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The average barber’s salary is $52,123 a year, according to the latest data for 2026 from ZipRecruiter. But barber salaries can range from about $17,500 to more than $86,500.

How much money you can make as a barber may depend on several factors, including education, certifications, experience, and where you’re located. Here’s a look at what barbers do and how they get paid.

What Are Barbers?

A barber’s main job is to cut and style hair, usually for male clients. Barbers may also trim or shave facial hair, fit hairpieces, and provide hair-coloring services.

To become a barber, you must obtain a license in the state where you plan to work. Licensing qualifications can vary, but you’ll likely have to meet a minimum age requirement, have a high school diploma or equivalent, and have graduated from a state-licensed barber program. You may also have to pass a state licensing exam.

A barbershop often doubles as a social hub where men can go to swap stories and catch up on the latest news while they enjoy a little personal care. If mingling with clients all day isn’t your thing, you may want to check out jobs with less human interaction.

💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How Much Do Starting Barbers Make?

An entry-level salary for a barber can range from $8.41 to $41.59 or more an hour, according to ZipRecruiter. Brand-new barbers tend to earn the highest hourly wages in Maryland, Washington, and North Carolina.

Recommended: What Trade Jobs Make the Most Money?

What Salary Can a Barber Expect to Make?

Barber jobs in the U.S. can pay anywhere from $17,500 to $86,500 or more, according to ZipRecruiter data. How much you can expect to make may depend on several factors, including how many hours you work, how many clients you serve, whether you live in a region with more competitive pay, and whether you work on commission, rent a chair at a shop, or own your own barbershop.

Here’s a look at the average barber’s income by state in 2026.

State	Average Salary for a Barber
Alabama	$47,243
Alaska	$56,133
Arizona	$48,573
Arkansas	$43,100
California	$51,440
Colorado	$54,808
Connecticut	$49,584
Delaware	$52,168
Florida	$38,951
Georgia	$44,012
Hawaii	$54,153
Idaho	$49,042
Illinois	$50,508
Indiana	$49,598
Iowa	$48,957
Kansas	$46,486
Kentucky	$45,270
Louisiana	$44,571
Maine	$50,465
Maryland	$50,587
Massachusetts	$56,925
Michigan	$45,430
Minnesota	$51,050
Mississippi	$49,364
Missouri	$48,891
Montana	$47,841
Nebraska	$49,696
Nevada	$53,077
New Hampshire	$50,690
New Jersey	$52,917
New Mexico	$50,511
New York	$57,024
North Carolina	$47,369
North Dakota	$55,150
Ohio	$49,553
Oklahoma	$48,127
Oregon	$55,109
Pennsylvania	$52,248
Rhode Island	$51,044
South Carolina	$48,368
South Dakota	$52,123
Tennessee	$47,307
Texas	$48,560
Utah	$47,451
Vermont	$55,420
Virginia	$51,676
Washington	$59,034
West Virginia	$40,352
Wisconsin	$52,610
Wyoming	$50,101

Source: ZipRecruiter

Recommended: Highest Paying Jobs by State

Barber Job Considerations for Pay and Benefits

A barber’s compensation is traditionally set up in one of two ways:

•   Renting a chair or booth: Barbers who rent a chair at a barbershop pay the owner or franchise a fee for the space where they work, but they keep the rest of what they earn. This can give barbers more control over their work schedule and the services they choose to offer.

•   Earning a commission: Barbers who work on commission are paid a percentage of what they earn (starting at 40%-50%), or they may receive a predetermined hourly wage or salary plus a bonus commission. New barbers may choose to work a few years on commission to gain knowledge of how the business works and build a clientele and then switch to renting a chair.

In addition, barbers can earn tips, usually about 15%-25% of the price of a haircut or other service provided. Online tools, such as a money tracker app, can help you keep track of your spending and saving from month to month.

Pros and Cons of a Barber’s Salary

As with any job, there are pros and cons to working as a barber, including the following:

Pros

•   Attending a barber school can take less time (usually a year or less) and is far less expensive than getting a college degree. Tuition is about $14,980 on average (not including books and supplies), but costs can range from about $1,000 to over $30,000, depending on the program. Financial assistance may be available through federal or private student loans, grants, and scholarships.

•   Job prospects for barbers are good. According to the U.S. Bureau of Labor Statistics, employment for barbers is projected to grow by 5% from now until 2034, which is faster than the average for all occupations.

•   Popular barbers can often work the hours they choose while serving clients who appreciate their creativity — and reward them with their loyalty and generous tips. If you like the idea of becoming an entrepreneur, you may even decide to start your own business someday.

Cons

•   It can take time to build a reputation and a reliable list of repeat customers. In the meantime, you may experience some income instability, and tips may vary from one client to the next. This could make budgeting and spending difficult at times.

