards you have, how long ago you opened your first card, and whether you’ve missed a payment.

Recommended: When Are Credit Card Payments Due

How Your Credit Score Is Calculated

Credit score simulators generally use popular credit scoring models to estimate your current or future credit score. For instance, they might use FICO® Score 8 or VantageScore 3.0. These models use certain credit factors to calculate your score.

While each credit scoring model is different, certain behaviors tend to have a positive influence on your credit score, regardless of the model. Typically, some of the factors affecting credit score are:

•   Payment history: This is usually one of the most important factors in the calculation of your credit score. To avoid a negative impact on your credit score, you’ll want to avoid being more than 30 days late on any credit card payments.

•   Credit utilization ratio: This ratio is simply the total outstanding balance on all of your credit cards divided by their total credit limit. One of the credit card rules is that you should aim to keep this ratio below 30%.

•   Derogatory marks: These are items like bankruptcies, tax liens, and collections. It’s best to avoid these altogether if possible, especially since they can stay on your credit report for seven to 10 years.

•   Credit age: Creditors like to see that you have a long history of responsible credit use. Thus, your credit score may be slightly more favorable if your oldest credit card is decades old. The same holds true for loans.

Recommended: Tips for Using a Credit Card Responsibly

What a Credit Simulator Can Do

A credit score simulator can help estimate either your current credit score or what your credit score might be in the future. The result is that they can help you better understand how different actions will increase or decrease your score.

Thus, they can help you prioritize which actions to take. Should you pay off your credit cards quickly, or should you focus more on your loans for now? Credit score simulators can help you answer these questions when the answer isn’t so obvious.

What a Credit Simulator Cannot Do

The main thing that credit simulators cannot do is tell you exactly what credit score you should expect to have at a given point in the future. There are simply too many variables at play to know with absolute certainty what your score will be.

For one, your credit card issuer might use a different credit scoring model. Another possibility is that there are other changes to your credit profile that could impact your score. Perhaps you finish paying off a credit card six months from now, but an emergency suddenly arises that results in you taking out a personal loan.

The fact that there are so many possible scenarios is why we say credit simulators can only help you estimate your score rather than tell you exactly what it will be.

When It Makes Sense to Use a Credit Simulator

It makes sense to use a credit simulator in certain situations. For example, suppose you plan to finance the purchase of a new car. That will certainly have some impact on your credit, but the effect will vary depending on your credit history. A credit simulator can help you estimate what that impact will be.

Credit simulators can also help you decide which actions to prioritize if you have a bad credit score. Many of these possible actions might improve your score, but chances are, some will help more than others. Over time, you can gain a better understanding of which kinds of actions tend to have the largest impact.

Other Tools to Monitor Your Financial Health

Credit simulators are not the only thing that can help you monitor your financial health. Here are some other tools to consider:

•   Credit score monitoring: While credit simulators can help you estimate how changes to your credit report will affect your score, credit monitoring tools give you credit score updates on an ongoing basis. They can also give you a breakdown of your credit factors and how your score has changed over time.

•   Budgeting tools: Budgeting tools are useful because they often let you sync all of your bank accounts and credit cards in one dashboard. You can then see all of your balances in real-time.

•   Identity theft protection: If your identity is stolen, it can have a major impact on your credit and your finances as a whole. Thus, it’s not a bad idea to have this protection just in case.

What Makes a Good Credit Score?

It’s tough to overstate the importance of having good credit. Nevertheless, what constitutes good credit will vary from person to person. The general idea is you must show creditors that you are a responsible borrower and that you aren’t going to default on your debt (in this case, your credit card).

This is why things like late payments and high credit utilization can drastically lower your credit score. Late payments suggest you may not be able to reliably make your payments. And a high credit utilization suggests you may have a higher risk of default as you are using a high percentage of the credit available to you.

The Takeaway

Credit score simulators are one tool that can help you assess how different behaviors can affect your credit score. Because they are just simulators, they may not be completely accurate. Still, they can give you an idea of what to expect and help you reach your financial pals.

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.

FAQ

Are the changes made by a credit score simulator guaranteed?

In short, no. Credit scores are complex and other factors could affect your score in the meantime. Nevertheless, credit simulators can help you better understand how various changes may affect your credit score.

