Significant gaps found The OIG’s report highlighted several critical gaps in the FHFA’s current supervisory framework. Notably, the agency has yet to issue formal guidance on how FHLBanks should manage collateral subordination practices to facilitate member banks’ access to the Federal Reserve’s discount window. Additionally, the FHFA lacks written protocols to guide coordination with other … [Read more…]
Is it possible to get a business loan with an EIN only? Yes, but it can be difficult unless the business has been around for a long time.
Lenders like to use a variety of factors to determine whether a borrower is a good candidate for a small business loan. When those factors are restricted to only a business’s financial history, it makes it harder to determine whether the applicant is a good investment. However, it is possible.
Below, we discuss how to apply for a startup business loan with an EIN and why you may want to consider doing so, as well as what you can do if your application is denied.
Key Points
• An EIN, or employer identification number, is a nine digit number given to a business, similar to a SSN given to individuals.
• While it may be possible to get a loan with just an EIN, most lenders will also want to look at your credit history, business financial statements, length in business, and business plan.
• Business loan options that may only require an EIN include equipment financing, invoice financing, invoice factoring, and merchant cash advances.
• To get the best rate on a small business loan, you’ll want to show lenders more than just your EIN, though. You’ll want to present a strong credit profile, solid financial statements, and a comprehensive business plan.
EIN stands for employer identification number. It’s a nine digit number assigned to businesses by the IRS. Contrary to popular belief, you don’t need to have employees to obtain an EIN.
There are a few reasons why you may want an EIN:
1. Makes filing taxes easier
2. Enables business owners to open a business bank account
3. Helps business owners open a business credit card
Is it possible to apply for a business loan with an EIN? Yes, but to improve your odds you’ll want to ensure your business has a financial history. You can begin doing this long before your company is ready to make its first sale.
Unless you have specifically applied for an EIN, it’s unlikely your business has one. To get an EIN, you will need to submit an application through the IRS. If you have lost your EIN and can’t find the appropriate paperwork, you may be able to contact the IRS directly and obtain it. Otherwise, your EIN is a nine digit number that is unique from your SSN.
Obtaining a small business loan with just an EIN is possible, but it often requires more than just the EIN to secure financing. The EIN, issued by the IRS, is primarily used for tax purposes and identifies a business entity. While it is an essential piece of information for loan applications, lenders typically require additional documentation and criteria to approve a loan.
In addition to an EIN, lenders will look at:
• The business’s credit history: A strong personal credit score can provide assurance to lenders about the borrower’s ability to repay the loan. In the absence of an established business credit history, personal credit becomes even more critical.
• Business financial statements: This includes profit and loss statements, balance sheets, and cash flow statements. These documents help lenders assess the financial health of the business and its ability to repay the loan.
• A business plan: A comprehensive business plan may also be required to demonstrate the company’s strategy for growth and its potential for generating revenue.
• Collateral to secure the loan: Collateral can be business assets like equipment, inventory, or real estate. This provides security for the lender, reducing their risk in case the business fails to repay the loan.
While it is theoretically possible to get a business loan using just an EIN, the reality is that additional factors, such as credit history, financial documentation, and possibly collateral, play a significant role in the approval process, as well.
Recommended: 15 Types of Business Loans to Consider
Applying for small business loans can be done with only an EIN, but it does take time to establish a business credit history. To improve your odds, follow the steps below:
1. Apply for an EIN.
2. Open a business bank account.
3. Apply for a business credit card with your EIN.
4. Make all payments to vendors and credit accounts through your business bank account. Ask vendors to report your on-time payments to Dun & Bradstreet, Experian®, and Equifax®.
5. Check on your business’s credit score.
6. Once your business has an established credit score, apply for start up business loans using your EIN number.
Startup business loans with the EIN number only have a few benefits:
• Personal credit history may not be a factor
• Borrowers who don’t have a SSN can still apply for a business loan
• Application process may be easier
However, before you decide to solely rely on your EIN, using your SSN also has some benefits you may want to consider:
• Credit score may improve loan terms
• More financing options may be made available
• Eligibility requirements may not be as difficult to reach
Because some borrowers using only an EIN may seem to be more of a risk for lenders, it’s not uncommon for lenders to prefer loans that pose less of a risk.
The top business loans for 2024 for borrowers applying only with an EIN are:
• Equipment loans: Equipment loans are secured with the equipment itself, which makes them less of a risk to the lender. However, lenders may still impose a cap on how much they are willing to loan to borrowers applying only with an EIN. The good thing about equipment loans is that the loan term often mirrors the equipment’s useful life.
• Invoice financing: Use unpaid customer invoices as collateral to secure a business loan. Once payment is received, full repayment of the loan is expected.
