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When someone applies for a personal loan, there are many moving parts and people involved. While each lending institution has its own process, loan applicants can expect to meet with a loan officer, a loan processor, or an underwriter.

There’s some overlap in these roles, so let’s take a closer look at what each role involves.

What Is a Personal Loan Officer?

A loan officer evaluates loan applications and determines whether or not to recommend them for approval. A personal loan officer is a specific type of loan officer who focuses on personal loans. Personal loan officers are generally employed by credit unions, banks, and financial institutions.

Generally, a personal loan officer takes on the following job responsibilities,:

•   Contacting potential borrowers to see if they need a loan

•   Working with loan applicants to gather information required for the application

•   Walking applicants through the different loan types available to them and their unique terms

•   Collecting, verifying, and reviewing an applicant’s financial information (e.g., credit score, income, and other factors)

•   Reviewing any loan agreements to confirm they are in compliance with all state and federal regulations

•   Approving loan applications or passing them on to management for a final decision

A major part of a personal loan officer’s responsibilities happens during the underwriting process. This process is used to determine if an applicant qualifies for the loan they are applying for. Once a loan officer collects and verifies all of the necessary personal and financial information about an applicant and any corresponding documents, the loan officer assesses the applicant’s need for a loan, the loan amount requested, and their ability to repay it on time.

A loan applicant working with a loan officer can turn to them about any questions they have about what a personal loan is or about the application process. A personal loan is a type of consumer loan, and consumer loan officers may use a fully automated underwriting process using software, or they may complete it themselves (which is more often the case with smaller banks and credit unions).

💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

What Is a Personal Loan Processor?

A personal loan processor, also known as a loan interviewer or loan clerk, is responsible for interviewing applicants and other necessary parties to obtain and verify the financial and personal information required to finish the personal loan application. Once the applicant is approved for the loan, the personal loan officer prepares any documents required for the appraisal and the closing of the personal loan.

Recommended: Personal Loan Calculator

What Does a Personal Loan Processor Do?

The personal loan processor serves as a liaison between the financial institution issuing the loan and the applicant to make sure that qualified applicants can secure a loan in a timely manner. The loan processor can also help applicants decide which loan product suits their financial needs and goals. For example, if an applicant is experiencing financial hardship, the loan processor can help them set up debt payment plans.

Reviews Your Application

A loan processor receives, collects, distributes, and evaluates applicant information required to complete the loan application.

Verifies Your Information

Personal loan officers are tasked with interviewing applicants and other necessary parties in order to verify any financial and personal information that must be evaluated during the application process.

Requests Documents

As a part of the verification process, they also request and collect any necessary documents from the applicant. They are also responsible for preparing any documents required for the appraisal and closing process.

Obtains Third-Party Reports

In addition to collecting documentation from the applicant, the personal loan processor works with third parties to obtain any necessary documents and reports, such as the applicant’s credit report.

Is a Personal Loan Processor the Same as an Underwriter?

While there is some overlap between what a personal loan processor and an underwriter do, these are two different roles. A loan underwriter is a specialized loan officer who focuses on evaluating how creditworthy an applicant is by collecting and evaluating an applicant’s financial information. Typically, they then use loan underwriting software to make an approval or denial recommendation.

A loan processor also reviews how eligible an applicant is for a loan by collecting and verifying important information and documents, but they don’t use underwriting software to make a decision. The underwriter has the ability to approve or deny an applicant.

Is a Loan Officer or Loan Processor Responsible for Your Personal Loan Approval?

When it comes to a loan processor vs. a loan officer, loan officers have the ability to reject or deny a loan application, while loan processors can make a recommendation for whether or not an applicant should receive a loan.

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When Does a Personal Loan Processor or Officer Get Involved?

When someone applies for a personal loan, they’ll connect with a personal loan processor or officer when they submit their initial application. Either one can start the process of collecting personal and financial information and supporting documentation from the applicant.

What Happens During Personal Loan Processing?