How long do credit score changes usually last?

How long changes to your credit score last depends on reporting to credit bureaus. Each bureau has its own schedule, but credit card updates usually happen every 30 to 45 days. However, some changes — such as a bankruptcy declaration — can remain on your credit report for as long as 10 years.

How accurate is a credit score simulator?

Credit score simulators should be relatively good at estimating credit score changes based on the information provided or available to them at any given moment. However, credit reports can change frequently, and simulators can’t usually predict what will happen with your credit a day, a week, or a month from now.


Photo credit: iStock/millann

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 .

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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What Is a Good Hashrate?

What Is Hashrate?

Hashrate is the total computational power being used by miners to process transactions in a proof-of-work (PoW) cryptocurrency network. A high hashrate is one indicator of a network’s security because it shows a large number of miners are verifying transactions.

When it comes to mining Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, Zcash, or any other PoW crypto, a good hashrate is a higher hashrate. The more computing power going towards maintaining a network, the more secure it will be and the more transactions it will be able to handle. The hashrate is one of the most important concepts to understand, especially for anyone considering investing in cryptocurrency.

How Does Mining Work?

To understand what is meant by the term “hashrate” it’s important to understand the process of crypto mining.

Mining is the method by which crypto transactions are processed and consensus is achieved in a PoW system (proof-of-stake or PoS is a different type of consensus mechanism).

Miners rely on high-powered computers to run computations on complex puzzles based on crypto transaction data. These systems generate millions or trillions of guesses — or hashes — per second as to what the solutions to these puzzles could be in order to validate as many transactions as possible.

Valid hashes in proof-of-work networks have to be verified by other miners. Once the block has been validated, it’s added to the chain and the original miner receives a reward in new coins or tokens.

A group of transactions is called a block (and different blockchains have different block sizes or heights). For example, every 10 minutes or so, a new block on Bitcoin is mined, and the reward goes to the miner who can prove they did the most work toward creating the block (hence the term proof-of-work). Different blockchains have different transaction times.

Why Does Hashrate Matter?

Hashrate refers to the amount of computing power being contributed to the network at any given time. The more mining, the higher the hashrate. Bitcoin has a lot more hashing power behind it than all the other cryptocurrencies combined.

A hashing algorithm takes a unit of data and turns it into a random string of numbers and letters. This process is called encryption, and it ensures that data will be secured.

A hash is just a computer performing this action. Bitcoin’s PoW algorithm is based on an encryption algorithm called SHA-256. Ethereum has been known to use Keccak256 hashing algorithm (but has shifted to a proof-of-stake system with the Merge). The bitcoin hashrate boils down to how many times per second this algorithm is hashing calculations.

Bitcoin miners perform as much of this work as possible in an effort to obtain the next block reward of 6.25 bitcoins.

Today, however, most mining occurs in “pools,” where a group of miners pool their hashing power together and then split the block rewards amongst themselves, according to the hashrate each contributed.

Hash Rate As a Bullish Signal

For almost any cryptocurrency, a higher or increased hashrate can be a sign of demand from either miners or traders or both.

A high hashrate and network difficulty can be considered a bullish signal since it shows that miners are committed to block processing on the network, and producing a steady flow of new coins in the market.

How Hashrate Impacts Mining Difficulty

One of the ingenious aspects of the Bitcoin protocol (and some other coins as well) is something called the difficulty adjustment.

Every two weeks or so, the protocol automatically changes how difficult it will be to mine Bitcoin based on the current hashrate. When the hashrate rises, so does mining difficulty. When hashrate falls, mining difficulty also falls.

This helps to ensure that the supply of Bitcoin remains scarce while also keeping mining competitive. In 2020, the Bitcoin hashrate hit several new all-time highs, signaling confidence in the largest cryptocurrency by market cap.

What Is Hashing Power?

The hashrate can be in the billions, trillions, or more calculations per second. That’s why so much power is required when doing PoW mining. Here’s how hashrates are abbreviated:

•   KH/s — kilohashes per second (thousands)

•   MH/s — megahashes per second (millions)

•   GH/s — gigahashes per second (billions)

•   TH/s — terahashes per second (trillions)

•   PH/s — petahashes per second (quadrillions)

•   EH/s — exahashes per second (quintillions)

Altcoins and Hashrate

Other cryptocurrencies also need hashing power to run their networks, and the hashrate can vary considerably from crypto to crypto. But the hashrate also fluctuates for each crypto individually.

