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From unemployment benefits to hardship programs, there are a number of options out there when it comes to managing money during difficult times. One option that people may consider during unemployment is a personal loan. But one important question is: Can you get a loan while unemployed?

While there are personal loans for the unemployed available, it’s important to carefully assess the downsides and the benefits before moving forward. You’ll need to ensure you’ll be able to pay back the loan even if money gets tighter, and you should also be prepared for a more challenging approval process.

Personal Loan Basics

At its most simple, a personal loan is when a lending institution pays out a lump sum of money to a borrower, who then pays back the amount owed plus interest over a predetermined period of time.

Unlike a mortgage or student loan, a personal loan isn’t tied to a specific expense. In other words, someone might take out a personal loan to cover the cost of paying for a dream wedding, to remodel a kitchen to get rid of that hideous linoleum, or to cover living expenses during a time with low cash flow — there are a number of common uses for personal loans.

Personal loan amounts can typically vary from $1,000 to $100,000, depending on the lender’s guidelines, the amount a borrower requests, and the borrower’s creditworthiness. While the lender pays out the amount of the loan in one lump sum to the borrower (minus any origination fee), the borrower pays back the loan over time in installments, often over a period of 12 to 60 months.

Personal loans are generally unsecured loans, which means they do not use collateral to secure the loan. Instead, lenders may look at borrowers’ creditworthiness to determine the risk in lending to them and their interest rate.

The interest rate for personal loans can vary for different borrowers depending on a borrower’s creditworthiness. Rates can range anywhere from around 5% to over 35%. Interest is paid back alongside the principal amount in monthly payments that are made over the life of the loan.

When Should You Consider Taking Out a Personal Loan While Unemployed?

Ideally, you’d avoid taking on debt while you’re unemployed and don’t have regular income coming in from a job. You might first explore any other options available to you to free up funds, whether that’s taking on a side hustle, getting a roommate, or reassessing your budget. However, there are some circumstances when taking out a personal loan while unemployed may be doable, and it can be a better option than resorting to a high-interest payday loan or expensive credit card debt.

If you’re considering a personal loan while unemployed, you should first assess whether you’ll realistically be able to make on-time payments on your loan each month. Not doing so can lead to late fees and impacts to your credit score. Think seriously about what you’d do in the worst-case scenario if you really couldn’t make a payment. You may even consider crunching the numbers using a personal loan calculator to determine if a personal loan would net you any savings over another borrowing option.

It’s also important to understand what lenders will look for when determining whether to approve you for a loan while unemployed. You’ll generally need a strong credit history and credit score to qualify. Additionally, lenders will want to see some income in order to prove you’ll be able to make monthly payments. Without a regular paycheck coming in during unemployment, this could be Social Security benefit payments, disability income, money from investments, or even your spouse’s income, among other alternatives.

Are There Downsides to Taking Out a Personal Loan While Unemployed?

Taking out a personal loan may seem appealing to someone who is temporarily out of work because it might be relatively quick to secure and can come with lower interest rates than credit cards. But as with all financial decisions, it’s important to understand the pros and cons of taking out a personal loan while unemployed before applying.

Here are the downsides of taking out a personal loan while unemployed:

•   It will likely be harder to qualify for a loan while unemployed. While you can get a personal loan without a job, it may be more difficult to qualify. Lenders look at a variety of factors when determining whether to offer a borrower a loan, like income, debt-to-income ratio, credit history, and credit score. This data helps them determine how likely it is the borrower will pay back the loan. If a borrower is unemployed, they won’t necessarily have income to show, and their debt-to-income ratio might be much lower than it would be with a stable income. Of course, different lenders have different criteria for lending, and the ultimate decision is determined by that specific lender.

•   Lenders may charge higher interest rates. Some lenders may offer higher interest rates to unemployed personal loan borrowers. This is because of the additional perceived risks of lending to someone who is unemployed.

