The maximum amount you can put in an individual retirement account (IRA) each year tends to change every few years. For tax year 2023, investors can contribute a total of $6,500 into their IRA account (traditional or Roth), and for tax year 2024, the limit is increasing to $7,000. If you’re 50 or older, you can contribute an additional $1,000 (for both tax years, 2023 and 2024).
That said, how much you can contribute also depends on your income, the IRA type, and whether you also contribute to an employer-sponsored retirement plan.
Notably, the deadline for contributions is Tax Day of the following year. So for tax year 2023, the deadline for IRA contributions is April 15, 2024.
IRA Fundamentals
An IRA stands for individual retirement account. IRAs allow people to make tax-deferred investments that they can use in retirement. There are several different types of IRAs, including traditional IRAs and Roth IRAs. You can set up an IRA with a bank, insurance company, or other financial institution.
What Types of IRAs Are Available?
Traditional IRA
A retirement investor’s contributions to a traditional IRA are typically tax-deductible. Investors won’t pay taxes on earnings with a traditional IRA. When investors reach retirement age, they’ll pay taxes on withdrawals because they’re taxed like income. It’s almost like paying yourself a salary in retirement and paying income taxes on those payments.
Roth IRA
Contributions to a Roth IRA are made after taxes and aren’t tax-deductible. With a Roth IRA, earnings aren’t typically taxed, but investors won’t have to pay taxes on withdrawals from a Roth IRA when they reach retirement age and start using the funds in one of these accounts.
Sep IRA
A Sep IRA is a simplified employee pension IRA. These IRA accounts help small businesses or self-employed retirement investors make contributions to an IRA in the employee’s name.
Simple IRA
A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) is an account that most resembles a traditional 401K. This savings incentive match plan for employees can be set up by small businesses that don’t have any other retirement plans. Like a 401(k), this IRA lets employees and employers contribute, but with lower costs and fewer administration fees than a typical 401(k).
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How Much Can You Contribute to an IRA Each Year?
If you’re younger than 50, you can contribute a combined maximum of $6,500 to a traditional or Roth IRA for tax year 2023. For tax year 2024, the cap is $7,000.
After 50, you’re allowed to make “catch-up” contributions of an additional $1,000 (for tax years 2023 and 2024). Previously, you could not make contributions to a traditional IRA once you reached the age of 70.5. But starting in 2020, there is no age limit; neither is there an age limit for a Roth IRA.
Contribution limits for Roth IRA and traditional IRA for the tax year 2023:
- Under age 50: $6,500
- Age 50 and older: $7,500
Contribution limits for Roth IRA and traditional IRA for the tax year 2024:
- Under age 50: $7,000
- Age 50 and older: $8,000
However, there are a few exceptions to the retirement contribution limits. If you make less than the limit in taxable income, you can only contribute up to that amount. On the other end of the spectrum, if you make too much, you can’t contribute to a Roth IRA or may only be able to contribute a reduced amount.
If you’re younger than 50, you can contribute a maximum of $6,500 into any type of IRA for tax year 2023. For tax year 2024, the limit is $7,000.
For 2023, if you’re single, you can put a reduced amount into a Roth IRA if your income is between $138,000 and $153,000; above that, you can’t contribute anything. For tax year 2024, the income phase-out range is rising to $146,000 to $161,000.
For couples filing jointly, you can contribute a reduced amount to a Roth IRA if your combined income is between $218,000 to $228,000. (The limits are based on modified adjusted gross income .) For tax year 2024, the income phase-out range is $230,000 to $240,000.
If you already contribute to a 401(k) or another retirement plan at work, you can still contribute to an IRA.
However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work. Roth IRA contributions might be limited if your income exceeds a certain level.
How Do I Open an IRA?
Investors thinking about opening an online IRA may want to consider whether a Roth or a traditional IRA makes sense.
Roth IRAs have some limitations that might preclude investors from getting one.
Investors who make more than $228,000 in adjusted gross income filing jointly for tax year 2023 or $153,000 filing single may not be eligible to open a Roth IRA. For tax year 2024, the limit is $240,000 for married couples and $161,000 for individuals.
Vital information needed to open an IRA includes a driver’s license or ID, Social Security number, banking info like routing numbers to fund the account, name, and address of employer, and beneficiary information. After that, investors choose an asset mix and investment type that makes sense for their goals.
How Do I Roll Over Funds into an IRA?
