The newest addition to PNC Bank’s credit card portfolio may already be the best of the bunch.
Launched on May 7, 2024, the PNC Cash Unlimited Visa Signature Credit Card has no annual fee and earns an unlimited 2% cash back on all eligible purchases. Other highlights include cell phone insurance, a 0% intro APR, and no foreign transaction fees. That combination of perks in a $0-annual-fee card makes the PNC Cash Unlimited card one of the best credit cards that earn 2% on all purchases.
Who doesn’t want to be rewarded?
Create a NerdWallet account for personalized recommendations, and find the card that rewards you the most for your spending.
Note that you must be a member of PNC Bank to apply for any PNC Bank-issued card.
Rewards earned with the PNC Cash Unlimited card never expire and may be redeemed for:
Direct deposit into an eligible PNC Bank consumer checking or savings account or a PNC investment account.
Statement credit to the PNC Cash Unlimited card account.
Gift cards.
Travel booked through PNC’s Travel Catalog.
There’s no minimum redemption amount required to redeem for a direct deposit or statement credit, but cardholders must have at least 5,000 points to book travel. One point is worth 1 cent, the industry standard, when redeemed for direct deposit, statement credit and travel. Point values vary for gift card redemptions.
The cell phone insurance offered by the PNC Cash Unlimited is highly competitive with other cards in its class. As long as you use your PNC card to pay your cell phone bill, you can receive up to $800 worth of coverage per claim. (Two claims are allowed every 12 months.) For comparison, another 2% rewards credit card, the Wells Fargo Active Cash® Card, pays out up to $600 per claim.
If the PNC Cash Unlimited card has a weakness, it’s the lack of a sign-up bonus in which new cardholders can get a huge chunk of rewards by spending a certain amount within a specified time frame. However, new cardholders do get an introductory 0% APR for 12 months on purchases and on balance transfers made within 90 days of account opening. For those looking for a break on interest charges, that feature can be a true money saver.
When you open a new checking or savings account, some financial institutions require you to make a minimum opening deposit, which might be anywhere from $25 to $100. In some cases, you may also need to meet certain ongoing minimum balance requirements to avoid fees or qualify for a certain annual percentage yield (APY).
Fortunately, there are banks, credit unions, and other financial institutions that don’t require a minimum deposit so you can stash and spend your money even if you’re low on cash. Here are key things to know about minimum deposit and balance requirements for bank accounts.
What Is a Minimum Deposit?
A minimum deposit is the lowest amount of money you need to open a new bank account with a bank or credit union. It can also refer to the minimum balance you must maintain in order to receive certain perks or avoid fees.
Minimum deposits vary depending on the type of account and the financial institution. Some banks do not request a minimum deposit to open a basic checking or savings account, while others require between $25 and $100. Generally, higher minimum deposits are associated with premium services and higher APYs.
If you’re in the market for a bank account, it’s a good idea to check with the bank or credit union to determine whether an initial deposit is required, your options for depositing the funds, and if there are any ongoing balance requirements.
Types of Minimum Balance Requirements
When researching checking and savings accounts, keep in mind that there are typically two types of minimum balance requirements. Let’s clarify those terms, since they can sometimes be used interchangeably and cause confusion.
Minimum Opening Deposits
A minimum opening deposit is the amount of money required to activate a new account, such as a checking, savings, or money market account, or a certificate of deposit (CD). Generally, a money market account or CD will come with a higher opening deposit than a basic savings or checking account.
You can usually make a minimum opening deposit by transferring money from an account at another bank or from an account you already have at that same bank. You can also usually make an opening deposit using a check, money order, or debit card. Keep in mind you are not limited to making the minimum opening deposit — you can typically open a bank account with more than the required minimum.
There are some financial institutions that offer accounts with no minimum opening deposits. However, it’s important to read the fine print. In some cases, these accounts may require you to make a deposit within a certain timeframe (such as 60 days) in order to keep the account open.
Minimum Monthly Balance
A minimum monthly balance is the amount of money that must be maintained in the account each month to enjoy certain benefits or avoid fees. These minimums can range anywhere from $100 to $2,500, depending on the institution and type of account. If you opt for an account with a balance minimum, you may be able to set up alerts on your bank’s app to let you know when your funds are slipping below a certain threshold.
Minimum balance requirements can vary in their specifics, but typically fall into one of these three categories.
• Minimum daily balance: This requirement means you need to maintain a minimum amount of money in your account each day to avoid fees or qualify for certain benefits, like earning interest.
• Average minimum balance: Banks calculate this by adding up the balances in your account at the end of each day over a statement period, then dividing that total by the number of days in the period.
• Minimum combined balance: This involves averaging the total amount of money you have across multiple accounts, such as a checking and a savings account, each month. This combined average must meet the minimum balance requirement to avoid fees or earn benefits.
How Do Minimum Deposits Work?
Minimum deposits work by setting a threshold that must be met to open or maintain a bank account. The minimum opening deposit is required to open a new account, while the minimum monthly balance must be maintained each month (or day) to avoid fees or earn a higher interest rate. It’s important to note that the minimum opening deposit is a one-time requirement, while the minimum monthly balance must be maintained on an ongoing basis.
In addition, some accounts may require a minimum monthly deposit (such as direct deposit of your paycheck) to qualify for certain account benefits, such as earning a higher APY or avoiding a monthly fee.
Real World Example of a Minimum Deposit
Let’s say you decide to open a savings account at XYZ bank. The bank has a $50 minimum deposit to open the account and to start earning interest, so you transfer $50 into the account from an account you have at another bank.
