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Judging from the latest statistics, the most lucrative work-from-home job in America may be Con Artist. Fraudsters are utilizing texts, social media, fake websites, apps, emails, and old-fashioned voice calls to separate Americans from their money — billions every year. They play on our greed, or charity, or desperation. And they take all forms of payment.

The best way to fight back against fraud is to be aware of current schemes so you don’t fall victim in the first place. Below we share the top financial shakedowns, with enough details to help you recognize red flags and statistics that will blow your mind. Read on to learn how to avoid getting fleeced (and how to report it if you are).

Identity Theft and Credit Card Fraud Trends

If you’ve been the victim of identity theft or credit card fraud, you’re hardly alone.

According to the Federal Trade Commission (FTC), there were 609,700 reported cases of identity theft through the second half of 2025. When looking at all of 2025, the year saw an increase of more than 200,000 reported cases over 2024.

Meanwhile, there were 84,619 reported cases of credit card fraud for Q3 and Q4 of 2025, up about 2% from the previous six months. The impact of both crimes can be substantial. In 2025 alone, some 3 million consumers submitted reports and collectively lost more than $15 billion to fraud, which is around a 24% increase from 2024.

There are several potential reasons for the surge. More people are turning to digital tools to handle everyday tasks, such as shopping and banking. At the same time, scam email messages — no, that’s not the U.S. Post Office — have also spiked in recent years. And finally, the rise of crypto seems to play a role: The FTC has warned consumers that no reputable utility or creditor will demand payment only in crypto.

If you’re a victim of credit card fraud, it’s important to report it ASAP. You can get your credit report and find out your credit score for free at AnnualCreditReport.com®.

You can also enlist the help of a money tracker app, which allows you to manage all of your finances from one convenient dashboard.

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

33 Identity Theft and Credit Card Fraud Stats

Below, we do a deep dive into the most common types of fraud: imposters, online shopping scams, fake prizes and sweepstakes, false job opportunities, fictional charities, investment swindles, and more. All numbers quoted below are from 2025 FTC data.

1 Imposters: Reports Filed

The total reports filed in this one category came to 1,005,012, with 20% of filers admitting losses. An imposter is a person who pretends to be someone else to steal your personal information or money. They might call, text, or email you and may pose as someone you know (“I’m on vacation in London and lost my wallet! Can you send me some cash?”).

2 Imposters: Losses

The median loss suffered by victims was $700. The total dollar amount of imposter scam losses was $3.112 billion.

3 Imposters: Scenarios

The most common way imposters approached targets was via text, and victims often paid via a payment app or service.

4 Imposters: Top States Affected

Oregon led with 2,963.2 reports per million people. New Hampshire and Delaware followed close behind.

Recommended: What Is a Tri-Merge Credit Report?

5 Online Shopping: Reports Filed

Total reports filed came to 419,098, with 78% claiming losses. In an online shopping scam, someone pretends to have a legitimate business by creating a phony website or posting fake ads on a real retailer’s site.

(Another form of this fraud is when scammers create and post fake negative reviews of small businesses and then tell owners that they’ll remove the reviews in exchange for digital gift cards.)

6 Online Shopping: Losses

The median loss suffered by victims was $117. The total dollar amount of online shopping scam losses totaled $446.4 million.

7 Online Shopping: Scenarios

Victims are most often taken in by websites or apps (not surprising, given the nature of this fraud), and the top payment method reported was by credit card.

8 Online Shopping: Top States Affected

Delaware led with 1,532.0 reports. Nevada and New Hampshire placed second and third.

9 Prizes & Sweepstakes: Reports Filed

Total reports filed came to 70,901, with 25% reporting losses. “Great news!” a voice over the phone gushes, “You’ve won money or valuable prizes!” All the winner needs to do is provide their bank account information or pay a processing fee.

10 Prizes & Sweepstakes: Losses

The median loss suffered by victims was $780. Total losses equaled $303.6 million.

11 Prizes & Sweepstakes: Scenarios

Phone calls were the most common contact method. Gift cards and reload cards were the top payment types.

12 Prizes & Sweepstakes: Top States Affected

Maine topped the list with 283.1 reports. Montana and Arkansas placed next in the rankings.

13 Internet Services: Reports Filed

Total reports filed equaled 193,911, with 19% admitting losses. This category includes the use of fake messages or copycat sites (ostensibly from someone’s internet service provider) as part of a phishing or spoofing scam used to commit identity theft. It also includes theft of personal information: debit card PINs, credit card and bank account numbers, and passwords.

14 Internet Services: Losses

The median loss suffered was $300. Total losses came to $209.3 million.

15 Internet Services: Scenarios

Typically, individuals are contacted via social media and send money via a payment app. In 2025, the main contact method reported was through websites or apps, with payment being by credit card.

16 Internet Services: Top States Affected

Georgia was first in line with 855.5 reports per million people. Illinois and Nevada came close on its heels.