•   As a barber, you may not receive the same employee benefits that other careers generally offer, including health insurance, a 401(k) or similar retirement plan, paid sick leave, or vacation pay. You might have to work nights, weekends, or on a fluctuating schedule that makes it hard to plan your social life. And you may have to pay for your own work tools.

•   You might also want to consider how long your career as a barber might last. Though it can be a fulfilling job, the work can be hard on your neck, back, hands, and feet.

💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

The Takeaway

Your income potential as a barber will likely depend on where you work and the loyalty of your clientele. If you’re a creative and skilled stylist who likes keeping up with the latest trends and you have good social skills, being a barber could be a great career choice. It can also help to have some business skills, as you may face unique challenges when it comes to managing your income, tracking your cash flow, planning for retirement, and paying taxes.

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

Can you make $100,000 a year as a barber?

Once you establish yourself and build a solid clientele, you may be able to earn six figures as a barber. Your success, though, will likely depend on how in demand you are, how willing you are to travel or work long hours, the clientele you cater to, and whether you own your own shop.

Do people like being a barber?

Though barbering can be hard work, barbers on Payscale.com gave their job an average of 3.7 stars out of 5, and most are highly satisfied with their job. If you’re passionate about cutting hair and providing other personal care services — and you’d enjoy building a bond with your clients — you could find that a career as a barber is right for you.

Is it hard to get hired as a barber?

According to the U.S. Bureau of Labor Statistics, the job outlook for barbers should be solid for at least the next decade. If you get the proper training, become a licensed barber, and can demonstrate that you have the skills and demeanor for the job, it shouldn’t be too hard to find work.

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Photo credit: iStock/dusanpetkovic

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.

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

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

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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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There’s no one answer that fits all situations. The average American has 3.7 credit cards that are in regular use. But how many lines of credit you should have depends upon your needs, your skill at managing your finances, and your ability to make payments on time.

We’ll explore two types of credit lines, provide definitions of basic credit terms, and offer some broader context so that you can make the choice that’s best for you.

Line of Credit Definition

First, what is a line of credit? A personal line of credit (sometimes called a PLOC) allows consumers to borrow money as they need it, up to a set limit, and pay it off over time. A line of credit can be used to pay bills or make purchases directly or to withdraw cash with no cash-advance fee. As long as borrowers keep paying down the balance, they can keep borrowing. In other words, this is a type of revolving credit.

Lines of credit are usually granted only to people with good credit. Because they’re less risky for the lender, the interest rate can be lower than for credit cards.

How Does a Line of Credit Work?

Many banks, credit unions, and online financial institutions offer lines of credit. A distinguishing feature is the “draw period.” During that time, which generally lasts up to five years, funds can be borrowed and repaid in a revolving way. When the draw period ends, users can no longer make purchases or withdrawals, though they can reapply to keep the line open. The repayment period usually lasts seven years after the draw period ends.

To use a line of credit, consumers may receive checks, a card, or direct transfers into their bank account. Funds can be used however they like but generally go toward large purchases. Personal lines of credit often have a variable interest rate, with interest-only payments during the draw period.

Is It Possible to Have Too Many Lines of Credit?

In this case, a line of credit refers to both PLOCs and credit cards. All credit cards are a type of credit line, but not all lines of credit are tied to a credit card.

If a consumer has many credit lines, lenders may see them as high-risk — even if their balances are all zero. As noted above, the average American has 3.7 active credit cards. Cities such as Miami, New York, and Chicago average about 4-4.1 active credit cards per person. Older generations tend to carry more cards than Millennials and Gen Z. So while having about four active credit cards may be considered normal, any number of credit lines can become too many if a consumer has trouble juggling their bills and making payments on time.

Is It Possible to Have Too Few Lines of Credit?

To build a strong credit score, it helps to have a variety of credit types. Credit mix accounts for 10% of a FICO^® Score, and the ideal mix includes both revolving credit and installment loans, such as personal loans, car loans, and so forth. Although each person’s situation is unique, just having credit accounts and managing them well is what builds a good credit score. Having one or two cards can be enough.

Credit Card Definition

You may be wondering, “If a line of credit can come with a card, then what is a credit card?” Both credit cards and lines of credit are forms of revolving credit offered by many financial institutions. A credit card holder can also make purchases up to the credit card spending limit. However, credit card users can avoid interest charges by paying off the balance in full each month. Essentially, credit cards can provide consumers with short-term interest-free loans when balances are paid in full each month (assuming there’s no annual fee).

Credit cards don’t have a draw period — they remain open as long as the account is in good standing. The average credit card limit, according to the latest report from credit bureau Experian, is $33,980.

Recommended: What Is the Difference Between TransUnion and Equifax?

Line of Credit vs Credit Card

A credit card — as the name implies — has a card connected to it, which allows the borrower to access funds. A line of credit doesn’t necessarily have a card connected to the account. Lines of credit tend to have lower interest rates and annual percentage rates (APRs) than credit cards and may have higher limits. So they may be better suited to large purchases, as noted above, that can be paid for over time.

