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The median pay for professional photographers is $42,520 per year, according to the most recent data from the Bureau of Labor Statistics. That said, there is a broad range of earnings possible, depending on what kind of photographer a person is and where they live.

Photography may become a more in-demand skill in the future, given what a visual culture exists today. Over the next decade, it’s anticipated that photographers will see job demand increase by 2% between now and 2034.

Read on to learn more about the salary and other facets of a career as a photographer.

What Are Photographers?

A photographer combines technical expertise with creativity and composition skills to produce photographic images. Photographers can get paid to take wedding, family, or pet portraits, cover news events, work for businesses and brands shooting products, or create art — among many other types of photography work.

Many photographers are also skilled in editing photos. If a photographer works for themselves, they can also be responsible for running their business and everything that entails, from advertising to accounting to operations. There are so many directions a photographer’s career can take. Some photographers also teach the art of photography, help plan creative direction for photo shoots, or use drone technology to capture shots from the sky.

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How Much Do Starting Photographers Make a Year?

When photographers are earning an entry-level salary, the amount of money they make is typically on the low end of the spectrum. Their earnings will likely grow as they gain skills and experience and make connections in the industry.

The lowest 10% of photographers earn approximately $14.23 in hourly pay. That may be a good starting point if you are wondering about entry-level salaries.

Keep in mind that photographers in different locations and areas of focus will make an array of salaries. For instance, someone who takes baby portraits for new parents in a small town will likely never earn as much as a high-fashion photographer in a major city who is being paid by corporate clients. The latter could make $100,000 a year or considerably more.

Recommended: What Trade Makes the Most Money?

What Is the Average Salary for a Photographer?

The average salary for a photographer can depend a lot, as already noted, on where someone lives. While the median annual income for this role is $42,520, the following table illustrates how the state a photographer chooses to work in can impact their potential earnings and determine if it’s a high-paying job.

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

Photographer Job Considerations for Pay and Benefits

While photographers can often choose to set their own rates, they are also usually self-employed and therefore responsible for securing their own benefits. For instance, they won’t have access to an employer-sponsored 401(k) plan or health care benefits. There are some exceptions to this rule. For example, if a photographer works for a large corporation or photo studio, they may receive access to traditional employee benefits, such as paid time off and a retirement plan contribution match.

Other considerations can be how a career as a photographer can impact your lifestyle. If you are a news photographer, you may find that you have to be available for extended periods whenever a situation comes up that needs documenting. If you are a travel photographer, which can sound like a dream job, you likely won’t have a typical week-to-week schedule. And if you are a wedding photographer, you will likely be spending many weekends shooting ceremonies vs. kicking back with your family.

There are some photography jobs, such as taking pictures of a product, that may not involve that much social interaction, but many kinds of photography careers do involve working with people nonstop. For this reason, it may not be the best job for antisocial people.

Pros and Cons of Photographer Salary

The main advantage of a photographer’s salary is that there is no real cap on how much they earn. For example, in-demand wedding photographers or photographers who license their images for products can all demand high rates for their work. On the flip side, their salaries are often not consistent, which can be very stressful. Also, when you are self-employed, taxes can take a bite out of your earnings.

Recommended: What Is Competitive Pay?

The Takeaway

Working as a professional photographer can be a creatively fulfilling, fun, and lucrative career. Worth considering, though: How much a photographer stands to make depends a lot on their specialty, where they live, and their level of experience.

FAQ

Can you make $100K a year as a photographer?

It’s possible to earn $100,000 or more a year as a photographer — the sky really is the limit when it comes to income potential in this field. Although the median annual income for this role is $42,520, photographers can earn more over time as they gain experience and a strong reputation in their industry.

Do people like being a photographer?

Many people who pursue a career in photography do so because it’s a creative pursuit they are truly passionate about. Many positions can provide flexibility and fun experiences (say, if you are a travel or wedding photographer).

Is it hard to get hired as a photographer?

It can be very hard to find a job as a photographer if you don’t have the skill set required to get the job done well. Taking some time to build a strong portfolio of your work and then marketing your business can make it much easier to get hired.

What is the highest paid photography job?

High-fashion photographers in a major city, in-demand wedding photographers, or photographers who license their images for products can demand high rates for their work. However, earnings can vary depending on location.

