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A preferred provider organization (PPO) is a type of health care plan that offers lower out-of-pocket costs to members who use doctors and other providers who are part of the plan’s network.

These preferred providers have signed onto the network at a lower negotiated rate than they might charge outside of the network.

PPOs also offer members the flexibility to see providers outside of the plan’s network, although they will most likely pay more in out-of-pocket costs to do so.

To learn more about PPOs, and how this type of plan compares to other health insurance options, read on.

How Does PPO Insurance Work?

When you join a PPO health plan, you’re joining a managed care network that includes primary care doctors, specialists, hospitals, labs, and other healthcare professionals. PPO networks tend to be large and geographically diverse.

If you see a preferred provider, you will likely pay a copay, or you might be responsible for a coinsurance payment (after you meet the plan’s deductible).

While you are free to see any health care provider whether or not they are in the PPO network, if you see a provider outside of the network, you may pay significantly more in out-of-pocket costs. In return for flexibility, large networks, and low in-network cost sharing, PPO plans typically charge higher premiums than many other types of plans.

PPOs are a common, and often a popular, choice for employer-sponsored health insurance.

Recommended: Common Health Insurance Terms & Definitions

What Are the Costs of Going Out of the PPO’s Network?

If you see a provider who is not part of the plan’s network, you will likely be expected to bear more of the cost. PPOs typically use what’s called a “usual, customary and reasonable” (UCR) fee schedule for out-of-network services.

Insurers calculate UCR fees based on what doctors in the area are charging for the same service you were provided.

If your doctor charges more than what your insurance company determines to be usual, customary, and reasonable, you most likely will be charged for the difference between the amount charged for the service and the amount covered by your insurer.

Depending on where you live and the service you received, this difference could be significant. It may also come as a surprise to policyholders who assume their medical costs will be covered and don’t fully understand the distinction between in-network and out-of-network providers.

A good way to avoid surprise charges with a PPO (or any health plan) is to talk to your provider and your insurer before you receive treatment about the total cost and what will be covered.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How PPOs Compare to Other Types of Health Care Plans

PPO plans are most often compared with health maintenance organizations (HMOs), another common type of managed care health plan.

HMOs typically offer lower premiums and out-of-pocket costs than PPOs in exchange for less flexibility.

Unlike a PPO, HMO members typically must choose a primary care physician from the plan’s network of providers. Care from providers out of the HMO network is generally not covered, except in the case of an emergency.

Also unlike a PPO, an HMO’s network of providers is usually confined to a specific local geographic area.

Another key difference between these two types of plans: HMO members typically must first see their primary care doctor to get a referral to a specialist. With PPOs, referrals are not usually required.

PPOs are also often compared to point of service (POS) plans.

POS plans are generally a cross between an HMO and a PPO. As with a PPO, POS members generally pay less for care from network providers, but may also go out of network if they desire (and potentially pay more).

Like an HMO, POS plans require a referral from your primary care doctor to see a specialist.

PPOs (as well as HMOs and POS plans) are very different from high deductible health plans, or HDHPs.

HDHPs charge a high deductible (what you would have to pay for health care costs before insurance coverage kicks in).

This means that you would need to pay for all of your doctor visits and other medical services out of pocket until you meet this high deductible. In return for higher deductibles, these plans usually charge lower premiums than other insurance plans.

You can combine a HDHP with a tax-advantaged health savings account (HSA). Money saved in an HSA can be used to pay for qualified medical expenses.

HDHPs are generally best for relatively healthy people who don’t see doctors frequently or anticipate high medical costs for the coming year.

Recommended: Beginner’s Guide to Health Insurance

What Are the Pros and Cons of PPO Insurance?

As with all health insurance options, PPOs have both advantages and disadvantages. Here are a few to consider.

Advantages of PPOs

•   Flexibility. PPO members typically do not have to see a primary care physician for referrals to other health care providers, and they may see any doctor they choose (though they may pay more for out-of-network providers).

•   Lower costs for in-network care. Out-of-pocket costs, such as copays and coinsurance, for care from in-network providers can be lower than some other types of plans.

•   Large provider networks. PPOs usually include a large number of doctors, specialists, hospitals, labs, and other providers in their networks, spanning across cities and states. As a result, network coverage while traveling or for college student dependents can be easier to access than with more restricted plans.

