Feb

2025

Spotting Scams This Tax Season: The IRS Doesn’t Text People

By Keith Wagstaff | | Comments Off

It’s relentless. The deluge of sketchy texts and emails about undeliverable packages, unpaid tolls, or suspicious activity on our bank accounts is enough to make anyone bonkers, even when you can spot the scam from a mile away. And now it’s tax season, and scammers are on the prowl to steal our hard-earned cash by impersonating the IRS.

Imposter scams are the most prevalent type of fraud, with about one in five people losing money to them, according to the Federal Trade Commission.

The most popular schemes — where the fraudsters impersonate some type of business or government agency — have become far more common since the pandemic turbocharged life online.

In fact, Americans lost over $1.2 billion to these kinds of scams in the first nine months of 2024, more than three times as much as they did in all of 2020, the latest FTC data shows. The typical loss was $500 to $1,000, and no demographic was safe. Younger Americans actually reported losing money more often than seniors.

So why are scammers so effective? For one, they know when to strike, using major events to make their scams seem legitimate. As wildfires devastated Los Angeles, criminals tried to exploit people looking to donate to relief funds. After congestion pricing came to New York City, people started seeing fake texts about unpaid tolls. And excited Philadelphia Eagles fans are expected to be inundated by offers of bogus Super Bowl tickets.

Secondly, the digital age is giving criminals an increasingly advanced arsenal of weapons to try to steal your personal information. (You’ve heard of phishing, but how about smishing, and vishing?)

So what? Tax season is a prime time for scams. Consumers are eager for refunds and scared of fines, making ideal targets. The National Taxpayer Advocate, an independent inspector within the IRS, named tax-related scams as one of the agency’s most serious problems, citing progressively sophisticated use of artificial intelligence and social media.

Here’s the thing about the IRS: They always communicate through the mail — never by email or text.

And when you get texts or emails from anyone, whether they’re purporting to be a government agency, bank or other business, remember:

• Never click on links or open attachments.

• Beware of urgent language meant to scare you.

• Don’t share personal information such as passwords or Social Security numbers.

• Reject any requests to send money directly.

You might even want to test your antenna by taking this quiz from the American Bankers Association. (Can you choose which examples are legit? It’s harder than you’d think.)

Liz Looks at: The First Fed Statement of 2025

By Liz Thomas | | Comments Off

Know When to Hold ‘Em

The Federal Open Market Committee (FOMC) held interest rates steady at a range of 4.25-4.50% at their latest meeting, citing a stable employment picture and inflation that remains somewhat elevated. It was the first meeting without a change in rates since the Fed began lowering rates in September 2024.

It’s important to point out that investors had a lot on their minds already. Earlier in the week, developments regarding Chinese AI start-up DeepSeek caused volatility in U.S. tech stocks and left investors with questions surrounding the competitive landscape. Additionally, a few bellwether mega-cap companies (Meta, Microsoft, Tesla, Apple) are reporting earnings this week and will set the tone for tech earnings broadly.

All of these crosscurrents have already caused whiplash in markets, so the reaction to this FOMC statement was on the calmer side, even compared to other instances when the Fed didn’t move rates.

The market continues to expect roughly two rate cuts for all of 2025 and today’s meeting did not materially change that stance.

A Good Place

All of the anticipation that leads up to a Fed meeting can make us expect that things will change after the meeting, or that there will be some sort of material statement made that alters the course of markets.

That doesn’t need to be the case, and this month’s meeting was a clear example of that. Not much has changed in the economic data since the December meeting, and according to Chair Jerome Powell at this meeting, monetary policy is currently in a good place, as is the U.S. economy.

The labor market is in a much more balanced state than it was last year at this time and has not demonstrated the weakness many feared; in fact, it has strengthened in recent months by some metrics.

On the inflation front, there is still concern over upside risks to prices and the Fed has acknowledged that adjusting policy too quickly or too slowly can have negative effects on inflation and the economy. Given that the Fed has reduced the fed funds rate by 100 basis points since September, the current level still seems appropriate until and unless inflation comes down in a more meaningful way.