• Invoice factoring: Sell unpaid invoices to a third party at a discount. That company collects payment on your behalf. Once they receive payment, they forward any remaining amount to you minus any fees.
• Merchant cash advances: With a merchant cash advance, borrowers receive a lump sum of cash from a lender. Instead of making monthly payments, a small percentage of each credit card sale is automatically sent to the lender. Neither monthly payments nor collateral is required since payment is guaranteed through sales.
While it’s certainly possible to get a business loan with only an EIN, keep in mind that lenders use things like personal information, personal guarantees, and collateral to help protect themselves from lending to subprime borrowers.
Therefore, as a small business borrower, your financing options may be limited by only using an EIN during the application process because the lender has less information to go on. If your business has a short financial history, it’s safer to assume you pose a certain amount of risk.
Borrowers applying only with an EIN may find that there are less loan options, higher interest rates, and shorter loan terms.
Recommended: What to Know About Short-Term Business Loans
If your application is declined, you may consider remedying any issues with your personal credit report while also continuing to build your business’s credit score.
Remember, your credit report and your credit score are two different things. Your score is a result of the information within your credit report. Therefore, first check your credit reports and see if there are any errors. You can do so for free once a year through www.annualcreditreport.com. If you see any information that should not be there, begin the dispute process.
If there aren’t any errors, you may need to pay down your debt and begin to make all of your payments on time moving forward. If you have any older credit accounts, keep them open even once they are paid down. Also, if any friends and family have strong credit profiles and have accounts that have been open for a few years, you may ask to become an authorized user on their account. Their positive history will boost your personal credit profile.
Aside from bootstrapping and asking for help from friends and family, other options include small business grants and crowdfunding. Both are highly competitive, so you will want to consider still moving forward with the above recommendations just in case.
An EIN is required for certain businesses, especially any that have employees. An EIN is a nine digit number that is essentially a social security number for your business.
Some business loans can be obtained with only an EIN, but many small business owners will find that their options are limited if they don’t also provide their personal information. Generally, businesses need strong, lengthy credit histories to obtain business loans with only an EIN.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
Yes, it is possible to build business credit with just an EIN. However, the first step would be to open a bank account using the EIN. From there, the business owner would make all payments to their accounts from that business bank account.
While it is possible to get a business loan with bad credit and just an EIN, loan options are likely to be limited.
The average amount of time depends on the loan and the loan amount. Some loans are disbursed within a very short amount of time, while others require a lengthier underwriting process and can take up to several months.
You can apply for a business loan with only an EIN, but you will need to provide other information as well, such as a social security number or tax ID number and a written out business plan.
Each lender may or may not have unique fees associated with the application process. However, applying with just an EIN is not normally the cause or justification behind standard lender fees.
Photo credit: iStock/JLco – Julia Amaral
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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.
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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Source: sofi.com
Looking to stretch your dollar in Nevada? You’re in luck! Nevada is home to several affordable cities where you can find budget-friendly apartments without compromising on lifestyle.
Whether you’re drawn to the small-town charm or the proximity to bigger cities, these spots might just have what you’re looking for. Let’s dive into the cheapest places to live in Nevada, alongside some of the largest employers and most popular affordable attractions in each city area.
Average rent: $1,117
Pahrump tops our list as the most affordable place to live in Nevada, with an average rent of $1,117. A one-bedroom apartment here can be yours for an average of $900 a month, making it an excellent option for renters on a budget. The cost of living is lower than in many other parts of Nevada, especially when compared to the state’s larger cities.
While Pahrump may be smaller than larger Nevada cities, it has some significant employers, including massive healthcare facilities like Desert View Hospital. If you’re into outdoor activities, Pahrump offers plenty of free or cheap attractions, like the Pahrump Valley Winery and the stunning Spring Mountain Motor Resort and Country Club, where you can catch a race or two. The area’s proximity to natural attractions like Death Valley National Park means weekend adventures are accessible and affordable.
Apartments for rent in Pahrump | Houses for rent in Pahrump | Homes for sale in Pahrump
Average rent: $1,205
North Las Vegas is next with an average rent of $1,205, making it a more affordable alternative to Las Vegas itself. Studio apartments in North Las Vegas average $725, which is a steal considering the city’s proximity to the entertainment capital of the world. Despite being part of the Las Vegas metropolitan area, North Las Vegas has a lower cost of living, particularly in housing and everyday expenses.
One of the largest employers that North Las Vegas is known for is Nellis Air Force Base, which is a significant contributor to the local economy. When it comes to a little fun under the sun, you don’t need to break the bank—Aliante Nature Discovery Park is a favorite local spot with its vast green spaces and family-friendly atmosphere. Plus, the proximity to Las Vegas means you’re never far from world-class entertainment, often at a fraction of the price if you know where to look.