During the personal loan processing stage, the applicant works with the personal loan processor to provide them with any personal information, financial information, or documentation that the personal loan processor needs to finish their application.

Recommended: A Guide to Unsecured Personal Loans

Getting Approved for a Personal Loan

Getting approved for a personal loan requires going through the underwriting process, which assesses how qualified a loan applicant is. Some firms use underwriting software to make a decision, whereas others make the decision without the aid of software.

The Takeaway

When comparing a loan officer vs. a loan processor, it’s clear that both loan processors and loan officers play an important role in the personal loan application process. Their roles often overlap, and where they work determines the exact role they take on.

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FAQ

Is a personal loan processor the same as an underwriter?

No, a personal loan processor is not the same as an underwriter, although they share similar responsibilities. A loan underwriter determines whether or not an applicant is creditworthy. A loan processor collects and verifies any personal and financial information required to complete loan applications.

What does a personal loan processor do?

A personal loan processor works with personal loan applicants to gather the information and documents needed to complete their applications. A personal loan processor also prepares appraisal and closing documents.

When does a personal loan processor or officer get involved?

A personal loan processor or officer gets involved once a consumer starts the application process. They can help guide the applicant through that process.

Photo credit: iStock/Delmaine Donson

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SOPL-Q126-030

The biweekly money-saving challenge involves putting away cash for 26 weeks, or every other week, for one year. The amount you decide to save can vary based on your goals and comfort level. This method not only helps you accumulate savings, but it also encourages you to develop consistent savings habits over time.

Types of Biweekly Money-Saving Challenges

If you’re paid twice a month, the biweekly money-saving challenge might be more suitable for your lifestyle. It’s also budget-friendly, so you can adjust this plan according to how much you have left after covering your necessary expenses.

26-Week or Biweekly Savings Challenge

There are many versions of this challenge. You can start with a small savings amount, like $3, in the first week. Every two weeks, add an extra $3 to the last amount you put away. In the second week, that would be $6, and then $9 in the third week. At the end of the 26-week challenge, if you started with $3, you’ll have $1,053 in savings.

Alternatively, you might prefer a fixed savings goal, such as $5,000 or $10,000. If so, put away $193 to $385 every two weeks. After a year, you’ll have between $5,018 and $10,010.

A money tracker can help you keep tabs on your spending and credit score and decide how much you can save.

How to Choose a Money-Saving Challenge

Choose a financial problem that you want to address. Setting targets and starting small can lead to big wins in many ways. Learning to put money aside lays the building blocks for long-term savings habits that can last a lifetime.

Find a challenge that’s budget-friendly. The amount you put away can be as little as a nickel on day one. The more you have to spare, the more you can save. Some challenges suggest using savings accounts or stashing cash. If you choose to open multiple accounts, keep in mind that traditional Federal Deposit Insurance Corporation accounts earn some interest and allow you to access funds for emergencies or planned expenses.

You might have specific financial goals, such as putting money aside for an emergency or funding a wedding. Or, you might want to build a habit of saving. Whatever your goal, a challenge can help you commit to saving $500 to $15,000 in a set period while building good habits.

Common Money-Saving Challenges

Money-saving challenges are smart saving strategies or smart spending strategies, depending on what you choose. They can show you how to save money quickly or in the long term.

And there’s no shortage of creativity. Google, TikTok, and Instagram list hundreds of money-saving challenges. You can even try saving $2,026 in the 2026 money-saving challenge. Below is a list of money challenges to get you started.

100 Envelope Challenge

In the 100 envelope challenge, you number 100 envelopes from 1 to100. Each day, choose one and put in the amount of cash written on the envelope. By the end of 100 days, you’ll have $5,050 stashed away.

Alternatively, you can break down the 100 days into 13 weeks (the final week is four days). For more manageable deposits, set aside a week’s total savings every other week. The table below details the amounts:

Holiday Helper Fund

The holidays sneak up on us quicker than we expect. If you’re planning your annual budget, set up an account or an envelope for extra funds. If you need to pay for gifts in the year ahead, be it for a holiday, a wedding, or a birthday, this keeps the money out of sight and mind until you need it.