•   Borrowers are taking a risk. The risk isn’t just for lenders when getting a loan while unemployed. When deciding whether to apply for a personal loan during unemployment, it’s important to consider your ability to pay a higher interest rate or make monthly payments. If a borrower is struggling to make ends meet, a loan payment could be impossible to pay on top of other expenses. And defaulting on a personal loan can be even more expensive: Borrowers could face late fees for missed payments and fees if the loan is sent to collections, not to mention a hit to their credit score if they’re unable to make payments.

Are There Benefits to Taking Out a Personal Loan While Unemployed?

There may be upsides for someone who is unemployed to take out a personal loan. Benefits of personal loans for unemployed individuals can include:

•   Personal loans can be more flexible than other types of loans. Borrowers can use the money from a personal loan for almost anything. This might make it an appealing choice for borrowers who may not have their normal income coming in due to unemployment.

•   It may be less costly than other borrowing options. A personal loan may come with lower rates than a credit card, which can be a major benefit when it comes to saving money. Additionally, the fixed term of a personal loan could help borrowers save over the life of a loan. This is because unlike with a credit card, you’d pay a set amount monthly over a set term, which means payments don’t roll over and continue to accrue interest.

•   You could consolidate existing debt. Another potential benefit of taking out a personal loan during unemployment could be consolidating other debts. In fact, a common reason borrowers may choose a personal loan is to consolidate credit card debt. Sometimes called debt consolidation loans, this type of personal loan can help borrowers save money if they can secure a lower interest rate than they’re currently paying on their credit cards. Additionally, debt consolidation loans can streamline multiple payments into one monthly payment. Keep in mind, however, that continuing to use credit cards after obtaining a credit card consolidation loan can lead to debt continuing to pile up.

•   They can help you deal with unexpected expenses. Personal loans may be an option for borrowers who are facing unexpected expenses, like medical bills or moving costs. If your current financial situation or a change in jobs has necessitated a move, a personal loan may be a way to pay for those unexpected costs without relying on credit cards.

To recap, here’s a rundown of the downsides and benefits of personal loans for unemployed individuals. While you potentially can get a loan while unemployed, you’ll want to make sure you’re aware of and comfortable with both the pros and the cons:

Does SoFi Offer Personal Loans for Unemployed People?

SoFi does offer personal loans for unemployed individuals, assuming applicants meet other conditions. If you are not currently employed, it’s necessary to meet one of the two following eligibility criteria:

•   Have sufficient income from other sources

•   Have an offer of employment to start within the next 90 days

Beyond these conditions regarding employment and income, SoFi also has a number of other requirements that borrowers must meet. Additionally, SoFi will consider an applicant’s financial history, credit score, and monthly income vs. expenses.

Improving Your Chances of Getting Approved for a Personal Loan While Unemployed

If you’re hoping to get a personal loan while unemployed, there are steps you can take to increase your odds of getting your personal loan approved.

For one, it helps to familiarize yourself with your own financial situation. Check your credit to see if it falls within a lender’s requirements, assess your current sources of income now that you’re unemployed, and take a look at how your current monthly debt payments compare to your monthly income. These are all factors that lenders will take into account when determining whether to approve the loan application, so the better they look, the better your chances that the lender’s answer will be a yes.

If you’re not confident you can get approved for a personal loan with your financial situation as is, you might consider taking some of the following actions:

•   Increase your income: While this might seem like a no-brainer if you’ve recently lost your job, there are other ways to approach adding to your sources of income while you’re on the job search. You could pick up a side hustle or get a roommate. Also take the time to review what counts as income for credit card applications — you might find you’ve forgotten to include something. (Remember, unemployment benefits count as income.)

•   Minimize your debts: If your debt-to-income ratio is way out of whack, that could lower your odds of approval. Consider ways you could cut costs, whether that’s downsizing your home, moving in with a friend or family member in the meantime, or selling off a car that’s saddling you with monthly payments.