17 Business and Job Opportunities: Reports Filed

Total reports filed were 157,841, with 32% reporting a loss. Scammers post genuine-looking want ads and business opportunities in print and online. The catch? There is no job. They just want your personal information and your money. As just one example, a “work-from-home career” starts after the target pays for training, certifications, and/or starter kits.

18 Business and Job Opportunities: Losses

Consumers experienced a median loss of $2,008. Total losses reached $906.8 million.

19 Business and Job Opportunities: Scenarios

People were most often connected by text and paid the scammers via cryptocurrency.

20 Business and Job Opportunities: Top States Affected

Nevada was again the top contender for the fifth year running, with 560.0 reports per million people. Florida and Colorado came in at second and third place.

21 Advance Payments: Reports Filed

Total reports came to 51,327, with 37% of them suffering a financial loss. Advance payments, as the name implies, refer to a consumer prepaying for a service. Fake credit service businesses purport to sell information that will allow the consumer to create a new credit file, perhaps after an identity theft occurred.

22 Advance Payments: Losses

The median loss of each victim was $768. The total amount lost was $100.8 million.

23 Advance Payments: Scenarios

Fraudsters typically communicate with potential victims via websites and apps for this kind of scam, and request wire transfers to collect the money.

24 Advance Payments: Top States Affected

Missouri is number one this time, with 522.0 reports per million people. Georgia and Nevada follow as numbers two and three.

25 Fake Charities: Reports Files

Total reports came to 12,259, with 30% reporting a monetary loss. Scammers pretend to be from a real or fake charity and ask you to make a donation right then for, say, a natural disaster that just occurred.

26 Fake Charities: Losses

The median loss was $500. The total amount lost was $35.4 million. Asking people to support a heartwarming cause has, unfortunately, been quite successful.

27 Fake Charities: Scenarios

Messages go out via social media and have the potential to go viral. Scammers most often collect their money through a payment app or service.

28 Fake Charities: Top States Affected

Nevada led the way with 36.6 reports per million people. Colorado and New Jersey came in second and third place.

29 Investments: Reports Filed

Total reports came to 143,918, with 78% claiming a financial loss. With investment fraud, a scammer tries to get you to invest: stocks, bonds, real estate, whatever. They may provide false information about a real investment or make something up entirely.

30 Investments: Losses

The median loss was $10,400. Total losses equaled $7.933 billion.

31 Investments: Scenarios

These so-called investment opportunities are described on social media platforms, with cryptocurrency being the top payment method.

32 Investments: Top States Affected

Nevada (again!) leads the way, with 489.0 reports per million people. Arizona and Florida trail behind in terms of percentage of population, but are way ahead in absolute numbers. It’s also worth noting some other states had high report figures, where Texans filed 9,437 reports and Californians filed 15,472 reports.

33 Bonus Stat: Tax Prep

A missing refund is one sign that someone else may have filed a fake tax return in your name. Here’s more information about what to do when you don’t receive a tax refund.

The FTC data shows that 4,909 reports about tax preparation fraud were filed in 2025, with 56% of people reporting a monetary loss. The total loss was $14.9 million, with a median loss of $1,151.

How to Avoid Credit Card Fraud

As these numbers show, there are plenty of scammers out there. Here are some ways to protect yourself against money scammers:

•   Avoid using debit cards, which are directly connected to your bank account. Credit cards and payment apps tend to be safer. Check your banking and credit card statements regularly, watching for errors and suspicious charges.

•   If your bank offers free transaction alerts, sign up now. For example, you can get an alert whenever a large payment (you choose the number) hits your account. Find out more about different types of bank fraud.

•   If you get a call from a company asking for payment data or other personal information, hang up. If it’s a company you normally deal with, call them back directly to see if the call was genuine.

•   Use password protection on your smartphone and computer devices. Keep your browsers up to date, and use reputable anti-virus software downloaded from the app store (not an ad, email, or website). Avoid using public wifi.

•   Shop at reputable retailers only, including but not limited to the ones you use online. If you have questions about a store, check them out on the Better Business Bureau website.

•   When pumping gas or using an ATM, watch out for skimmers, which are devices that capture your account information for fraudulent purposes. If anything looks odd, let the establishment know.

•   Be cautious about clicking on links from unknown sources, checking to make sure that an email or text message really came from the place it claims and is a reputable organization.

•   Monitor your credit report and watch for inaccuracies. What qualifies as credit monitoring varies, so look for services that send alerts whenever something new hits your report. You may also be able to sign up for free credit monitoring.

How to Report Credit Card Fraud

The first step is to file a dispute with your credit card company. Then you can contact your police station or sheriff’s office. You can also report the fraud to your state’s attorney general (get their contact info from https://www.naag.org/find-my-ag/). You can also submit an online claim with the FTC at https://reportfraud.ftc.gov/#/.