Some investors might be thinking about opening a traditional IRA because they have left a job where they had a retirement account and want to move those funds to a new account (or they want to open a Roth IRA and roll over a Roth 401k). Reasons for doing this include the new investment company offers more investment options or the employee seeks more control over the funds or wants to combine funds from another retirement account with the employer-sponsored account.
Generally, funds from this type of account can be rolled over into a new account within 60 days.
The advantage of rolling over one retirement to another account is that investors don’t lose those funds’ tax-deferred status. If investors don’t roll over the funds, they do become taxable.
There are three ways investors can roll over retirement funds into an IRA.
Direct rollover
An investor’s old retirement funds administrator, perhaps at a previous job, sends funds directly to the new to an IRA or new employer-sponsored retirement plan. The investor won’t pay taxes or a penalty on this transfer as long as the transferred funds are going to a similarly classified account (Roth to Roth or 401k to traditional IRA).
Trustee-to-trustee transfer
If an investor is getting funds from an IRA, they can ask the financial institution that administers the old IRA to send funds to the new IRA. The investor won’t pay taxes or a penalty on this transfer.
Late or 60-day rollover
The IRS gives people 60 days from the date they receive a distribution from an IRA or retirement plan to roll it over to another plan or IRA. If you roll over after the 60 days has passed, it’s considered “late,” and the distribution will be taxed—and you’ll have to pay a penalty if you are younger than 59.5 years.
Can You Withdraw From an IRA Before Retirement?
It depends. With a Roth IRA, there are situations — like buying your first home, adoption costs, or paying for higher education — where you can withdraw a limited amount with no penalties or taxes. For example, an investor can take out up to $10,000 from a traditional IRA — or in earnings from a Roth IRA — without penalties for expenses associated with buying a first home.
Investors can also withdraw funds penalty-free for qualifying medical or educational expenses. And once you hit the age of 59.5, distributions will always be penalty-free.
Here are all the exceptions for early distributions:
• Made to a beneficiary or estate on account of the IRA owner’s death
- Made because you’re totally and permanently disabled
- Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
- Qualified first-time homebuyer distributions
- Not in excess of your qualified higher education expenses
- Not in excess of certain medical insurance premiums paid while unemployed
- Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
- Due to an IRS levy of the IRA under section 6331 of the Code
- A qualified reservist distribution
- Excepted from the additional income tax by federal legislation relating to certain emergencies and disasters (see the Instructions for Form 5329 for more information), or
- Not in excess of $5,000, and the distribution is a qualified birth or adoption distribution (see the Instructions for Form 5329 for more information)
Are There Ways to Get Around IRA Contribution Limits?
Sometimes. There’s no limit to how much you can put into an IRA when you’re rolling over funds from a 401(k) or 403(b) account.
Some people also use what’s called a “backdoor Roth IRA” to get around the income limits to contribute to a Roth IRA. This involves contributing the maximum to a traditional IRA, then converting it into a Roth. (There’s no income limit for conversions.) Consult a tax professional to understand all the tax implications.
Is an IRA a Replacement for a 401(k)?
American workers have access to a 401(k) retirement plan through their employers. And, some investors might even be able to get additional 401(k) contributions in the form of an employer match. Investors who have access to a 401(k) and an IRA might be able to accelerate their retirement savings and put themselves in a better financial situation when they reach retirement age.
The Takeaway
The rules of IRAs can be complicated, but investing in one doesn’t need to be. SoFi Invest® is all about empowering you and your financial future. Prepare for retirement with a SoFi active or automated Roth or Traditional IRA from SoFi Invest.
Another important step is to consider moving old 401(k) accounts into a rollover IRA so you can manage all your retirement funds in one place. Note that rollovers don’t count toward your annual contribution limit.
This article originally appeared on SoFi.comand was syndicated by MediaFeed.org.
SoFi Invest®
SoFi Invest refers to the two investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA(www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of SoFi Digital Assets, LLC, please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Bank, N.A.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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How much credit card debt did Americans start the holiday season with?
Millions of Americans continue to struggle with credit card debt. The average credit card debt in America is $6,140 as of November 2023, according to a new report from TransUnion®.
Out of the 50 states, Alaska has the highest average credit card debt per consumer ($7,316), while Wisconsin has the lowest ($4,940), data show.
More than 6 million cardholders are at least 30 days past due on a minimum payment, according to TransUnion’s credit card delinquency data.
Your credit card balance is your credit card debt. Making transactions on your credit card is a liability that eventually needs to be repaid. Below we highlight the average credit card debt in all 50 states and explain why making minimum payments each billing cycle may not be right for you.
tommaso79 / istockphoto
Consumer credit card debt in the United States exceeds $1 trillion as of the third quarter (Q3) of 2023, according to the Federal Reserve Bank of New York.