•   Consider adding a cosigner: In this situation, another option could be to ask a friend or family member with good credit and a steady income to serve as a cosigner. Adding them to your application may make it likelier that a lender will view you favorably. Just remember that if you fail to make timely payments on your loan, you could damage your cosigner’s credit and stick them with the payments — not to mention the harm it could do to your relationship.

Choosing a Personal Loan

Borrowers interested in a personal loan might want to consider all the pros and cons before taking one on during unemployment. If a personal loan sounds like it might be the right solution, borrowers may want to do a little bit of preparation beforehand. It’s never a bad idea for a borrower to figure out exactly much they want to borrow in advance. But remember — borrowers should only borrow the amount they need.

Taking a look at the affordability of monthly payments may also help a borrower determine how much to borrow. Additionally, borrowers may wish to pull up their financial documents and take a peek at their current credit score and overall financial health before applying for a personal loan.

If a borrower is ready to apply, it’s important to look for one that meets their specific needs. For one, they’ll need to find a lender willing to work with unemployed borrowers, if that’s their current situation.

With SoFi, the next step in applying is to get prequalified. Prequalification with SoFi doesn’t affect your credit score and lets you see what interest rate you may qualify for. While SoFi offers easy online prequalification, it’s important to look around and determine which, if any, personal loan is the best for you.

With SoFi, you may qualify for a personal loan for between $5,000 and $100,000 with no origination fees required. Plus, if you take out an unsecured personal loan and then lose your job, you may be eligible for forbearance on your payments and assistance finding a new job in the meantime.

The bottom line: While applying for a personal loan with SoFi is possible, you should properly assess the associated risks first — especially if you’re getting a loan while unemployed.

FAQ

Can you use a personal loan as an unemployment loan?

Yes, it is possible to use a personal loan as an unemployment loan. However, in order to qualify for a personal loan while unemployed, you’ll still need to meet a lender’s eligibility requirements. This generally includes demonstrating some type of regular income.

What are the benefits of using an unemployment loan?

While risky, personal loans for unemployment do offer a number of benefits, including flexibility in how you use the funds, potentially lower costs than other borrowing options, and the choice to consolidate existing debt. A personal loan could also come in handy if unexpected expenses arrive, such as a surprise medical bill or an unanticipated move.

Are there any fees associated with unemployment loans?

Personal loans taken out during unemployment can absolutely carry fees. Whether and which fees apply will depend on the lender. Common fees you could face include origination fees, late fees, and prepayment penalties.

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

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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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

SOPL0922007

For many people, clothing is a favorite purchase, and shopping for new looks is practically a hobby. Fashion is a way to express your personal style; a new pair of jeans or boots can be a major mood-lifter.

But let’s face it, clothes can be expensive. If fashion is your weakness, it can take a big bite out of your budget. According to the Bureau of Labor Statistics, the average American household spends $1,754 a year on apparel and related services. A survey by Credit Donkey found women spend an average of $571 per year on clothing, compared to men who spend an average of $323 per year.

But some people spend considerably more, ringing up bigger bills by buying the latest handbag or designer clothes that can add the equivalent of a student loan payment to your monthly bills.

These purchases can add up over time and feel like a waste of money of your hard-earned cash. So here, learn some ways to reduce the amount you spend on garments, including:

•   How to save money on clothes

•   How to know when to shop to get the best deals

•   How to trade what you own (but are tired of) for new gear

•   How to care for your clothing so it lasts longer.

Money-Saving Tips for Buying Clothes

There are ways you can cut down on your clothing expenses but still score some pieces you can’t wait to wear. Here’s 15 suggestions on how you can save money on clothes without feeling deprived or out of sync with the latest styles.

1. Shop the End-of-Season Sales

Ever notice how spring and summer clothing seems to go on sale in June or July? Or fall and winter clothes in January? The reason is because stores need to sell that merchandise so they can make room for next season’s items. Time it right, and you can scoop up current seasonal clothing at steep discounts. Just don’t go shopping the second that next season’s looks hit the racks.