Below are the four main measures of inflation, showing the dramatic drop that has occurred since mid-2022, but also the plateau that has been hit over the last few months.

Sometimes doing nothing is the right answer.

Policy and Politics

Despite the many attempts by journalists to ask Powell about how the Fed will react to possible political pressure, or upcoming changes in political policies, the Chair made it clear that he would not respond to questions in that vein… leaving the room with an unquenched thirst for some sort of retort.

I believe that sentiment will continue. Markets and media are likely to keep speculating about how political pressure may influence monetary policy going forward (as they did during the last Trump administration). That in and of itself can drive market volatility between FOMC meetings and in reaction to any moves the Fed does make through the remainder of the year.

This meeting included a message of “steady as she goes, nothing to see here”. As the first meeting of 2025 and on the heels of a change in the White House, I welcome the relatively calm message and market reaction. Now we enter a long break until the next FOMC meeting on March 19 and are left to watch the data roll in. This kicks off a year when I believe fundamentals – rather than momentum and technicals – will run the show. Keep your eyes on the right ball.

Want more insights from Liz? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.

Listen & Subscribe

Photo Credit: iStock/William_Potter

SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Young Thomas is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

Is 704 a Good Credit Score?

By [email protected] | personal_loan | Comments Off

Is 704 a Good Credit Score?

When you’re applying for financing, most lenders view a 704 credit score as good. That means from a credit perspective, you’re likely to qualify for financing with better rates than individuals with lower scores. You do, of course, need to meet other financial requirements as well. Plus, there’s still some room for improvement, so keep reading to find out exactly what a 704 FICO® score means.

Key Points

• A 704 credit score is considered good and aligns with the average American score.

• This score qualifies individuals for better financing rates and terms.

• There is room to improve the score to access even better financial products.

• Strategic credit card applications are recommended to prevent score drops.

• Preapproval with a soft credit check helps in comparing credit terms.

What Does a 704 Credit Score Mean?

A 704 credit score falls into the “good” category on a typical credit score range. It’s also in line with the average American’s credit rating. According to FICO, the credit scoring model used in most lending decisions, the average credit score in the U.S. is 717. VantageScore, another popular credit scoring model, cites its average score as 702.

As you can see, if you have a 704 credit score, you’re right in line with most other Americans. Still, there’s room for improvement. Here’s how FICO categorizes its scores so you can compare a score of 704:

• Poor: Less than 580

• Fair: 580 to 669

• Good: 670 to 739

• Very good: 740 to 799

• Exceptional: 800+

How to Build Your Credit Score

If you have a 704 FICO Score, there’s a good chance you already qualify for a wide range of financial products. But taking steps to get an even higher score can help you qualify for better-quality financing products and lower interest rates.

Factors that impact your score include your credit utilization, payment history, credit history length, types of credit you use, and recent credit or loan applications. Find out which areas of your credit report need help in order to strategically improve your score as quickly as possible.

For example, if your payment history is less-than-stellar, you may want to consider setting up automatic bill payments so you never miss a due date. Or if you’re using too much of your available credit, try paying down balances.

Some free credit monitoring services may also offer tips on how to improve your score based on the information in your credit report.

What Else Can You Get With a 704 Credit Score?

With a 704 credit score, you’re well on your way to qualifying for multiple types of financing. But your score may affect your application differently depending on what kind of financing you’re looking for.

Here’s what to expect with a 704 credit score when trying to get a credit card, auto loan, mortgage, and personal loan.

Can I Get a Credit Card With a 704 Credit Score?

Each creditor has its own minimum credit score requirements. That said, your credit card approval odds are good as long as you have a score of 700 or higher. So with a 704 credit score, you’ll likely get approved.