Disadvantages of PPOs

•   High premiums. In return for flexibility, PPO members can expect to pay higher monthly premiums than they may find with other types of plans.

•   High out-of-pocket costs for out-of-network care. Depending on where you live, the treatment you receive, and how your insurer calculates “usual, customary, and reasonable” fees, you may find you are responsible for a large portion of the bill when you receive care outside of the PPOs network.

•   Might be more insurance than you need. If you rarely see doctors and wouldn’t mind potentially switching doctors, you may be able to save money by going with an HMO or a HDHP.

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

The Takeaway

PPOs are a popular type of health plan because of the flexibility, ease of use, and wide range of provider choices they offer. PPO networks tend to be large and varied enough to include a patient’s existing doctors. If not, members still have the option of going out-of-network and receiving at least some coverage from a PPO. PPO members pay for this flexibility, however.

PPOs typically come with higher premiums, along with extra costs associated with out-of-network care. That can be prohibitive for many consumers.

Your employer’s benefits department or an experienced insurance agent or broker can help you compare PPOs to other types of health care plans and determine which choice is right for your health care needs and your budget.

Before choosing a plan, it can also be helpful to track your spending for a few months to see how much you are currently spending on medical care. This can help you ballpark costs for the coming year and make it easier to compare plans.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

With SoFi, you can keep tabs on how your money comes and goes.

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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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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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Exchanging one currency for another is something you may need to do if you’re traveling internationally. Depending on your choice of destination, your money may go further in some countries than others if you’re able to take advantage of favorable exchange rates.

How much is a dollar worth outside of the U.S.? To answer that question, it helps to understand how exchange rates work and the various factors that influence currency values.

Types of Exchange Rates

An exchange rate is the rate at which you can exchange one currency for another. Currency exchange rates are influenced by a number of factors, including the state of the economy in a particular country, interest rates, and unemployment rates. There are generally three types of exchange rate systems that can determine the value of currency.

•   Free-floating. In a free-floating or flexible exchange rate system, currency values are determined by supply and demand. Federal governments and central banks don’t participate in the system, since it’s self-regulating. The United States is the closest example of what a free-floating exchange system looks like in action.

•   Fixed exchange. Fixed or pegged exchange rate systems rely on the government to set exchange rates between different currencies. In this system, the weaker currency is fixed, or pegged, to the stronger one. A fixed exchange encourages stability in currency values, but it can leave governments with less room to maneuver if economic disruption occurs.

•   Managed float. Managed float exchange systems combine some of the features of free-floating and fixed exchanges. In this type of arrangement, central banks play an active role in the buying and selling of foreign currencies.

Understanding currency exchange rates is important for determining the purchasing power of a dollar. A currency’s foreign exchange rate reflects its price, while its value determines how much purchasing power it holds. In other words, currency values dictate just how far your money goes.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

Exchange Rate Calculation

Calculating currency exchange rates is a fairly straightforward process. You’ll take the starting amount of currency that you have and divide it by the amount of currency you’d end up with if you exchanged it. Here’s what the formula looks like:

Original currency amount / Ending currency amount = Exchange rate

For example, say that you’re planning a trip to Europe and you want to know what the exchange rate is from USD to Euros. If you were to exchange $100 in U.S. currency and get 90 euros in exchange, your exchange rate would be 1.11.

$100 USD / $90 EUR = 1.11

You can also do the calculation in reverse, dividing your current currency by the exchange rate instead. That would tell you how much money you could expect to get when exchanging currency for a different one. If you’re curious about what a country’s exchange rate is while you’re traveling, that information is usually readily available at banks, airports, or currency exchange shops.

Factors That Affect Currency Value

As mentioned, currency value is how much purchasing power your money has. There are numerous factors that can influence a currency’s value and how much it fluctuates over time.

•   Inflation. Inflation refers to price increases for consumer goods and services over time. When inflation rises, purchasing power decreases. Knowing how to find the inflation rate and what’s considered normal can help with gauging currency values at a given point in time.

•   Interest rates. Governments can use interest rate policy to direct the economy and monetary policy. When a government raises rates, that can increase its currency’s value, as foreign investors may be attracted to the higher rates their money can earn on deposit at banks. Compounding interest at consistently higher rates directly correlates to the time value of money.