2. Host a Clothing Swap

You know the saying, someone else’s trash might be your treasure. A cost-free way to get some new pieces is by arranging a clothing swap. The ground rules: Everyone brings clean, gently used clothes they’re looking to unload, and attendees get to sift through other’s clothing and add to their wardrobe for free.

A clothing swap is a great way to combine socializing and “shopping.” If you want to host one, heed this advice:
Make sure you’ve got a big enough space where everyone can comfortably peruse and try on items.

•   Invite people who are roughly the same clothing size.

•   Set a minimum number of pieces they need to bring.

•   Don’t feel like being the coordinator? Check out Meetup.com and Eventbrite.com to find swaps near you.

3. Ask for a Discount on Damaged Clothing

Here’s how to save money when shopping for clothes: If you find something you love but notice slight imperfections such as a small tear, loose thread, or a flaw in the fabric, bring it to the attention of a store employee. You might be able to get some dollars knocked off the retail price. If the salesperson doesn’t offer this, you can politely ask if the price can be lowered to reflect the garment’s condition.

Think it’s not worth the trouble? Remember why saving money is important. Every little bit of extra cash you sock away can be used to pay down debts or go towards a goal like funding a summer vacation.

4. Look for Coupon or Promo Codes

Before making a purchase, search the internet to see if the retailer offers a store coupon or promo code you can use when shopping online. You can find available coupon or discount codes at sites such as Retailmenot.com, Rakuten.com and BeFrugal.com, which all offer cash back for purchases made. Many times, if you are a first-time customer, you can snag a discount and/or free shipping by signing up for email announcements.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. An online bank account is more likely than brick-and-mortar to offer you the best rates.

5. Mend Your Clothes

Are there things hanging in your closet you’re not wearing simply because a button is missing or the garment has a small hole? Instead of taking it to a tailor, buying something new, or avoiding it altogether because it needs repair, try fixing it on your own. Basic mending doesn’t require a lot of tools and is pretty easy.

As long as you’ve got the basics such as a needle, thread, scissors, or buttons if needed, you’re good to go. If you’re not sure about your hand sewing skills, you can find a slew of how-to videos on YouTube.com. Also check out Japanese mending, which elevates visible mending into an art form.

5. Buy Generic Brands for the Basics

When it comes to certain articles of clothing, purchasing a generic brand over a name or designer one can save you money without jeopardizing your style. Any item you wear under something, like a tank top or a tee shirt, doesn’t need a fancy label to serve the purpose. Why buy a white tee at a high-priced store for $50 or $90 when a similar one at a national chain retailer costs only $5?

Recommended: Tips for Overcoming Bad Financial Decisions

6. Create a Capsule Wardrobe

Having a capsule wardrobe means you’ve created a streamlined clothing collection that features well-made, non-trendy pieces that can all be mixed and matched. The idea is to spend a little more on the items initially. In the long run, however, you save money because these higher quality garments will last longer and not have to be replaced every few months.

A capsule wardrobe also offers timeless, versatile clothing choices instead of a closet full of flash-in-the-pan styles. Not having a large wardrobe may also benefit your overall wellness. One study found 37% of people said minimizing their wardrobe would reduce the stress of getting ready every day.

7. Wash Your Clothes Properly

Laundry mistakes can damage your clothes. For instance, washing certain fabrics in hot water can cause shrinkage, fading, and wrinkling, as well as can trigger dye to run. However, using cold water is much more clothing-friendly so you won’t be in danger of destroying a garment. You can also save on your gas or electric bill since an estimated 75% to 90% of all of the energy used in your washer goes to heating up the water.

Another way to extend the life of your clothes is by not washing every single item after one wear, with the exception of course, of underwear and socks. Why? Each time you wash your clothes, you’re putting stress on the fabric. By wearing your clothes a few times before washing, you can minimize any damage. Doing so will not only save your clothes, but you’ll also spend less on laundry detergent.

8. Borrow from a Friend

Going to a gala event or attending a wedding but can’t afford to buy anything? Consider asking that generous, stylish friend if you might be able to borrow from their closet. This can spare your bank account and allow you to get dressed up in something new and fresh to you. The only cost you might incur is taking the garment to the dry cleaners after.