The Takeaway

Scammers are reaching out via text, social media, fake websites, apps, emails, and old-fashioned voice calls to separate you from your money. Their stories can play on your greed, charity, or desperation. And they take all forms of payment, but they especially like gift cards and crypto. By learning to recognize the top schemes, you can help protect yourself from getting swindled. More pro tips: Monitor your transactions, avoid using debit cards for purchases, and don’t ever give out your personal or financial info unless you’re 100% sure of who you’re dealing with.

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

What are some common credit card scams?

Phishing is when a con artist tries to get you to share personal info or credit card information on the phone, by email, or through texting. Fake online websites can be built to steal credit card info, while skimmers can be set up on ATMs and credit card readers. People with ill intent can also monitor public wifi for credit card info, and these are just some of the types of financial fraud out there.

How do credit card scams happen?

Sometimes, your physical credit card can be stolen. More often, someone gets your credit card data without having the actual card. Identity thieves can also steal personal information, set up credit cards in your name, and start spending.

How can you spot credit card fraud?

As you monitor bank statements, credit card statements, and your credit report, you may spot information that just isn’t right. Although this isn’t always because of credit card fraud, that’s a common cause. Proactively investigate when something looks suspicious, and you can also set up alerts with your bank to flag certain kinds of transactions.

How can I report a suspected credit card scam?

A good first step is to contact your credit card company to dispute any suspicious transactions. After that, you can contact your police station or sheriff’s office. It’s also worth considering submitting an online claim with the Federal Trade Commission.

What are ways I can protect myself from getting scammed?

Practical steps include avoiding using debit cards and checking your banking and credit card statements regularly. Sign up for free transaction alerts if your bank offers them, use passwords for your devices, and stick to shopping at reputable retailers. And if you get a call from a company asking for payment data or other personal information, hang up and call them back on their official number to verify the request.

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Photo credit: iStock/SaskiaAcht

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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In our digital world, we like things to happen immediately. Unfortunately, it can take days, if not weeks, for a credit card refund to appear on a cardholder’s account.

Keep reading to find out how credit card refunds work, the types of refunds, and tips for getting your refund faster.

What Is a Credit Card Refund?

Before understanding what a credit card refund is, it’s helpful to know how credit card purchases work and who the main players are.

For every credit card transaction, two companies help facilitate the purchase: credit card issuers and credit card networks. The credit card issuer is the company that creates and manages the credit card, essentially lending money to the cardholder for them to make a purchase.

The credit card network is the business that processes the transaction electronically. It does this by transferring the money from the credit card issuer to the merchant. Whenever someone makes a purchase with a credit card, the credit card issuer is the one to pay the merchant. Later, the cardholder pays the credit card issuer back.

With credit card refunds, this entire process works the same way but in reverse. When a merchant refunds a purchase, the money goes to the credit card issuer. Then the credit card issuer returns that amount to the cardholder’s account.

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

How Does a Credit Card Refund Work?

As noted above, when a consumer requests a credit card refund through a merchant, the merchant issues the refund directly to the credit card issuer, and the issuer then pays the account holder back. This is why merchants don’t typically refund credit card purchases in cash.

If the cardholder pays off their balance in full before a refund hits their account, they may end up with a negative balance. In this case, a negative is a good thing: It just means you have a credit on your account instead of the usual charges. You don’t need to do anything about a negative balance.

Types of Credit Card Refunds

There is only one type of credit card refund that consumers are involved in. Using a credit card network, the merchant and the credit card issuer work together to complete the refund and issue the money to the consumer.

Potential Delays for Credit Card Refunds to Appear

Exactly how long does it take for a refund to appear on a credit card? This can vary due to various reasons, and it can take time to process a refund. All the consumer can do is wait.

In general, the retailer’s return policy dictates how long a consumer will wait to get their refund. Retailers typically refund purchases within five to 14 business days. The return policy can usually be found on the retailer’s website.

Online returns can be particularly lengthy and usually take longer to process than in-store returns because shipping is involved. It can take over a week just for the returned package to arrive and be processed before the retailer initiates the refund process. The cardholder then has to wait for the refund to appear on their monthly statement.

Here are a few examples of common issues that cause refund delays.

Billing Disputes

Settling a billing dispute can take longer than a standard refund. In this case, the customer must file a dispute with the credit card company to receive a credit. Some examples of issues that may require a dispute are:

•   Being billed for a product you didn’t receive

•   Getting charged twice for the same purchase

•   Failing to receive credit for a payment

Mistakes happen, and billing disputes can take a while to resolve. In some cases, a credit card chargeback may be necessary.

Merchant Delays

All merchants have their own timeline for processing credit card returns. It can take a week or two.

Cases of Identity Theft

If someone needs a refund for a purchase on their account that is a result of identity theft, there are additional steps for reporting the incident and freezing their accounts. It can take quite a while to fully resolve fraudulent billing issues.