Credit cards are easy to use for everyday purchases and often come with an interest-free grace period (from the purchase date until the payment date). Credit cards may provide rewards and perks that personal lines of credit don’t. And applying for a credit card is usually a simpler process than the line of credit process.

Credit Score Risk Factors to Consider

How someone manages personal lines of credit and credit cards will have an effect on their credit score and, therefore, their ability to borrow at advantageous rates. Here are some ways your line of credit may negatively influence your credit score:

•   Credit utilization: After a large purchase, your credit utilization percentage will rise. Credit utilization accounts for 30% of your credit score.

•   Payment history: Late or missed payments can negatively impact your history. Payment history accounts for 35% of your FICO score.

•   Credit history length: A new line of credit will lower the average age of your credit history. Length of credit history accounts for 15% of your score.

Consumers who are concerned about their credit score may want to take advantage of a free credit monitoring service to see how their day-to-day actions impact their score.

Using Multiple Credit Cards

How many credit cards should you have? As long as you can responsibly manage your credit cards and haven’t applied for too many new ones in a short time frame, then the number isn’t likely to have a negative impact on your credit.

However, the more cards you have, the more payments and due dates you’ll have to juggle. If you’re considering ways to use a credit card wisely, ask yourself whether any of these issues apply to you:

•   Multiple annual fees are taking a bite out of your budget.

•   Monitoring your cards for fraudulent activity has become challenging.

•   Knowing you have cards with low or no balances makes it easier to overspend.

For a more holistic view of your finances — including your credit cards — consider enlisting the help of a money tracker app. It can help you seamlessly manage your money by connecting all of your accounts on one convenient mobile dashboard.

The Takeaway

The right number of credit lines varies by personal need and financial circumstances. Lines of credit include, but aren’t limited, to credit cards. What’s most important is to use them wisely to protect your credit score, avoid unnecessary debt, and manage your finances responsibly. It may help to know that the average American has several lines of credit, including about four credit cards.

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 many lines of credit is good for your credit rating?

Specifics will depend upon your financial situation. Elements that go into credit score calculations typically include the borrower’s payment history (making payments on time is the biggest factor), outstanding balance amounts in comparison to limits, credit history length, having a good credit mix, and strategically applying (or not applying) for new credit accounts.

How many lines of credit is too much?

What’s most important is to have the right number for your financial needs and overall situation. Being able to responsibly manage the number of accounts you have is important since making payments on time is the biggest factor in your credit scores. While most Americans have about four lines of credit, that may be too many for some consumers.

What are some consequences of having multiple lines of credit?

It can be more challenging to keep track of payment dates and amounts, which may make it easier to make a payment late or miss it entirely, and this can have a negative impact on your credit score. Plus, if accounts have annual fees, then having several of them can add up. Multiple lines of credit may also make it more difficult to spot fraud.

How do lenders view multiple lines of credit?

Lenders may see multiple open accounts as either a sign of experience with credit or potential overextension, depending on how balances and payments are managed. What matters most is consistent on-time payment history and low overall utilization.

Does closing a line of credit affect your credit score?

Closing an account can potentially reduce your available credit and shorten your average credit history, which may temporarily lower your score. However, the long-term impact depends on your overall credit profile and how many other accounts you maintain.

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Photo credit: iStock/demaerre

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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The phrase canceled check may sound confusing, but it’s actually a simple concept. A canceled check generally refers to a check that was processed, cleared, and paid by the bank. It means the check-writing system worked as it should, and money has been transferred appropriately.

What Is a Canceled Check?

A canceled check is a check that has been processed and paid and can’t be used again. If you write a check to your sister or to the electrician and they deposit or cash it, the funds are taken from your checking account and paid to them (or put in their account). Your bank will cancel the check, meaning that the check has done its job and served its purpose.

Sometimes you may be asked to show a canceled check to prove that a payment was made. For instance, if you paid a bill by check but the payee believes they haven’t received the funds, you could send them an image of the canceled check from the bank to prove that you settled the account. You may be able to obtain such images within a certain time frame from your bank or credit union.

How to Write a Canceled Check

You can’t write a canceled check. Only a bank can cancel a check. What you, as a banking customer, can do is void a check by writing the word “void” across it, as you may need to do as part of the process of setting up direct deposit or autopay. If you need to stop a check from being paid, you can put a stop payment on it via your financial institution (more on that below).

One thing to be aware of if you’re dealing with a financial transaction in another country: In some countries, the term “canceling a check” is used instead of “voiding a check,” which can cause some confusion. In this case, make sure you understand what the term “canceled check” means in the country you’re dealing with.