XYZ bank also requires you to maintain a monthly minimum balance of $250 to avoid a $3 service fee. You’re not a fan of fees, so you keep tabs on your account and make sure you always have at least $250 in the account. To help, you set up an automatic alert on your banking app to let you know when the account dips below $250 so you can top up the account and avoid fees.
What Happens If You Don’t Maintain a Minimum?
If you fail to maintain the minimum monthly balance required by your bank, you may be charged a fee, lose any interest you were set to earn that month, or forgo other perks. The specific consequences vary depending on the financial institution and the type of account.
The Takeaway
Minimum deposits are an important aspect of managing a bank account. When you open a new checking or savings account, you may need to make a certain initial deposit to activate the account. You may also be required to keep the balance in the account above a certain threshold in order to avoid a monthly service fee or earn a certain interest rate.
It’s important to be aware of the minimum deposit requirements for your bank account. This helps ensure that you get all the perks of your bank account, while avoiding any unexpected costs.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
What is a minimum opening balance and how much is it?
A minimum opening balance is the initial deposit required to open a bank account. This amount varies depending on the bank and the type of account. For example, some banks may require as little as $25 to open a basic savings account, while others may require several hundred dollars for a checking account that earns interest.
What is a minimum monthly deposit and how much is it?
A minimum monthly deposit is the amount of money you must deposit into your bank account each month to avoid fees or earn certain perks, like a higher interest rate. This requirement varies by bank and account type. Some banks may not have a minimum monthly deposit requirement, while others may require a certain amount, such as $500 or $1,000, to be deposited each month to avoid fees.
What bank has no minimum balance?
Several banks and credit unions offer accounts with no minimum balance requirement. These banks include Ally, NBKC, SoFi, Discover, Connexus Credit Union, Ally, Capital One, and Chime.
Why do banks require an initial deposit?
Banks require an initial deposit to open an account for several reasons. First, it helps ensure that the account is legitimate and that the customer is serious about opening and maintaining the account. Second, it helps cover the costs associated with opening the account, such as processing paperwork and issuing a debit card. Finally, it helps the bank establish a relationship with the customer, which can lead to additional business in the future.
Photo credit: iStock/pinstock
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
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.
Following his recent retirement from the winemaking business, former NFL star and College Football Hall of Famer, Terry Hoage has put his renowned Paso Robles winery on the market.
The 26-acre estate, located in the prestigious Willow Creek District, is listed at $7 million. It includes a luxury main residence, a guest house, and a fully operational winery, all of them surrounded by 17.5 acres of mature vineyards known for producing award-winning Rhône varietals.
Together with his wife Jennifer, an accomplished interior designer, Terry Hoage has cultivated this vineyard into a celebrated part of the local wine community over the last 20 years. The property features a 3,000-square-foot winery fully equipped to produce up to 3,000 cases annually — and even includes a tasting room.
Now, one year after the couple announced they’re retiring from winemaking, Jennifer and Terry Hoage have listed their 26-acre estate for sale. Jenny Heinzen with Vineyard Professional Real Estate holds the listing.
About the owners
Terry Hoage enjoyed a successful 13-year career in the NFL as a safety, playing for teams like the New Orleans Saints and Washington Redskins. He was recognized as an All-American during his college football days with the University of Georgia Bulldogs.
After retiring from professional football in the late 1990s, Hoage and his wife Jennifer moved to California’s Central Coast and discovered a passion for winemaking. In 2002, they purchased a 26-acre vineyard in Paso Robles and launched TH Estates Wines, specializing in Rhone varietals like Syrah and Grenache.
TH Estates Winery owners Jennifer and Terry Hoage giving a tour of their winery in 2010. Photo credit: Youtube
Over the next 20 years, the Hoages built TH Estates into an acclaimed producer of small-batch wines, earning praise from publications like Wine Spectator. They grew the majority of their grapes onsite at their Willow Creek vineyard.
The couple recently announced their retirement from winemaking after two decades in the Paso Robles wine community. Though bittersweet, they felt it was time to embark on their next chapter and announced the closure of TH Estates Winery in 2023.
The vineyard
Photo credit: Triston Ioppini / Trimotion Media
The heart of this property is the 17.5-acre vineyard planted with Rhône varietals including Syrah, Grenache, and Mourvèdre. These grapes thrive in the Willow Creek terroir and are highly sought-after by renowned Paso Robles winemakers.
The vineyard’s prized fruit contributes to many critically acclaimed wines that sold out year after year. With an approved winery permit to produce up to 3,000 cases annually, this vineyard offers endless possibilities for future owners as passionate about wine as the Hoages.
The winery
Photo credit: Triston Ioppini / Trimotion Media
The property features a full-scale winery and tasting room situated among the rolling vineyards.
At 3,000 square feet, the custom winery provides ample space for wine production and storage. It operates under a use permit allowing for up to 3,000 cases of wine to be produced annually on-site. The permit also enables the winery to conduct public tastings in the dedicated tasting room.
With climate-controlled barrel storage and professional equipment already in place, the winery provides a turnkey operation.
Award-winning wines
The Hoages found success right out of the gate with TH Estates Wines. Their first vintage in 2004 of The Hedge Syrah earned acclaim, dedicated to Terry’s former University of Georgia coach Vince Dooley. This demonstrated the vineyard’s potential for premium Rhone varietals.
In the years that followed, Terry and Jennifer’s wines continued to shine, consistently earning outstanding ratings from top critics. Their limited production pinot noir and Rhone blends became highly coveted.