•   Gross domestic product (GDP). Economic indicators, including gross domestic product, can influence currency values. The stronger a country’s economy is perceived to be, the more value its currency may hold.

•   Unemployment rates. Unemployment rates are another economic indicator that can sway currency values higher or lower. When unemployment is low, that can be a sign of a solid economy, while higher unemployment rates may suggest a weaker or weakening economy.

•   Government debt. How government debts are managed can also impact currency values. If a government is struggling to pay its financial obligations, that could cause a drop in currency values, especially if the government decides to print more money to cover its debt obligations.

•   Political climate. The political conditions of a country matter when determining currency values. Countries that are politically stable are less likely to see huge fluctuations in currency values compared to ones that are going through significant upheavals or periods of civil unrest.

Understanding what affects currency values is important if you’re saving or investing and keeping some of your assets in cash. Specifically, it matters as it relates to the store of value.

What is store of value? In simple terms, it’s an asset that holds its value well over time. Gold and other precious metals are examples of potential stores of value, as they tend to be more insulated against negative economic events that could affect what currencies are worth.

Stocks can also be potential stores of value, though it’s important to consider risk and what you’ll pay for them. Dollar-based investing can make it easier to invest in stocks in smaller increments if you’re worried about losing value. Learning how dollar-based investing works can help you to decide if it might be right for you.

Cash, meanwhile, is usually considered a poor store of value as it can quickly lose purchasing power when currency values drop. Curious about how inflation might be affecting your personal spending power? Using an hourly wage inflation calculator can give you insight into just how much your paychecks are worth over time.

Recommended: How to Calculate Stock Profit

Countries Where the US Dollar Is Strong

When the U.S. dollar is strong, it means that it’s rising in value compared to other currencies. A strong dollar can be used to buy more foreign currency. That’s a good thing if you’re traveling and want to get the most value for your dollars when exchanging for local currency.

Here are some of the countries where the U.S. dollar is strongest as of August 21, 2023.

•   Peru: 1 USD = 3.72 Peruvian sol

•   Mexico: 1 USD = 17.04 Mexican peso

•   Japan: 1 USD = 146.39 Japanese yen

•   Egypt: 1 USD = 30.90 Egyptian pound

•   Chile: 1 USD = 869.25 Chilean peso

•   Argentina: 1 USD = 350.02 Argentine peso

•   Colombia: 1 USD = 4,063.33 Colombian peso

•   Russia: 1 USD = 93.75 Russian ruble

•   Philippines: 1 USD = 56.46 Philippine peso

•   Cuba: 1 USD = 23.98 Cuban peso

From an investment perspective, holding foreign currency debts when the dollar is strong can be a positive thing. If the value of your home country’s currency increases while the debt’s currency value declines, that can increase overall net worth.

Recommended: What Is My Liquid Net Worth?

Countries Where the US Dollar Is Weak

When the U.S. dollar is weak, it means that its value is in decline in comparison to other currencies. So if you’re exchanging U.S. dollars for a stronger foreign currency you won’t have as much purchasing power.

In terms of countries where the dollar is weakest, the list generally includes any countries that use the euro. The current exchange rate from U.S. dollars to euros is 1 USD = 0.92 EUR. Countries that use the euro include:

•   Austria

•   Belgium

•   Croatia

•   Cyprus

•   Estonia

•   Finland

•   France

•   Germany

•   Greece

•   Ireland

•   Italy

•   Latvia

•   Lituania

•   Luxembourg

•   Malta

•   Netherlands

•   Portugal

•   Slovakia

•   Slovenia

•   Spain

If you’re planning to travel to any of these countries, it’s important to know the current exchange rate and what you’ll pay in currency conversion fees to trade out your dollars for euros.


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

The Takeaway

Knowing how much a dollar is worth in different locations can help you to plan your next vacation. You might also be interested in currency exchange rates if you’re interested in trading foreign currencies as part of your investment strategy. Whether you’re spending money at home or abroad, it’s important to keep track of where your cash is going.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

With SoFi’s money tracker app, you can keep tabs on how your money comes and goes.

FAQ

What country is a dollar worth most?