Apartments for rent in North Las Vegas | Houses for rent in North Las Vegas | Homes for sale in North Las Vegas
Average rent: $1,438
Sun Valley is another budget-friendly option, with an average rent of $1,438. A one-bedroom apartment here goes for about $1,295, making it a solid choice for those looking to stay near Reno without paying Reno prices.
Sun Valley’s location offers easy access to major employers in the Reno area, including Tesla and Amazon’s distribution centers. For those who enjoy the great outdoors, Sun Valley is a gateway to tons of free or low-cost activities. From hiking trails in the nearby Sierra Nevada Mountains to the scenic beauty of Pyramid Lake, there’s no shortage of nature-based attractions to explore.
Apartments for rent in Sun Valley | Houses for rent in Sun Valley | Homes for sale in Sun Valley
Average rent: $1,472
Wth an average rent of $1,472, Fernley is a bit pricier than Sun Valley but still affordable. Expect to pay around $1,449 for a one-bedroom, making it an ideal spot for small families or individuals needing extra space.
Fernley is home to several large employers, including the Nevada Cement Company and the Amazon Fulfillment Center. The city’s historic downtown offers a charming array of shops and cafes that won’t break the bank. Plus, with nearby attractions like the Fernley Wildlife Management Area and the annual Lyon County Fair, there’s always something to do that’s easy on the wallet.
Apartments for rent in Fernley | Houses for rent in Fernley | Homes for sale in Fernley
Average rent: $1,564
Reno, known as “The Biggest Little City in the World,” has an average rent of $1,564. While not the cheapest on the list, Reno has a variety of quality living options. Studio apartments in Reno start at $1,285, which is reasonable considering Reno’s growing economy and fast-paced lifestyle.
Reno’s economy is booming, thanks to major employers like the University of Nevada, Reno, and several tech companies, including Tesla and Panasonic. For those who love outdoor activities, Reno is a paradise. You can explore the Truckee River, hike the many trails around Lake Tahoe, or take a scenic drive through the Sierra Nevada—all of which are free or low-cost options that make living in Reno a great value.
Apartments for rent in Reno | Houses for rent in Reno | Homes for sale in Reno
Average rent: $1,579
Carson City, the state capital, rounds out our list with an average rent of $1,579. While it’s the priciest of the bunch, Carson City still offers relatively affordable living compared to other state capitals. A one-bedroom apartment here averages $1,730, which is on the higher end. But the city compensates with its fascinating history and government employment opportunities.
Carson City’s economy is primarily driven by government jobs. That said, there’s also a growing healthcare sector with employers like Carson Tahoe Health. For history buffs, the city offers several free or inexpensive attractions, such as the Nevada State Museum and the historic Kit Carson Trail. Plus, Lake Tahoe is just a short drive away, providing endless outdoor recreation opportunities without the hefty price tag.
Apartments for rent in Carson City | Houses for rent in Carson City | Homes for sale in Carson City
All cities must have over 20,000 residents per the US Census and have an average rent price under or within $200 of the median rent price for the state – which is $1,447 per month according to Redfin data. Average rental data from Rent.com July 2024.
Source: rent.com
New Jersey is known for its rich history, diverse culture, and beautiful landscapes. Whether you’re looking to rent in Newark or searching for an apartment in Jersey City, New Jersey offers a unique blend of suburban charm and urban excitement. The Garden State has many surprises, from its role in American history to its modern-day innovations. Here’s an ApartmentGuide breakdown of 15 fun facts about New Jersey that showcase why it’s such a fascinating place to call home.
New Jersey ratified the Bill of Rights on November 20, 1789. This made it the first state to do so. The state played a crucial role in shaping American democracy.
Thomas Edison, one of America’s greatest inventors, conducted much of his work in New Jersey. His Menlo Park laboratory, located in present-day Edison Township, was where he developed the phonograph and perfected the electric light bulb. Edison’s influence on modern technology can still be felt today. The town of Edison is named in his honor, reflecting the state’s proud history of innovation. Visitors can explore the museum dedicated to his achievements.
Atlantic City boasts the world’s longest boardwalk. Built in 1870, it stretches for over five miles. The boardwalk features casinos, shops, and plenty of entertainment options. It has become an iconic destination for tourists and locals alike. Atlantic City’s boardwalk remains a must-see attraction.
New Jersey is known as the “Diner Capital of the World.” With over 500 diners, it certainly lives up to this moniker. Diners serve as a cornerstone of the state’s culture. They offer a wide variety of food options, making them popular gathering spots.
The first baseball game took place in Hoboken on June 19, 1846. The New York Nine defeated the Knickerbockers 23-1. This historic event marked the beginning of professional baseball, paving the way for the sport eventually becoming a national pastime.