Examples of Canceled Checks

Once you open a bank account, you’ll likely hear the term “canceled check.” Here’s what is usually meant by that term:

•   A canceled check is one that is cleared and paid by the bank. Funds have been transferred, so the transaction is completed.

•   The term is sometimes used incorrectly to refer to a check you put a stop payment request on. You might say, “I canceled that check,” meaning you instructed your financial institution not to pay it. However, what you actually did was tell the bank to stop payment of the check.

•   You may hear some people say “canceled check” when what they’re really referring to is a voided check. A voided check is usually one that you write “void” on. You may need to provide a canceled check when setting up certain transactions, such as direct deposits.

•   What these checks all have in common is that they’re out of circulation and not to be reused.

Canceled Check Fees

When a bank cancels a check after clearing it, there’s no fee. This is a standard transaction at your bank or credit union. But a stop payment request can run about $20-$35, depending on the bank. When you void a check, no fee is involved.

Canceled Checks vs Returned Checks

What are canceled checks and returned checks? They differ considerably: One is paid, the other isn’t. Here are the differences between them:

•   Payment: A canceled check has been paid (cleared) by the bank it was drawn on. A returned (or bounced) check isn’t paid or cleared by the bank because the account holder has insufficient funds.

•   Consequences: Since canceled checks are standard practice, there are no negative consequences for you. However, with returned checks, you’ll likely face repercussions. Your bank will probably charge you an overdraft fee of $35 or more, and the business you tried to pay may charge you for the work of dealing with a bounced check, sometimes called a bounced-check fee, which could be around $32. In addition, your payment is probably now considered late, which might trigger more charges and possibly affect your credit standing.

•   Your good standing: A check canceled by the bank as part of the standard practice shouldn’t cause you any problems. But banks and businesses tend to look unfavorably on returned checks and the fees and headaches that come with them.

Banks generally don’t report returned checks to credit bureaus, but this activity may turn up on your banking record, which is monitored by agencies such as ChexSystems. Too many returned checks, and you may find that you could be denied a bank account in the future.

It’s also important to keep payments up to date at places where you do business so as not to negatively impact your credit score.

Canceled Checks vs Stop Payment Requests

Canceled checks and stop payment requests are two very different things. Here are some of the most significant differences:

•   Contact with the bank: A canceled check is standard practice and typically sails through the system. The bank handles the process, and you don’t need to do anything. But a stop payment request requires a call or visit to your bank right away, or for you to engage with the bank’s website or app. This process needs to be done quickly, before the check is presented to be deposited or cashed. If your check or checkbook is lost, if you think your check was stolen, or if you need to halt a payment, know that many bank phone support lines operate 24/7.

•   Fees: Canceled checks don’t cost you, but stop payment requests do (see above).

•   Time window: Checks are typically canceled within a couple of days of their submission, though timing can vary depending on how they were submitted (say, via your bank’s app or into an out-of-network ATM). Once checks are paid by your financial institution, they can’t be reused, and that’s final. Stop payment requests, however, usually last only up to six months, and you may need to renew them after that if you think there’s a chance someone might still try to cash the check.

How Long Until a Check Becomes Canceled?

As mentioned above, it typically takes about two business days for a deposited check to clear, but it can take a little longer — about five business days — for the bank to receive the funds. The length of time depends on the amount of the check, your relationship with the bank, how and where you deposited it, and whether your account is in good standing (no frequent overdrafts or prolonged negative balances). Another factor that could impact processing: If you let a check sit for a few months before depositing it, that check could reach its expiration date and no longer be valid.

Recommended: How Long Is a Check Good For?

Tips on Using Checks

With the use of online banking and bill pay, checks aren’t used as often as they once were. However, many people still order checks, and they remain an important financial tool. For these reasons, it can be worthwhile to brush up on how to use them most effectively.

•   Record each check you write and each checking account deposit you make in the transaction register. Include the check number, date, payee (or source of deposit), and amount.

•   Use the columns with a check mark on top to check off deposits or checks paid once they’re cleared by your bank and reflected in your balance.

•   Keep your checkbook in a safe place, as you would a debit or credit card. Checks can be forged by another person.

•   For important payments, such as rent, child support, healthcare, and donations, consider keeping a copy (front and back) of canceled checks. Banks used to return these checks with paper statements, but no more. At many banking websites, you can download PDF images to save or print. Or call your bank to request scanned images up to seven years old or more (sometimes for a fee).

If you still have questions about checks, visit your bank’s website or talk with a bank representative in person or by phone.

The Takeaway

A canceled check is a check that’s been processed, cleared, and paid by the bank, at which point the check can serve as proof of payment. Canceled checks differ from returned checks — which are unpaid due to insufficient funds and may result in fees. Only a bank can cancel a check as part of a standard transaction.

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Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

Is a canceled check the same as a voided check?