The average American credit card debt increased to $6,140 in November 2023 (it was $6,078 in October 2023 and $5,578 in November 2022), according to TransUnion, a nationwide credit bureau.
Credit card debt can be costly if you’re paying interest charges. The average interest rate on credit cards is 22.77% as of Q3 2023, according to Federal Reserve data on credit card accounts assessed interest.
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TransUnion publishes U.S. credit card debt data every month in all 50 states and the District of Columbia. We’re tracking the data as it becomes available and then ranking the average credit card debt by state in descending order using TransUnion’s recent industry snapshot (November 2023):
District of Columbia
The nation’s capital is not a state, but the District of Columbia has one of the highest average credit card debt balances in the United States. The average credit card debt in Washington, D.C., stands at $7,236 per consumer as of November.
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Alaska is the largest state in the country in terms of its geographical boundaries (586,412 square miles). It also leads all 50 states with the highest average credit card debt in the nation. Cardholders in Alaska have an average credit card balance of $7,316 as of November.
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Maryland sits south of the Mason-Dixon line. This Old Line State has a relatively high credit card debt in the USA. The average credit card debt in Maryland stands at $6,787 per consumer as of November.
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Nevada may have some issues with gambling debt. This predominantly desert and semiarid state also ranks high in credit card debt. The average credit card debt in Nevada is $6,710 per consumer as of November.
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New Jersey is the most densely populated state in the United States. The Garden State also has a high average credit card debt. Cardholders in New Jersey have an average credit card balance of $6,695 as of November (tied with Hawaii).
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Hawaii sports tropical climate and active volcanoes. This state of islands in the Pacific is also known for its relatively high average credit card debt. Consumers in the Aloha State have an average credit card balance of $6,695 as of November (tied with New Jersey).
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Virginia enjoys close proximity to the nation’s capital in a region locally nicknamed DMV (District of Columbia, Maryland, and Virginia). Similar to Maryland and Washington, D.C., consumers in the Old Dominion state carry a relatively high average credit card debt in America. Virginia’s average credit card debt stands at $6,647 per consumer as of November.
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Texas is one of the largest states in the nation in terms of its geographical boundaries and population. The Lone Star State also has a relatively high average credit card debt in the U.S. The average credit card debt in Texas is $6,620 per consumer as of November.
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Nicknamed the Constitution State, Connecticut has the highest average credit card debt in New England. What is the average credit card debt in Connecticut? It’s $6,615 per consumer as of November.
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Georgia produces tons of agricultural goods, but the Peach State also has a relatively high level of credit card debt. The average credit card debt in Georgia is $6,580 per consumer as of November.
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California is the most populous state in the nation with more than 38.9 million people as of Jan. 1, 2023. The Golden State also has one of the highest amounts of credit card debt per consumer. The average credit card debt in California is $6,576 per cardholder as of November.
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Colorado hosts a large stretch of the Rocky Mountains. The Centennial State also hosts a large amount of credit card debt per consumer. The average credit card debt in Colorado is $6,574 per cardholder as of November.
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Florida is one of the largest states in the nation in terms of population and economic activity. The Sunshine State has more than 22 million residents and a gross domestic product (GDP) of nearly $1.4 trillion as of 2022. The average credit card debt in Florida is $6,550 per consumer as of November.
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Washington state borders the Canadian province of British Columbia and carries a relatively high amount of credit card debt per consumer. The average credit card debt in Washington is $6,470 per cardholder as of November.
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Arizona welcomes domestic and international tourism with its Grand Canyon natural landmark and desert climate. The average credit card debt in Arizona is $6,317 per consumer as of November.
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Delaware is a relatively small state in terms of its geographical boundaries and population. The First State, however, is one of the bigger states in terms of average credit card debt. The average credit card debt in Delaware is $6,314 per consumer as of November.
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New York remains one of the largest states in the nation despite its recent decline in population. The average credit card debt in New York is $6,313 per consumer as of November.
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Wyoming has the smallest population in the nation (fewer than 600,000 people). But this Mountain West state has a relatively high amount of credit card debt per consumer. The average credit card debt in Wyoming is $6,114 per cardholder as of November.
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Massachusetts rests in the heart of New England. The Bay State also has a relatively high amount of credit card debt per consumer. The average credit card debt in Massachusetts is $6,077 per cardholder as of November.