However, remember to apply for cards strategically. With each application, a lender performs a hard credit pull that can lower your score by around five points. Inquiries can impact your score for a year and stay on your credit report for two years. If you have a 704 and apply for a few credit cards in a 12-month period, your score could drop below the 700 threshold and make it harder to qualify for a credit card.

Getting preapproved with a soft credit check gives you a sense of what kind of credit terms you qualify for without actually hurting your score. That lets you compare a few different options to see which cards offer the best APR, fees, and credit limits.

Can I Get an Auto Loan With a 704 Credit Score?

Can you get a 704 credit score car loan? Yes, a 704 is a good credit score for qualifying for this type of financing. In fact, there’s no minimum credit score for an auto loan. However, in addition to meeting credit score requirements, you’ll also need to showcase your ability to make your monthly payments along with a few other financial qualifications.

For instance, you must prove that you bring in a steady income, typically by submitting copies of recent pay stubs, W-2s or 1099s, or bank statements. If you’re self-employed, you may need to show your two most recent tax returns.

Lenders also look at your debt-to-income ratio (DTI). That means you can’t exceed the maximum ratio of debt payments compared to your income each month, including the new car payment. Generally speaking, lenders consider a DTI of 36% and below as good. That means all of your debt payments can only account for 36% of your pretax income each month. However, you may be able to qualify for a car loan with a higher rate.

Finally, depending on the lender, you may also need to provide a down payment. A larger down payment helps keep your payments lower and could help you qualify for better terms.

Can I Get a Mortgage With a 704 Credit Score?

A 704 credit score can get you a good mortgage rate. But as with an auto loan, your credit score isn’t the only factor mortgage lenders look at when evaluating an application. There are also multiple home loan programs that each have different credit score criteria. And lenders can implement even stricter minimums if they choose.

There are four main types of mortgage loans that most homebuyers choose from:

• Conventional loans: This type of mortgage is the most common and has stricter requirements compared to federally insured mortgages. You typically need at least a score of 620 to qualify, so borrowers with a 704 should meet the credit requirement.

• FHA loans: This government-backed home loan program has flexible credit requirements, but your score impacts the minimum down payment required. With a 704 credit score, you can make just a 3.5% down payment. Borrowers can still qualify with a score as low as 500, but will need to make a 10% down payment.

• VA loans: This mortgage program is for veterans, military members, and surviving spouses. There is no specified credit minimum, but most lenders have a bottom threshold around 620, making it easy to qualify with a 704 score.

• USDA loan: Like a VA loan, there are no specific credit score requirements for a USDA loan. However, eligible homes are restricted to designated rural areas and you must meet income requirements in order to qualify.

Can I Get a Personal Loan With a 704 Credit Score?

Whether you’re looking to consolidate credit card debt or fund a home renovation, a personal loan is likely within reach if you have a 704 credit score. Note that personal loans often come with cheaper rates than credit cards, especially if your score has recently improved.

As you weigh your financing options, use a personal loan calculator to estimate your monthly payments based on the loan amount, repayment term, and interest rate. If the rate is higher than you’d like, consider holding off on a formal application until your score has improved a bit.

The Takeaway

Wondering if a 704 credit score is good? In general, it is. With that score, you may get approved for most types of financing, including credit cards, mortgages, auto loans, and personal loans. Other financial factors, such as your income and debt-to-income ratio, could also impact a lender’s decision. If your score isn’t where you want it to be, consider taking steps to build it up. For example, be sure to consistently pay bills on time, avoid using too much of your available credit, and pay down balances on revolving debt.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

View your rate

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.

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

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

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

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Going Dry This Month? Make Those Savings Count

By Keith Wagstaff | | Comments Off

If you’re one of the growing number of people observing “Dry January” this month, you may have a new motivation for the no-alcohol challenge: Extra cash.