Don’t have a friend with a fab wardrobe? Consider renting an outfit for your big night out.

Recommended: 18 Common Misconceptions About Money

9. Figure Out Cost Per Wear

Looking for more ideas for how to save money on clothes? Maybe it’s time for a bit of easy math. Since you likely want to feel as if you’re getting your money’s worth when you buy an article of clothing, pay attention to how often things get worn. If a piece is costly and you’ve only worn it once, you’re not reaping its full value.

You can figure out if your money was well spent by calculating the cost-per-wear ratio. Just divide the item’s cost by how many times you wear it. For example, if you buy a coat for $100 and wear it 100 times, your cost per wear is $1. On the flip side, if you’ve only worn it five times, each wear is equivalent to $20 which probably hasn’t given you the most bang for your buck. Before you buy the clothing, take time to do the math to assess how many times you realistically expect to wear it.

10. Upcycle Your Clothes

Upcycling clothing is taking something old, recycling it, and making it into something new to wear. Repurposing clothing is one of the many interesting ways you can save money.

Upcycling clothes can include sewing, cutting, dyeing, or even updating a cardigan with new buttons. Fun examples of upcycling include hand-painting a jean jacket, cutting a pair of jeans into shorts, creating a tote bag from a sweatshirt, or transforming a wool blanket into an autumn coat or cape.

Upcycling is also eco-friendly. According to the Council for Textile Recycling, the average American throws away 70 pounds of clothing and other textiles every year. Not only does upcycling help you buy less and keep excess fabric out of landfills, it’s a way to save money and live sustainably.

11. Retool Your Clothing Budget

One way to stop overspending on clothing is to figure out how much you’re actually shelling out each month and then set a limit. There are several different budgeting techniques, such as the 50-30-20 rule. This divides your take home money into three categories: needs (50%), wants (30%) and savings and debt repayment (20%). ****

The needs category encompasses expenses you can’t avoid like groceries, housing, and utilities. Generally clothes fall into the discretionary wants group along with entertainment, dining out, monthly subscription expenses. Some financial experts suggest limiting clothing spending to 2 to 2.5% of your take-home pay which equals between 6 to 8% of the 30% of non-essential purchases. If you make $4,000 a month, 30% of that amount equals $1,200. 6 to 8% of that figure equals an allotment of $72 to $96 a month for apparel. If that doesn’t sound like enough, you’ll want to see what other non-essentials in the wants category you can scale back.

Recommended: Guide to Practicing Financial Self-Care

12. Go Shopping in Your Own Closet

Do you really know what’s in your closet or tucked into all your dresser drawers? Go through your entire wardrobe, and you might find things you forgot you had or thought you got rid of years ago. Unearthing items you haven’t seen or worn in awhile can spark creativity with clothing combinations and stretch your wardrobe.

On the other hand, you may realize some pieces lingering in the corners of your closet hold no interest. If that’s the case, keep reading for details on how you might get some money for it.

13. Buy and Sell Used Clothing

There’s no question you can save money by shopping for second-hand clothing. You can find bargains at a variety of places including thrift stores, consignment shops, garage, yard, or stoop sales, and even for free through community groups such as Buy Nothing. Two sites, among others, where you can sell your old stuff are Poshmark.com and Depop.com. Both are great for finding brand-name and designer garb for cheap.

And, the pickings are plentiful since secondhand shopping is at an all time-high with 82% of Americans buying or selling used goods, according to OfferUp’s Recommerce Report.

What’s more, some vintage and used clothing shops also buy from people like you. Check out Buffalo Exchange and Crossroads Trading; you might get cash for your gear or be able to swap it for pieces you love.

Recommended: Tips for Using a Credit Card Responsibly

14. Don’t Give into Temptation

One way to curb clothes spending is to put a temporary kibosh on shopping for these items. Try not to put yourself in situations where you may feel the urge to buy clothing. For instance, many people spend money when bored. Instead of going shopping when you have an unplanned afternoon, perhaps you could explore new hobbies.