Starting in the week of January 1, set aside $20 every week, or $40 every two weeks. By December 25, you’ll have $1,040.

52-Week Savings Challenge

In the 52-week savings challenge, you set aside $1 in week one, then continue to deposit an amount equal to the week number. By the end of the 52 weeks, you’ll have saved $1,378. You can also start with $2 or $10 in week one, $4 or $20 in week two, $6 or $30 in week three, and so on. You’ll save $2,756 with the $2 challenge or $13,780 with the $10 challenge.

Another variation keeps the weekly savings contribution at a fixed amount, which can be particularly helpful for smaller budgets. For example, you can put away $10 a week to save $520 by the end of the challenge.

No-Spend Challenge

Brunching on Sunday? Maybe not if you’re taking on the no-spend challenge.

Pick a week or weekend and only spend money on necessities during that time frame. It’ll give you a chance to be creative with your limited financial resources.

Instead of eating out, try a new recipe at home. Dig deep into your closet instead of buying a new pair of shoes. You set the time limit, so you can continue to save until you notice a change in your accounts!

Recommended: What is the 30-Day No-Spend Challenge?

Cash-Only-for-a-Month Challenge

A 2024 Forbes Advisor survey found that people tend to spend more with bank cards than with cash. A cash diet can help stave off overspending. Leave your cards at home when you go out and only take a cash amount that you’re willing to spend.

Spending stimulates the part of your brain associated with reward, pleasure, and addiction. Take this opportunity to look at the categories in your budget where you tend to overspend, such as entertainment or clothes, and set aside cash for those categories. You can only spend the cash allotted for those categories.

Recommended: What Is a Minimalist Lifestyle?

365-Day Nickel-Saving Challenge

If you have a nickel to spare, this challenge is feasible. On day one, put a nickel in a jar. On day two, put 10 cents in the jar. On the third day, add 15 cents. By day 365, you’ll be adding $18.25 to make a total of $3,339.75 in your savings. You won’t have to put away more than $20 in a day and $130 in a week for the entire challenge.

30-Day Budget Preparedness Challenge

It helps to have a map to find where you’re going. The same is true with spending.

Challenge yourself to a budget. First, download a budget planning spreadsheet template or a budget planner app. Then, go through the categories (housing, groceries, entertainment, etc.) and add the amount you must or would like to spend in each.

Knowing how much to spend before you go out can help improve your planning and control your spending. For example, if you allocate $400 a month to groceries, you can make sure you spend $100 or less a week. If you don’t spend what you allocated, you can put the surplus in your savings.

Money-Saving Challenge Potential Savings

Taking on one of these challenges can help you boost your savings by $1,000 to $10,000.

Goal-setting will help you determine how much you want to save. If your target is $20,000 in two years, try the biweekly savings challenge. If you want to have $1,000 in your account, take on the 52-week savings challenge for a fun, concrete way to start.

If spending less is your goal, a challenge can help you cut overspending habits. Setting up a budget and spending cash (rather than using cards) can help. Some challenges also help you monitor your finances if paying off debt is your goal.

Whatever your goal is, these challenges are practical journeys that can pay off.

The Takeaway

A money-saving challenge can be a fun way to build a savings account. It can motivate you to spend less and save more. It can also be a concrete demonstration of how small savings can add up.

One of the more popular options is the biweekly money-saving challenge. You can put away an amount you can afford, such as $4, and increase it by $4 each week. Or, you can set a goal of $5,000 and aim to set aside about $193 each week. It’s an easy plan that you can adapt to your situation.

After completing one of these challenges, you’ll find you have stronger budgeting skills, including saving money and prioritizing debt payoffs. These skills could help you make more fiscally responsible decisions. That way, when life happens, you’ll be better prepared.

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

FAQ

Why do people complete money-saving challenges?

Money-saving challenges help people build toward a financial target, save for a special occasion, or pay off outstanding debts. They can also be a fun way to organize your monthly budget.