Photo credit: Triston Ioppini / Trimotion Media
Robert Parker’s Wine Advocate awarded 98 points to the Hoages’ 2013 Decroux, describing it as “one of the finest wines ever produced from Paso Robles.” Grapes grown on the estate sell for premium prices to prestigious local producers like Saxum, Turtle Rock, and Torrin.
Clearly the vineyard’s complex soils and ideal microclimate translate to fruit with incredible character and depth. TH Estates brought Paso Robles to the forefront of California’s Rhone movement.
The main house
The opulent main residence is a licensed vacation rental with luxurious details and amenities throughout. Designed by Jennifer Hoage herself, no expense was spared.
Photo credit: Triston Ioppini / Trimotion Media
The interiors
The home features 3 spacious ensuite bedrooms, each with private patios to enjoy the scenic vineyard views.
The open floor plan is ideal for entertaining, with expansive windows flooding the home with natural light. Custom touches include luxe cumaru wood floors, an art gallery system, and a steam shower to unwind after a day of wine tasting.
Photo credit: Triston Ioppini / Trimotion Media
Stepping inside
The gourmet kitchen truly is the heart of the home. Custom cabinetry paired with white macaubas quartzite countertops provide a clean, modern aesthetic. Top-of-the-line Wolf range and professional series appliances make cooking a dream.
Photo credit: Triston Ioppini / Trimotion Media
Attention to detail abounds, from the wine cooler to multiple sinks and spacious walk-in pantry. A large 14-foot island seats 7 comfortably for casual dining. The formal dining room continues the upscale entertaining space with a contemporary mooii pendant lighting the table, and wine storage built right in.
Photo credit: Triston Ioppini / Trimotion Media
Practical amenities make everyday life a breeze, including whole house water filtration, a water softener, zoned AC/heating and a Lutron lighting system. This smart home has all the modern conveniences to match its luxurious style.
Property amenities
Beyond its wine-making capabilities, the 26-acre estate offers a bounty of fruit trees, olive trees, and berries throughout the property.
Photo credit: Triston Ioppini / Trimotion Media
There is also a sustainable pond for irrigation. Outdoor amenities provide plenty of opportunities for fun and relaxation. A heated saltwater pool and spa with seating for 8 is perfect for lounging on sunny days.
The stylish patio off the kitchen includes an outdoor kitchen with a firepit and BBQ, ideal for alfresco dining and entertaining. And for some friendly competition, there is a custom bocce court on the grounds.
Why sell now?
After 20 successful years immersed in the Paso Robles wine industry and community, owners Jennifer and Terry Hoage have decided to retire and pursue new adventures.
Photo credit: Triston Ioppini / Trimotion Media
The couple started their winemaking journey in 2002, after Terry’s prolific football career, when they purchased the 26-acre parcel that would become their Willow Creek vineyard and winery.
Over the past two decades, the Hoages built TH Estate Wines into an acclaimed producer of Rhône varietals and Pinot Noir that gained a cult following. They were hands-on in every aspect of the business.
Ready for a new chapter
As Terry shared, “Knowing that a book is only so long, we are now planning for a new chapter in our book of life.” While bittersweet, the Hoages are looking forward to what’s next after these invigorating decades in wine.
Photo credit: Triston Ioppini / Trimotion Media
“We have been extremely blessed to have both had two successful careers participating in exciting and invigorating endeavors,” said Jennifer Hoage. “We were fortunate to receive wonderful support from the Paso Robles community and spectacular club members that helped propel us on this journey.”
After celebrating immense success in the NFL and later as vintners, the Hoages are ready to embrace retirement and discover what life has in store next for them. Though they’ll miss being part of the Paso Robles wine community, they’re excited to see what new adventures await.
The opportunity
Photo credit: Triston Ioppini / Trimotion Media
The couple’s decision to part ways with their longtime winery opens up a rare opportunity for one lucky buyer to build upon the reputation and success that Terry and Jennifer Hoage achieved during their 20-year winemaking career here.
The property offers a move-in ready luxury main home along with 26 acres of established vines, a licensed winery, and tasting room.
From the vineyard and winery to the stunning home, all the hard work has been done — now is somebody else’s chance to reap the rewards. And for those seeking a turnkey wine country lifestyle, 870 Arbor Road checks every box.
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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Learning how to build credit as a student is important so you’re ready for life after graduation. Focus on building healthy credit habits—paying bills on time, keeping your credit utilization low and avoiding common credit mistakes.
While the government considers you an adult at 18, many people consider graduating college and starting their first job as the first real marker of adulthood. However, adulthood comes with responsibilities, many of which require a credit score—putting utilities in your name, renting your first apartment, putting car insurance in your name and even buying a car.
Read on to learn about some of the ways you can build credit as a student so you can graduate college with a degree and healthy credit.
Become an authorized user on a credit card
For many students, the first step to building credit is using a credit card to build credit. Unfortunately, it can be challenging to get a credit card if you don’t have any credit.
Often, a person’s first credit card isn’t actually theirs. Instead, they become an authorized user on someone else’s credit card. An authorized user is someone who is added to another person’s credit card account with full spending privileges. Responsibility for paying the credit card bill will still belong to the primary cardholder, who is usually a parent, close friend or relative.
The advantages to being an authorized user don’t end with being able to use the card like it’s your own. You also piggyback credit because the credit card’s account and payment histories are added to your credit report. This extends the length of your credit history, builds your payment history and increases the amount of credit available to you, which should all help improve your credit.