New Jersey played a significant role in the American Revolution. More battles were fought here than in any other state. George Washington crossed the Delaware River to attack Trenton, a victory that proved to be a turning point in the war.
The first drive-in movie theater opened in Camden on June 6, 1933. Richard Hollingshead created it to offer a new entertainment experience. The theater charged 25 cents per person. Drive-ins became a popular pastime across the country. New Jersey pioneered this iconic American tradition.
New Jersey has the highest population density in the United States. Over 9 million people live within its 8,722 square miles. The state offers a mix of urban, suburban, and rural environments. Despite its small size, it has something for everyone.
Although the Statue of Liberty is widely considered a New York landmark, it stands in New Jersey’s waters. Liberty Island is part of New Jersey’s territory. The statue has greeted millions of immigrants arriving in America. It remains a symbol of freedom and opportunity. New Jersey proudly shares this iconic landmark.
New Jersey is the birthplace of several legendary musicians. Bruce Springsteen, Frank Sinatra, and Whitney Houston all hail from the state. The music scene here has influenced generations of artists. These stars have left a lasting impact on popular culture.
New Jersey is one of the top producers of cranberries in the United States. The Pine Barrens region provides ideal growing conditions. Cranberries from New Jersey are used in juices, sauces, and more. The annual cranberry harvest is a significant event in the state, and Bordentown, NJ hosts an annual Cranberry Festival during the fall.
New Jersey is home to more horses per square mile than any other state. The horse industry contributes significantly to the state’s economy. The state’s rural areas feature numerous horse farms and equestrian centers. Horse racing is also a popular sport in New Jersey, and the state hosts the U.S. Equestrian Team in Gladstone.
The Jersey Devil is a legendary creature said to inhabit the Pine Barrens. The story dates back to the 18th century. Sightings have been reported over the years, adding to the mystery. The legend has become a part of New Jersey folklore.
New Jersey’s cuisine reflects its cultural diversity. The state is known for its bagels, pizza, and pork roll. Italian, Greek, and Middle Eastern influences are prevalent in local dishes. New Jersey’s food scene is a delicious melting pot.
The common blue violet was designated as New Jersey’s state flower in 1971. This vibrant flower grows abundantly across the state during the spring. It symbolizes the beauty and resilience of New Jersey’s natural landscapes. The violet can be found in gardens, parks, and forests. Rhode Island, Illinois, and Wisconsin also claim the violet as their state flower.
The TAP Miles&Go American Express Card, also known as the TAP Air Portugal credit card, can help jump-start your next visit to Portugal, or to more than 80 destinations in over 30 countries throughout Europe, Africa, North America and South America. It’s issued by First Electronic Bank and serviced by Cardless, a credit card provider.
In addition to rewards, the card offers travel perks like priority boarding, free checked bag, and two lounge visits per year. But unless you’re flying to Portugal frequently, you’ll get more flexibility and value from a different credit card.
Here’s what you need to know about the TAP Air Portugal credit card.
The TAP Air Portugal credit card charges an annual fee of $79, which is lower than you might find on some other airline credit cards. And it’s possible to offset that cost with the card’s perks and rewards if you travel at least once per year.
If you prefer a $0 annual fee, it’s worth exploring options like the Wells Fargo Autograph℠ Card. It earns 3 points per dollar spent on restaurants, travel, transit, gas stations, electric vehicle charging stations, popular streaming services and select phone plans. All other purchases earn 1 point per dollar spent. There’s also a sign-up offer: Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months – that’s a $200 cash redemption value.
Because the TAP Air Portugal Card earns bonus rewards only on travel-related expenses, and not everyday purchases, it will likely be a while before you can enjoy the fruits of your spending. The card offers:
3x Tap Miles&Go miles on TAP Air Portugal purchases.
2x miles on rideshare purchases, hotel purchases and car rentals.
1x mile on all other spending.
As of this writing, new cardholders are also eligible for a welcome offer: Earn up to 40,000 bonus miles after spending $2,500 with the card within 90 days of account opening. Terms apply. Plus, for every 5 miles earned with the card, you’ll earn 1 status mile, up to 10,000 per annual qualification period.
🤓Nerdy Tip
NerdWallet values TAP Portugal miles at 0.8 cent each. This is a baseline value, drawn from real-world data and not maximized value. Seek reward redemptions that offer at least that much in value from your TAP Portugal miles to get a decent deal.
Those rewards are decent, but a general-purpose rewards credit card — especially one that earns points or miles on everyday purchases — may help you reach your travel goals faster. The $95-annual-fee Chase Sapphire Preferred® Card, for instance, earns 5 points per dollar spent on all travel purchased through Chase; 3 points per dollar spent on dining, select streaming services, and online grocery purchases; 2 points per dollar spent on travel not purchased through Chase; and 1 point per dollar spent on all other purchases. Plus, you’ll be able to redeem your rewards toward a much wider array of travel options. There’s also a sign-up bonus for new cardholders: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠.