How can being a photographer impact your lifestyle?

Life as a photographer can vary depending on the niche. Some photographers may need to be available for extended periods, spend weekends working, and experience fluctuating income.

Photo credit: iStock/ivan101

SORL-Q226-025

The average salary for pediatricians is $222,340, according to the most recent data from the Bureau of Labor Statistics. There are many different paths a doctor can take when it comes to choosing their medical specialty. Doctors who enjoy helping children feel their best and live healthy lives will likely find a lot of fulfillment as a pediatrician.

To learn more about how much a pediatrician makes a year, keep reading.

What Are Pediatricians?

A pediatrician is a type of doctor who provides medical care to children ranging from infancy to adolescence. They specialize in diagnosing and treating injuries, developmental issues, and illnesses children commonly experience. From routine exams to issuing vaccines to providing medicine to sick children, pediatricians can help.

The path to becoming a pediatrician is a long and expensive one. Typically, that means college, medical school, a residency, and possibly a fellowship. Medical school can easily cost over $200,000 in total tuition. It’s wise to consider this investment when pursuing a career as a pediatrician. Many doctors have a high amount of medical school debt when starting out.

Also, keep in mind that being a pediatrician involves interacting with children and their families all day. Therefore, this may not be the best job for introverts.

💡 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 Much Do Starting Pediatricians Make a Year?

While pediatricians can eventually earn very competitive salaries, like any job, they tend to earn less when they are entry-level. The lowest 10% of earners in this role make $96,240, which is significantly lower than the average salary for all pediatricians, at $222,340.

What is the Average Salary for a Pediatrician?

On average, a pediatrician can make a salary that is considerably higher than the American average for all jobs. Where a pediatrician chooses to work can greatly impact how much they earn. This is a quick glance at the annual mean wage for a variety of workplaces where a pediatrician may be employed:

•   Offices of physicians: $231,140

•   General medical and surgical hospitals: $201,860

•   Outpatient care centers: $236,720

•   Colleges, universities, and professional schools: $166,090

•   Specialty (except psychiatric and substance abuse) hospitals: $171,290

Another factor that also affects pediatrician earning potential is the state the doctor works in. The table below highlights how average pediatrician salaries vary by state, with typical pay arranged from highest to lowest by location.

In addition, it shares how much a pediatrician’s hourly pay vs. salary is.

What Is the Average Pediatrician Salary by State for 2026

Source: ZipRecruiter

Recommended: What Is a Six-Figure Salary?

Pediatrician Job Considerations for Pay & Benefits

Alongside earning a $100,000 salary or more, most pediatricians also receive superior employee benefits. If a pediatrician runs their own practice, they will need to supply themselves and their employees with these benefits.

Those who are employed by employers such as hospitals or medical groups can expect to gain access to benefits such as paid time off, health insurance, and retirement accounts. They may also have unique benefits, including continuing education allowances and malpractice insurance coverage.

💡 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 Pediatrician Salary

The main advantage associated with competitive pay for pediatricians is that it’s quite high. With an average salary of $222,340, pediatricians are greatly rewarded for their hard work.

However, they must pursue many years of higher education to earn that salary. Many young doctors struggle under the weight of their student loan payments. So while this salary may seem high at first glance, much of it may go toward student loan debt initially.

It’s also worthwhile to consider your work-life balance. Being a pediatrician and improving the health of children may be a very rewarding career, but it also involves long, tiring hours and being on call for patients on nights and weekends. Medical problems and emergencies crop up all the time, so this is a factor to acknowledge.

Recommended: Average US Salary by State

The Takeaway

Pediatricians can earn very high pay while making a big difference in the lives of their patients and their families. They do have to commit to many years of schooling and education to become a pediatrician, but once they do, they can earn a great living.

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

FAQ

Can you make $100k a year as a pediatrician?

Most pediatricians make $100,000 a year or more, especially after gaining a few years of work experience. The average salary for a pediatrician is $222,340.

Do people like being a pediatrician?

Pursuing a career in pediatric medicine is a major commitment, and those who are passionate about this field and patient care are likely to really enjoy their work. However, this role requires many hours of patient interaction a day, so even if someone finds the work fascinating, it won’t be a good fit for them if they’re antisocial.