As with most PoW crypto, a higher hashrate is considered better for the network’s stability and security overall.

That said, the hashrate of a given coin doesn’t determine how quickly each block is completed. That’s a function of something called the block time, which is predicated on the mining difficulty value of the crypto network. To keep blocks being solved at a constant time frame, the mining difficulty value is calibrated up or down when the block difficulty is reset.

What Is a Good Hash Rate for Dogecoin?

As of Aug. 12, 2022, the Dogecoin hashrate was roughly 496.15 TH/s, which is significantly lower than the network’s all-time high of 1.34 PH/s on April 23, 2022.

The meme coin saw lower values and a drop in dogecoin mining profitability in Q2 of 2022, which may have affected the hashrate.

What Is a Good Hash Rate for Ethereum Mining?

As of Aug. 12, 2022, the Ethereum hashrate was 942.50 TH/s, a bit lower than the network’s all-time high of about 1.32 PH/s on June 4, 2022.

The drop in July was believed to be a function of lower miner profitability — perhaps in relation to the upcoming “merge”, as Ethereum’s transition from PoW to PoS is being called.

How Does Proof-of-Stake Work?

While Bitcoin and many others use the PoW consensus algorithm, some coins use different algorithms, like proof-of-stake (PoS).

Rather than using powerful computers to contribute hashing power toward proof-of-work, proof-of-stake block rewards are distributed according to whoever has the most tokens “staked” on the network. Staking tokens involves locking them up for a period of time, sort of like a long-term savings account.

This method of consensus is less energy intensive compared with PoW, although some also argue it’s less fair and less secure.

Some cryptocurrency exchanges now allow for automatic staking of tokens that utilize PoS. Users can hold the tokens in their crypto wallet and automatically receive rewards.

There are many different ways coins secure their networks, but the important thing to know is that the total hashrate of all other coins combined pales in comparison to the Bitcoin hashrate.

How to Calculate Hashrate

For users interested in mining cryptocurrency, it could be useful to calculate the expected hashrate of a computer or mining rig. The two primary factors that determine the profitability of mining bitcoin are the hashrate and electricity costs involved.

Miners can insert the appropriate variables into a hashrate calculator and receive a result right away.

Investors considering speculating in altcoins could think about looking at the hashrates of different cryptos, as this may be one of the few fundamental factors available for analysis.

Benefits of a High Hashrate

The more computing power contributing to a network, the harder it becomes for potential bad actors to spam, hack, or commit fraud on the network, because doing so requires more power.

To take control of a network and do things like reverse or double-spend transactions, an individual needs to own 51% of the hashrate. And at this point, having enough power to control 51% of the Bitcoin hashrate seems very unlikely.

That’s the main benefit of a high hashrate — increased security. This can also lead to increased confidence in a coin, higher user volume, and potentially higher currency prices. For investors looking to build their crypto portfolio, security can be extremely important.

Bitcoin’s excellent hashrate has a lot to do with its continued success and increasing value. Many people argue that BTC is the only reliable store of value for investment purposes for this very reason.

Bitcoin Hashrate vs Price

There tends to be a correlation between the bitcoin hashrate and the bitcoin price. When a hashrate moves higher, prices tend to rise, although it’s not clear which causes which. It’s somewhat of a chicken-and-egg kind of scenario, and the topic has been much debated.

When prices go up, the hashrate is likely to follow, as mining coins becomes more profitable. A higher hashrate indicates that miners have a degree of confidence in the price, as they’re willing to make investments in computing hardware to mine more coins. When the hashrate goes up, prices could also follow, as investors see this as a signal of confidence.

When a hashrate is rising, it could be a good time to buy cryptocurrency, although the trend has not been proven.

The Takeaway

What is a crypto platform’s hashrate? Hashrate is the total computational power being used by miners to process transactions in a proof-of-work (PoW) cryptocurrency network. Ideally, a higher hashrate is preferable as it can indicate a) greater support among miners; b) greater interest among traders; and c) it’s also a signal of the network’s security.