What is the 100-envelope challenge?

In this popular challenge, you number 100 envelopes from one to 100. Each day, choose an envelope and put in the amount of cash written on it. For example, you add $1 to the envelope labeled one and $100 to the envelope labeled 100. By the end of the challenge, you’ll have $5,050 in the envelopes.

What is the most popular money-saving challenge in 2026?

There is no top biller in terms of money-saving challenges. However, the 52-week savings challenge often comes up in Google search results.

How much money do you save with the 52-week challenge?

If you follow the original plan of starting with $1 in week one, then $2 in week two, $3 in week three, and so on, you’ll end up with $1,378. Other variations involve changing the starting amount. For instance, you can start with $5 in week one, adding $5 more to the amount each week until you save $6,890.

Can I complete a money-saving challenge on a tight budget?

Yes. Anyone can take on a money-saving challenge, even if their monthly budget is limited. Challenges can be adapted to your own means and needs, and you can start saving with as little as a nickel. You can also extend the length of a challenge so your goals are more manageable.

Photo credit: iStock/Rawpixel

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

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

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

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

SORL-Q126-018

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

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

What Is a Credit Card Refund?

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

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

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

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

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

How Does a Credit Card Refund Work?

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

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

Types of Credit Card Refunds

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

Potential Delays for Credit Card Refunds to Appear

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

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

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

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

Billing Disputes

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

•   Being billed for a product you didn’t receive

•   Getting charged twice for the same purchase

•   Failing to receive credit for a payment

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

Merchant Delays

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

Cases of Identity Theft

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

How Does a Credit Card Refund Affect Your Credit?

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

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

Recommended: What Is the Difference Between TransUnion and Equifax

Tips to Get a Faster Credit Card Refund

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

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

The Takeaway

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

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

FAQ

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

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

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

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

Why do card refunds take so long?

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

How does a refund appear on a credit card?

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

Do credit card refunds take longer than debit card refunds?

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

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

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

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

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

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

SORL-Q126-019

A joint credit card account allows two individuals to co-own a single line of credit, sharing equal responsibility for repayment, fees, and debt, while both having access to spending power.

Joint credit cards can make sharing household finances easier, but if you’re not on the same page about using the card and paying off debt, it could mean trouble for your credit score and your relationship.

While joint credit cards are getting harder to find these days, a number of smaller banks and credit unions still offer them. Here, learn the full story on joint credit cards and their pros and cons.

What Is a Joint Credit Card Account?

A joint credit card allows two people to fully share in the responsibility of spending with a credit card and paying it off. Each cardholder receives a physical card to use, and each also has full access to credit card statements and payments.

Otherwise, a joint credit card operates just like a traditional credit card — with a credit limit and interest rate on borrowed funds. If you carry over a balance month to month, that balance will accrue interest, and both joint account owners are equally on the hook for paying it back, even if one person is doing most of the spending.

Because a joint credit card is in both owners’ names, it impacts both users’ credit files. Making regular monthly payments in full and maintaining a low credit utilization could help both cardholders’ build credit. On the other hand, late payments and accumulated debt can negatively impact both users’ credit.

Recommended: When Are Credit Card Payments Due?

Ways You Can Share a Credit Card

Joint credit card accounts are just one type of shared credit card. Before deciding to apply for a joint credit card, consider whether adding someone as an authorized user on a credit card might be a better option for your situation.

Authorized User

Instead of applying for a credit card with a co-owner, you can make someone an authorized user on an existing credit card. Unlike a joint credit card, only one person serves as the cardholder and bears the full responsibility of the card.

The authorized user can get their own physical card and use it as they see fit. However, the authorized user cannot make global changes to the card, like requesting an increase in credit limit.

Some credit card issuers report credit activity to the credit bureaus for authorized users. Assuming the main cardholder uses the card responsibly (meaning they make on-time payments and keep credit utilization low), this can have a positive impact on the authorized user’s credit profile.