How Does a Credit Card Refund Affect Your Credit?

If a consumer doesn’t pay off their credit card balance while waiting for a return to process, they will carry the balance on their credit card. In addition to expensive interest charges, carrying a balance affects their credit utilization ratio, which can harm their credit score.

A credit utilization ratio compares how much available credit someone has to how much of it they’re using. Ideally, it’s best to keep the utilization ratio below 30%. SoFi offers free credit monitoring, a debt payoff planner, and other handy tools to make sure you aren’t taken by surprise.

Recommended: What Is the Difference Between TransUnion and Equifax

Tips to Get a Faster Credit Card Refund

The best chance at getting a quick refund is simply to make the return as soon as possible. If a consumer is in a rush to get their money back, they can request a store credit refund from the merchant, which will be issued immediately.

This means that the consumer must spend that money in the store, leaving the purchase amount on the credit card bill to be paid off. On the bright side, by doing this, the cardholder gets to keep any cash back or rewards points that the purchase earned.

The Takeaway

It can take anywhere from a few days to a few weeks for a refund to appear on a credit card. The exact timeline varies based on the merchant and credit card issuer involved, as well as other factors that can cause delays (such as slow shipping times). Patience is key, but it helps to be aware of the return policies and expected timelines of both the merchant and the credit card issuer.

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

How long do refunds take to show up on credit cards?

It can take as little as three days for a refund to show up on a credit card, but it can also take longer depending on the merchant and credit card issuer involved. Returns that require shipping back merchandise can take the longest because the consumer has to wait for the merchandise to arrive and be processed before a refund can be initiated.

Why is my refund not showing up on my credit card?

A refund can take days, if not weeks, to show up on a credit card. Don’t be afraid to check in with the credit card issuer on the status of a refund. Remember that you can also review your online account statement instead of waiting for a new statement to come in the mail at the end of the month.

Why do card refunds take so long?

Credit card refunds can take a while for a few reasons, and all merchants and credit card issuers have different refund timelines. Slow shipping times for online purchases or issues related to identity theft can cause additional delays.

How does a refund appear on a credit card?

When a merchant issues a refund for a purchase, they don’t return the money to you directly. Instead, they ask the credit issuer to credit your account with the refund amount. This amount will appear on your credit card statement as credit.

Do credit card refunds take longer than debit card refunds?

Credit card refunds may take longer than debit card refunds because the transaction goes through the credit card processing service. The merchant must return the funds to the credit issuer, which then credits your account.

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Photo credit: iStock/Passakorn Prothien

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.

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When people are starting a business, it’s likely that they’ll consider the tax benefits of different company structures. In some cases, founders may create a limited liability company (LLC) specifically for its tax benefits.

Here, we’ll delve into the tax benefits of LLCs for business owners, as well as other pros and cons.

💡 Recommended: How To Incorporate

What Is an LLC?

An LLC is a type of business structure available in the United States. A kind of hybrid, it combines some characteristics of corporations with others from a partnership or sole proprietorship.

According to the IRS, LLC owners are called “members.” Depending on the state in which you set up the LLC, members may be individual people, other LLCs, or corporations. There is no maximum number of members that a company can have, and most states allow LLCs with just one member. Check your state for specifics.

Recommended: Pros and Cons of LLCs

Tax Benefits of Forming an LLC

As mentioned above, company founders may choose an LLC structure especially for its tax benefits. Here, we go into detail about what those benefits are.

Limited Liability

An LLC, as its full name implies, provides limited liability to its members. This means that, if the company fails, the owners’ and investors’ private assets are not at risk and can’t be seized to repay company debts.

Flexible Membership

As noted previously, an LLC can have one member or many, and those members can be individuals or companies. This business structure gives owners significant freedom when starting their company.

Management Structure Options

LLCs can be managed by a member (owner) or by a hired manager. A member-managed LLC may be chosen if the company has limited resources or few members. An owner may select a member with management experience to oversee the business, or they may want all members to actively participate in the company’s operations.

A hired manager is someone who is not a member but has the appropriate experience and skill sets to run the LLC. An accountant or financial advisor can go into detail about the tax benefits of member-manager vs. hired manager approaches. (Here’s what to know if you’re filing taxes for the first time.)

Pass-Through Taxation

LLC member-owners have some control over how their business will be taxed. If there is only one member, it will automatically be treated like a sole proprietorship, and if there is more than one, like a partnership. In those cases, business income will pass through the business to the member-owners, and they’ll only get taxed once. Members will report income and losses on their personal tax returns, while the LLC itself is not taxed. (Learn how business income differs from other types of income.)

Because income and losses are reported as part of members’ personal financial pictures at tax time, taxes will be owed at each member’s personal tax rate.

Alternatively, the LLC owners may decide to be taxed as a corporation. If they choose an S-Corp structure, pass-through taxation still applies.

Recommended: How Long Does It Take Taxes to Come Back?