Some of the countries where a dollar is worth the most money include Mexico, Peru, Chile, and Colombia. It’s possible to exchange dollars for local currency in these countries at favorable exchange rates.

Is the US dollar worth the most in the world?

The U.S. dollar is the world’s reserve currency and is the most widely used currency for global trade. That does not mean, however, that it’s the world’s top currency in terms of value. Other currencies may surpass the value of the U.S. dollar depending on economic conditions and the supply-demand environment in the foreign exchange market.

How much is $1 in Mexico right now?

How much is a dollar worth in pesos? It depends on which country you’re in, as several countries have their own version of the peso. If you’re specifically asking how much is a dollar worth in Mexico, $1 will get you 17.04 Mexican pesos as of August 21, 2023.

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Photo credit: iStock/Foremniakowski

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

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

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

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Finding an affordable apartment you love in the neighborhood of your choice can feel like you’ve won the lottery. But before you can call the movers, you’ll need to take the first step and go through the screening process. In most cases, this means filling out a rental application.

Rental applications are a way for landlords to determine whether or not a potential tenant will be responsible when it comes to paying the rent. In order to do so, the property owner or management company may also ask for a credit reference. This is a person, company, or document that provides details about your credit history.

There are different types of credit references, and your landlord may require more than one to ensure you’ll be a no-risk, trustworthy tenant.

What Are Credit References on a Rental Application?

Along with asking for your name, address, employment information, and past residential history on your application, a landlord will want to make sure you regularly meet your financial obligations. After all, a landlord or property manager doesn’t want to take a risk on someone who doesn’t pay their monthly rent in full and on time. This is where a credit reference comes into play.

Credit references are documents, businesses, or individuals that can verify your credit history. Similar to character references a prospective employer might request before they hire you, a credit reference refers to a person or a company with whom the applicant has had a positive financial relationship.

The credit reference provides the landlord with details about an applicant’s financial situation, such as the length of the financial dealings with the entity, the applicant’s payment record, and whether they’re in any debt.

How Does a Credit Reference on a Rental Application Work?

When you decide upon an apartment rental, the first thing you need to do is notify the landlord or property manager as soon as possible, especially if you live in a city where rental competition is stiff. If the place is still available, you’ll be asked to submit a paper or electronic rental application.

Depending on the landlord or property manager’s application process, you may be asked to provide credit references on the form. This could entail listing any current creditors’ names and contact information, detailing the amounts owed on any loans, or answering whether or not you’ve ever declared bankruptcy.

After you’ve completed the application, the landlord will typically contact the credit sources you provided. It’s best to be honest when filling in any past and present financial information on the application. If not, chances are the landlord will find out on their own during the credit reference check. Not being truthful at the start can be a glaring red flag for the landlord, increasing the likelihood they’ll reject the application.

Types of Credit References

There are several kinds of credit references a landlord may use to confirm you’re in good financial shape and will be able to afford the monthly rent. Financial agreement documents such as asset documentation, credit reports, and character reference letters are some things landlords often request.

Read on to learn about three types of credit references a landlord may require:

Credit Report

Credit reports — a credit check used by employers, lenders, and landlords to gauge how responsible a person is when it comes to managing credit and handling their financial obligations — are the most commonly used credit reference. These statements detail someone’s credit history, including their payment record, current account balances, and any outstanding debts, including those referred to a collection agency.

There are three major credit bureaus that issue credit reports. A landlord may use one or two of these credit reporting agencies or order a more comprehensive tri-merge credit report, which culls data from all three companies.

As part of their credit check, landlords may request your FICO score or, less commonly, your VantageScore. In either case, this is a three-digit number that reflects how dependable you are when it comes to paying back borrowed debt. Both companies use a 300-850 credit score range.

Landlords typically look for a score of 600 or above. Depending on whether they pull your credit score through FICO or VantageScore, where the number lands in the 600 plus range may be considered a good or fair credit score. For instance, FICO’s fair credit scores are between 580 and 669, while their good credit range is between 670 and 739. VantageScore’s fair credit scores range from 601 to 660, and good credit falls between 661 to 780.

According to the Fair Credit Reporting Act, a landlord cannot run a credit check without your prior authorization. And, if you do give permission to run a credit check, the landlord may charge you an additional fee, so be sure to check your rental application carefully.


💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Asset Documentation

Asset documentation gives proof of a person’s financial assets and is considered a highly effective type of credit reference. Landlords may want to know if an applicant has back-up funds for rent in case there are unseen circumstances, such as job loss.

A landlord may ask you to provide certain documents, such as several months’ worth of statements from your current checking, savings, retirement, and/or investment accounts. In order to obtain these records, you’ll need to ask the financial institutions who manage your assets to provide them to the landlord or property management company, unless you can supply them on your own.

Recommended: Do Banks Run Credit Checks for a Checking Account?

Character and Credit Reference Letters

Professional and personal references can be a great option for vetting someone’s financial reliability. While a landlord might be more interested in your credit score and asset documentation, a character reference letter may help give you an edge.

Character reference letters can come from a previous landlord, employer, faith leader, professor, or an entity you’ve previously done business with, like a utility company. Ideally, you’ll want to get a letter from any source that can speak to your reliability and conscientiousness and explain why you’d be an ideal tenant.

How Do Credit References Impact Rental Applications?

Credit references can have a significant impact on whether or not you get the apartment. If the landlord reviews your credit history and has any concerns about your income to debt ratio or low credit score, they can turn you down.

On the flip side, seeing a stellar record of paying your bills on time and verifying you’ve been a trustworthy tenant in the past can help convince a landlord you’re the right choice.

Examples of Credit References

•   Letters of reference from any former landlords stating you’ve paid your rent routinely and have had an issue-free relationship

•   A copy of your credit report

•   Checking or savings account bank statements

•   Documentation from a utility company listing a positive payment history

•   Character reference letters from personal or professional acquaintances

When You Need Credit References on an Apartment Application

Generally, landlords will want credit references when considering whether to approve an application of a first-time renter, someone who makes a lower salary, or a person who has no credit history. In such scenarios, the renter will want to consider having a guarantor or cosigner on the application.

Guarantors or cosigners are people who have good credit and can sign the lease with you. A cosigner can be a parent, family member, or friend who agrees to take legal responsibility for paying your rent if for some reason you can’t.

How Long Does It Take to Process a Rental Application?

In most cases, rental applications are approved within 24 to 72 hours. Property management companies that oversee larger complexes and have ample staff can process applications faster than a solo landlord.

It may take longer to approve an application when, for example, you’re applying with a cosigner or if you’re renting with roommates. That’s because there are more people involved, more credit references to gather, and more credit reports to pull.

Tips for Credit References

Prepare in Advance

You may not be initially required to provide credit references on your application, but that doesn’t mean a landlord won’t ask for it later. Get your ducks in a row by gathering any necessary paperwork and reaching out to anyone you may want as a character reference.

If you think you’re going to need a cosigner, start a conversation with that person so they’re not totally blindsided or asked to commit at the last minute.

Check Your Credit Report

Running and reviewing your credit report can tip you off to any errors, indicate any fraudulent activity, and provide your current credit score. You can also resolve any credit issues that might give a landlord a reason to reject your application.

According to the Consumer Financial Protection Bureau, you are entitled to request one free copy of your credit report every year from each of the three credit bureaus. You can order your free report by visiting AnnualCreditReport.com . Note that all three credit report providers are offering free weekly online credit reports until the end of 2023.

You can also sign up for credit score monitoring through SoFi and get insights on your financial health and credit.

Choose Your Character References Carefully

Make sure the people you’re asking to vouch for your dependability are those you trust, know well, and will be able to communicate clearly what makes you a good renter.

Don’t Be Afraid to Give the Landlord a Head’s Up

Sometimes a lower credit score or a record of late or missed payments may not be your fault. Certain life events can cause financial upheaval, such as being a victim of identity theft, getting laid off, or abruptly losing a roommate, leaving you responsible for the entire rent.

Writing a letter to the landlord offering an explanation for the spotty record — and attesting you’re working hard to improve your credit — may save you from being rejected outright.


💡 Quick Tip: An easy way to raise your credit score? Pay your bills on time. Setting up autopay can help you keep your account in good standing.

The Takeaway

When applying for a rental apartment or home, providing solid credit references allows a landlord or a property manager to determine your ability to pay the rent in full every month. Credit references can impact whether or not your application is approved. Knowing what types of credit references you may have to produce — and taking care to monitor your credit report and clean up any issues — can help boost your odds of landing that coveted home.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What should I put as a credit reference?