According to a new Morning Consult survey, 22% of drinking-age adults in the U.S. are having a Dry January this year, up from 17% who said they’d done it in the past. And participation among lower earners has grown the most, from 16% to 24%. In fact, a desire to save money was the third most-cited reason for abstaining, just after wanting to be healthier and wanting to cut down on drinking overall. (“I like to reset my drinking” and “I’ve been drinking too much lately” were far less common motivators, the survey showed.)

So how much can you actually save going dry? This handy “Alcohol Spending Calculator” (yes, this really exists) from the National Institutes of Health makes it easy to figure out. If you don’t drink that often, it might just be $30 or $50. But forgoing two $8 pints of beer three times a week would save you $208 this month. And skipping six $15 glasses of wine a week (if you go out twice a weekend, for example) would put $390 back in your pocket.

No matter how much you net, make your self-restraint count. In other words, if you don’t have to, don’t just let the savings melt back into your day-to-day budget or spend it on another vice. Earmark it to support a tangible financial goal — like seed money for an emergency fund, a vacation, or the down payment on a house.

For example, if you skipped those pints regularly — depositing $208 every month — it would add almost $7,500 to your emergency fund after three years. If you used a high-yield savings account with a 4% APY, you’d have almost $8,000. And if you invested that money in the stock market and earned a return of 7% a year (the average annual return for the S&P 500 Index over time,) you’d have over $8,300.

So what? Dropping or curtailing a vice can be a lucrative and healthy choice. Quitting a pack-a-day cigarette habit could save you $250 a month or more. (In New York, the most expensive state for cigarettes, a pack costs more than $14. That adds up to well over $400 a month.) Giving up vaping could save you over $80 a month. You get the idea: Healthier habits can lead to fatter wallets, especially when you’re strategic with your savings.

Is 598 a Good Credit Score?

By [email protected] | personal_loan | Comments Off

Is 598 a Good Credit Score?

A credit score of 598 doesn’t make the cut for good credit. Rather, it falls into the fair credit category, which means you would be considered a “subprime” borrower. It’s likely that you will pay higher interest rates than borrowers with higher credit scores, and you may also miss out on more favorable terms and perks.

Fortunately, if you have a credit score of 598, you can likely access some types of credit. You’ll also have plenty of room for improvement — and building a higher credit score is totally possible with perseverance and consistency. Here’s what you need to know.

Key Points

• A credit score of 598 is categorized as fair, indicating credit that’s less than good.

• Higher interest rates and less favorable loan terms can be common when accessing credit with this score.

• Secured credit cards and personal loans remain accessible options.

• Qualification for FHA, VA, or USDA mortgages may be possible at the lender’s discretion.

• Strategies to build the score include timely payments, reducing debt, and using secured credit cards.

What Does a 598 Credit Score Mean?

Credit scores are broken down into six different categories between the low end of 300 and the high end of 850. Here’s how they look according to the FICO® Score ranges:

• 300-579: Poor credit

• 580-669: Fair credit

• 670-739: Good credit

• 740-799: Very good credit

• 800 and above: Excellent or exceptional credit

The specifics of your credit score matter because those three digits reflect how well you have managed credit in the past, which predicts your ability to do so in the future. Lenders use your score to determine your creditworthiness when assessing your application for financial products like mortgages, auto loans, personal loans, and credit cards.

Even if your credit score and other financial factors are good enough for you to qualify, a higher credit score can help you achieve the best possible terms and conditions for your loan, including lower interest rates.

What Else Can You Get With a 598 Credit Score?

With a credit score toward the lower end of the fair category, you may face challenges getting approved for some types of loans — or you may only qualify for loans with high interest rates, which can be a weight on your overall finances. You may want to focus on building a higher credit score which can make it easier and less expensive to access installment loans and lines of credit in the future.

That said, there are some types of financial products you may be able to qualify for with a 598 credit score and beneficial ways to use those financial products to your overall financial advantage.

Can I Get a Credit Card With a 598 Credit Score?