People sometimes use the terms interchangeably, but technically speaking, they have different meanings. While both checks are unable to be used, a canceled check is one that has been paid by a financial institution. A voided check is one that you, the account holder, have written the word “void” on to make sure the check isn’t used to transfer funds.

Can you use a canceled check?

No, you can’t use a canceled check. It has been processed, meaning the funds were transferred as directed, so its job has been completed.

What happens to a canceled check

Once the bank processes the payment and cancels the check, it becomes invalid for any future transactions. Its only remaining purpose is to serve as a proof of payment for the payer’s records from their checking account.

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

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Bounced checks are sometimes referred to as rubber checks because instead of going through, they “bounce” back to the payer’s bank unpaid. No money is transferred, and the person who was expecting to be paid doesn’t receive their funds. The payer will typically get hit with fees and could also face other negative consequences. The recipient of a bounced check may also have to pay a fee.

Understanding what happens when a check bounces, who gets charged, and how to manage the situation can help you navigate this common financial issue.

What Is a Bounced Check?

A bounced check, also known as a non-sufficient funds (NSF) check, is a check that can’t be processed, typically because the payer’s checking account does not have enough funds to cover the payment. When a check is deposited, the recipient’s bank requests the funds from the payer’s bank. If the payer’s account lacks sufficient funds, the payer’s bank returns the check unpaid, causing it to bounce.

Here’s a look at some other reasons why a check might bounce:

•   Account closure: If the account has been closed before the check is deposited, it will bounce.

•   Incorrect information: Errors in writing the check, such as a mismatch between the numbers and words for the check amount, can lead to a bounced check. That’s why it’s important to know how to properly fill out a check.

•   Stale date: A check can bounce if it’s not cashed or deposited within six months of the date that it was written.

•   Stop payment order: A stop payment order can be requested by the payer if they want to prevent the check from being deposited. This might happen if they believe the check got lost or if they no longer wish to pay for a service.

•   Fraudulent activity: Checks written on accounts that do not belong to the payer, or those involved in fraudulent activity, will also bounce.

What Fees Come With Bounced Checks?

Both the payer and the payee can incur fees when a check bounces. Here’s a look at the potential fees and who gets charged:

•   NSF fee: If you write a check you don’t have sufficient funds to cover, your bank may charge an NSF fee. NSF fees may range from about $15-$30.

•   Merchant fee: If the bounced check was written to a business, that business may add on some charges. Many states allow merchants to charge customers up to $40 for handling a bad check.

•   Overdraft fee: In some cases, a bank covers the check amount despite insufficient funds. This is known as an overdraft. The check won’t bounce, but you’ll likely get hit with an overdraft fee, which can average close to $35.

•   Late payment fees: If the bounced check was intended for a bill payment, such as a credit card bill, you may also get hit with a late payment fee from the biller.

•   Returned check fee: If you’re on the receiving end of a bounced check, your bank may charge you a returned check fee for processing a bounced check. In addition, you might assume the check cleared and end up spending money you don’t actually have. This can result in overdrafting your own account and fees.

What Happens if My Check Bounces?

You might accidentally end up bouncing a check if you write a check without looking into your account balance first, or if a check you wrote to someone doesn’t get cashed for a few months and you no longer have sufficient funds in your account to cover it.

When your check bounces, you will likely get hit with bank fees. But there are some other negative consequences that can follow as well. Here are some to keep in mind.

Outstanding Debt

When a check bounces, the payee doesn’t receive the promised funds. This means you still have an outstanding bill. For example, if your rent check bounces, the landlord doesn’t receive your payment. This means you have an outstanding debt to your landlord until you can pay the rent.

Potential Harm to Your Banking Reputation

Banks report consumer banking behavior to ChexSystems, an agency that collects and shares information about a person’s banking history with financial institutions. If you have a history of bounced checks (or other problems such as unpaid fees and forced account closures), your ChexSystems report will reflect that. A blemished report could make it hard for you to open a new bank account in the future.

Risk of Account Closure

If you bounce enough checks, your bank could freeze or close your account. If you’re having trouble managing your checking account, it’s a good idea to reach out to a bank representative and explain your situation. The bank may be willing to work with you if they see you’re actively trying to resolve the problem.

Recommended: 3 Reasons Why You Have a Frozen Bank Account

Legal Consequences

It’s illegal to knowingly write bad checks. If you write checks and you’re aware that you don’t have enough money to cover them, you could be charged with a misdemeanor or even a felony, depending on the amount and quantity of unpaid transactions.

What Should I Do if My Check Bounces?

If you discover that your check has bounced, it’s crucial to act quickly to mitigate the consequences. Here are key steps to follow:

1.    Contact the payee. You’ll want to reach out to the payee as quickly as possible, explain the situation, and express your intention to resolve the issue. This can help maintain goodwill and prevent further actions.