Is it hard to get hired as a pediatrician?

The main challenge in getting hired as a pediatrician is not having the right credentials. Potential pediatricians must pursue medical school and any required medical licenses in order to find a job in this field, which is no easy feat.

Photo credit: iStock/alvarez

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.

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

SORL-Q226-024

Whether you’re thinking about paying off a debt or mulling over how to increase your credit score — or both — it’s reasonable to ask if paying off debt helps your credit rating. The answer, though, is more complex than a simple yes or no.

Let’s unpack how paying off a debt can either raise or reduce your credit score (depending on the circumstance), how credit scores are calculated, and how managing your credit utilization can give you some control over your credit score.

How Paying Off a Debt Is Connected to Your Credit Score

What affects your credit score is on a lot of people’s minds. Your credit score is determined by five factors, some of which are weighted more than others. Paying off a debt can affect each of these factors in different ways, causing your score to rise or dip. Sometimes changes in two factors can even cancel each other out, leaving your score unchanged. This is why it’s hard to predict how paying off a debt will affect your credit.

A good first step is to find out your credit score. You may be able to get it for free through your bank, credit card issuer, or lender, via Experian, or by signing up for a free money tracker app.

Credit Score Calculation Factors

According to FICO, a credit rating company, these are the five factors commonly used to calculate your FICO Score:

•   Payment history (timely payments): 35%

•   Amounts owed (credit utilization): 30%

•   Length of credit history: 15%

•   New credit requests: 10%

•   Credit mix (installment versus revolving): 10%

Once FICO’s algorithm calculates your score, a credit score rating scale assigns it a category ranging from poor to exceptional. A higher number indicates to lenders that a person is a lower risk for default:

•   Exceptional: 800-850

•   Very Good: 740-799

•   Good: 670-739

•   Fair: 580-669

•   Poor: 300-579

As you can see, a fair credit score falls between 580 and 669. A poor or bad credit score falls between 300 and 579. The minimum credit score required to qualify for a personal loan is generally 580 or higher, depending on the lender, meaning not everyone with a fair score would qualify.

Recommended: Do Personal Loans Build Credit?

Why a Credit Score Can Go Down After Paying Off a Debt

Paying off debt feels good and improves your financial situation. But it could also cause your credit score to drop. This negative impact can be due to changes in one or more factors, including:

•   Credit utilization

•   Credit mix

•   Overall credit age

When you pay off a credit card and then close the account, you reduce your available credit and increase your credit utilization. Similarly, if you pay off your only car loan and close that account, you have one fewer type of account in your credit mix. Finally, paying off and closing an older account may reduce the average age of your overall credit history — you can explore these scenarios in more detail below.

While none of these things is “bad” in financial terms, it could temporarily count against you in the world of credit scores.

What Is Credit Utilization?

Now for a little more background on credit utilization. Credit utilization is a factor with revolving forms of credit, such as credit cards and lines of credit, where you can reuse the account up to your limit.

Your credit utilization rate, or ratio, is determined by dividing the sum of your credit limits by the sum of your current balances. So if someone has a $5,000 limit and is using $2,500, that’s a 50% credit utilization rate. Your rate should be kept below 30% to avoid a negative effect on your credit score.

What Is a Credit Mix?

Lenders like to see that an applicant can successfully handle different kinds of credit. This includes installment loans, such as mortgages, car loans, and personal loans, as well as revolving credit, such as credit cards and lines of credit. If a person can manage both types of credit well, a lender will likely consider them less of a risk.

Recommended: Should I Sell My House Now or Wait?

How Credit Age Factors In

The length of your credit history demonstrates your experience in using credit. To lenders, the longer the better. When payments to an older account are on time, this combo reassures lenders that you’ll likely continue to make timely payments going forward.

New credit accounts can also lower your credit age. More importantly, opening or even applying for many new accounts in a short period of time may be a red flag to lenders that you could be in financial trouble. The application process also involves a hard credit inquiry, which can lower your credit score.

Sample Scenarios

Here are two examples of someone paying off a credit card. In one case, the credit score goes up. In another, it goes down.

Credit Utilization Goes Down/Credit Score Goes Up

Let’s say that someone has a credit utilization rate of 40%, which is negatively impacting their credit score — remember, below 30% is best. When they make enough payments to bring their utilization rate down to 25%, this can boost their credit score.