If you want to ask someone to make you an authorized user on their account, make sure they have a good credit history. You don’t want to be added as an authorized user to a primary cardholder who doesn’t pay their bills on time, since that would hurt your credit more than help it.
Open a student credit card
If you can’t become an authorized user on someone’s credit card, you can open a student credit card instead. A student credit card is a type of credit card specifically geared for students looking to build credit.
Often, the only difference between a traditional credit card and a student credit card is that they have a lower credit limit. Some also offer rewards for students, such as incentives for good grades and other cashback and rewards offers.
Open a secured credit card
Another type of credit card to consider as a student is a secured credit card. With this type of credit card, you make a deposit to cover your credit limit, which minimizes the risk to the issuer. As a result, credit card issuers are more likely to offer credit to someone with no or low credit.
As you use the credit card and pay your bill on time, you’ll build credit and eventually graduate to an unsecured credit card.
Develop healthy credit habits
College is full of great experiences, but the costs can add up quickly, and being financially responsible can be challenging. Throw in access to credit for the first time, and it’s easy to see why many students struggle with credit initially.
While students may want to take advantage of that new credit limit, it’s important to use your credit card wisely. Only use it for emergencies or small, regular expenses that you have the cash to pay for. These actions seem small, but they will establish the skills you need to keep your credit high throughout your life.
From the moment you have your new credit card, do the following:
Keep your balance low. This keeps your credit utilization rate low, which is one of the factors impacting your credit health. Experts recommend only using 30 percent or less of your credit limit. An easy way to stick to this is to use your credit card for small, regular purchases each month. For example, put all your subscription services on your credit card or only use it for gas. This habit will also prevent you from overspending or spending money you don’t have on nonnecessities.
Pay your balance each month. While you are only required to pay off the minimum balance each month, you’ll owe interest on the unpaid balance. The interest is applied to your balance, which can hurt your credit utilization rate, not to mention cost you more over time. Get in the habit now of paying off your entire balance every month.
Avoid opening too many accounts. Don’t open too many credit cards at once. New credit can damage your credit score, and having too many credit cards can make it harder to monitor your spending.
Take out a credit builder loan
Your credit mix, or the types of credit you have, play a role in your credit score. So, just having a credit card may not be enough to build credit quickly—you need other types of debt. Instead of taking out a loan for a car you don’t need, consider a credit builder loan.
The sole purpose of a credit builder loan is to build credit, so you won’t get money to put toward something else. Instead, the bank will put the money you’re borrowing into a savings account. You’ll make regular payments to repay the loan, and once you’ve satisfied the loan terms, the money in the savings account is yours.
Get a cosigner
When you’re starting to build credit, it may be difficult to get lenders to let you borrow money on your own. You can add a cosigner, someone with a better credit history than you who agrees to take responsibility for the loan if you miss payments. The cosigner minimizes the risk to the lender, making them more likely to lend to you.
As long as you make your monthly payments on time, you can build your credit history and payment history with a cosigner.
Get credit for rent and utility payments
Usually, only credit cards and installment loans such as a student loan or car loan affect your credit. Monthly bills like rent, utilities, and cell phones won’t appear on your credit report unless they’re delinquent.
A few programs and services enable you to add some of your monthly bills to your credit report to track on-time payments and build your credit. For example, ExtraCredit® is a program that reports utility and cell phone bills to credit bureaus, and rent reporting services will add your rent payment history to your credit report.
Only add these bills to your credit report if you pay them on time. Adding them to your credit report and then missing payments will hurt your credit more than help it. Be aware that some of these programs and services may charge a fee.
Think carefully about your student loans
Student loans seem to be a fact of modern life, with over 43.5 million Americans carrying $1.7 trillion in student loan debt. While the exact amount varies, the average student graduate has more than $37,000 in student loan debt.
Using your loan as income might be necessary, but if you can help it, only take out enough to cover your education expenses. Look into work-study or student aid options as alternatives to an oversized loan.
Monitor your accounts carefully
Keep an eye on your accounts to protect yourself from identity theft. By monitoring your account using the credit card app, you can shut down the card as soon as you see fraudulent activity, preventing the problem from escalating.
If you are the victim of identity fraud, you can remove fraud from your credit account.
Check your credit report annually
Experts recommend that you check your credit report and score annually or more often to ensure they’re accurate. AnnualCreditReport.com will give you one free credit report from each of the three credit bureaus at least once every 12 months (currently, you can see your credit reports once a week!).
You can sign up for credit monitoring services if you want to review your credit report more often than once a year. Keep in mind that building credit takes time, and even though you may be able to check your credit score every 14 days with some services, it will still take time to see results.
Avoid these common credit mistakes
Being a student means learning, and so does building credit. You’ll want to keep the five factors that impact your credit in mind when making decisions. Those five factors are:
Payment history: 35 percent
Amounts owed: 30 percent
Length of credit history: 15 percent
Credit mix: 10 percent
New credit: 10 percent
While mistakes are part of the learning process, you’ll want to avoid these common credit mistakes to avoid long-term consequences to your credit.
Mistake #1: Waiting too long to start building credit
Credit factor: Payment history
Most experts agree that the best time to start building credit is at age 18. The length of your credit history determines 15 percent of your FICO credit score. If you start building credit at 18, you’ll have around four years of credit history by the time you graduate and need to start putting bills and loans in your name.
Mistake #2: Using your credit card for nonessentials
Credit factor: Amounts owed
When you don’t see the physical money you’re spending, it can be easy to lose track of your spending and spend more money than you have. Avoid this by limiting credit card purchases to essential items only. Use it to pay for groceries and gas, not expensive vacations.