Your landlord will typically be the one to dictate what credit references they want. But if they only run a credit report, you may want to send along anything else that could bolster your financial worth, such as savings and investment account statements.

What is an example of a credit reference for an apartment application?

Examples of credit references may include your bank, previous landlords, companies whose bills you pay regularly, supervisors, or your faith leader.

How do you get a credit reference?

You may be able to obtain a credit reference by requesting a copy of your credit report, authorizing a credit check, or asking for a character reference letter.

How many credit references do you need?

It depends on the landlord. While some won’t ask for any credit references, others will require one or more. To be safe, it’s probably a good idea to plan for at least two

Can you buy a credit reference?

No. Credit references need to be earned by capably managing your money, paying your bills, and having minimal debt. While you can pay a credit repair company to go over your credit report and dispute any errors on your behalf, you still have to do the heavy lifting of diligently meeting your overall financial responsibilities.

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Photo credit: iStock/FluxFactory

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

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

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

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

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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If you dream about spending your days creating beautiful looks with your favorite beauty products, then becoming a professional makeup artist may be a good career to pursue.

But just how much money does a makeup artist make? Unlike some other creative fields, this profession can be lucrative. According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for a makeup artist is $134,750.

Keep reading for more insight into makeup artist earnings, how salaries vary by state, and what this job entails.

What Is a Makeup Artist?

A makeup artist is a skilled professional responsible for applying cosmetics and beautifying an individual’s appearance for various purposes. They use their expertise to enhance facial features, create desired looks, and achieve specific artistic visions. Makeup artists work across various industries, including fashion, film, television, theater, special effects, weddings, and events. In addition to traditional makeup applications, some makeup artists specialize in special effects makeup, enabling them to create realistic wounds or fantastical characters for films or theater productions.

Personality plays a big role in whether or not someone will enjoy being a makeup artist. A job as a makeup artist can be suitable for introverts, as it allows them to work in a more controlled and focused environment with clients one on one. However, working in certain settings, such as movie sets or high-profile events, may be a better fit for extroverts.

Recommended: 15 Entry-Level Jobs for Antisocial People

How Much Is a Makeup Artist’s Starting Salary?

How much does a professional makeup artist make when they first begin their career? Like anyone embarking on a new career path, makeup artists tend to earn less when they’re just starting out. According to the latest BLS data, the lowest 10 percent of earners in the makeup artist field earn a median salary of $38,070. However, as artists gain more experience and exposure, they have the potential to earn much more than that entry-level salary.


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What Is the Average Salary for a Makeup Artist?

Makeup artistry is a type of trade job that has the potential to earn a lot of money. Let’s take a closer look at the average salary for a makeup artist.

•   How much does a makeup artist make a year? The median annual salary for a makeup artist is $134,750.

•   How much does a makeup artist make per hour? When it comes to hourly pay, makeup artists earn a median of $64.78

Where someone lives can play a major role in how much they earn as a makeup artist. Because the cost of living varies so much by state, salaries can vary a lot, too. While the BLS has limited data collected on how much makeup artists earn in different states, the information it does have makes it clear how much salaries can vary.

For example, in Nevada, the median annual salary for a makeup artist is $30,760, whereas in New York it is $125,000. Alongside cost of living factors, there may be more job opportunities for makeup artists in some states. New York City is a major fashion and entertainment hub that likely has a high demand for makeup artists, which can lead to more competitive pay rates.

Median Makeup Artist Salary by State for 2022
State	Median Annual Salary
California	$97,220
District of Columbia	$93,810
Florida	$38,820
Illinois	$31,570
Nevada	$30,760
New York	$125,000
Source: BLS

Recommended: The Highest-Paying Jobs in Every State

Makeup Artist Benefits & Job Considerations

While makeup artists have the potential to earn a six-figure salary, the biggest downside of this job is that it is not common to earn benefits like health insurance or to have access to a 401(k). This is because most makeup artists are self-employed and are responsible for securing and paying for any traditional employee benefits they desire.

Pros and Cons of Makeup Artist Salary

Like all jobs, working as a makeup artist comes with a unique set of pros and cons to consider before pursuing this career path.