Heightened Credibility

When someone opens an LLC, it shows that they’ve gone beyond just hanging a shingle. Instead, they went through the decision making and paper filing processes involved in setting up the LLC.

Limited Compliance Requirements

According to the U.S. Small Business Association (SBA), another form of business structure — the corporation — has the strictest requirements. In contrast, LLCs have some but fewer.

In general, an LLC should maintain a current operating agreement, hold annual meetings, ensure that they have appropriate shares recorded for each member, and keep records if membership interests transfer. (Find out if you can use a personal checking account for your business.)

Recommended: How To Form an LLC in Georgia

Disadvantages of Creating an LLC

So far, the LLC sounds like the ideal low-maintenance company structure. However, there are several caveats to be aware of.

Cost

Forming an LLC can cost a few hundred dollars, which may be more than what a small business wants to spend. (An online budget planner can help business owners set budgets and track spending.) The company will also need to file annual reports along with annual fees and taxes. These taxes and fees may cost a miniscule amount or several hundred dollars annually.

No Stock Ownership

When a corporation wants to raise funds, they sometimes issue shares of stock. An LLC cannot issue stock.

Recommended: How to Start Investing in Stocks

Transferable Ownership

Some states may require that an LLC be dissolved if there is a change in ownership. If the people starting the business expect to take in outside investors over the years, a corporation might be a better choice.

How to Form an LLC

Once you’ve decided to start an LLC, you’ll want to choose and reserve a company name that doesn’t conflict with currently existing ones. Typically, an LLC must have what’s called a registered agent — someone who will handle official documents for the company.

Then, you’ll need to document the nuts and bolts of the operating agreement that describes the structure of the company. This can include who owns what portion of the company and who gets to vote on which issues. You’ll detail how profits and losses will be addressed, how the company will be managed, when meetings will be held, and how to handle the business if a member leaves the company or dies. This document should also describe what should happen if the company goes out of business.

How LLCs Are Different From Other Business Entities

An LLC is formed to be a legal entity that’s separate from its owners and is responsible for its business debts. Here’s how an LLC differs from other company structures.

LLC vs Sole Proprietorship

Profits in an LLC are only taxed once because of the pass-through taxation structure. This is reported on and addressed through owners’ personal tax returns by filing a Form 1040, Schedule C, listing profits or losses. As an LLC owner, you may be taxed as a sole proprietor, a partnership, or a corporation.

A sole proprietorship is owned by one person and is the simplest structure available. A sole proprietorship also involves pass-through taxation with the business owner paying taxes on the business’s profit. There isn’t as much flexibility in filing as a sole proprietor as there is with an LLC.

LLC vs S-Corp

An LLC is a business structure. An S-corp, meanwhile, is a tax classification. Many businesses decide to have their LLC taxed as an S-corp. The nuances can be complicated, so it makes sense to consult your personal accountant or other professional before making this decision.

LLC for Rental Property

If you create an LLC to buy rental homes, you’ll have the benefits of no personal liability and pass-through taxation. There can be a flexible ownership structure, personal anonymity, and fairly simple reporting.

However, it may be harder to finance rental property as an LLC. There can also be significant fees to get the LLC up and running. LLCs for rentals can be more complex at tax time, and property transfers can also be more complicated.

Recommended: What Is a Professional Limited Liability Company?

How to Choose the Right Business Type

Consider how simple or complex your proposed business will become. Do you plan to basically run the business yourself, or will it ideally turn into something bigger? What kind of legal protections will you need based on your business plans?

Entrepreneurs should also weigh the tax benefits of LLCs and sole proprietorships. The two structures, along with partnerships and S-corps, feature pass-through benefits, meaning that profits are taxed only when they’re paid to the company owner(s). A C-corp, meanwhile, is taxed as a company as well as when shareholder payouts are made.

Consult your accountant or financial advisor for specifics on your situation.

No matter what business structure you choose, it’s important to keep track of your finances. SoFi’s spending app provides you with an easy-to-use online budget planner so you can stay on top of your finances.

The Takeaway

Limited liability companies (LLCs) come with plenty of advantages and a few disadvantages. As its name implies, the owners’ and investors’ private assets are not at risk if the company should struggle financially. Owners of the LLC are referred to as members. Membership may range from one individual to multiple individuals to other companies.

A major benefit is pass-through taxation, where income passes through the company to its members, who report it on their personal taxes. One disadvantage of LLCs for very small businesses is the startup cost and annual fees, which can run to several hundred dollars a year. Consult a professional to find out whether an LLC is the right fit for your business plan.

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 are the tax benefits of having an LLC?

With an LLC, you’ll have flexibility in deciding the structure under which your company will be taxed. There are more tax benefits of an LLC, including pass-through taxation, which means you’ll only get taxed once at your individual tax rate.

What are the benefits of a limited liability company?