2.    Pay up quickly. Whether you add funds to your account and write a new check or find a different way to make the payment, making good on what you owe can help prevent the bounced check from turning into an outstanding debt. While a bounced check doesn’t get reported to the credit bureaus, if it leads to a missed or late payment, it could potentially impact your credit.

3.    Request a fee waiver. It can be worthwhile to ask your bank if they can waive the NSF fee, especially if it’s your first offense or due to an unexpected situation.

4.    Monitor your account. You’ll want to keep a close eye on your account balance and transactions to avoid future bounced checks.

What Should I Do if I Receive a Bounced Check?

If you receive a bounced check, you’ll want to contact the payer promptly. Inform them that the check has bounced and request immediate payment via an alternative method.

If the payer assures you that funds are now available, you can attempt to redeposit the check. If possible, you might opt to cash the check at the issuer’s bank so that if it bounces again, you won’t get hit with another NSF charge by your bank.

If you’re having trouble getting a response from the check issuer, you might decide to send them a “bad check” demand letter. This is a formal request for payment that you send to the issuer by certified mail. It’s a good idea to include as many details as possible in the letter.

If the payer continues to be unresponsive or unwilling to pay, you may need to take legal action. This typically involves suing the check issuer for the money owed in small claims court.

Preventing a Check From Bouncing

Preventing bounced checks involves careful financial management and awareness. The following safeguards can help:

•   Monitor your account. It’s important to regularly check your account balance and transactions to ensure you have sufficient funds. You can use your bank’s app or a budgeting app to keep track of exactly what’s going in and out of your account.

•   Set up alerts. Many banks offer account alerts via text or email for low balances or large transactions. Utilizing these alerts can automate the process of checking your balance and can help you stay informed.

•   Consider overdraft protection. This service can cover transactions when your account lacks sufficient funds, typically for a fee. Your bank might also allow you to link your checking account to your savings account or line of credit at the same bank. When there’s not enough cash in your checking account to cover a transaction, money will automatically be transferred from the linked account. Before you consider this option, though, you’ll want to check whether your bank charges a fee for the service.

•   Maintain a buffer balance. Though you might prefer to keep most of your cash in a high-yield savings account to benefit from the interest, it’s a good idea to keep a financial buffer in your checking account to cover unexpected expenses and avoid overdrafts.

•   Don’t accept payment by personal check. To avoid receiving a bad check, you may want to request payment by a cashier’s check, certified check, or money order, which come with more guarantees than a personal check.

Recommended: Avoiding Overdraft Fees: Top 10 Practical Tips

The Takeaway

Bounced checks can lead to expensive fees and even make it difficult to open new checking and savings accounts. However, you can avoid them with a little planning and attention to detail. Key measures include keeping a close eye on your account balance, setting up account alerts, and implementing safeguards such as overdraft protection and linked accounts. If you’re in the market for a new checking account, you might also want to look for a bank that doesn’t charge overdraft fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

Who gets charged for a bounced check?

Unfortunately, both the check writer and the recipient may have to pay a fee if a check bounces. The person who wrote the check may have to pay a non-sufficient funds (NSF) fee and potentially a merchant fee. The recipient of the bounced check can be charged a returned check fee.

Can you get in trouble for depositing a check that bounces?

Depositing a bounced check does not typically result in trouble for the depositor, but it can be inconvenient and may involve fees. Your bank may charge a returned check fee for the failed deposit. If you repeatedly try to deposit known bad checks or are involved in fraudulent activities, however, you could face legal consequences.

How long does it take for a bad check to bounce?

The time it takes for a check to bounce can vary. When a check is deposited, the payee’s bank will submit it to the payer’s bank for verification, and if the payer’s bank identifies insufficient funds or other issues, the check will be returned unpaid. This process typically takes two to five business days, but it can take longer depending on the banks involved and the specific circumstances.

Do bounced checks affect my credit score?

Bounced checks do not directly impact your credit score because they’re not typically reported to credit bureaus. However, the consequences of a bounced check can indirectly affect your credit. If the bounced check leads to unpaid bills, collections, or legal action, these events can be reported to the consumer credit bureaus and negatively impact your credit.

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Photo credit: iStock/nortonrsx

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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.

*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.

SOBNK-Q126-139

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While there’s no official guideline on what makes a salary “good,” a $20,000 salary a year isn’t typically enough for a household to live comfortably on in most parts of the United States. Although everyone’s situation is unique in terms of their assets and expenses, someone making $20K a year may have a hard time making ends meet. They might need to rely on assistance from family, friends, and/or the government to afford basic necessities.

A $20,000 salary puts a single person above the poverty threshold for 2026. An individual supporting themselves plus one or more people on $20K a year, however, will live below the poverty threshold. With the current high inflation rate, affording basic needs on a $20,000 salary has become even more challenging.

So is $20K a year good? While a $20,000 salary averages out to more than the federal minimum wage of $7.25/hour for full-time work, it’s likely not an adequate income for someone living independently and especially someone with a family. In this piece, we’ll cover:

•   The current American median income

•   Is $20K a year good?