The TAP Air Portugal credit card features perks like preferred boarding, two TAP premium airline lounge passes per year, and two extra checked bags per year.
These kinds of airline-specific benefits aren’t typically offered by general-purpose rewards credit cards. And if they’re features you know you’ll use, then they can make up for the cost of the annual fee.
The TAP Air Portugal credit card runs on the American Express payment network. But unlike cards that run on the Visa or Mastercard networks, American Express isn’t as widely accepted abroad.
As a result, it’s important to have a backup payment method for purchases you might make in another country.
Since TAP is a Star Alliance member, you can redeem TAP Miles&Go miles with more than 20 carriers for award flights to more than 1,200 airports worldwide. The alliance includes United Airlines as a domestic partner, as well as several international transfer partners.
Another option for frequent flyers of TAP Air Portugal, though, would be the $95-annual-fee Capital One Venture Rewards Credit Card, which earns 2 miles per dollar on purchases. Capital One miles can be transferred to TAP Air Portugal at a rate of 1:1. But you’ll also have the flexibility to apply those miles toward any airline, hotel or eligible travel expense. It also offers a bonus for new cardholders: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening – that’s equal to $1,000 in travel.
Source: nerdwallet.com
Dave Liniger, chairman of the board at RE/MAX Holdings, expressed confidence in Raffaeli’s ability to contribute to the company’s growth. “[Cathi] has an impressive track record of driving growth and leading organizations. Her diverse experience and strategic insight align perfectly with our goals, and we are excited to welcome her to the team,” Liniger said. … [Read more…]
Credit scores measure your financial health at a given point in time. Ideally, your score increases as you build your credit history, so a sudden decline can leave you wondering why.
Several things can cause a credit score to fall 100 points (or more), and late payments are often at the top of the list. Here’s a closer look at why credit scores decrease.
A credit score can drop by 100 points or more when there’s a significant change to your credit reports. Possible reasons for a credit score drop of 100 points or more include:
• Late payments
• Missed payments
• High balances relative to your credit limits
• Reduced credit limits
• Delinquencies and collection accounts
• Bankruptcy filing
• Foreclosure or repossession
• Judgments
• Multiple inquiries for new credit in a short timespan
• New credit accounts in your name1
These types of items can drag your score down. Paying off loans or closing credit card accounts can also cost you credit score points, even though you might consider them positive financial steps.
Identity theft and fraud can trigger a sizable drop in your credit score as well. If someone uses your identity to obtain loans or open lines of credit without your knowledge, that could leave you vulnerable to late or missed payments, delinquencies, and collection actions. A money tracker app can help you keep tabs on your credit score, and you’ll also get updates when it changes.
A credit score drop can be worrisome, especially if you weren’t expecting it. You may have cause for concern if you:
• Plan to apply for a mortgage or another type of loan soon
• Would like to refinance an existing debt that you have at a lower interest rate
• Suspect that someone may be using your identity to obtain credit fraudulently
Fluctuating credit scores could make it more difficult to get approved for new loans. If you are approved, a lower score could result in a higher interest rate.
Identity theft is a more serious matter. You may not even be aware that someone is using your identity to obtain credit in your name until you’re denied credit, or worse, sued for an outstanding debt you didn’t create.
Why did my credit score drop by 100 points for no reason? The short answer is that it didn’t. There must be some change to your credit report to result in a score decline.
Changes that can show up on your credit reports include:
• New accounts opened in your name
• Account closures
• Changes to your balances or credit limits
• Payment activity, including late payments or missed payments
• Delinquencies and accounts that are sent to collections
• Paid off balances
• Debt settlements, in which your creditors agree to let you pay off less than what you owe
• New inquiries for credit1
Inaccurate information can also harm your credit. Between 2021 and 2023, consumer complaints about credit report errors increased by 168%, according to the Consumer Financial Protection Bureau (CFPB). Credit report errors can range from payments being incorrectly reported to accounts listed as belonging to you that are not yours.2
In some cases, a credit score drop might be caused by someone else. This can happen when you cosign a loan for someone. As the cosigner, you’re legally responsible for the debt. Any activity relating to the account, including late or missed payments, can show up on your credit report.3
If your credit score drops by 100 points or more, the first thing to do is determine why. Obtaining copies of your credit reports can shed some light on what may be causing the decline.