They can include limited liability, meaning that owners aren’t personally responsible for company debts; flexible structures; pass-through taxation; more credibility; and fewer compliance requirements compared to a corporation.

What is the best tax option for an LLC?

Each situation is unique, so consult your accountant or financial advisor for specifics.

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Photo credit: iStock/hh5800

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.

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

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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Many experts recommend having an emergency savings fund. The money is intended to cover bills or living expenses due to a job loss, medical issue, or unexpected repairs. But finding money to put aside on a regular basis can be challenging. The 52-Week Savings Challenge will get you there in the simplest way possible.

Learn how this savings challenge works and who’ll benefit the most from it.

To ensure success, users can employ strategies such as bank transfers, buddy systems, and reminder scheduling to overcome potential hurdles.

What Is the 52-Week Money Challenge?

The 52-Week Savings Challenge is a straightforward way to set aside a little money every week. The plan can help you save more than you might expect over the course of a year. The goal is to have a healthy emergency fund that you can dip into to cover unexpected expenses — such as car repairs or a trip to the doctor — without blowing your monthly budget.

Although some people like to start these types of challenges on January 1, you can start today, or the first week of next month, or anytime you like. The result will be the same.

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

How Much You’ll Save After Completing the Challenge

Follow our basic guidelines, and you’ll save $1,378 in a year’s time. If you deposit the money in a high-interest savings account, interest will accumulate, increasing the amount you’ve saved.

How the 52-Week Money Challenge Works

The challenge’s structure is simple. In week one, put $1 in savings. Week two, $2. Week three, $3, and so forth for 52 weeks in a row. You can tuck the money into an envelope or put it in a piggy bank — but only if you won’t be tempted to withdraw cash before the challenge ends.

Temptation and interest are two good reasons to deposit the money into a bank account. Once a week, you could transfer the money from a checking account to a savings account that you designated for this challenge.

52-Week Savings Schedule

Week Number	Weekly Deposit	Total Saved
1	$1	$1
2	$2	$3
3	$3	$6
4	$4	$10
5	$5	$15
6	$6	$21
7	$7	$28
8	$8	$36
9	$9	$45
10	$10	$55
11	$11	$66
12	$12	$78
13	$13	$91
14	$14	$105
15	$15	$120
16	$16	$136
17	$17	$153
18	$18	$171
19	$19	$190
20	$20	$210
21	$21	$231
22	$22	$253
23	$23	$276
24	$24	$300
25	$25	$325
26	$26	$351
27	$27	$378
28	$28	$406
29	$29	$435
30	$30	$465
31	$31	$496
32	$32	$528
33	$33	$561
34	$34	$595
35	$35	$630
36	$36	$666
37	$37	$703
38	$38	$741
39	$39	$780
40	$40	$820
41	$41	$861
42	$42	$903
43	$43	$946
44	$44	$990
45	$45	$1,035
46	$46	$1,081
47	$47	$1,128
48	$48	$1,176
49	$49	$1,225
50	$50	$1,275
51	$51	$1,326
52	$52	$1,378

Enhancing the Challenge

Perhaps you’re looking ahead to Christmas or another time of year when you know that money will be especially tight. You can decide to pay ahead so that, if needed, you can skip saving during the weeks in December. That’s the beauty of this challenge. You can customize it to meet your needs.

When December rolls around, if you don’t have extra cash, no worries. You’ve already made those deposits (which are earning interest). If you can keep depositing money throughout December, do so, and you’ll reap even more benefits at the end of 52 weeks.

Here’s another possibility. As you start to save money in this way, you might find that you can save even more. If so, up the ante, perhaps by doubling the amount you’ll deposit each week, so that you can save money fast.

Pros and Cons of the 52-Week Money Challenge

First, the benefits:

•   You’ll be saving money at a time when so many people live paycheck to paycheck. That, all by itself, is a good thing.

•   You can gain confidence in your ability to budget and to “pay yourself first.” For extra help, use a budget planner app to make planning easy.

•   As the dollars add up, use the momentum to continue the challenge for a second (third, fourth,…) year.

•   Let this challenge motivate you to focus more on your financial goals — and improve your financial situation in new ways. Maybe you want to save money on food or pay off student loans, for example.

•   You can participate in this challenge with friends and family members, which can motivate you to keep going.

•   As your savings muscles get stronger, you can create a plan to save for other goals: a new car, for example, or a trip with your family.

Next, the challenges:

•   If the money is too easy to access, it can be tempting to use the funds before the year is up. To prevent this from happening, it may help to put the money in a bank account where you don’t have a debit card.

•   Because the deposit amounts are relatively small, it can be easy to forget to make your deposit or lose track of which week you’re on. Set reminders in your calendar, or use a buddy system where you and a friend remind each other.