Credit Mix and Age Go Down/Credit Score Goes Down

Now, imagine that someone pays off the balance of their first and only credit card. This should help their utilization score. But wait! Then they close the account, and their average credit age drops. And since this is their only form of revolving credit, their credit mix has lost out, too.

Counterintuitively, paying off the card may make their credit score go down, at least in the short term.

Recommended: What Credit Score is Needed to Buy a Car?

Paying Off a Loan Early vs Paying It on Schedule

People often wonder if it’s better to pay off a loan early, if you can. In the case of a personal loan, early payoff can lower the average age of someone’s credit history, possibly lowering their credit score.

But in reality, the impact will depend upon their overall credit situation. Paying the loan off according to the schedule will keep it open longer, which can help with their credit age. On the other hand, they’ll pay more in interest because the loan is still open.

If you’re in this situation, weigh the pros and cons before making the decision that’s best for you.

How Long Can It Take To See Your Credit Score Change?

According to the credit report agency TransUnion, credit reports are updated when lenders send them new information. In general, this happens at least once every month, though the frequency varies depending on the lender.

If you’re concerned about your numbers, consider signing up for a credit score monitoring service. What qualifies as credit monitoring varies from company to company. Look for one that sends alerts whenever your score changes for better or worse.

Recommended: What Is a Tri-Merge Credit Report?

The Takeaway

How paying off a debt affects someone’s credit score depends on the person’s overall credit profile. Paying off a credit card typically helps your credit score because the account remains open, lowering your credit utilization. Paying off a loan can hurt your score because the loan is then closed, potentially reducing your credit mix and age. Generally, though, borrowers shouldn’t let credit score concerns prevent them from taking actions that are in their financial interest.

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.

SoFi helps you stay on top of your finances.

FAQ

How fast does your credit score increase after paying off a debt?

In fact, your credit score may dip for a short period after a debt is paid off. Lenders report new information to credit reporting agencies at least once every month. Generally, you shouldn’t let concerns about your credit score prevent you from taking action that’s in your best financial interest.

Is it best to pay off all debt before buying a house?

According to credit report agency Experian, it generally makes sense to pay off credit card debt before buying a home. Just know that in some circumstances, paying off a debt may temporarily reduce your credit score, which can affect the loan terms you qualify for. If you do pay off a credit card, consider keeping the account open until after you qualify for a loan.

How do you get an 800 credit score?

Pay bills on time, maintain a credit utilization rate under 30%, and effectively manage your credit history length, new credit requests, and credit mix. Although this won’t guarantee a score of 800, it can help you maximize yours.

Should I close a credit card after paying it off?

Not necessarily, because keeping the account open can help maintain a lower credit utilization rate. It also preserves the length of your credit history, which is an important factor in your credit score.

Does paying off debt always improve my chances of loan approval?

Paying off debt can strengthen your overall financial profile and make you appear less risky to lenders. However, approval decisions also depend on other factors, such as income, credit history, and recent credit activity.

Photo credit: iStock/Patcharapong Sriwichai

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

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

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

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

SORL-Q226-006

Writing a check to yourself is one way to withdraw money from your bank account or transfer funds from one account to another. While there are other, more high-tech methods for making these transactions, writing a check to yourself is an easy option.

But it’s not the best choice for every situation. Sometimes, it’s more efficient to move funds electronically or visit an ATM to make a withdrawal. Here’s when writing a check to yourself makes sense, and how to do it.

How to Write a Check

If you don’t often use your checkbook, you may be wondering how to write a check. First, be sure to use a pen (that way, the information can’t be erased), and choose blue or black ink. Then, for every check you write, fill in each of the following details:

•   The date

•   Pay to the order of (the person or company the check is for)

•   The amount the check is for in numbers

•   The amount written out

•   Memo (this is optional — you can use it to note what the check is for or leave it blank)

•   Your signature

Recommended: A Complete Guide to Ordering Checks

How to Write a Check to Yourself

The only difference when you write a check to yourself versus a check to someone else is that you put your own name on the “Pay to the order of” line. Then, just like you do for every other check you write, you’ll add the date, the dollar amount written in numbers, the dollar amount written in words, an optional memo, and finally, your signature.