Adding an authorized user can be a good solution for spouses or domestic partners with shared expenses. If one partner has a strong credit score but the other is struggling, the struggling partner might benefit from becoming an authorized user on the other’s card. Additionally, parents who want their children to learn about using a credit card or find comfort knowing their teenage kids have a spending option in emergencies might also benefit from a card with an authorized user.

A caveat: If the main credit cardholder mismanages their credit card and the card issuer reports to the credit bureaus for authorized users, this could have a negative impact on the authorized user’s credit profile.

Joint Cardholder

Joint cardholders share equal responsibility for how the card is used and paid off. Just as there are pros and cons of joint bank accounts, this arrangement can have benefits and drawbacks. A joint credit card enables spouses and domestic partners to approach their finances on equal footing and consolidate household transactions. On the downside, it can lead to disagreements over spending habits and account management, since both users are equally responsible for the entire balance, even if one person makes all the purchases.

Sharing a joint credit card requires implicit trust between the co-owners. Partners who frequently disagree about money management might not find a joint credit card to be a good option.

Differences Between Authorized Users and Joint Accounts

Here’s a closer look at the differences between authorized users and joint accounts.

Privileges

Joint cardholders share the same level of privileges on a credit card. Authorized users, however, cannot increase the credit limit or add additional authorized users. On top of that, primary cardholders can sometimes impose spending limits on authorized users.

Number of Users

Two co-owners share a joint credit card account. With an authorized credit card, there is a single primary cardholder and one or more authorized users. The max number of permissible authorized users varies by card issuer. Some may let you add up to five.

Responsibility

Both co-owners share equal responsibility for a joint credit card account. Authorized users are not responsible for payments, though how the credit card is managed may affect the authorized user’s credit profile.

Impact on Credit Score

With both joint credit cards and cards with authorized users, the account’s history typically appears on the credit reports of everyone involved, which means the behavior associated with that card can influence everyone’s credit files — for better or worse.

Recommended: How to Avoid Interest On a Credit Card

Pros of a Joint Credit Card Account

What are the benefits of a joint credit card? Here are some potential perks of this setup:

•   Equal control: Spouses and domestic partners who want equal control of their finances can benefit from a joint credit card, which affords them equal access to spending, statements, and payments.

•   Convenience of one shared card: If you share finances with a partner, having one credit card with one payment date might be easier than juggling multiple cards and due dates.

•   Potential to get a better rate: If one cardholder has a limited or poor credit, they may be able to access more favorable credit card terms with a joint account owner, provided the co-owner has a positive credit history.

Cons of a Joint Credit Card Account

There are some drawbacks to joint credit cards, however:

•   Shared repercussions for mismanagement: If one co-owner maxes out the card or misses a payment they said they would make, both cardholders share the burden, which can include late fees, a credit score impact, and/or growing interest. And if your partner decides not to do anything about the growing credit card debt, you could be on your own in paying off their shopping spree.

•   Difficulty of removing someone: Removing someone from a joint credit card can be challenging. Your only option for getting out of a bad situation might be paying off and closing the card.

•   Possibility of damage to the relationship: If you and a partner do not share the same financial philosophy, entangling your debts might do more harm than good. Couples who already have conflict around financial issues may find that sharing a joint credit card is detrimental to their relationship.

Applying for a Joint Credit Card

Does a joint account sound right for your situation? Here’s how to apply for a joint credit card:

1.   Find a credit card issuer with a joint credit card option: Many major banks have eliminated joint credit cards (or never offered them in the first place), which means it may take some searching to find a bank that offers joint credit card applications.

2.   Understand the qualification requirements: Read the fine print to make sure you and your co-owner can qualify. It’s not just your own credit score and credit history you have to consider; credit card issuers will be reviewing both applicants to determine if you can get a joint credit card.

3.   Fill out the application: Have all of the necessary information for both applicants handy. It’s a good idea to apply together either in-person or online. Both applicants will undergo a hard credit inquiry.

4.   Set the ground rules: Make sure both of you are on the same page about how you will use the card and who is responsible for making on-time payments. If you’re not sure where to start, check out these basic credit card rules, which can promote healthy card usage.