•   If you start this challenge at the beginning of the year, the biggest deposits will be scheduled for the holiday season, when you may have more expenses. In that case, start with $52 on January 1, when the challenge is fresh and new, and then deposit $1 less each week. This has the added benefit of getting more money into the account more quickly, which gives you more motivation early on. Plus, you’ll benefit from more interest more quickly.

•   If you find that you can’t make the deposit during one week, don’t get too down about it. This is a marathon, not a sprint. You can catch up.

Who the 52-Week Money Challenge Is Best For

First, if you’re enthusiastic about the idea, then it’s definitely for you. This idea can be adjusted for all ages, too. If, for example, you have young children and want to teach them good saving habits, start them with cents instead of dollars.

If you’d like to turn the savings process into a game, then this challenge is tailor-made. You can, for example, write each of the dollar amounts, $1-$52, on a large piece of paper and then cut them out — one dollar amount per square.

Put the slips of paper in a hat or box, and select a square each week. That’s the amount you’ll save this week. If you need more advance notice of your savings target, pull the slips out of the container at the beginning of the challenge, one by one, and mark them on a calendar. The first slip drawn goes on week one, the second on week two, and so forth.

Search for “52-week savings challenge printable,” and you’ll find plenty of other ways to keep track of and enjoy participating in the challenge.

Recommended: What Is the Difference Between TransUnion and Equifax?

The Takeaway

The 52-Week Savings Challenge is a straightforward way of saving a relatively small amount of money each week to build up an emergency savings fund. In week one, you save $1. In week two, save $2. The most you’ll have to save in a week is $52, at the end of the challenge. Simple as it is, it’s also quite flexible and easy to customize in whatever way will work best 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.

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

FAQ

Is the 52-week savings challenge worth it?

If you stick with the plan for a year, you’ll save $1,378 — plus interest if you deposit the funds into an interest-bearing account. This challenge can help you strengthen your savings skills and serve as a springboard for accomplishing other financial goals.

What is the $10,000 challenge?

This challenge is structured in the same way as the 52-week one. In week one, though, you’ll start with $125. Each week, you’ll add another $25 to the amount you save. The result: $10,000 plus any interest earned.

What is the no-spend challenge?

In this challenge, you’ll commit to spending money only on essentials, such as housing, gas, groceries, and utilities. You can set a timeframe for this challenge to build up your savings account. And you can customize the rules however you like — perhaps limiting the challenge to no-spend weekends.

How can you customize the challenge to suit your needs?

You can start in reverse order, making the biggest deposit in week one, to avoid saving a large amount during the holiday season. You can start the children with cents instead of dollars, or save double the amount. You can also turn the savings process into a game by drawing slips with dollar amounts written on them to determine the amount you’ll save each week.

What are some ways to stay motivated to finish the challenge?

Inviting friends or family members to participate together can keep the momentum up and help create a buddy system to remind each other. Gamifying the savings process can keep it interesting.

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Photo credit: iStock/Jose carlos Cerdeno

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.

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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Good car value estimates will factor in as many as a dozen data points, including geographic and economic influences. Less precise tools base estimates only on make, model, year, and mileage. If you’re looking to sell your car or you’re in the market for a used vehicle, it’s important to familiarize yourself with how automobile valuations work.

Here’s what you need to know to help you increase your chances of getting the best deal.

What to Know About Instant Dealer Trade-In Quotes

A number of dealerships and websites — such as Carvana, CarMax, and Kelley Blue Book — offer instant cash or instant dealer trade-in quotes for your car. Often, all you have to do is share a few details, such as the vehicle identification number (VIN) or license plate number, and the company will come back to you with a cash offer for your vehicle.

Though a lot of companies make it sound like the process is as simple as that, know that there’s likely an in-person review of your vehicle before anyone will cut you a check.

What Do Dealers Base Their Car Estimates On?

Instant quotes and valuations usually look at a few quick measures, such as year, make, model, and mileage. This information is enough to provide a rough estimate of value. However, other factors will also come into play. Here’s a closer look.

Keep in mind, these terms apply only to cars you own outright. Different calculations apply when valuing a leased car.

Make and Model

You can think of the make and model of a car as the brand and the specific product on offer. For example, Toyota is a make of vehicle, while the Corolla is a model. Some makes and models are more popular, which helps them hold their value longer. For example, a certain make and model might be known for fuel efficiency, safety, or reliability.

There may be numbers or letters next to a car’s make and model that further delineate different features or trim levels. Generally speaking, the higher a vehicle’s trim level — the more features it has — the more valuable the car will be.

Style

A vehicle’s body style is its shape. It might be a minivan, hatchback, or pickup truck. Information about a vehicle’s style is contained in its make and model. And certain styles are more valuable than others. For example, trucks tend to retain their value better than other car styles. In other words, they depreciate more slowly.

Condition

Your vehicle’s condition means both cosmetic issues, such as scratches, dents, and wear to upholstery, and also the wear and tear on the engine and other components. The better condition a car is in and the fewer impending repairs needed, the more valuable it will be.