You probably realize that life can be less convenient without a credit card. Many types of services, such as hotels and rental car companies, often require a card on file. They may place a security hold on an amount as well — which can lock up valuable funds if you’re using a debit card to make the reservation. Here’s what it takes to get a card:

• Typically, credit card issuers look for a 670 credit score or higher among applicants for an unsecured card. But there are many credit cards on the market that are specifically designed for people with fair, poor, or even no credit at all. Major credit card issuers like MasterCard and Visa both offer options like this.

• Secured credit cards are one good option if you’re having trouble qualifying for other types of credit cards. With a secured credit card, you’ll put down a cash deposit (which will often be the same amount as your credit limit). For example, if you secured your credit card with a $400 deposit, you’d have a $400 credit limit. If you build your credit score with on-time payments with a secured card, you may be able to move on to an unsecured credit card from the same issuer (or successfully apply for a separate one).

Can I Get an Auto Loan With a 598 Credit Score?

While there’s no specific minimum credit score to successfully apply for an auto loan, most lenders look for a credit score higher than 598 (often in the higher 600s). If you do qualify for an auto loan, you may be facing a high interest rate, which means you’ll pay a lot more for your car over time (as the asset itself depreciates).

For example, as of the end of 2024, the annual percentage rate (APR) for a loan for a new car to an applicant with a credit score of 781 or higher was 5.08% while the rate for those with a score between 501 and 600 was 13.00%. That higher interest rate could make a major difference in your budget.

Because of this dynamic, it may make more sense to wait until you build your credit score before applying for a car loan. Or if you have substantial savings, you may be able to pay for a good quality used car in cash.

Can I Get a Mortgage With a 598 Credit Score?

For a conventional home loan, you usually need a credit score of at least 620 to qualify, along with other factors like a low enough debt-to-income ratio (DTI) and sufficient, reliable income.

However, there are other types of mortgage loan programs, like FHA loans, which allow you to qualify with a lower credit score: 580 with a 3.5% down payment, or 500 with a down payment of 10%

Fortunately, even if you don’t meet the other eligibility criteria for an FHA loan, you’re only 22 points away from the credit score you need to qualify for most mortgages.

In addition, you might qualify for a VA or USDA mortgage, which can have more flexible requirements than conventional home loans.

Making on-time payments on all your existing debts each month can go a long way toward building your credit score. You might consider using autopay for your bills to make sure you don’t miss the due dates.

Also, paying down revolving balances can both have a positive impact on your credit history and free up extra money each month that could go toward your housing payment.

Can I Get a Personal Loan With a 598 Credit Score?

Personal loans are a type of unsecured loan that offers an up-front lump sum that can be used for just about any purpose you can think of. For instance, you might use a personal loan to:

• Pay for family planning costs

• Finance a wedding

• Pay for a vacation

• Take care of a major medical bill

• Fund a home renovation project

One of the best ways to use a personal loan is to consolidate other debts, in which case it may be known as a debt consolidation loan. These allow you to transfer one or more revolving lines of credit into a single installment loan, typically at a significantly lower interest rate.

However, because personal loans aren’t secured by an asset like a house or a car, they tend to have more stringent qualification requirements than other types of loans. They often require a credit score of 660 or higher.

Fortunately, many personal loan lenders do consider and approve applicants with a fair credit score. However, you may end up with a very high interest rate — which could counteract the benefits of a personal loan for debt consolidation or another purpose, depending on your situation. Be sure to do the math ahead of time to understand how much you’ll spend over the lifetime of your loan. A personal loan calculator can help.

The Takeaway

A 598 credit score isn’t technically good; it falls into the fair category. That can make it challenging to access credit, and the options you have may carry less favorable interest rates and terms. To build a better score, making on-time monthly payments can go a long way toward improving your score, as can paying down existing debt balances before taking out more loans or lines of credit.

If you do build your score and want to investigate personal loan options, see what SoFi offers.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

View your rate

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.

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 .

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

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 Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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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Spotting Scams This Tax Season: The IRS Doesn’t Text People

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Liz Looks at: The First Fed Statement of 2025