The Takeaway

With a joint credit card, both account holders can make purchases, and both are fully responsible for paying the bill. This differs from an authorized user setup, where both users can make purchases with the credit card, but only the account owner is legally liable for paying the bills.

Many banks have moved away from joint credit cards and towards authorized user arrangements, which still allow families to consolidate spending onto a single account.

Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Do joint credit cards affect both credit scores?

Yes, a joint credit card affects both credit scores equally. Because both individuals are co-owners and co-liable for the debt, the credit card issuer reports the account activity — including on-time payments, missed payments, and credit utilization — to the major credit bureaus for both cardholders. Responsible use can help both credit profiles, while mismanagement or late payments can harm both.

Can I add someone to my credit card as a joint account holder?

No, you typically cannot add someone as a joint account holder to an existing credit card account. However, you can usually add them as an authorized user. Alternatively, you can apply for a new joint account together. However, joint accounts (where both parties are equally responsible for debt) have become increasingly rare, making authorized user status the most common method to share access.

What requirements are needed to get a joint credit card account?

To qualify for a joint credit card account, both applicants typically need to meet the credit card issuer’s criteria. Since both individuals are equally responsible for the debt, the issuer will review the credit scores and credit histories of both people.

Qualifying for a joint credit card requires both applicants to undergo a credit review. Since both users are equally liable for any debt, issuers examine both credit scores and financial histories. While specific requirements like minimum scores or income levels vary by card, a history of responsible borrowing is typically required for competitive rates. Note that many major banks no longer offer joint accounts, so verify availability with your lender beforehand.

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SoFi Credit Cards are 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.

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.

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 .

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Finding out you need dental work can be scary — and scary expensive. Still, the pain and the price could get even worse if you put off getting care. And sometimes delaying just isn’t an option.

If you don’t have enough money stashed away in your emergency fund, and your insurance won’t cover all your costs, you may want to chew on the pros and cons of taking out a dental loan.

What Are Dental Loans?

Dental loans are personal loans that are used to pay for a variety of dental work and related expenses.

Whether you’re feeling overwhelmed by the upfront cost of a root canal or crown, or you expect to pay a substantial amount over time for braces, aligners, or implants, a dental loan can be a quick and convenient way to get the financing you need.

With a dental loan, you can borrow money to pay for your care, then make monthly payments until the loan balance is paid off.

How Do Dental Loans Work?

Dental loans are usually unsecured personal loans, which means you don’t have to put up collateral to secure the loan. Approval for a loan for dental work will be based on your creditworthiness.

If you qualify, you’ll receive a lump sum of money that’s to be repaid in monthly installments consisting of principal and interest. Since dental loans typically have fixed interest rates, your payments should be the same amount each month throughout the repayment period.

💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

What Can Dental Loans Be Used For?

You typically can use a personal loan to pay for just about anything as long as it’s legal and within the terms of your loan agreement.

Costs related to your dental care might include treatment — even for expensive elective or cosmetic procedures that may not be covered completely or at all by dental insurance — as well as over-the-counter or prescription medications you might require and transportation. You can even use the funds for the milkshake and soup you might need after your procedure.

Here are approximate costs for some common procedures that could be paid for with a dental loan:

Porcelain Crown

The cost of a crown can vary based on the materials used to make it, as well as the size, shape, and location of the tooth that’s being replaced. The average cost of an all-porcelain crown is $1,399. Dental insurance may cover some of that expense, unless the crown is strictly for cosmetic purposes.

Whitening

A basic teeth cleaning may be covered by dental insurance as part of your annual exam. But an in-office teeth bleaching (which can cost around $500-$600) or a laser whitening (which averages $792), likely won’t be covered by insurance.

Root Canal

The average cost of a root canal is $984, but it depends on how severe the infection is and which tooth is affected. Molar root canal treatment averages $1,337.