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Illinois enjoys its reputation as the Land of Lincoln. This Midwestern state also has a relatively high amount of credit card debt per consumer. The average credit card debt in Illinois is $6,070 per cardholder as of November.
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Rhode Island is the smallest state in the country in terms of its geographical area (1,214 square miles). The average credit card debt in Rhode Island is $6,021 per consumer as of November.
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New Hampshire represents one of the smaller states but has a high amount of credit card debt per consumer. The average credit card balance in New Hampshire is $5,953 per cardholder as of November.
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Utah has the Great Salt Lake and a smaller average credit card debt than several of the states it borders. The average credit card debt in Utah is $5,945 per consumer as of November.
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Oregon carries a lower level of credit card debt per consumer than most of the states it borders. The average credit card debt in Oregon is $5,929 per cardholder as of November.
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South Carolina is known for its coastline and beaches. The Palmetto State shares a border with Georgia but has a much smaller scale of credit card debt on average. The average credit card debt in South Carolina is $5,894 per consumer as of November.
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Oklahoma is located in the middle of the 48 contiguous states. The Sooner State also runs among the middle of the pack regarding average credit card debt in America. The average credit card debt in Oklahoma is $5,862 per consumer as of November.
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North Carolina is known for its colleges, universities, and military bases, among other things. (The Tar Heel State has several state-based student loan forgiveness programs.) The average credit card debt in North Carolina is $5,853 per consumer as of November.
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Louisiana sits along the Gulf Coast in the South. The Pelican State is also known as the Creole State and the Sugar State. The average credit card debt in Louisiana is $5,796 per consumer as of November.
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Idaho is nicknamed the Gem State and is known for its potatoes. Average credit card debt per consumer in Idaho is higher than some of the other Mountain West states. The average credit card balance in Idaho is $5,753 per cardholder as of November.
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Montana is known as America’s Treasure State and Big Sky Country. The average credit card debt in Montana is one of the lowest in the Mountain West region. The average credit card balance in Montana hovers at $5,728 per cardholder as of November.
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Nicknamed the Keystone State, Pennsylvania has a lower amount of credit card debt per consumer compared with its Mid-Atlantic neighbors of New York and New Jersey. The average credit card debt in Pennsylvania is $5,709 per cardholder as of November.
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Tennessee is well-known for its country music scene. The average credit card balance in Tennessee is $5,708 per cardholder as of November.
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North Dakota has multiple nicknames, including the Flickertail State, Sioux State, and the Peace Garden State. The average credit card debt in North Dakota is $5,618 per consumer as of November.
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New Mexico has a lower credit card debt per consumer than each of the neighboring states surrounding it. The average credit card debt in New Mexico is $5,586 per cardholder as of November.
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Kansas markets itself as the Sunflower State. The average credit card balance in Kansas is $5,575 per consumer as of November.
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Alabama enjoys a coastline along the Gulf Coast. Known as the Cotton State, Alabama is also known for peanuts. The average credit card debt in Alabama is $5,571 per consumer as of November.
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Minnesota became the North Star State because of its geographical location in the country’s heartland. The average credit card debt in Minnesota is $5,551 per consumer as of November.
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Missouri is not just any state — it’s the Show Me State. The average credit card debt in Missouri is $5,539 per consumer as of November.
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Michigan hosts several manufacturers of popular car makes and models. It’s also known as the Wolverine State and the Great Lake State. The average credit card debt in Michigan is $5,503 per consumer as of November.
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Vermont is known as the Green Mountain State. The average credit card debt in Vermont is $5,484 per consumer as of November.
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Maine has relatively low credit card debt per consumer compared with other New England states. The Pine Tree State also has the lowest credit card debt per consumer along the East Coast. The average credit card balance in Maine is $5,420 per cardholder as of November.
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Ohio serves 11.8 million residents as of 2022, making Ohio one of the most populous states in the nation. The Buckeye State also has among the lowest credit card debt per consumer in the United States. The average credit card debt in Ohio is $5,405 per cardholder as of November.
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South Dakota hosts the famous Mount Rushmore National Memorial. The average credit card debt in South Dakota is $5,375 per consumer as of November.
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Nebraska produces 81.6% of the nation’s great northern beans as of 2022, according to federal data. The average credit card debt balance in Nebraska is $5,370 per consumer as of November.
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Arkansas — dubbed the Natural State because of its wildlife, bodies of water, and preserved open space — is a Southern state with a relatively low level of credit card debt per consumer. The average credit card debt in Arkansas is $5,366 per cardholder as of November.