When it comes to PoW crypto mining, a good hashrate is a higher hashrate. The more computing power going towards maintaining a network, the more secure it will be and the more transactions it will be able to handle.

FAQ

How do I find the hashing power of my computer?

Your computer or hardware uses a certain amount of power — or hashing power — to solve different algorithms. Your computer may display a higher or lower hash power, depending on each blockchain’s algorithm. You can determine the hashing power of your hardware through various means, including online services or internal commands.

What is the hashrate of Bitcoin?

As of Aug. 12, 2022, Bitcoin’s hashrate was roughly 210 EH/s (exahashes/second). That’s 196 quintillion hashes per second.

How long does it take to mine 1 Bitcoin (BTC)?

You can’t really mine a single Bitcoin, because the reward for validating one block of transactions on the Bitcoin network is 6.25 BTC, which takes about 10 minutes. In theory, then, you could mine 1 BTC in 10 minutes (as part of the 6.25 mining reward).


SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

2Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

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$100 $499.99 $15
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What Is NFT Minting? How Minting Works

What Does Minting an NFT Mean?

Minting an NFT, or non-fungible token, is publishing a unique digital asset on a blockchain so that it can be bought, sold, and traded.

NFTs usually take the form of some type of artwork (graphic, audio, or video), or even in-game assets for certain virtual worlds — but they can also represent real-world assets like art, collectibles, and property. Each NFT has its own metadata codes, which are stored on the blockchain, to ensure that they remain unique — and cannot be edited or altered in any way.

NFTs are sort of like digital trading cards, except each is one of a kind. Unlike other digital assets, there’s only one NFT — which contributes to each NFT’s value.

Given the simplicity of the concept, and how easy it can be to create NFTs, it’s not surprising they have gained popularity in the last couple of years.

NFT Basics

What is minting an NFT, exactly? Whereas cryptocurrencies are considered fungible, similar to fiat currencies — one U.S. dollar being exchangeable for any other dollar — NFTs are non-fungible. Each one is a unique cryptographic entity, recorded on the blockchain, and therefore one NFT cannot be exchanged for another NFT.

The Ethereum blockchain started as a leading platform for NFTs, but Tezos, Avalanche, and Flow are among the many other blockchains that support NFT creation.

While NFTs may exist in the crypto realm, and some are digital-only products, many NFTs represent real world assets: e.g. art, music, collectibles, property, and so on. In that sense, NFTs can help remove the need for intermediaries around the exchange of certain assets.

And because NFTs are truly unique, it’s possible to use these tokens to create new forms of investment. For example: By tokenizing a property or a work of art, it’s possible to sell uniquely identifiable “shares” or fractions of those assets, thus potentially increasing the value of a certain asset.

How Does NFT Minting Work?

Whether you want to preserve an asset of your own creation — like a work of art — or create NFTs to sell or trade, learning NFT minting can be easy with the right tools. One other thing you’ll need: some background in the crypto space or general knowledge of blockchain technology.

Once you have a crypto wallet, and have acquired the funds you’ll need to pay for the creation of your NFT on the blockchain, you need to create your profile. This establishes what you’re selling, and how you plan to sell it.

Then, simply upload the necessary file and mint or create your new token. Once it’s created you can begin the process of selling your NFT. As with all things, there are fees to consider.

How Long Does It Take to Mint an NFT?

Depending on your familiarity with crypto platforms, it can take less than 30 minutes or several hours to mint an NFT.

Remember, that’s just the minting or publishing process. Before you mint an NFT, you have to spend the time to create it. And then there’s the time you need to promote and sell your product. Here are the basic steps to follow.

How to Mint an NFT

While aspiring NFT minters have some decisions to make regarding which specific tools to use, the basic steps of creating NTF are largely the same.

1. Create a Unique Asset

The first step in minting NFTs involves deciding what type of unique asset you want to create. There’s an entire world of digital assets out there, ranging from in-game weapons to digital trading cards to songs, videos, books, animations, and more.

As an example, say you want to create an NFT that is a piece of digital artwork. You will need to turn your digital art into data that lives on a blockchain.