Also, when you find yourself with the urge to shop, stop and ask yourself, “Do I truly need this or do I simply want it?”

You can also commit to a 30-day no-spending challenge on shopping for anything to wear. You may notice you have more money, less credit card debt, and don’t feel the need to buy unnecessary clothing items after you see the rewards of this month of not buying.

Recommended: Questions You Should Ask Before Making an Impulse Buy

15. Learn When Retailers Have Their Biggest Sales

Start paying attention and you’ll see a pattern as to when major retailers host their big sales. Holiday weekends such as Martin Luther King Jr.’ Day, Memorial Day, Labor Day, and the Fourth of July are popular times for stores to feature great buys along with Black Friday. For online shopping, check out deals on Cyber Monday (the Monday right after Thanksgiving) and Amazon Prime Day.

You can also ask a salesperson at your favorite stores to give you the inside scoop on when certain items might be going on sale.

The Takeaway

Clothes shopping can be fun and an ego boost, but if you’re not mindful, it’s easy to rack up the bills and possibly find yourself mired in unnecessary debt. Many times, there are ways to cut back on buying clothes, make the pieces you have last longer, and breathe new life into your wardrobe without going broke. With creativity, knowledge, and some smart moves, you can still feel good about what you wear without spending as much.

FAQ

How can I stop spending money on clothes?

One of the best ways is to simply remove the temptation, especially if you’re prone to impulse spending. If you like to shop online, unsubscribe from retailer emails so you won’t be alerted to new items and sales. Feel the itch while scrolling your phone? Put it down; pick up a book, or watch a movie instead. When you’re out and about, resist going into your favorite stores. Vow to commit to a 30-day shopping sabbatical and see how much money you’re able to save as a result.

Are there ways I can take better care of my clothing so they’ll last longer?

Yes. Follow the washing instructions carefully, let items air-dry when possible (instead of exposing them to a hot dryer), and store them in a cool, clean, and dry environment out of the sunlight, which can cause fading. Also fold heavy sweaters instead of hanging them to prevent the fabric from stretching.

Should I only buy cheaper clothes?

No. Sometimes spending more means you’ll get a well-made, high-quality garment that will last for years. Look for these pieces on sale at major department stores and at discount retailers such as T.J. Maxx and Marshalls.

Photo credit: iStock/Phiwath Jittamas

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SOBK1022006

America loves its furbabies. The percent of U.S. households with a pet is climbing — about 70% now, with more than 23 million households adding a cat or dog during the first pandemic year. That’s a lot of snuggles and pats, but they do come at a price. A price that, thankfully, is more negotiable than you think, without skimping on love or care.

Pet parents are vulnerable to the same heartstring tugs that parents of human babies feel. You want to keep them happy and healthy, paving the path to a long life, and you are willing to pay the price.

Smart shoppers, however, know how to save money on pets and where they can safely trim costs. Here, we offer 19 tips for lowering costs, including:

•   Cutting back on food expenses

•   Keeping your pet healthy for the long run

•   Reducing vet prescription costs

•   Saving on pet supplies and accessories

Common Pet Costs

Whether you select a Labradoodle from a breeder on a rustic Pennsylvania farm, adopt a tabby kitten from a crowded West Coast shelter, or anything in between, you will likely face these basic expenses:

•   Neutering or spaying

•   Collar, leash, harness

•   License fees

•   Microchipping if you choose, to track a lost pet

•   Vaccinations

•   Food, treats, and toys

•   Vet bills

•   Boarding or pet care if you travel

19 Money-Saving Tips for Pets

Pet care can get pricey. Hidden fees can pad your expenses, and even if you pay the average cost of pet insurance, your critter’s care may not be cheap.

But you can make costs more manageable. Be sure to comparison-shop and ask friends and neighbors for recommendations. These tips will also help you navigate the road to being a good pet parent without going broke.