Mileage

Mileage is an important factor to consider because it serves as shorthand for potential wear and tear. The more a car has been driven, the more likely it is to need repairs or need them soon. As a result, cars with lower odometer readings are worth more.

Accident History

Accidents, big and small, will hurt the value of a vehicle. Even if a car was in a minor accident and shows no outward signs of damage, its value can decrease. Buyers can look up vehicle history reports on sites such as Carfax and AutoCheck using a car’s VIN.

Car Add-Ons

When you buy a new car, you may be offered a series of add-ons, such as splash guards, alarm systems, and tinted windows. While these are often pricey to add to a new vehicle, that doesn’t always translate into increased value for used cars. In fact, according to some experts, once a car is two or three years old, add-ons have little effect on its value. Condition, mileage, and accident history often matter much more to the average used car buyer.

Number of Previous Owners

Used cars that have been owned by only one person may be seen as preferable because the vehicle will have had a consistent driving history and maintenance schedule. Multiple owners won’t necessarily hurt the value of a car, but it may raise a red flag if there have been many owners in a short period of time.

Warranties

If a car is still under warranty and that warranty is transferable to a new buyer, it can add value.

Location

Geography can have an effect on car value. For example, the harsh winters and salted roads of the Northeast can take a toll, causing more wear and tear than a warm, dry climate.

Additionally, some types of vehicles may be in higher demand in certain areas, driving up prices. For example, you might have an easier time selling a pickup truck in a suburban or rural area than in a big city.

Timeline

The less time an individual has to sell their vehicle, the more likely they may be to accept an offer that’s less than the fair market value, especially in areas where there’s not much demand.

The Economy

The value of used vehicles can fluctuate with changes in the economy. For example, in 2025, the automotive market saw high new and used vehicle prices driven by tariffs, high interest rates, strong demand from high-income buyers, and a tight used vehicle supply, with new car prices hitting record highs and used car prices remaining high due to strong demand. At the start of December 2025, the average price of a used car was $25,730 — less than 1% higher than 12 months earlier, according to Kelley Blue Book.

Rising interest rates can also make borrowing to buy a vehicle more expensive, putting downward pressure on demand, as can a struggling stock market or a recession.

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

What Buyers Are Looking For

Ultimately, supply and demand drive the value of used vehicles. If buyers are looking for hybrid vehicles over gasoline-only cars, the value of hybrids increases. If a certain color falls out of favor, a car may end up being worth less than an otherwise identical model in a different hue.

How to Prepare Your Car and Your Expectations

Prepare your car for the highest valuation by tackling as many repairs as you can, from fixing a broken brake light to replacing worn-out brake pads. A budget planner app can help you figure out how much you have to spend on the fixes. Before an in-person valuation, you’ll also want to have your car washed and detailed to make sure it looks like it’s in the best condition possible.

Manage your expectations for value by doing a bit of research. If you’re looking to sell your car, check out valuation estimates from multiple sources, including Edmunds, Kelley Blue Book, and online dealers. You may even want to bring your car to a local dealership to see what price you might get there.

Similarly, if you’re looking to buy a new or used car, you can look up the value of various makes and models to help you understand whether the price you’re quoted is close to fair market value.

Recommended: Does Net Worth Include Home Equity?

The Takeaway

Good car value estimates will factor in as many as a dozen data points, including geographic and economic influences. Tracking your car’s value is especially important as you plan your budget and save up to buy a used or new car. The reason: Your current car’s value can have a big impact on what you can afford.

SoFi’s money tracker app now has an Auto Tracker feature that can give you a better understanding of your net worth and help you identify good times to sell.

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 is the best way to determine the value of a car?

Find out the value of a car through trusted online resources such as Kelley Blue Book or Edmunds. Enter the vehicle identification number, license plate number, or the year, make, model, and mileage of your car or truck to get an idea of what it may be worth.

Which car value estimator is most accurate?

Kelley Blue Book (KBB) and Edmunds are two of the most trusted car value estimators. KBB is often regarded as the trusted resource for used car values due to its comprehensive, weekly updated local market data, while Edmunds offers highly accurate, localized transaction data through its True Market Value pricing system.

How do you know if a car deal is too good to be true?

Red flags that may suggest a car deal is too good to be true include a seller who’s rushing you, a seller who won’t give you an accident report, signs of rust or disrepair, and a price that’s much too low compared to the fair market price.

How do car valuation tools determine a vehicle’s value?

Car valuation tools use factors such as make, model, year, mileage, condition, and accident history to estimate a vehicle’s worth. More advanced tools also include geographic location, market demand, and economic conditions for a more accurate price.

Are instant trade-in quotes from online platforms reliable?

Instant quotes provide a quick estimate based on basic vehicle details, but they’re not final offers. The actual price may change after an in-person inspection that evaluates the car’s true condition.

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Photo credit: iStock/Talaj

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.

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.

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