2. Buy Tokens

You’ll need to buy crypto that is used on the blockchain you’ve chosen. In fact, the blockchain will influence the wallet services and marketplace that you choose as well, since some only work with certain others.

In our example, you would buy some Ether (ETH), which is Ethereum’s native cryptocurrency, to pay for transactions on Ethereum. The easiest way to do that is to hit up a crypto exchange.

3. Deposit Crypto Into a Non-Custodial Wallet

You’ll need a hot wallet, connected to the internet, in which to store your funds. A crypto wallet is an application that lets users interact and connect with the crypto network and their account.

For NFT minting, it’s important to get a non-custodial crypto wallet so that you have full control over your funds — with no third-party involvement. You own the private keys to your wallet.

(A custodial wallet is one that may be assigned to you by a crypto exchange. They’re more convenient, but you don’t have control of your private keys.)

4. Choose and Add Assets to an NFT Marketplace

Next, you’ll need to choose an NFT marketplace; there are many to choose from. OpenSea, Mintable, Holaplex, Objkt, and Rarible are all marketplaces suitable for NFT minters.

Some marketplaces charge users minting fees, and there may also be costs associated with firing up your account (for example, Ethereum gas costs), listing an NFT, and transacting on the platform.

5. Add Your Assets to the NFT Collection

While each marketplace has specific instructions for creating an NFT from your account, the gist is the same: Choose the piece of artwork you want to mint, fill in the details (collection name, a description, etc.), and execute the minting process by adding the asset to your collection.

With your NFTs in your collection, you can get started listing, marketing, and selling them.

What Are the Benefits of Minting an NFT?

While each potential NFT minter will have their own priorities, there are generally a few benefits to creating an NFT:

•   Democratize ownership: Creating an NFT allows numerous parties to own a stake in the digital asset.

•   Sell unique digital assets: Not only can you trade, buy, or sell stakes in assets, it’s possible that in the future artists might even receive a cut of the sales.

•   Store and preserve value: You can store the asset’s value in a tangible way — similar to how a physical coin can be minted with a specific precious metal concentration. Plus, preserving value digitally is generally considered safe, thanks to the security of the blockchain and the built-in scarcity of NFTs.

Can You Mint an NFT for Free?

It’s possible to avoid some of the fees associated with minting your NFT (like Ethereum’s gas fee), and there are a couple of ways to do that.

In some cases it’s possible to transfer the transaction fee to the buyer. In others, you may be able to access an NFT marketplace that doesn’t charge these transaction fees for minting (though you may find yourself working with a newer, less established blockchain to do so).

That said, most NFT marketplaces also charge a transaction fee when you sell your NFT. So it’s difficult to create and sell an NFT completely free, but it is possible to minimize minting and other transaction costs by choosing cheaper platforms.

Are There Mobile Apps to Help Mint NFTs?

Yes. These days you can mint an NFT from your phone using one of many different mobile apps. Among them are: GoArt, Mintable, NFT Creator, NFT Game, SuperMe.

Is It Worth Minting an NFT?

If your goal in creating an NFT is to further your existing business or artistic endeavors, it’s probably worth the time and effort to get this next-level exposure.

If you’re hoping to create the next cryptokitties sensation, and reap millions of dollars from a few great NFTs, that may not be realistic. The NFT market — as you can see from the dozens of platforms and services available today — is quite crowded.

The Takeaway

The process for minting NFTs may vary slightly from platform to platform, but the basics are the same: you need a unique digital asset, tokens to pay transaction fees, a non-custodial hot wallet, and an NFT marketplace.

While minting the actual NFT these days may not take very long — there are a number of reliable platforms you can use to get started — the real question to answer is what you want your newly minted NFT to do. Is it part of sharing your art or building your brand or creating buzz for another project, or is there a business or investment angle involved?


Photo credit: iStock/photoman

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

2Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.

First Trade Amount Bonus Payout
Low High
$50 $99.99 $10
$100 $499.99 $15
$500 $4,999.99 $50
$5,000+ $100

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How Long Does It Take to Get Accepted Into College After Applying_780x440: After all the work that goes into applying for college—researching schools, taking entrance exams, writing essays—students probably welcome a feeling of relief once that application is officially submitted.