Be sure to record the amount the check is for in the check register that comes with your checks when you order them (you should keep this in your checkbook along with the checks themselves). In the register, write down the date, the check number, the name of the person the check is for and/or what it’s for, and the amount. This will help you balance your checkbook so you know how much money is in your account.

Why Would You Write a Check to Yourself?

Writing a check to yourself is a low-tech way of transferring money from one bank account to another or withdrawing money from your bank account. Here is when it can make sense to write a check to yourself.

•   Making a transfer: If you’re closing one bank account and opening another, you can move funds by writing a check to yourself. You can also write yourself a check to deposit funds from one account into another at the same bank. Or, if you have accounts at different banks, you can transfer money by writing yourself a check from one bank and depositing it in the other.

•   Getting cash from your bank account: If you want to withdraw money from the bank, you can simply write yourself a check, take it to the teller at the bank, and cash it. Just be sure to endorse the check by signing it on the back.

Examples of When You Would Write a Check to Yourself

If you have money in different bank accounts and need to consolidate your funds in order to make a large purchase, you could write a check to yourself. For example, if you’re remodeling and need to transfer $20,000 from your home equity line of credit (in one institution) to your bank account (in a different institution), you can write a check to yourself to transfer the money.

Recommended: Does Net Worth Include Home Equity?

When Writing a Check to Yourself Doesn’t Make Sense

Writing a check to yourself isn’t always the best, most efficient option for transferring funds or obtaining cash. Online banking, electronic transfers, and ATMs are typically faster and easier ways to get transactions done.

Transferring Money Within the Same Bank

If you have two accounts at the same bank and you want to move money from one account to the other, it’s much quicker and more convenient to transfer your money through online banking. Writing yourself a check to do this is a hassle.

Recommended: How Many Bank Accounts Should I Have?

Getting cash out of your account

If you need to withdraw cash from your account, using an ATM can be faster and easier. If you write a check to yourself, you’ll need to visit the bank and go through a teller in order to cash the check and get your money. Just make sure to use an ATM within your bank’s network to help avoid ATM fees.

Risks and Concerns of Writing a Check to Yourself

When writing a check to yourself, never make the check out to “Cash.” Instead, always put your own name on the “Pay to the order of” line. This helps protect you. Otherwise, if a check is made out to “Cash,” and the check is lost or stolen, anyone can cash it.

Recommended: What Is the Difference Between TransUnion and Equifax?

Other Ways to Move Your Money

There are several other ways to move money that are more convenient than writing a check to yourself. This includes wire transfers, automated clearing house (ACH) transfers, electronic funds transfers, and electronic banking.

Wire Transfer

Often, when people use the term “wire transfer,” they’re referring to any electronic transfer of funds, but the technical definition involves an electronic transfer from one bank or credit union to another. To make a wire transfer, you’ll pay a fee, usually between $5 and $50, and need to provide the recipient’s bank account information.

Recommended: What Credit Score Is Needed to Buy a Car?

ACH or Electronic Fund Transfer

An ACH is an electronic funds transfer across banks and credit unions. If you have direct deposit for your paychecks, for instance, that money is transferred to your bank account through ACH. You can use ACH to transfer money from an account at one bank to an account at another. The transaction is often free, but check with your bank to make sure.

Electronic Banking

Online banking will allow you to move your money from one account to another within the same bank. All you need to do is log in to your online account and use the “transfer” feature.

The Takeaway

Writing a check to yourself is one way to transfer money or obtain cash, but there are many methods for doing these things that are often more convenient, such as online banking or electronic transfers. Exploring all the options can help you decide what makes the most sense for you.

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

FAQ

Can you legally write a check to yourself?

Yes, it’s legal to write a check to yourself, as long as you’re not writing the check for more money than you have in the bank. It would be illegal to write a check for more funds than you have and then try to cash it.

Can I write a large check to myself?

Yes, you can write a large check to yourself if you have enough funds in your account to cover the amount. Never write checks for more money than you have in your bank account.

Can you write your own check and cash it?

Yes, you can write your own check and cash it. You can do this at your bank or at any other location that offers this service.

How do you deposit a check written to yourself?