Aligners

Clear teeth aligners can be pretty pricey. For example, the average cost for a clear aligner is $5,108, but costs depend on how complex the orthodontic problem is. Your insurance provider may pay for some of those costs, but you should check your coverage before ordering.

Veneers

Veneers can range from $800 to $2,000 per tooth, depending on the type and how much prep work is involved. Because the purpose of veneers is cosmetic, the cost is generally not covered by dental insurance.

Typical Dental Loan Application Process

Your dentist may offer an in-house financing plan to help with costs — especially if they specialize in cosmetic procedures. Or the practice may partner with a lender who provides these types of loans. You aren’t obligated to use your dentist’s financing plan, but you may want to check out what the practice is offering. You can also go online to compare dental loan offers from traditional and online lenders.

Compare Offers: Choosing the Right Loan

When you start shopping for loans for dental work, you can go to individual lenders’ websites to see what they have to offer or use a comparison site to conveniently check out multiple lenders.

Getting prequalified with a few different lenders can help you get a good idea of what’s available that will suit your needs. Lenders typically use a soft credit pull during the prequalification process, so it won’t affect your credit score.

Here are a few things to watch for as you shop for financing:

Annual Percentage Rate

A loan’s APR tells you the amount you can expect to pay on top of the principal amount over the course of one year, including interest and any fees or charges you might incur. Because it gives you a complete picture of the cost of the loan (as opposed to just looking at the interest rate), the APR can be a useful tool for comparing various loan offers.

Recommended: APR vs. Interest Rate

Fees

Fees can add up quickly, and they can add to the cost of your loan. Some common fees to look out for could include an application fee, origination fee, late payment fee, returned payment fee, and a prepayment penalty. Low-fee or fee-free loans may save you money over the life of the loan.

Loan Amounts

Some lenders may have loan minimums that require you to borrow more than you need. Before you go loan shopping, you may want to get dental procedure cost estimates to get an idea of how much you’ll have to borrow. Then you can look for lenders who are willing to lend that amount.

💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

Loan Terms

Another important factor to consider is the loan term, or how long you’ll be given to repay the money you’ve borrowed. Of course, you’ll want to find a loan term that feels comfortable (a longer-term can equal lower payments). But a longer term could increase the amount you pay in interest over the life of the loan. You may want to think about how the loan length could affect your future financial goals.

Eligibility Requirements

Before you settle on a particular personal loan for dental work, you may want to check out the lender’s eligibility requirements. In the process of estimating your personal loan rate, many sites will review your credit scores, credit history, income, and other personal financial information to determine whether you qualify for a particular interest rate or other loan terms.

Many lenders will accept a fair credit score (a FICO® Score of 580 to 669 is considered fair), but a good FICO Score (670 to 739) could qualify you for a more favorable interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a high lending risk, which could affect your eligibility. You may be able to find a loan, but the interest rate will likely be more expensive.

Approval and Funding Timeline

If you can’t get your treatment until you can pay for it — and you need it soon — a quick approval time and rapid funding could be important considerations. One of the major pluses of using an online lender can be the convenience and fast application time. If you have all your information ready, it can be easy to apply using an online form. And if you qualify, the money generally can be available within a few days.

Customer Service

Does the lender have a reputation for good customer service? You may want to check how various lenders deal with consumer questions and problems. At the same time, you can see if there are any perks to building a relationship with a lender that might benefit you in the future.

Applying for a Dental Loan

If you find a lender and loan terms you like, and you’re ready to apply, your next step will be to complete a formal application. You can expect to be asked to verify your identity, income, and current address, and it can make things easier if you gather up the necessary documents ahead of time. You’ll probably need your driver’s license, Social Security number, recent pay stubs and/or bank statements, and a utility bill or some other proof of address.

Once you apply, lenders usually do a hard credit check, which may cause your credit score to temporarily drop by a few points. The lender will evaluate your ability to repay the loan and, if you qualify, your loan will be funded.