Here are some things to look for as you review your reports:
• Missing or incorrect payment history
• Incorrect balance information
• Accounts that don’t belong to you
• Collections for debts that don’t belong to you
• Loan accounts you’ve paid off that still show a balance
• Open accounts that are listed as closed or vice versa
• Duplicate debts, meaning the same account is listed multiple times
If you identify what you believe is an error or inaccuracy, you have the right to dispute it with the credit bureau that’s reporting the information. Equifax, Experian, and TransUnion — the three major credit bureaus — all allow you to initiate credit report disputes online.4
Why did my credit score drop over 100 points when there were no errors? That’s trickier to answer, as it depends on the information in your credit file. If there are no errors or inaccuracies, then you’ll need to consider things like payment history, credit limits, and debt balances to see if they’ve had any impact on your score.
Hopefully, you never have to deal with a major credit score drop. But it may help to have some examples of what can cause your score to go down.
• You’re ready to buy a home and are shopping for a mortgage lender. You find the one you want to work with and apply for a loan. You’re approved, but the new inquiry and associated debt on your credit reports lead to a score drop.
• You cosign a car loan for your niece, on the promise that she’ll make the payments on time. She loses her job but doesn’t tell you and the loan payments go unpaid for six months. The lender repossesses the vehicle, which lands on your credit report and costs you credit score points.
• You make the final payment to your student loans. The account is now listed as closed and paid in full on your credit reports, but it lowers your score.
Again, not all things that lead to a credit score drop are negative. Paying off debt, for example, is something to celebrate even though it can ding your credit to a degree.
How long does it take to build credit? There’s no simple answer, as it can depend on what you’re doing (or not doing) to recover lost credit score points.
Some of the most effective strategies for building credit include:
• Paying bills on time to establish a positive payment history
• Keeping the balances on your credit cards low or paying in full each month
• Paying down debt that you already have
• Periodically requesting credit limit increases from your credit cards (but not running up new debt against them)
• Leaving older credit accounts open, even if you don’t use them
• Using different types of credit, such as loans and credit cards
• Limiting how often you apply for new credit
You can also build credit as an authorized user on someone else’s credit card. Authorized users have charging privileges on the card and account activity will show up on their credit reports, but they’re not legally responsible for the debt.5
Having a checking or savings account typically doesn’t affect credit scores. Banks can, however, report negative activity related to closed accounts to ChexSystems, a consumer credit reporting agency. A negative ChexSystems report could make it difficult to get approved for a new bank account.
If you recently checked your credit following a score drop, you may want to wait a while before checking it again. Credit scores change when there’s new information added to your credit reports, whether it’s something positive or negative.
It may be helpful to check your credit monthly or quarterly if you’re working on rebuilding your score. That way, you can track your progress against any steps you’re taking to improve your score to see what’s working.
At a minimum, it’s a good idea to check your credit at least once annually. That can allow you to see what’s changed over the last year and look for any suspicious or potentially fraudulent activity.
Pro tip: Use a free credit monitoring service to get regular credit score updates.
Recommended: How to Check Your Credit Score Without Paying
Closing credit cards can hurt your score if you still owe a balance at the time you close the account. Your credit utilization ratio measures how much of your available credit you’re using. When you close a credit card with a balance due, you automatically increase your credit utilization ratio.6
For example, let’s say you have a combined credit limit of $20,000 across five credit cards. You owe $6,000 in total debt to your cards, which makes your credit utilization ratio 30% ($6,000 / $20,000 = 0.3).
Now, assume that you owe $5,000 to one card alone. That card has a credit limit of $10,000. You close it, cutting your total credit limit in half. Now you have a credit utilization ratio of 60% ($6,000 / $10,000 = 0.6).
Some experts say that 30% or less is an ideal credit utilization ratio to aim for, while others target 10% instead. The main thing to remember is that the lower your credit utilization is, the less harmful changes can be to your score.
In terms of how to lower credit utilization, you can do so by paying down credit card balances and/or increasing your credit limits.
If you’re wondering what affects your credit score, it’s not just one thing. FICO credit scores, which are the most commonly used among top lenders, are determined by five factors.
• Payment history: 35% of your score
• Credit utilization: 30% of your score
• Credit age: 15% of your score
• Credit mix: 10% of your score
• Credit inquiries: 10% of your score7
VantageScores are based on some of the same factors, though they’re calculated differently. The VantageScore model was developed by the credit bureaus as an alternative to FICO scores.
Tracking your credit score can be beneficial but there are some potential downsides. Here’s a quick look at the advantages and disadvantages.
• Monitor your progress over time
• Get to know which factors are helping or hurting your score the most
• Easier to spot suspicious activity or potential fraud
• You may feel frustrated if your score isn’t climbing as quickly as you’d like
• Checking your score too often could cause you to obsess over even minor changes
• Keeping up with multiple credit scores could get confusing
Recommended: Why Did My Credit Score Drop After a Dispute?
Credit score monitoring services make it easy to track your credit scores and get notifications when there’s a change to your credit report. SoFi, for instance, offers free weekly credit score updates and access to a certified financial planner if you have questions about credit score changes.