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West Virginia remains one of the few states that may pay you to move there if you work from home. The average credit card debt in West Virginia is $5,333 per consumer as of November.
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Mississippi is one of the poorest states in the nation, but the cost of living in the Magnolia State is also among the lowest nationwide. The average credit card debt in Mississippi is $5,332 per consumer as of November.
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Indiana is America’s Hoosier State. The average credit card debt in Indiana is $5,216 per consumer as of August — one of the lowest in the nation.
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Kentucky has a relatively low level of credit card debt per consumer. The average credit card debt in Kentucky is $5,098 per cardholder as of November.
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Kentucky has a relatively low level of credit card debt per consumer. The average credit card debt in Kentucky is $5,098 per cardholder as of November.
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Wisconsin remains the largest cheese producer in the nation, and consumers in America’s Dairyland have the lowest average credit card balances nationwide. The average credit card debt in Wisconsin is $4,940 per cardholder as of November.
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You can find out your credit card balance by reading your credit card statement. Your credit card balance matters because it’s your unpaid credit card debt that you are expected to repay as fast or as slow as you wish.
The slowest way to pay down credit card debt is to make minimum payments each billing cycle. The fastest way to pay down credit card debt is to pay the full statement balance each billing cycle.
Cardholders with a credit card grace period may avoid interest charges on new purchases by paying the statement balance in full each billing cycle.The annual percentage rate (APR) on a credit card can be quite high compared with other consumer lending products. If you make minimum payments each billing cycle, it could take years to pay off the debt and the interest charges could be costly in particular.
How much credit card debt does the average American have? The average American credit card balance is $6,039 per consumer as of August 2023, according to TransUnion data.
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In general, leaving a small balance on your credit card is not the best idea if your goal is to build credit without incurring interest charges.
Carrying a small balance may not be right for you if you can afford to pay off your statement balance each billing cycle. Unless you have a 0% introductory APR, you may face interest charges if you pay less than the statement balance.
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If your credit card has a grace period, you may avoid credit card interest charges by paying your statement balance in full each billing cycle. You may also want to avoid credit card cash advance transactions if you’re trying to avoid credit card interest charges.
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The average American credit card debt balance increased 11.5% year-over-year from August 2022 to August 2023, according to TransUnion, one of the big three credit bureaus. It identified inflation as a key driver behind balance growth.
You can calculate the national credit card debt average by taking the total balance across all credit card accounts ($1.03 trillion in Q2 2023) and dividing it by the number of U.S. consumers with a credit card account balance (165.3 million).
TransUnion uses a different methodology — a stratified random sample of 5 million consumers — to calculate average credit card debt by state. The $6,039 average credit card balance in August 2023 is a measurement of credit card debt under TransUnion’s calculation method. Cardholders who pay their credit card balance in full each billing cycle may avoid interest charges on new purchases.
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Consumers in all risk tiers use credit cards to buy goods and services. The below table highlights the average American credit card balance by risk tier, according to TransUnion data:
Average credit card balance per consumer in August 2023 by Risk Tier:
- Super prime (781-850): $3,868
- Prime plus (721-780): $7,396
- Prime (661-720): $8,721
- Near prime (601-660): $8,699
- Suprime (300-600): $5,034
Credit card debt exists across all risk scores, but cardholders with bad credit are more likely to experience serious delinquency.According to TransUnion’s credit card debt data by risk tier (August 2023):
- 19.14% of subprime cardholders fell 90+ days past due
- 1.20% of near prime cardholders fell 90+ days past due
- 0.20% of prime cardholders fell 90+ days past due
- 0.01% of prime plus cardholders fell 90+ days past due
- 0% of super prime cardholders fell 90+ days past due
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While it’s interesting to learn the average credit card debt in the U.S., it doesn’t help you much when you’re struggling to pay down your own credit card debt.
Most credit cards are unsecured without collateral. This means credit card account holders typically are not required to make a security deposit. Failing to pay and defaulting on your credit card bills can severely damage your credit.
When you make transactions on a credit card, the transaction activity represents an unpaid debt that you’ll eventually have to repay as fast or as slow as you wish. If you’re facing credit card debt challenges, below we highlight some ways you may manage your debt.
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Here are three tips that may help you reduce credit card debt:
1. Using Balance Transfer Credit Cards
Some credit card issuers offer new applicants 0% introductory APR financing on balance transfers. This enables you to transfer existing credit card debt to a new card and gives you a break from incurring interest charges. And when you transfer balances from multiple cards, you’re consolidating your debt as well, which can make it easier to stay on top of payments since you’ll have just one instead of multiple.