Mistake #3: Maxing out your credit cards
Credit factor: Amounts owed
Maxing out your credit cards hurts your credit utilization rate. The less money you carry from month to month, the better it is for your credit.
If you have a low credit limit, you can avoid maxing out your card by paying more often than the monthly payment due date. For example, if you buy gas and groceries over the weekend, check your balance on your credit card app a few days later and pay it off.
Mistake #4: Missing payments
Credit factor: Payment history
If you aren’t used to them, remembering to pay monthly payments at first might be rough. But you want to avoid late payments at all costs because they can hurt your credit for up to seven years.
Avoid missing payments by setting up automatic payments or calendar reminders on your phone. If you missed the payment because it didn’t line up with your paycheck and you didn’t have the money, you may be able to change your payment date with the credit card company.
Mistake #5: Closing accounts too soon
Credit factor: Length of credit history
If you open a student or secured credit card and graduate with a traditional credit card, it might be tempting to close those other accounts. But if you don’t have any additional credit beyond those initial credit cards, closing them can actually hurt your credit health by minimizing the length of your credit history.
Instead of closing them and opening new credit cards, see if your credit card issuer can convert the student or secured credit card account to a traditional one. That way, you can keep the account active and preserve the length of your credit history.
If you can’t convert the account, hold onto it and make a small purchase every month to keep it active. After you’ve had the new credit card for a while, you can cancel your initial credit cards.
Mistake #6: Taking out too much credit
Credit factor: Amounts owed
Just because someone offers you credit doesn’t mean you should take it. Sometimes lenders offer more money than you need because they make money off your interest payments. When considering credit offers, look carefully at monthly payments and consider your budget. Only take out credit for the amount you need and can reasonably afford to pay back each month.
For example, when you apply for an auto loan for your first car after college, the lender might preapprove you for $20,000. Run the numbers and ensure that’s a monthly payment you can afford. You’ll probably find that you can only comfortably afford to borrow a lower amount.
FAQ
Here are some answers to common questions about how you can build credit as a student.
How long does it take for a student to build credit?
Typically, it takes about six months to a year to build up some credit. Your exact timeline may vary based on your specific situation and how responsible you are with credit-building techniques like a student credit card.
How can a college student build credit with no income?
Usually, you’ll need income to qualify for credit, but there are a few ways around it. You can use a cosigner for a loan or ask someone to add you as an authorized user to their credit card. As an authorized user, you won’t have to make any payments with your credit card to get the card put on your credit report.
Trust Lexington Law Firm to fight for your credit
Building credit is tough—it’s hard to build from scratch but frustratingly easy to damage. Don’t let a lack of credit or a few credit mistakes destroy your confidence. The credit repair team at Lexington Law Firm could help you challenge inaccuracies affecting your credit. Learn more about our services to see how we can help.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Inside: Unlock the secrets of debt types and management. Explore everything from mortgages to student loans, and devise savvy debt strategies for financial health.
Understanding debt is essential as it is a common financial obligation that, must be managed wisely, if mismanaged, can lead to financial strain.
Most importantly, comprehending the fundamentals of debt is crucial for financial literacy. Debt spans various forms of credit, from mortgages to personal loans to credit cards.
Debt is a powerful force in the consumer’s financial life; it has the power to either create opportunities or trigger economic stress.
You must realize the multifaceted role that debt plays is a prerequisite for achieving and maintaining financial stability. As such, a comprehensive understanding of the various types of debts is not merely beneficial—it is indispensable.
Right now, consumer debt has reached $17.1 Trillion in 2023. 1
With this knowledge, you can navigate the financial tides with confidence, distinguish between advantageous and precarious borrowing, and ultimately wield debt as a tool for prosperity.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The Mainstream Maze Examples of Debt Types
Understanding the various types of debt is crucial for anyone looking to maintain or improve their financial health.
Debt, often viewed in a negative light, can actually be leveraged as a powerful tool if managed correctly. Each category of debt — from secured to unsecured, installment to revolving — functions differently and influences your financial profile in its own unique way.
Recognizing these differences enables individuals to make informed borrowing decisions, repay their debts more effectively, and develop strategies tailored to their personal financial goals.
With this background in mind, let’s understand the different types of debt:
Navigating Through Secured and Unsecured Loans
Secured loans require collateral, reducing risk for the lender, like a mortgage or auto loan.
Unsecured loans rely on creditworthiness and come with tighter requirements.
Understanding Revolving vs. Installment Debt
Revolving debts, like credit cards, offer flexible borrowing limits.
Installment debts involve fixed payments over a period.
Fixed-Rate vs. Variable-Rate
Choosing between fixed-rate and variable-rate debt shapes your financial commitment and interest rate.
Fixed rates provide predictability in repayments.
Whereas variable rates fluctuate with market trends, potentially lowering costs or introducing variability.
Short-Term Debt vs. Long-Term Debt
Short-term debt, to be settled within a year, requires immediate attention.
Long-term debt, with extended maturities, often permits strategic repayment over time.
Defining Callable Debt vs. Noncallable Debt
Callable debt allows issuers an early exit option, granting them the ability to retire debt before maturity.
Noncallable debt, in contrast, guarantees the term’s completion, offering predictability for both investor and issuer.
Delving into Secured Debt Details
Secured debt plays a pivotal role as it hinges on collateral to assure lenders of repayment.
This type of debt brings with it the potential for lower interest rates and higher approval chances, but also the risk of losing valuable assets should a borrower default.