You can deposit it just like any other check by endorsing it with your signature on the back. Then, submit it through your bank’s mobile app, ATM, or in person at a branch.

Why would someone write a check to themselves?

People often write a check to themselves to move money between different bank accounts or to access cash when other transfer options aren’t available. It can also serve as a simple paper trail for personal financial tracking.

Photo credit: iStock/GOCMEN

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.

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.

SORL-Q226-008

Filing for bankruptcy is a major decision that can provide relief from overwhelming debt, but it also has long-lasting consequences, particularly when it comes to your credit. A bankruptcy will stay on your credit report for 7-10 years, potentially making it harder to obtain new credit or loans and sometimes even qualify for jobs or housing. Here’s a closer look at how Chapter 7 and Chapter 13 bankruptcies impact your credit and what you can do to minimize the financial fallout.

How Long Does Bankruptcy Stay on Your Credit Report?

Bankruptcy can stay on your credit reports for 7-10 years, depending on the type of bankruptcy you file. Chapter 7 and Chapter 13 bankruptcy are the most commonly filed types of bankruptcy for individuals, and each has different rules and credit impacts. Chapter 7, which discharges most debts, remains on your credit reports for a longer period. Chapter 13, which involves a repayment plan, stays on your reports for a shorter duration.

It’s important to note that even though bankruptcy stays on your credit reports for many years, its impact on your credit scores diminishes over time, especially if you take steps to rebuild your credit.

💡 Quick Tip: Your credit score updates every 30-45 days. Free credit monitoring can help you learn about your score’s normal ups and downs — and when a dip is cause for concern.

When Is Bankruptcy Removed From Your Credit Report?

Bankruptcy will automatically fall off your credit reports after a set period of time, which varies by type of bankruptcy. The clock starts from the date you first file for protection from the court, not the date of discharge or when the bankruptcy procedure ends. Here’s how long each type of bankruptcy stays on your credit reports:

Chapter 7 Bankruptcy: 10 Years

With Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, a trustee liquidates your assets (with some exceptions), then distributes the proceeds among your creditors. If those funds aren’t enough to cover all of your dischargeable debts, your obligation to pay any remaining debt is eliminated. Since Chapter 7 completely wipes away most of your debt, the consequences to your credit are relatively severe. As a result, Chapter 7 bankruptcy stays on your credit reports for 10 years from the filing date.

During this period, your bankruptcy will be visible to potential lenders, landlords, and employers who check your credit reports. Although the bankruptcy’s impact on your credit scores lessens as time passes, its presence can still make it harder to secure favorable credit terms or loans for up to a decade.

Chapter 13 Bankruptcy: 7 Years

Chapter 13 bankruptcy, also known as “reorganization” bankruptcy, allows filers to repay their debts over a period of 3-5 years through a court-approved repayment plan. Unlike Chapter 7, Chapter 13 allows you to keep your assets and work with creditors to pay off some or all of what you owe. At the end of the repayment period, any remaining eligible debts are discharged.

Because Chapter 13 involves a repayment plan and demonstrates an effort to pay back some of what is owed, it remains on your credit reports for a shorter time — seven years from the filing date. After this period, the bankruptcy automatically falls off your credit reports, allowing them to be free of any bankruptcy records.

Can You Remove Bankruptcy From Your Credit Report?

Barring any errors, you generally can’t get a bankruptcy removed from your credit reports. If, however, your credit report says you filed bankruptcy but you didn’t, or there’s any other kind of inaccuracy (such as a bankruptcy entry that stays on your credit report past its expiration date), you have the right to dispute the inaccuracy with the credit bureau that compiled the credit report. A dispute doesn’t hurt your credit score and must be addressed by the bureau within 30 days.

Where Does Bankruptcy Appear on Your Credit Report?

Bankruptcy filings typically appear in the “Public Records Information” section of credit reports. While bankruptcy courts don’t directly report information related to bankruptcy cases to the credit bureaus, the three major credit bureaus (Equifax®, Experian®, and TransUnion®) collect bankruptcy information from court records, which are open to the public.

As part of your bankruptcy entry, you may see information such as:

•   Type of bankruptcy

•   Status

•   Dates filed and closed

•   Liability amount

•   Exempt amount

•   Amount paid

•   Estimated date of when your bankruptcy should be removed from the credit report

Bankruptcy may also appear on your credit reports under specific accounts. Any accounts that were included in the bankruptcy, such as credit cards or loans, may be noted as “discharged” or “included in bankruptcy.”