Promotional APR offers last a minimum of six months and can extend up to 21 months. Just note that you may incur a balance transfer fee, which is typically 3% to 5% of the amount transferred. With the way credit cards work usually, the balance transfer fee is added to the balance of the new account.
The key to utilizing a balance transfer credit card is to pay a portion of your remaining balance each month before you resume swiping at places accepting credit card payments. This ensures that you have the entire balance paid off by the time the promotional rate expires and the standard rate resumes.
2. Getting a Personal Loan to Consolidate Debt
Another option to pay off credit card debt is to use a personal loan to consolidate debt. Personal loans are typically installment loans with fixed monthly payments and a fixed repayment schedule. Approval typically is based on your personal credit history and credit score.
If you have good or excellent credit (661+ VantageScore® 4.0), you might be able to qualify for a loan with a lower interest rate than your current credit cards have. When you receive funding from a personal loan, you can use it to pay off your credit card debt, which may have higher interest rates — especially if your APR is above the average credit card interest rate.
3. Receiving Credit Counseling
You could also look for a credit counseling service that can offer advice on how to manage your credit card debt and pay it off. There are nonprofit credit counselors who can help you to choose from one of many possible solutions, such as credit card debt forgiveness.
Credit counseling can also offer general financial education, such as explanations of important credit card definitions and tips on budgeting. Counseling can take place in person, online, or over the phone. You may be able to find nonprofit credit counseling services through a university, military base, credit union, or housing authority.
Beware that some vendors may not be legitimate credit counselors. The U.S. Department of Justice maintains a list of approved credit counseling agencies by state. Most of the reputable credit counseling agencies are nonprofit organizations that offer services at local offices, online, or on the phone, according to the Federal Trade Commission.
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Whether you have a large or small amount of credit card debt, paying that balance off as soon as possible may reduce or eliminate your interest costs. When choosing a credit card, consider the card’s standard interest rate, as well as any promotional financing offered on new purchases, balance transfers, or both.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.
*Check your rate: To check the rates and terms you may qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose 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.
All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender’s Terms and Conditions for additional details.
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 on credit (consumer.ftc.gov)
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.¹
SoFi’s Insights tool 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. 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 provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Personal Loan
SoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Engine by MoneyLion. If you submit a loan inquiry, SoFi will deliver your information to Engine by MoneyLion, and Engine by MoneyLion will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Engine by MoneyLion, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy.Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan RefinanceSoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Engine by MoneyLion. If you submit a loan inquiry, SoFi will deliver your information to Engine by MoneyLion, and Engine by MoneyLion will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Engine by MoneyLion, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
NOTICE: The debt ceiling legislation passed on June 2, 2023, codifies into law that federal student loan borrowers will be reentering repayment. The US Department of Education or your student loan servicer, or lender if you have FFEL loans, will notify you directly when your payments will resume For more information, please go to https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf https://studentaid.gov/announcements-events/covid-19
If you are a federal student loan borrower considering refinancing, you should take into account the new income-driven payment plan, SAVE, which replaces REPAYE, seeks to make monthly payments more affordable, and offers forgiveness of balances that were originally $12,000 or lower after 120 payments, among other improvements. Also, please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans, such as SAVE, or extended repayment plans.
Auto Loan RefinanceAutomobile refinancing loan information presented on this Lantern website is from Caribou, AUTOPAY, Engine by MoneyLion, and each of Engine’s partners (along with their affiliated companies). Caribou, AUTOPAY, and Engine by MoneyLion pay SoFi compensation for marketing their products and services on the Lantern site.
Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including but not limited to: credit standards, loan size, vehicle condition, and odometer reading. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness, consult with the lender for more details. Additional terms and conditions may apply and all terms may vary by your state of residence.
Secured Lending DisclosureTerms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.
BankingSoFi Lending Corp. (“SoFi”) operates this website in cooperation with Engine by MoneyLion presenting promotions for products and services offered by other banks, lenders, and financial institutions. If you select a promotion above, you will be connected to the website of the company offering the product. The promotions presented on this site are from companies that pay SoFi and Engine by MoneyLion compensation for marketing their products and services. This may affect whether a provider is featured on this site and could affect the order of presentation. Lantern and Engine by MoneyLion do not include all providers in the market or all of their available offerings. Click to learn more about Engine’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
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Featured Image Credit: Jacob Wackerhausen/istockphoto.