1. Buying Pet Medicines Online

When the vet prescribes meds, it’s to help heal whatever is wrong under that fur coat. Sites like Chewy.com and PetMeds.com generally charge less for prescribed pills and ointments than your vet’s office. They also typically sell heartworm, flea and tick, and other medicines at lower prices. You can schedule autoship and qualify for free shipping at a certain spend threshold.

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2. Keeping Up with Vet Appointments

Keeping up with preventive care can be an example of how to save money on pets. Better to stay on track than skip well visits and find out an eye infection has gone untreated or that your pet has heartworm (generally detected in a routine stool sample test). A vet will typically check joints, ears, eyes, teeth, and weight, and keep your pet up to date on vaccines. (Some areas offer free rabies vaccination clinics. Check your town website.)

3. Researching Pet Insurance

Pet health insurance can cover well care or illness/accident treatment, depending on the policy, and averages from $30 to $50 per month (though some plans cost less and others might top $100 monthly, depending on the pet’s age, species, and breed). It’s advised to insure a young pet; later, a pre-existing condition may prevent coverage.

But let the buyer beware: An online search can produce a dozen lists of the “best” insurance, but most are on sites that make money from a brand if you click and purchase. Check to see if your “human” health insurer has a pet policy (Geico does, for instance). Other reputable organizations, such as the ASPCA, offer pet insurance, too.

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4. Walking Your Pet Yourself

If you are home to walk your pooch, you can save a bundle. Professional dog walkers can get pricey. Rates in the Northeast can run up to about $20 to $25 or more per visit for drop-in dog walkers and even more for group doggie daycare. The going rate for a hired kitty sitter is often about $25 per hour. Doing the job yourself or asking a young person in the neighborhood to step in can be the most money-smart option.

5. Adopting Instead of Buying

Learning how to budget for a dog? It’s generally more affordable to adopt from a shelter or rescue organization than to buy a pet from a breeder or pet store. Standard adoption fees for dogs can range from $129 to $767; for cats, costs typically run from $39 to $317. Fees may vary by breed but typically cover a veterinary evaluation, vaccinations, deworming, flea/tick treatment, and the cost of spaying/neutering.

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6. Spaying and Neutering Your Pets

If it’s costly enough to house and feed one dog or cat, what will happen if she delivers a whole litter? Spaying and neutering is the safe, recommended option for dogs and cats.

7. Researching Human Food Pets Can Eat

Avoid chocolate and other foods that can be toxic to pets (the Humane Society lists potential poisons ). Otherwise, though, some owners make their own say, rice, steamed carrots, and chicken dinner or dog biscuits (using ingredients such as peanut butter, oatmeal, and/or pumpkin). There are even some doggos with refined palates who turn up their nose at store-bought biscuits but love the home-baked ones.

Quick Money Tip:Typically, checking accounts don’t earn interest. However, some accounts will pay you a bit and help your money grow. Online banks are more likely than brick-and-mortar banks to offer you the best rates.

8. Buying a Smaller Pet

The bigger the pet, the higher the cost may run to feed, house, and even board or travel with the critter. So before you set your sights on Lassie or Marmaduke, think it over. Can you afford a large pet? A smaller animal may be a cheaper pet to own.

9. Storing the Pet’s Food Properly

Safeguard your pet’s nutrition; you don’t want to waste your investment. Keep dry kibble tightly sealed in a cool, dry place. House mice love to hoard and nibble it. Store any refrigerated pet foods in the fridge and check expiration dates.

10. Joining a Loyalty Club at a Pet Store

Sign up for no-cost rewards programs at stores like Petco and PetSmart to earn coupons or discounts. When you enroll in the PetSmart Treats Program, you can earn points for every $1 spent in stores and online and redeem them on services including Grooming Salon, PetsHotel, Doggie Day Camp, and Dog Training.