Pros

•   Creative opportunities: Makeup artists have the freedom to express their creativity by creating unique looks for their clients, whether it’s for a photo shoot, movie, or special event.

•   Interesting workdays: The profession offers a diverse range of opportunities, from working on movie sets to collaborating with cosmetic retailers.

•   No formal education required: Unlike many other careers, becoming a makeup artist doesn’t demand a college degree.

Cons

•   Restricted earning potential: The industry’s salary standards may limit the earning potential of makeup artists, with only a few able to negotiate higher pay. What’s more, self-employed artists may not always receive consistent income or benefits.

•   Geographic limitations: Makeup artists may need to relocate to major cities like Los Angeles, New York, Chicago, or Las Vegas to find steady work, and they may also have to travel with clients for various projects.

•   Irregular work schedule: Makeup artists often have to adapt to erratic work hours, including weekends, holidays, and long periods of uncertainty between gigs. Maintaining a stable work-life balance could be a challenge.


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

The Takeaway

Makeup artistry can be a rewarding career — and potentially lucrative. How much money does a makeup artist make a year? The median annual salary for a makeup artist is $134,750. While the work can be creative and glamorous, it also lacks a traditional work schedule. Plus, most makeup artists have to foot the bill for their own employee benefits. Those considering a career in this industry need to carefully consider if the advantages of this role (like a high median salary) outweigh the disadvantages.

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FAQ

Can you make good money doing makeup?

If someone is asking, how much does a makeup artist make in a year, they’ll probably like the answer. The median annual salary for a makeup artist is $134,750, so yes, it is possible to make good money doing makeup. However, some states, like New York, have much more lucrative job opportunities than other states.

Can you make six figures as a makeup artist?

Yes, it is possible to make six figures as a makeup artist. The median annual salary for makeup artists nationwide is $134,750, according to the latest BLS data. However, where they live plays a major role in how likely they are to earn a $100,000 salary as a makeup artist.

How much profit does a makeup artist get?

The profit a makeup artist receives varies greatly depending on their employment status and the specific makeup services they offer. Self-employed makeup artists have the potential to earn the full profit after deducting operating costs, while those working for cosmetic retailers or salons may receive a fixed salary or commission-based earnings. Factors such as location, experience, clientele, and demand for their services can also impact overall profit.

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Photo credit: iStock/anatoliy_gleb

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

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Bank tellers are the face of local bank branches. When you visit a bank in person, tellers welcome you in with a smile and help you with your transaction — whether you’re depositing a check or withdrawing cash from your savings account.

What are the job responsibilities like, and how much does a bank teller make an hour? Our in-depth guide to bank teller salaries and skills will help you determine if it’s the right career for you.

What Does a Bank Teller Do?

A bank teller’s job is to help customers complete financial transactions with their bank accounts. Tellers work in person at bank branches and can help with things like opening and closing accounts, and depositing and withdrawing funds.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

Bank Teller Job Responsibility Examples

What might a bank teller do in their day-to-day? Here are a few examples:

•   Greet customers as they enter the bank or credit union

•   Complete transactions through the bank drive-through

•   Help customers open a new checking or savings account

•   Answer calls and emails to offer customer service

•   Prepare money orders, savings bonds, and traveler’s checks for customers

•   Record transactions throughout their shift

•   Count the cash in their drawers at the beginning and end of a shift

•   Explain the various financial products offered by the bank

Bank Teller Skills

Here are some of the skills you’ll need to be a successful bank teller:

•   Positive attitude

•   Patience

•   Customer service

•   Clear communication

•   Math and money management

•   Sales

•   Technology

•   Willingness to learn

How Much Do Starting Bank Tellers Make?

The Bureau of Labor Statistics (BLS) reports that the average hourly wage for a bank teller is $17.69, but those just starting out should expect to make less. According to Indeed, bank tellers with less than a year of experience make $15.89 an hour on average, but that varies by location.

What Is the Average Salary for a Bank Teller?

The average salary for a bank teller is $36,800, but this varies by level of experience and by location. For instance, the BLS breaks down mean bank teller salaries by state:

•   How much does a bank teller make in California? $42,120 a year

•   How much does a bank teller make in Texas? $33,820 a year

•   How much does a bank teller make in Florida? $37,920 a year

Bank tellers earn the highest average annual salary in Washington state ($43,500) and the lowest average annual salary in West Virginia ($29,600). Check out the table below for insight into how much bank tellers make a year, or switch gears and research the highest paying jobs by state.