Collateral Commitment: Risks and Rewards
Rewards of Secured Debt
Risks of Secured Debt
Lower interest rates due to reduced lender risk.
Risk of losing the collateral property, such as a house or car, on failure to make payments.
Access to larger loan amounts because of collateral provision.
Limited use of borrowed funds typically for a specific purpose (e.g., a home or vehicle).
With continued payments, a credit score increase is likely.
Possibility of incurring additional fees or penalties if the loan goes into default and the property is seized.
Increased likelihood of loan approval because the loan is secured by an asset.
Potential negative impact on credit score and financial stability if unable to repay the loan.
Notable Nuances of Mortgages, Auto Loans, and More
Mortgage interest rates generally fluctuate between 3% and 5%, influenced by economic conditions, with the option of fixed rates or adjustable rates that can change annually within set limits. Typically, a fixed interest rate is the best option for homeowners. Most common mortgage lengths are 15 or 30 year terms.
In contrast, auto loan interest rates tend to be high with shorter terms of 5 or 7 years. Many times, these loans are often subsidized by automakers’ promotional offers to attract buyers with good credit, thereby varying considerably based on the loan’s duration and the borrower’s creditworthiness. Another option is to secure a car loan at a local credit union.
With mortgages tied to real estate and auto loans to vehicles, both present unique terms and implications for borrowers navigating the nuances of substantial purchases.
National Debt Relief
While this isn’t our first choice to pay off debt, for some of readers, it is the only option to get ahead on their debt.
Either way, it is helpful to confront your situation, and then find out your debt relief options – with no obligation.
Free Debt Relief Quote
Unmasking Unsecured Debt
Unsecured debt is a form of financing that does not require borrowers to pledge assets as collateral.
This type of debt is granted based on an individual’s creditworthiness and typically carries a higher interest rate due to the increased risk to lenders. The typical interest rates start at about 15% and go upwards from there.
Credit Cards and Personal Loans: No Collateral Needed
Credit cards and personal loans exemplify unsecured debt, with no collateral needed to secure them. Their accessibility hinges on the borrower’s credit history, representing a choice for financing without asset risk.
Many college students start with their first credit card and have no idea how it works.
The Pros and Perils of Unsecured Borrowing
Unsecured borrowing can offer financial flexibility without collateral, a clear advantage.
However, the perils include higher interest rates and the potential for a strained credit history if repayments falter, necessitating cautious consideration. This is how many people quickly rack up large amounts of debt without realizing the consequences of their actions.
Thus, why young adults need basic financial literacy.
Rolling with Revolving Debt
Revolving debt is a type of credit that lets you borrow money up to a certain limit, repay it, and then borrow again as needed, often seen with credit cards or home equity lines of credit (HELOC).
Unlike fixed installment loans, this type of credit emphasizes the borrower’s ability to manage and repay borrowed funds over time, which can have a significant influence on their credit score.
Mastering the Mechanics of Credit Lines
Credit lines empower consumers with fluid financial options, replenishing funds as balances are paid. Understanding their mechanics is critical in leveraging such revolving credit without succumbing to debt traps through accumulated interest.
Evaluating the Ubiquity and Utility of Credit Cards
Credit cards are ubiquitous in modern-day finance, serving as a versatile tool for electronic payments. They offer convenience and the potential for rewards but can lead to costly interest charges for those who fail to manage them judiciously.
Personally, I received a $942 cash back from my credit card. But, I pay off my balance monthly.
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Installment Debt Explored
Installment debt is a financial mechanism that allows individuals to borrow a lump-sum amount of money and repay it over a fixed period through regular payments, known as installments.
These debts, which can be secured or unsecured, usually involve fixed interest rates and include common financial products like mortgages, auto loans, student loans, and personal loans.
How Student Loans and Mortgages Shape Long-term Debt
Student loans and mortgages are pivotal in shaping long-term debt landscapes. They represent significant financial commitments with enduring impacts, facilitating education and homeownership while posing substantial repayment responsibilities.
You need to be wise in how much you decide to take out for either student loans or a mortgage. It is always best to take out less than offered by your lender.
Paying Off Different Types of Debt
Around here at Money Bliss, I stress the importance of paying off debt fast!
To effectively pay off different types of debt, starting with high-interest rate debts, such as credit cards, is essential because it reduces the amount of money paid on interest over time, allowing for more significant savings. This is the core idea behind the “avalanche” approach.
Alternatively, paying off smaller balances first using the “snowball” method can provide psychological wins and motivate continued debt repayment efforts.
For structured debts like student loans and mortgages with lower interest rates, adhering to the standard repayment plan while focusing extra payments on higher-interest debt can be a balanced strategy.
Additionally, employing methods like debt consolidation or transfers to lower APR vehicles can further aid in reducing the cost of borrowing and accelerate debt payoff.
Learn more about debt snowball vs debt avalanche.
Striking a Balance: Managing Varied Debts Wisely
Crafting an effective debt management strategy is a fundamental step toward financial health.
Implementing tailored repayment plans, such as debt consolidation or debt management programs, can alleviate the stress of multiple liabilities.
You don’t want to be at a point where you must get out of debt ASAP. Employing debt payoff methods such as the Snowball and Avalanche techniques can accelerate the journey toward being debt-free.
Credit counseling is often necessary to dig into the root of spending problems because it provides professional guidance on budgeting and debt management. Thus, helping individuals restructure their financial practices and develop a targeted plan to overcome excessive spending habits.
Frequently Asked Questions (FAQs)
Debt represents money owed across various agreements, while a loan is a specific form of debt where money is borrowed under agreed repayment terms and interest rates.