How Long Does It Take to Get Accepted Into College After Applying?

After all the work that goes into applying to college — researching schools, taking entrance exams, writing essays — students probably welcome a feeling of relief once that application is officially submitted.

The relief may be instant, but also fleeting. The next phase of getting into college can be painstaking because it’s the waiting phase. Acceptance letters don’t have one standard date for being sent out. Admissions decisions can be delivered as early as December for early action or early decision applicants and through April for regular admission applicants.

Check out these different types of applications and see how their submission deadlines and acceptance date periods differ.

Types of Applications

Just as there isn’t a standard date for acceptance letters to be sent out, there isn’t one standard submission date for applications, either. There are a few early submission options available, as well as regular submission and rolling admissions. The due date of the application will depend on which type of application is being submitted, and this will also determine when you receive the school’s decision.

There are a few options for applying early: early decision, early action, and single-choice early action.

Early Decision

The early decision application is binding, meaning that students who are accepted are committed to enrolling. Because this application is binding, students can only apply to one school as an early decision. These applications are due in November and the decisions go out in December. If students decide to apply with this early decision option, this school should be their top choice, the one they’d prefer to go to over all others.

Early Action

The early action application is similar to the early decision in regard to the due date (due in November) and decision timeframe (decisions go out in December), but it differs in that it isn’t binding. It’s okay to apply to multiple schools via early action, and if you’re accepted you’re not required to enroll.

Recommended: Early Action vs Early Decision

Single Choice Early Action

This option is similar to the early decision in that students can only apply to one school this way, but it’s not binding. If students choose to apply to a school via single-choice early action, it’s a way of saying they’re especially interested in attending that school. The deadline and acceptance period is the same as the other early options.

When it comes to applying early, no matter which type of early application you choose, the applications will usually be due in November and decisions will be sent out in December.

Regular Decision

Regular decision college applications are the most common of the application options. For these applications, the deadline is usually in January or February and the decision letters go out by April. The deadline for submitting your application will differ between schools, so make sure to check the website for each school and mark the dates on a calendar.

Recommended: Ultimate College Application Checklist

Rolling Admission

Rolling admission allows students to apply until the school runs out of space. Sometimes applications are accepted until April, and sometimes even later. Students are encouraged to apply using the same deadline as the regular decision to have a better chance of being accepted before the colleges run out of spaces.

Some colleges will also have differing numbers of spots open based on specific majors, so it’s important to check that availability at each school the student is applying to. If the major the student lists on an application is impacted at some schools, it might be better to apply by the deadline for regular applications since
impacted
majors are likely to have more students apply than there are spots available. The average turnaround for rolling admission is about four to six weeks , so the date that decisions are sent out will depend on when students submit their application.

Recommended: College Search – College Finder Tool

The Dreaded Waitlist

After waiting for one to two months to receive a school’s decision, it can be frustrating to open that letter or email and see that there’s more waiting to do. Being on the school’s waitlist isn’t necessarily bad, however.

There are many reasons that students end up on the waitlist. They may have met the academic criteria to get into the school, but the school might not have space yet for these students.

Most schools will require students to contact them and accept their spot on the waitlist to be considered for admission, so don’t forget that step.

Since the number of students that can be accepted from a waitlist depends on the number of students who choose to enroll, students on the waitlist won’t hear back until after decision day.

Decision day is May 1, and it’s the day that seniors are required to notify their school that they accept their admission and will enroll.

After the decision day, the schools will know how many students will enroll, and then they’ll be able to start accepting students from the waitlist if there’s space. This means students on the waitlist can expect to hear back from their school by the end of May, but sometimes it can take up until the Fall semester starts to hear back.

Paying for College

Planning for college goes beyond getting accepted. Once accepted, students have to figure out how they’ll be paying for tuition, books, and housing. Luckily, there are many good options for financing higher education, which can include financial aid from the government (grants and/or loans), scholarships, and private loans.

Recommended: Ca$h Course: A Student’s Guide to Money

Financial Aid

The FAFSA® (Free Application for Federal Student Aid) is the form students will need to complete as the first step in applying for student aid. Depending on a student’s Expected Family Contribution (EFC), they may be eligible for federal student loans, grants, or work-study.