11. Making Your Own Pet Furnishings & Toys

Here’s how to save money on pet supplies: Get creative. Why buy a cute tent for your kitten? The rascal will prefer to curl up in an open sock drawer or suitcase, or inside a shopping bag. Toys? Cats adore an empty box, a ping-pong ball, or an empty paper towel tube. For dogs, forfeit a designer bed. A cute, washable throw rug on sale makes a soft sleeping pad.

12. Buying Pet Food in Bulk

If you’re driving distance to an animal feed store, price dry pet food in bulk. You may save a bundle. Costco also sells pet food and supplies in multi-packs, a bargain compared to the supermarket.

13. Grooming Your Pet at Home

Shampoos, blowouts, and pink satin bows at the groomer are pricey, and keeping a curly dog coat from matting and knotting requires frequent visits. Early on, get your pet used to at-home grooming. Buy the right tools to clip your cat’s nails and trim your dog’s hair. Brush their teeth and clean their ears, too. You can save a nice amount by DIYing it.

14. Shopping Pet Goods at Discount Stores

Below-retail stores like T.J.Maxx and HomeGoods carry pet holiday costumes, beds, and bowls. Dollar stores often stock pet items, too. (As with human food, check expiration dates on discounted pet food.)

15. Finding a Veterinary Discount Plan

Your job could help you cut petcare costs. Some workplaces offer the perk of being pet-friendly, eliminating the need for doggie daycare or a professional walker. Others provide pet health benefits for employees. Pet Assure can help you know how to pay vet bills because they lower costs at clinics in the network; ask your HR department about it.

16. Training Your Pet Yourself

To save money on obedience training, learn the basics with a guidebook and YouTube videos, or sign up for more affordable group classes at a big-box pet store.

17. Handling Your Pet’s Dental Care

This can take a big bite of your budget, especially when a dog’s teeth decay, requiring anesthesia for extractions. Ask your vet early on about the best brush and toothpaste, how often to brush, and recommended dental chews.

18. Finding Cheaper Pet-Friendly Hotels

It can be challenging to find a hotel that accepts pets when you’re traveling, and harder still to find one that doesn’t add a surcharge for the privilege.

Nearly all Red Roof Inns welcome pets for free. (They can’t top 80 pounds, so maybe not an option if yours is Clifford-size.) Other hotels may charge up to $50 or more per night or up to a $75 pet fee per stay, on top of your rate as a human. Doing your research before you hit the road can help you identify the cheapest way to travel with pets.

19. Getting Free Secondhand Crates and Carriers

Rather than buying new, check swap sites for dog crates and cat carriers, or ask on your Facebook page. Many people no longer have a pet but still have a crate or carrier in the basement. As any new parent knows, the importance of saving money is an even bigger issue when you add a new member to your household, even if a canine or feline.

The Takeaway

Owning a pet can be costly, from vet visits to food bills. But the estimated 85 million families and singles with pets is a number that’s growing because of the unconditional love and loyalty a furry friend can bring. You can find plenty of ways to embrace the affection but trim the costs, from DIY grooming and dental care to bargain-hunting at discount stores for accessories.

FAQ

Are pets worth the expense?

While it’s a highly personal assessment whether a pet is “worth it,” the fact that 85 million U.S. households own pets says a lot about how much people value them. Pets can’t pay us back in money but do lavish intangible dividends, such as love, friendship, joy, loyalty, and companionship. These are gifts you cannot put a price on.

How much does a typical pet cost?

Standard adoption fees for dogs can range from $129 to $767; for cats, costs typically run from $39 to $317. If you buy an animal, there’s a wide range of costs. You could spend very little with someone locally whose cat had a litter or you might pay top-dollar for a purebred dog. After the first year, cat owners can expect to pay about $801 annually and dog owners $875 a year in standard expenses.

What is generally the biggest expense to owning a pet?

Typically, the biggest expense of pet ownership is vet care. A new pet will cost more, due to spaying/neutering. But even after that, you can easily spend several hundred dollars annually to cover well checks and vaccines. For this reason, some people investigate pet health insurance to help with the cost.

Photo credit: iStock/alexei_tm

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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