The most common debts include mortgage debt, credit card debt, auto loans, and student loans, reflecting the widespread financial needs for housing, education, transportation, and consumer spending.
Opting to pay off higher-interest revolving debt first generally saves money and boosts credit scores more effectively than tackling installment loans, due to the compounding effect of revolving debt interest.
This is a personal decision and one you must decide on yourself.
Which Consumer Debts Make Sense to You?
In conclusion, the takeaways are not all debt is created equal, and each type can affect your financial future differently. By recognizing whether a debt is secured or unsecured, or if it revolves or is due in installments, you can better strategize how to handle your obligations.
This knowledge is not only beneficial for making decisions about new loans or credit lines but also for creating a robust plan to tackle existing debt.
Comprehending this area of financial literacy, you position yourself to make wiser decisions that align with your financial aspirations. Ultimately, striving for a future where debt works for you, not against you.
By gaining a deeper understanding of the characteristics and consequences of each debt type, you can not only avoid common pitfalls but also harness debt as an instrument to build wealth and secure a robust financial future.
Then, you can stick with these debt free living habits.
Source
Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed May 7, 2024.
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Did you know that there are many ways to get free Target gift cards? You can get free Target gift cards and make extra money for this favorite store. Target is a very popular store in the United States, and their gift cards make a great present for any occasion. Whether you’re getting one as…
Did you know that there are many ways to get free Target gift cards?
You can get free Target gift cards and make extra money for this favorite store.
Target is a very popular store in the United States, and their gift cards make a great present for any occasion. Whether you’re getting one as a gift or want to use them for your shopping, you might want to know how to get Target gift cards without spending any extra money.
You can earn these free gift cards through many different ways too.
Before you think it’s not doable, let me tell you – I’ve personally earned over 110 free gift cards over the years. It feels so nice to use a free gift card to get something I want. So, it’s definitely possible with some effort!
Best Ways To Get Free Target Gift Cards
Below, you will see the different ways you can earn free Target gift cards.
Here are my quick picks to get started with:
Here’s what you’ll see on Swagbucks when redeeming your points for free Target gift cards.
1. Swagbucks
Swagbucks is one of the top sites to start with if you want to earn free gift cards to your favorite places, such as Target.
Swagbucks is a website where you can earn points (they call them “SB”) by doing tasks like browsing the internet, watching videos, using their shopping deals, and answering surveys. Simply sign up, complete your account profile, and start earning points to get a free Target eGiftCard code.
I’ve been using Swagbucks for years, and in that time, I’ve personally earned over 110 free gift cards. It’s easy to earn points, and the website is very easy to use as well.
You can get anywhere from a free $5 Target gift card to $100 at a time on Swagbucks.
Please click here to sign up for and use Swagbucks (and receive a $10 bonus).
2. Fetch Rewards
Fetch Rewards is a cell phone app (that I personally use at least once a week!) where you earn points by scanning receipts from grocery stores. You can then use these points to redeem Target gift cards.
I personally use Fetch Rewards every time I go grocery shopping as it’s one of the easiest apps to use to earn points. I just shop like I normally do, and once I get home, I use the Fetch Rewards app on my phone and take a picture of my grocery receipt.
Fetch Rewards then scans the receipt and adds points to my account within just seconds. And, it doesn’t matter what I buy at the grocery store – I can earn points.
You can sign up for Fetch Rewards by clicking here.
4. Free Target gift card with purchase
Did you know you can earn free Target gift cards while shopping for your everyday items?
Target has deals where you can get more for your money. When you purchase certain products, Target gives you a free gift card as a bonus.
For example, sometimes they have a deal where if you buy two boxes of diapers, you can get a free $20 Target gift card. I have also seen a similar deal for if you buy face wash, household goods, pet food, and more.
These will typically be listed either online on Target’s website or in person right on the shelf. Then, after you check out, you’ll get the free gift card.
This is a very easy way to get free Target gift cards for stocking up on things that you most likely already buy and need anyway.
4. InboxDollars
InboxDollars is a rewards site that gives points for answering online surveys, watching quick clips, playing games, and more.
You can use your points to get free Target gift cards.
You can join InboxDollars and get a free $5 sign-up bonus.
5. American Consumer Opinion
American Consumer Opinion is a market research company that pays people to share their opinions by answering surveys.
It’s free to join, and surveys typically pay around $1 to $5 each. Once you reach a certain amount, you can then redeem your earnings for free Target gift cards (and many other rewards like PayPal cash).
Please click here to sign up for American Consumer Opinion.
6. Survey Junkie
Survey Junkie is a popular platform where you can earn free Target gift cards by sharing your opinions through surveys. When you complete surveys, you earn points that can be redeemed for gift cards, including Target gift cards.
By answering three surveys daily on Survey Junkie, you can earn about $40 per month in free Target gift cards.
Please click here to sign up for Survey Junkie.
7. Branded Surveys
Branded Surveys is a survey platform where you earn points by answering questions, and you can redeem these points for free Target gift cards.
The surveys typically take 5 to 15 minutes to complete and pay between $0.50 and $5.00 each.
You can sign up for Branded Surveys here.
8. PrizeRebel
PrizeRebel is a website where you earn rewards points by completing tasks such as surveys and watching videos. Once you collect enough points, you can exchange them for free Target gift cards.
I personally just redeemed around $150 in points last week, so I know that this is a legit way to get free Target gift cards!
You can join PrizeRebel here.
9. PayPal Honey
Another great way to get free Target gift cards is to download PayPal Honey. You can install the Honey browser extension, which automatically finds and applies coupon codes and promo codes when you shop online.