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What Does Bankruptcy Do to Your Credit Score?

Payment history is the most important factor in your credit scores, so a bankruptcy can take a significant toll, knocking as much as 200-300 points off your score.

Exactly how bankruptcy will impact your scores, however, will depend on where they stand before you file. For many people, the time leading up to a bankruptcy may include missed payments and accounts in collections, all of which would already cause a major drop in their credit scores. A bankruptcy is more likely to cause significant damage if you didn’t have a lot of negative payment history beforehand.

Either way, the impact of bankruptcy on your credit scores lessens over time. If you take positive steps, such as making timely payments on new accounts and keeping your credit utilization low, you can start building your credit even while the bankruptcy is still on your report.

How to Rebuild Your Credit After Bankruptcy

Rebuilding your credit after bankruptcy takes time, but there are things you can do to help speed up the process. Here are some proven tactics to try.

•   Check your credit report regularly: You can get free copies of your credit reports from each of the three major credit bureaus at AnnualCreditReport.com. When scanning your reports, check to see that the bankruptcy and related accounts are reported accurately. Be sure to dispute any errors that may be dragging down your score unnecessarily.

•   Make all payments on time: Payment history is typically the most important factor in your credit scores, accounting for 35% of the FICO score. To build a positive payment history, you’ll want to pay all of your bills on time and in full. Using a spending app can help keep you on track by ensuring you have sufficient cash available to cover your bills as they come due.

•   Keep credit utilization low: If you have access to credit, aim to use no more than 30% of your available credit limit at any time. This shows that you’re managing credit responsibly.

•   Get a secured credit card: A secured credit card requires a deposit that acts as your credit limit. Using this card regularly and paying off the balance in full each month establishes a positive payment history that can help rebuild your credit.

•   Consider a credit-builder loan: With a credit-builder loan, the lender deposits the loan amount into a savings account, which you can’t access until you finish repaying the loan. Your payments to the lender are reported to the credit bureaus, generating a positive payment history on your credit reports. When you finish paying off the loan, you gain access to the cash.

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The Takeaway

Whether you’re figuring out if bankruptcy is the right choice for you or have already started the process, know that it’s not a permanent part of your credit profile. It will take 7-10 years to drop from your reports, but bankruptcy’s negative impact can diminish before then, especially if you manage your money responsibly and proactively work to rebuild your credit.

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

FAQ

Can Chapter 7 be removed from credit before 10 years?

Chapter 7 bankruptcy generally stays on your credit report for 10 years from the filing date, and it’s difficult to remove it before that time. However, if there’s an error on your credit report or if the bankruptcy isn’t verifiable with the court, you can dispute it with the credit bureaus. If the dispute is successful, it may be removed early.

How long does Chapter 7 stay on your credit?

Chapter 7 bankruptcy remains on your credit reports for 10 years from the filing date. During this time, the bankruptcy will be visible to lenders, landlords, and others who check your credit report. Although the bankruptcy remains on your report for a decade, its impact on your credit score lessens over time, especially if you take steps to proactively rebuild your credit.

Can you have a 700 credit score after Chapter 7?

Yes, it’s possible to achieve a 700 credit score after Chapter 7 bankruptcy, though it may take time. Rebuilding credit after bankruptcy requires careful financial management, including paying your bills on time and keeping your credit utilization low. Taking out a secured credit card or credit-builder loan and managing repayment responsibly can also help you rebuild your credit after Chapter 7 bankruptcy.

How soon can I start rebuilding credit after bankruptcy?

You can begin rebuilding credit immediately after your bankruptcy is discharged by using tools such as secured credit cards or credit-builder loans. Consistently making on-time payments can start improving your credit scores within a few months, even while the bankruptcy remains on your report.

Does Chapter 13 hurt credit less than Chapter 7?

Chapter 13 may be viewed slightly more favorably because it involves repaying some debt through a structured plan. However, both Chapter 13 and Chapter 7 significantly lower credit scores and remain on your credit report for several years.

Photo Credit/ iStock Photo:Viorel Kurnosov

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