Pros and Cons of Dental Loans

Whether you need money for a one-time emergency procedure or for a series of treatments that could add up to a big expense, a dental loan may be an option worth considering. Here are some pros and cons that could help you decide if a personal loan makes sense for your situation:

Pros

Convenient Online Comparison

Applying for a personal loan online can be convenient and quick. Many online lenders offer personal loans that can be used for dental treatment, so you can shop for the loan amount and terms that suit your needs. You may be able to get your approval within a few hours (maybe even a few minutes), and you could receive your money within a few days.

Competitive Terms

If you have a solid credit history, a stable income, and a Fair or better credit score, you may qualify for a competitive interest rate and a repayment period you feel comfortable with. (The interest rate on a dental loan is typically lower than the interest rate on a credit card.)

Fixed Payments

With a dental loan, borrowers typically receive a lump sum of money that is repaid in fixed monthly payments. This can make it easier to budget and manage your payments.

Cons

Fees and Penalties

Some dental treatment loans come with fees and penalties that can drive up the overall cost of borrowing. You may be able to keep your costs down by finding a low- or no-fee loan.

Alternatives May Cost Less

If you can qualify for a credit card with a low or 0% promotional rate for purchases, it may be a less expensive way to borrow money — at least for a while. Zero-interest credit cards charge no interest during an introductory period, which typically lasts six to 18 months. Paying the balance in full within the promotional period is essential to making the most of an offer like this.

Fixed Payments

Having a fixed monthly payment can make budgeting easier, but it doesn’t provide flexibility if you can’t make that payment for some reason. A different financing option, such as a credit card, might offer more adaptable minimum monthly payments.

Alternatives to Personal Loans

If you can’t afford the dental work you need, there are options besides dental loans that you might want to check out. A few to consider include:

Credit Cards

If you already have a low-interest credit card, you may want to compare the interest you’d pay if you used that card vs. the cost of a dental loan. Or you might want to consider the pros and cons of applying for a low or 0% introductory-rate credit card — if you think you can pay off the balance during the designated promotional period. If you end up using a high percentage of your available credit, however, your credit score could be negatively affected.

Dental Office Financing

Your dentist may offer some type of in-house financing to patients who can’t afford to pay upfront for the treatments they want or need. The practice might partner with a lender that offers loans for dental procedures, for example, or the dental office might suggest a medical credit card with a low or 0% introductory rate. These offers may be worth reviewing and comparing to similar options, as long as you’re clear on all the repayment terms.

Grants

There are grant programs aimed at helping seniors, adults, and children living in low-income households, and those who have special needs. The Dental Lifeline Network is a nonprofit organization that provides access to dental care for people who can’t afford it.

Some dentists may offer partial grants to attract new patients who need extensive and expensive treatment. Just be aware that the cosmetic dentistry grants you see advertised online are mostly scams. Red flags include high pressure tactics and the promise of automatic or guaranteed approval.

Explore Personal and Dental Loans with SoFi

A dental loan can be a quick and convenient solution if you need cash to pay for an unexpected dental procedure or an elective treatment you’ve been thinking about for a while (like braces, aligners, or implants). Whether you’re considering an expensive cosmetic procedure or you need a crown or root canal ASAP, SoFi may offer a personal loan that works for your unique financial situation.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What credit score do you need for dental implant loans?

Many lenders will offer a dental loan to a borrower with a fair credit score. A FICO Score of 580 to 669 is considered fair. But a good or better score could improve your interest rate and other terms. If you have a poor score (lower than 580), lenders may consider you to be a higher risk, which could affect your eligibility.

Can you get your teeth fixed with no money?

You may be able to find a research clinic or university dental program that provides free services to volunteer patients who need care. And some dental practices may occasionally offer free care to low-income patients. There are also grants that could help cover costs.

Can you put dental work on a credit card?

Yes, you can use a regular credit card or a medical credit card to pay for dental work. But if you come close to using up all the available credit on your card, it could affect your credit utilization ratio, which can have a negative impact on your credit scores. Putting dental work on a credit card can considerably add to the cost of your treatment if you are not able to pay it off quickly.

Photo credit: iStock/Sanga Park

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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.

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