Regardless of which service you use to monitor your credit, keep track of changes as they’re reported. Specifically, look at which changes are positive and which are negative. That can guide you toward what you might need to do to improve your score.
Seeing your credit score drop by 100 points or more can be disheartening, but it’s not the end of the world. There are things you can do to get your score back on track.
Tracking your money is a good place to start. Tools like a spending app connect all of your accounts in a single dashboard so you can understand the factors that are influencing your credit scores. You can also check your scores for free. It’s a simple way to take charge of your financial health while you work on building good credit.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
It may seem as if nothing has changed on your credit reports, but there must be some type of change for your score to be affected. If your score dropped, take time to review your credit reports thoroughly. Even a seemingly minor change, such as a new credit inquiry, could make a dent in your score.
Paying bills on time can help add points to your score, but it might still go down if you have a high credit utilization or apply for new credit frequently. Closing accounts could also hurt your score, even if you pay on time. Using a spending app to track bills and expenses can help you stay on top of your due dates.
You can’t dispute a credit score drop, but you can dispute the information on your credit reports that you believed caused the drop. Keep in mind, however, that disputing credit report information isn’t guaranteed to improve your score.
Photo credit: iStock/kate_sept2004
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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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-Q324-009
Source: sofi.com
Looking for the most affordable places to live in Maine? You’ve landed in the right spot. Whether you’re searching for a quiet coastal retreat or an up-and-coming community with all the essentials, Maine is full of cities where you can enjoy a high quality of life without overspending.
In this guide, we’ll walk you through four of the most budget-friendly cities in Maine. We’ll break down the average rents and give you the scoop on local job opportunities and affordable attractions. If you’re looking to live comfortably without stretching your wallet, these Maine cities are worth checking out.
Average rent: $1,188
Augusta tops our list of the cheapest places to live in Maine, with an average rent of $1,188. You’ll find one-bedroom apartments averaging $1,200 per month, while two-bedroom units are slightly cheaper at $1,175. This affordability is partly due to the city’s abundance of older, well-maintained properties that offer more bang for your buck. Whether you’re a single professional or a small family, Augusta’s rental market provides excellent value.
Augusta is home to several major employers, including the state government. MaineGeneral Health also offers plenty of job opportunities in the healthcare sector. When it comes to cheap activities, you won’t be disappointed. The Kennebec River Rail Trail is perfect for leisurely walks or bike rides. History buffs should do their best to make time for the Maine State Museum, where admission is reasonable.
Apartments for rent in Augusta | Houses for rent in Augusta | Homes for sale in Augusta
Average rent: $1,325
Lewiston offers affordable living with an average rent of $1,325. One-bedroom apartments in Lewiston average $1,300, while two-bedroom apartments cost around $1,350. The city’s affordability stems from its diverse housing stock, including many reasonably priced multi-family homes and apartments.
Bates College is one of the largest employers in Lewiston and the driving force behind the city’s status as one of the top Maine college towns. For entertainment, the Androscoggin Riverwalk provides a scenic and cost-free way to explore the area. The Lewiston Public Library is another great spot, offering free programs and resources. Whether you’re interested in art, history, or just enjoying the outdoors, Lewiston offers something for everyone without breaking the bank.
Apartments for rent in Lewiston | Houses for rent in Lewiston | Homes for sale in Lewiston
Average rent: $1,883
In South Portland, the average rent is $1,883, with studio apartments going for $1,175, one-bedroom apartments at $1,967, and two-bedroom units at $2,507. While rent here is higher than in Augusta or Lewiston, South Portland offers more modern amenities and a strong community that justifies the cost. Living in South Portland gives you access to larger city conveniences without the sky-high prices of Portland proper.
South Portland’s economy is driven by its port, which supports shipping, logistics, and retail. Major employers include Fairchild Semiconductor and Southern Maine Community College, the latter of which puts South Portland in the top-tier of Maine college towns. If you’re looking for budget-friendly entertainment, the Greenbelt Walkway has beautiful views and is perfect for jogging, biking, or simply unwinding in peace. Willard Beach is another gem where you can spend a day by the sea without spending a dime.
Apartments for rent in South Portland | Houses for rent in South Portland | Homes for sale in South Portland
Average rent: $1,890
With an average rent of $1,890, York is one of the pricier options on this list. A one-bedroom apartment in York costs around $2,180, while a two-bedroom averages $1,600. Despite the higher costs, York offers a desirable coastal living experience that’s hard to find elsewhere. Many rental properties boast ocean views or easy beach access, which contributes to the higher rent but adds immense value for those who enjoy the seaside lifestyle.