Grants don’t usually have to be repaid, but loans do. The amount of aid students can receive from the federal government will depend on their financial need, so not everyone will be eligible.

Federal Student Loans

Federal student loans come with some benefits that are not guaranteed by private student loans, like lower fixed interest rates and flexible repayment options. This is important to take into account when choosing where to take out loans.

Scholarships

Scholarships can be merit based, meaning they’re awarded based on some kind of achievement, or need based. There are many scholarships available, and it’s perfectly acceptable to apply to as many as possible to further the chances of receiving one — or more. Some scholarships are specific to a school or the local community, so check your school’s website for information.

Private Student Loans

Private loans may be another option for paying for college. Since every financial institution is different, do some research and explore options available. Loan amounts and rates will depend on an applicant’s financial situation, including their credit history and income. Those with little of either may need a cosigner to be approved for a private loan.

Even if the cost of attendance might be covered by scholarships, grants, or federal student loans, there may be other costs of living a student might need assistance for. That’s where private student loans can be helpful when considered responsibly.To learn more about private student loans, college-bound students might want to check out this guide to private student loans.

The Takeaway

It can take a few weeks to a few months to hear back for a college admissions decision, depending on the type of application you submitted. Early applicants — such as early decision or early action — will generally hear back in December while regular decision applicants will receive their admission decision in April.

Taking some time to think about college costs and how to pay for the upcoming years of education can be a wise way to spend that time waiting for all of those acceptance letters to come rolling in. Private student loans can be one option to help students pay for college, though they may lack the borrower protections afforded to federal loans. For those considering private student loans, take a look at SoFi student loans are fee-free and offer competitive interest rates for qualified borrowers.

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


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


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


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

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

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

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How Long Does It Take to Close on a House?

Once you’ve found a home to buy, it’s natural to want to close the deal quickly. As of mid-2022, the average closing time was 48 days after acceptance of an offer, down slightly from 51 the year before.

All-online mortgage options make lending faster, and borrowers are enthusiastic about an online mortgage process, ICE Mortgage Technology has found. Most home sales can be buttoned up in 20 to 30 days. Still, delays can happen.

Here’s what you need to know in order to belly up to the remote or real closing table.

How Long Does Closing on a House Take?

If you’re paying cash for a house, you’ll typically be able to close quickly.

But let’s assume a mortgage will be part of the process. You’ve jumped through the initial hoops of the mortgage loan process, including making an offer on a home you like.

If accepted, you’ll provide an earnest money deposit and sign a purchase contract. The price and any contingencies — conditions that must be met for the deal to proceed — are included in the purchase agreement.

This begins the due diligence period. It includes a title search to verify ownership and look for any liens that need to be paid off to ensure clear title to the new home. Most but not all issues will be reflected in a preliminary title report.

A typical contingency period is 30 to 60 days, though something like the inspection could be required within 10 days or less. Buyers can ask for extensions in writing.

Here are four common contingencies:

Financing Contingency

The mortgage contingency nullifies the deal if you can’t procure a mortgage within a certain time. The contingency language may be specific about the type of loan, down payment, and interest rate.

Getting pre-approved for a mortgage is standard, but it’s not a guarantee. After your chosen home is under contract, your mortgage still has to go through underwriting.

Recommended: How Does the Mortgage Pre-Approval Process Work?

Home Sale Contingency

You need to sell your current house to complete the purchase. You’ll typically be given 30 to 60 days to do so. In a competitive market, many sellers won’t even consider the offer with a home sale contingency.

But some sellers may employ a kick-out clause, which allows them to keep showing their home and “kick out” the contingent buyers if the sellers receive an offer without a home sale contingency.

Appraisal Contingency

An appraisal is usually required when a home is being financed. If the property valuation is less than your offer, you may walk away from the deal. You could also cough up the difference or ask the sellers to lower the price.

How long after the appraisal to close? About two weeks.

By the way, you can put an offer on a house that’s contingent.

Home Inspection Contingency

A home inspection is generally not mandatory for any loan type but will help ensure that the home is free of issues that may result in expensive repairs. In a seller’s market, many properties are sold as is, meaning sellers won’t negotiate for repairs after the inspection.