State	Average Bank Teller Salary
Washington	$43,500
California	$42,120
Connecticut	$41,850
Massachusetts	$41,390
Rhode Island	$41,160
New York	$40,930
Colorado	$40,450
Alaska	$39,590
New Jersey	$39,500
Maryland	$39,500
Delaware	$39,180
Nevada	$38,910
Arizona	$38,640
Oregon	$38,580
Hawaii	$37,970
Florida	$37,920
Vermont	$37,840
North Carolina	$37,730
North Dakota	$37,670
Illinois	$37,630
Minnesota	$37,400
Virginia	$37,330
Wisconsin	$36,600
New Hampshire	$36,500
Michigan	$36,450
Maine	$36,310
Ohio	$36,070
Idaho	$35,960
South Carolina	$35,460
Indiana	$35,170
Pennsylvania	$35,010
Utah	$34,820
Nebraska	$34,620
Georgia	$34,600
Montana	$34,530
Iowa	$34,200
South Dakota	$33,990
Texas	$33,820
Tennessee	$33,820
New Mexico	$33,660
Wyoming	$33,500
Alabama	$33,260
Louisiana	$33,230
Kansas	$33,190
Kentucky	$32,300
Missouri	$31,730
Arkansas	$31,420
Oklahoma	$30,680
Mississippi	$30,670
West Virginia	$29,600
Source: Bureau of Labor Statistics, May 2022 data

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

Pros and Cons of a Bank Teller Salary

A job as a bank teller has some pros, but there are a number of cons, like a low salary, to consider:

Pros

•   Career growth: The average hourly rate of a bank teller may not be as competitive as other entry-level salaries, but there’s plenty of room for advancement as a bank teller. Some tellers move up to head teller positions. Others move on to supervisory positions, become loan officers, or transition to sales.

•   Benefits: Although employees may not earn super competitive pay, bank tellers who work full-time can enjoy nice benefits from the bank, including health care, retirement plans, and paid time off.

•   Regular schedule: Many entry-level jobs, as in retail and restaurants, have unpredictable hours. Banks operate under normal business hours and are closed on Sundays (and bank holidays!). That means you’ll enjoy a more consistent schedule as a bank teller.

Recommended: Should We Raise the Minimum Wage?

Cons

•   Salary: While bank tellers can make good money — the top 10% make an average of $46,350 — the overall average falls below what the typical person with a high school diploma makes in a year in the U.S. Here are some of the best jobs without a college degree.

•   Job outlook: The BLS is predicting a 12% decline in job opportunities from 2021 to 2023. As more financial institutions switch to predominantly online banking experiences and shut down branches, job insecurity for bank tellers could be further undermined.

•   Draining job: Bank tellers must deliver an excellent customer experience every day. When customers are dealing with finances, it’s easy for them to become frustrated or upset — which can be draining for bank tellers who are trying to help. To be clear, this is not a job for antisocial people!

Recommended: What Trade Job Pays the Most Money?

The Takeaway

Bank tellers can make decent money, though there may be other jobs that require the same level of experience and education but pay more. However, hard-working bank tellers can often move up within the company and command better salaries.

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See exactly how your money comes and goes at a glance.

FAQ

Which bank pays the most for tellers?

According to data from Indeed, the financial institutions that pay the most for tellers include Bank of America, Logix Federal Credit Union, Avadian Credit Union, Investors Bank, and Chase.

What is the highest teller salary?

The top 10% highest paid bank tellers make an average annual salary of $46,350 — that’s $22.29 an hour. Bank tellers in Washington state, California, and Connecticut are the highest paid, on average.

Is it hard to be hired as a bank teller?

Because of the rise in online banking, it’s becoming more challenging to be hired as a bank teller. In fact, the Bureau of Labor Statistics predicts that bank teller employment will decline 12% between 2021 and 2031.

That said, you don’t need a college degree to become a teller, and training is all on the job. This makes breaking into the career field easier for those without a secondary or vocational education.

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Photo credit: iStock/Fly View Productions

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

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

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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