•   A breakdown of a $20,000 salary

•   The best and worst places to live on $20,000

•   Tips for living on $20K a year

Factors to Determine if a $20,000 Salary Is Good

A $20,000 salary will be challenging for anyone to live on, but a few factors may determine whether it can be done.

•   Taxes: If you’re filing singly, a $20,000 salary would typically put you in the 10% federal income tax bracket after the standard deduction. You may owe additional taxes for your state, city, and/or school district. For example, assume a flat 15%. That means that although you make $20,000 annually, you only bring home $17,000 after taxes.

•   Family size: Single individuals without children may be able to stretch $20,000 more easily, while two or more people living off a $20,000 salary will face more challenges.

•   Location: Money goes further in some places than others. If you live in an area with a low cost of living, a $20,000 salary may be more manageable. But if you live in a popular city, $20,000 a year may not even cover your rent.

•   Debt: If you have debt, it can be more challenging to allocate your limited money to basic necessities and important financial goals, such as building an emergency savings fund. If you’re dealing with high-interest debt, you probably know how quickly this debt can grow when you’re only paying the minimum amount due.

How Does a $20,000 Salary Compare to the American Median Income?

According to the latest U.S. Census Bureau report, median household income was $83,730 in 2024. Keep in mind, though, that this number represents all households, which may include more than one earner. According to the Bureau of Labor Statistics, the median weekly earnings for American workers in the first quarter of 2026 amounted to $1,235, which equals$64,220 per year.

Either way, $20,000 is far below either estimate for a median income. If you earn $20,000 and have a domestic partner or a spouse who earns additional income, your combined salaries might get you closer to the median income level.

Recommended: Is a $100,000 Salary Good?

$20,000 Salary Breakdown

Again, no judgment here: It’s not a matter of whether a $20,000 salary is good or bad. To someone just out of high school, $20K a year might look like a good entry-level salary. But anyone who has handled monthly bills, such as rent and utilities, will likely recognize that a $20,000 salary may be insufficient.

Here’s how a $20,000 annual salary breaks down:

•   Monthly income: $1,666.67

•   Biweekly paycheck: $769.23

•   Weekly income: $384.61

•   Daily income: $76.92 based on working 260 days a year

•   Hourly income: $9.62 based on working 2,080 hours a year

These estimates don’t account for taxes. In the example above, a $20,000 salary may shrink to $17,000 after Uncle Sam has taken his cut.

Recommended: For other salary conversions, use our Salary to Hourly Calculator.

Can You Live Individually on a $20,000 Income?

It’s possible to live individually on a $20,000 income, but you’ll likely only be able to afford the items on your basic living expenses list if you can’t supplement your income. Living comfortably — with access to good health care (including mental health care), balanced nutrition, safe housing, and efficient transportation — may be far more challenging on $20,000 a year.

If you make $20,000 a year, you might be able to minimize monthly expenses by looking for government assistance, getting a roommate or moving in with family, cooking at home, and using an online bank account with a high interest rate and automatic savings features.

How Much Rent Can You Afford Living on a $20,000 Income?

Wondering how much you can afford to spend on rent? Researchers have long argued that you should spend no more than 30% of your income on housing. With rising inflation and increasing rent prices, however, that’s not always possible.

If you were to stick to the 30% rule (and forget about income taxes for the sake of this example), that means you can spend $6,000 a year on rent, or $500 a month. But the average cost of rent in the U.S. was $2,000 as of May 2026, according to Zillow. That’s about four times what you could afford on $20K a year.

To afford rent on a $20,000 salary, it’s a good idea to reside somewhere with a very low cost of living and have one or more roommates who can help share living expenses, such as rent and utilities, with you. Moving in with family is also a solution if you cannot afford rent on your salary.

Best Places to Live on a $20,000 Salary

If you’re making $20,000 a year (or $9.62 an hour), it might be a good idea to explore cities and states with a low cost of living.

These are the five least expensive cities to live in for 2025-2026, per U.S. News:

•   Decatur, Illinois

•   Huntsville, Alabama

•   Weirton, West Virginia

•   Springfield, Illinois

•   Mission, Texas

Living outside a city altogether is usually more affordable. Consider a rural location in one of these five cheapest states to live in:

•   Arkansas

•   Mississippi

•   West Virginia

•   South Dakota

•   Oklahoma

Recommended: Typical Monthly Expenses for a Single Person

Worst Places to Live on a $20,000 Salary

On the flip side, there are some major cities that are exorbitantly expensive to live in. If possible, avoid moving to the following locations if you’re living on $20,000 a year:

•   Newport Beach, California

•   Westminster, California

•   Daly City, California

•   Spring Valley, New York

•   Huntington Park, California

California cities clearly carry a high cost of living, but some other states are also expensive. If you have a $20,000 annual salary, it’s a good idea to steer clear of the following five most expensive states to live in:

•   Hawaii

•   New Jersey

•   California

•   Massachusetts

•   Maryland

Is a $20,000 Salary Considered Poverty?