In a buyer’s market, sellers might agree to pay for some repairs and also slightly reduce the home’s price.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.


How a Mortgage Closing Works

You’ve qualified for a mortgage and chosen a lender.

After you’ve supplied income, asset, and other documentation, all of the contingencies have been satisfied, and your mortgage has received final approval from underwriting, it’s time to prepare for closing.

This will be the big day, when signing the closing documents legally transfers ownership from the sellers.

Sign Documents

Three days before your closing date, your lender will provide you with a closing disclosure that outlines the final closing costs and terms of your home loan. You can compare this five-page form with the loan estimate you received after applying for the mortgage.

Paperwork (lots of it) will have been prepared for you, including the deed of trust or mortgage and the settlement statement.

In some cases, everyone gathers in one place to sign closing paperwork. Other times, buyers sign separately from sellers. And more and more states are allowing remote online notarization or a hybrid.

Pay Closing Costs

The lender will usually tell you the amount needed for closing several days before the event. A wire transfer may be arranged a day or two before closing. Or you can present a cashier’s check or certified check that day.

Cash to close includes closing costs (unless you opted for a no closing cost mortgage) and your down payment minus your earnest money deposit and any seller credits.

Transfer the Home Title

After signing a mountain of documents, the closing attorney, escrow officer, or title company representative will record the house deed, and you will be given the house keys.

Recommended: First-Time Home Buying Guide

The House Closing Process, Step By Step

Here are the basics.

1.    Seller signs the purchase agreement.

2.    Buyer may order a home inspection.

3.    Buyer applies for the mortgage (and considers asking to lock in the rate).

4.    Lender orders a home appraisal and conducts credit underwriting.

5.    Mortgage is approved.

6.    Buyer provides proof of homeowners and title insurance.

7.    Buyer receives the closing disclosure; notice of closing time, date and location; and what to present at closing, like a photo ID and cashier’s check or proof of wire transfer for cash to close.

8.    Buyer takes a final walk-through, verifying that sellers have made any required repairs and that nothing in the purchase agreement was removed. The buyer can check for leaks, turn on heating and air conditioning, and so forth.

What Causes Delays When Closing on a House?

A buyer and seller agree to a target closing date in the purchase contract, but the closing doesn’t always happen on or before that date.

Financing, appraisal, inspection, and other issues can delay a closing. Here’s a taste of what may cause a postponement:

Lender wants more documentation. Even if buyers were pre-approved, received their mortgage commitment, and were cleared to close, lenders will review credit and bank statements one last time within a few days of closing. Any abnormalities can delay the closing.

The mortgage is denied. Even after pre-approval, a home loan may be denied for lots of reasons, sending buyers back to the starting block.

Interest rates surge unexpectedly. This can affect qualification if the loan is not locked.

The appraisal comes in low. A home may appraise for less than the purchase offer. Buyers can request a second appraisal, ask the sellers to renegotiate the price, put more down, pay the difference, or walk away if they have an appraisal contingency.

The inspection reveals that major repairs are needed. If it’s an as-is sale, buyers can walk away if they had an inspection contingency in the contract. They could still try asking the sellers to make certain repairs, request a decrease in the sale price based on the cost of repairs, or ask for a home warranty.

The title is not clear. A contractor’s lien, for example, can cause a closing delay if the contractor can’t be found to settle it.

Buyers can’t sell their house in time. If sellers agreed to a home sale contingency, the clock is ticking. If the buyers’ home doesn’t sell in time, the deal could fall through.

Instrument survey issues. Boundary line encroachments or disputes can hang up a closing.

Unrealistic closing date. Any complication can cause a deadline to fail. An extension must be approved by each party.

The Takeaway: Closing Day Preparation Pays Off

How long does it take to close on a house? The average closing takes place 48 days from the time an offer is accepted, but the timeline varies. Getting to the closing table, in person or remotely, is an accomplishment. It means you qualified and persevered.

If you’re shopping for a mortgage, it pays to get pre-qualified and pre-approved.

SoFi offers low fixed rate mortgages and low down payments. If you’re in the market for a primary home, investment property, conforming loan, jumbo loan, refinance, or home equity loan, see what SoFi can do for you.


SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.


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


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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