York’s economy thrives on tourism, with many residents employed in the hospitality industry. For affordable fun, take advantage of York’s many free attractions, like Wiggly Bridge and Steedman Woods, perfect for a day of hiking and exploring. The town also hosts free seasonal events, including outdoor concerts and community fairs, making York a delightful place to live without needing to spend much on entertainment.
Apartments for rent in York | Houses for rent in York | Homes for sale in York
All cities must have over 9,500 residents per the US Census and have an average rent price under or within $275 of the median rent price for the state – which is $1,631 per month according to Redfin data. Average rental data from Rent.com July 2024.
Source: rent.com
Ohio is known for its rich history, diverse culture, and vibrant cities. Whether you’re looking to rent in Cleveland or searching for an apartment in Columbus, you’ll find that living in Ohio offers a unique blend of urban excitement and natural beauty. To give you a taste of what makes this state special, here are 15 fun facts about Ohio that might surprise you.
Ohio has earned the nickname “The Mother of Presidents” due to its history of producing leaders. Seven U.S. presidents were born here, including Ulysses S. Grant and William Howard Taft. The state’s political influence remains strong today. Many presidential campaigns make crucial stops in Ohio.
Neil Armstrong, the first person to walk on the moon, hailed from Wapakoneta, OH. His historic voyage in 1969 made him a global icon. Ohio celebrates his achievements with museums like the Armstrong Air & Space Museum and local events.
Cleveland hosts the iconic Rock and Roll Hall of Fame. The museum celebrates the history of rock music and its influential artists. It attracts music lovers from around the world. Exhibits range from classic rock to modern pop culture. Recent inductees include icons like Cher and A Tribe Called Quest.
Cincinnati, OH has an extensive history when it comes to professional sports. Their Major League Baseball team, the Cincinnati Reds, is the oldest in the country. Originally known as the Red Stockings, the team was formed in 1869 and played their first game on May 4 of that year.
The Amish community in Ohio is the largest globally, particularly in Holmes and surrounding counties. Their traditional way of life contrasts with modern conveniences. Visitors can explore Amish country, enjoying handmade crafts and foods. The Amish lifestyle offers a glimpse into a simpler time.
Garrett Morgan, an Ohioan, invented the first three-position traffic signal in Cleveland in 1923. His invention revolutionized road safety worldwide. Morgan’s contribution is just one of many innovations from Ohio, as the state also introduced the modern cash register and chewing gum.
East Cleveland, OH debuted the world’s first electric streetcar in 1884, marking a major advancement in public transportation. The success of this streetcar system influenced other cities globally. Cleveland’s innovation helped shape modern urban transit systems.
The town of Madeira, OH, shares its name with a popular wine. Named by early settlers, Madeira is a suburban community near Cincinnati. It should be noted that the town was actually named after a local landowner, John Madeira, and not the alcoholic beverage.
Ohio became the 17th state in 1803, the first from the Northwest Territory, an area that included other future midwestern states like Michigan, Illinois, and Wisconsin. Its admission set the stage for further western expansion. Ohio played a key role in the nation’s growth. The state’s history is filled with pioneering spirit.
Cincinnati launched the nation’s first professional ambulance service in 1865. The service was part of the city’s Commercial Hospital, now known as the Cincinnati General Hospital. This innovation greatly improved emergency medical response.
Baseball isn’t the only sport with historical ties to the Buckeye State. Canton, OH, became the birthplace of professional football in 1920. The Pro Football Hall of Fame honors the greatest players and coaches in NFL history. Visitors can explore exhibits that celebrate the game’s rich history.
Ohioans love their buckeye candy, a sweet treat made to resemble the nut of the buckeye tree. The candy consists of peanut butter dipped in chocolate. It’s a popular snack during Ohio State University football games.
Newark, OH, is home to the world’s largest basket, which serves as the former headquarters of the Longaberger Basket Company. The seven story building is shaped like a giant picnic basket. This quirky landmark reflects the state’s history in manufacturing and craftsmanship. It remains a popular tourist attraction.
You’re probably aware of the Wright brothers’ role in the history of aviation, but did you know they were from Ohio? Orville and Wilbur Wright, invented the first airplane. They were born in Dayton, OH, where they built and tested their aircraft. Their invention changed the world and launched the age of aviation.
The official state fossil of Ohio is the trilobite, specifically the genus Isotelus. These ancient sea creatures once inhabited Ohio’s prehistoric oceans. Fossil enthusiasts can find specimens throughout the state.
Many Reddit users report receiving $10.xx checks for money owed to them as being American Express Business cardholders. Apparently there were $10 wireless credits not paid out and these are being sent out with interest. Some people got $20.xx check or $30.xx checking, presumably for some months combined. Some got even a dozen or more of these checks. It’s been sent even to people who are not aware of any missing credits, so keep an eye out and don’t throw out the mail too quickly.
Source: doctorofcredit.com