A $20,000 salary is above the poverty line for an individual, but if you’re a couple or a family of three or more people living on a $20,000 salary, the government considers you to be below the poverty line.

These numbers don’t consider factors such as variable cost of living. A localized poverty line could be more telling, especially if you live in a place with a high cost of living. If you’re, say, living in a pricey city and earning $20,000 a year, you might be feeling the financial pinch more.

Tips for Living on a $20,000 Budget

While advocating for a higher salary can infuse your line item budget with more funds, you can’t necessarily count on a raise. Taking other steps now may make it easier to live on your $20,000 salary.

Finding Out What Assistance You Qualify For

If you’re making $20,000 or less, you may qualify for government assistance. Here are a few actions to consider taking.

•   Work with the U.S. Department of Housing and Urban Development for assistance with rent, including the Section 8 program.,

•   Determine whether you’re eligible for assistance with grocery bills through the Supplemental Nutrition Assistance Program (SNAP).

•   Research the Low Income Home Energy Assistance Program (LIHEAP) to help with utilities.

•   See if you can lower your phone bill through the Lifeline program.

•   Find out if you’re eligible for free or low-cost health coverage through Medicaid and the Children’s Health Insurance Program (CHIP).

Coming Up With a Housing Plan

If you don’t qualify for rental assistance from the government, you may need to come up with another plan to avoid high rent costs. Roommates can be a good way to keep rent low.

Alternatively, family and friends may be willing to offer free lodging while you save money. While it can be hard to lean on others in this way, it can be a form of financial self-care until you’re able to be out on your own. If you do move in with a loved one, just remember to be helpful around the house and chip in to pay for utilities and groceries if you can.

Cutting Costs

After reducing your largest cost (rent), it may be possible to reduce other costs in your budget. For example, a car payment, gas, and car insurance can be costly monthly expenses. If you live in an area with great public transportation or are comfortable walking and riding a bike, you may be able to get around without owning your own vehicle.

Other costs you might be able to cut include streaming services, gym memberships, and bills from dining out.

Getting on a Budget

After finding low-cost housing and trimming unnecessary expenses, it’s a good idea to make a monthly budget that accounts for your post-tax income and your monthly expenses.

Not sure how to budget on a $20K salary? Taking care of all necessary bills (housing, utilities, groceries) is the perfect first step. Once you’ve accounted for those monthly expenses, see how much you can allocate to paying down debt or building your savings.

Recommended: How to Save Money From Your Salary

Avoiding the Wrong Kinds of Debt

Taking on debt is often necessary — when buying a house, purchasing a car, or even going to college. But when you make a low salary and struggle to pay the bills, it can be tempting to take out a payday loan or overuse a high-interest credit card.

When possible, it’s a good idea to avoid high-interest loans. In fact, instead of taking on more credit card debt, you may be able to take control of your bad debt by applying for a debt consolidation loan. These are typically personal loans that may charge an interest rate that’s significantly lower than your credit cards’ rates. You use the loan to pay off the cards and then work on eliminating the personal loan.

You might also meet with a counselor from a nonprofit debt counseling organization such as the NFCC.

Recommended: Debt Repayment Strategies

Supplementing Your Basic Income

You might also consider ways to bring in more income to pump up your spending power. This could include seeing if additional hours are available at your primary workplace, as well as taking on a seasonal part-time job or starting a side hustle. These are all ways to use some of your leisure time to bump up your income.

The Takeaway

A $20,000 salary a year is usually not enough for a family to live on, and it may also be difficult for individuals to get by on this salary. It’s a good idea to research government assistance, look for roommates to lower rental costs, and build (and stick to) a monthly budget that prioritizes paying down debt and building emergency savings. These steps can help you live on a $20,000 annual income.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

Can you live comfortably on $20,000 a year?

It can be difficult for an individual to live comfortably on $20,000 a year. With the right assistance from friends, family, and the government, however, it may be possible to meet basic needs. Families will face more challenges living off $20,000 a year.

What can I afford making $20K a year?

A $20,000 salary may leave room in your budget for the most basic expenses: rent, utilities, transportation, and groceries. Even then, getting government assistance and a roommate might be necessary for managing monthly expenses on $20K a year.

Is $20,000 a year middle class?

According to the most recent data from the Pew Research Center, middle-income households make about $56,600-$169,800. Thus, a family living on $20,000 isn’t considered to be in the middle class — they actually fall below the poverty level. While an individual earning $20,000 a year isn’t below the poverty line, they’re still not considered middle class.

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Photo credit: iStock/svetikd

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet. We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/. ^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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