Here’s how it works:
Shop online as you normally would.
At checkout, Honey will find and apply the best coupon codes for you.
You can redeem your points from Honey for cash, Target gift cards, or PayPal shopping credits.
You can add Honey by clicking here.
10. Upside
If you ever buy gas for your car (which is pretty much everyone!), then Upside is the app for you. Upside is a cash back rewards app specifically for gas purchases.
When you use the app to find and purchase gas at participating gas stations, you can earn cash back that can be redeemed for gift cards, such as for free Target gift cards.
Not every gas station is included in the app, but you can earn rewards by selecting from the stations listed within the app. You do need to select the gas station before you pump the gas into your car – this is important to remember!
You can sign up for Upside here.
11. Ibotta
Ibotta is an app that gives you cash back for shopping, especially at grocery stores. After you shop, just upload your receipts to earn cash back that you can use for free Target gift cards. I use Ibotta often and think it’s really helpful!
Here’s a quick summary of how you use Ibotta:
Download the Ibotta app.
Check available offers before you shop (such as a specific brand of crackers or fruit).
Scan your receipt once you’re done shopping to get points.
You can join Ibotta here.
12. Rakuten
Rakuten has an easy way to earn cash back on purchases from over 3,500 stores. When you buy something, a percentage of your purchase comes back to you as cash. Your earnings can be sent to you by check or PayPal.
While Rakuten doesn’t pay you in free Target gift cards directly, you can use the cash you earn from Rakuten for other purposes, like going shopping at Target.
You can join Rakuten by clicking here.
13. Find Target gift card giveaways
If you want to get free Target gift cards, entering sweepstakes and giveaways can be a fun way to try.
To earn free Target gift cards through giveaways:
Follow brands on social media – Many companies host giveaways on platforms like Instagram. Follow your favorite brands and keep an eye out for their posts or stories announcing gift card giveaways.
Search hashtags – Use hashtags like #freetarget, #giveaway, #giveawayalert, #contest, and #freebie on Twitter, Facebook, and Instagram to find Target gift card giveaways.
Use sweepstakes websites – Subscribe to online sweepstakes websites that list current giveaways.
Entering these giveaways can be a simple way to possibly get free gift cards, even though winning isn’t guaranteed.
14. Prime Opinion
Prime Opinion is a survey website where you can earn money by sharing your opinions from home.
It’s simple: You share your thoughts and they pay you for it. Prime Opinion is a legitimate survey platform that has many surveys to complete (there are over 40 different surveys currently listed in my personal dashboard).
You can redeem your points for Target gift codes or cash payouts, starting at just $1.
Click here to join Prime Opinion and get up to a $5 free bonus.
Here’s a screenshot of Target’s weekly ad, and it shows how you can get a free Target gift card (this is an old ad, so this offer is not valid).
15. Check out Target’s weekly circular
If you want to get free Target gift cards, I highly recommend reading Target’s weekly circular! It’s your go-to for the latest deals and promotions – whether that be seasonal promotions, weekly promotions, holidays (such as Mother’s Day, President’s Day, Father’s Day, Labor Day, Thanksgiving, etc.), and more.
Target’s weekly circular is also great around Black Friday and Cyber Monday, as they will list many Target coupons and free gift card deals here.
This is a flyer that Target updates every week, filled with sales on items from clothes to electronics. But that’s not all! Target also announces when you can earn free gift cards after buying certain products.
To find the weekly circular, check online on Target’s website or look in your mailbox if you receive paper ads. Target makes it easy to spot offers for free gift cards – they’re usually highlighted to stand out.
16. Join Target Circle and look for free Target gift card offers
Joining Target Circle, Target’s free loyalty program, is an easy way to get free Target gift card offers.
Here’s how this works:
Sign up – Start by signing up for Target Circle either online or in a Target store. It’s free and you just need your phone number.
Earn cash back – As a Circle member, you earn 1% cash back on eligible purchases. If you have a RedCard, you get 5% back instead!
Exclusive deals – Watch out for exclusive member-only sales. Sometimes, these include offers for free gift cards with certain purchases.
This is easy to use too – when ringing out at Target, just enter your phone number in the keypad.
17. Get a free Target gift card through the Target electronics trade-in program
Do you have old gadgets collecting dust at home? Your unused electronics can be turned into a free Target gift card through Target’s trade-in program. You can swap phones, tablets, game consoles, and more for a Target eGiftCard.
Here’s how it works:
Find your device – Visit Target’s trade-in website and select your device from the list of eligible options.
Get a quote – Answer a few questions about your gadget’s condition to receive an instant estimate from Target.
Ship for free – If you accept the offer, ship your device to Target using the provided prepaid shipping label. Target covers the shipping costs, so it’s free for you!
Get your free Target gift card – Once Target receives and evaluates your device, they’ll send you a Target eGiftCard by email.
Frequently Asked Questions
Below are answers to common questions about how to get free Target gift cards.
How can I get a Target gift card for free?
You can earn a free Target gift card through different promotions, such as buying specific items at Target, joining the Target Circle loyalty program, or taking advantage of special deals that include a gift card as a bonus.
Are there any expiration dates on Target gift cards I get for free?
No, Target gift cards do not expire, even the ones you get for free. This means you can use them anytime – you don’t have to rush! But, I do always recommend keeping up-to-date on this as it can change at any time.
How do I check the balance of my Target gift card?
Checking your Target gift card balance is easy. Just go to Target’s website, find the gift card balance page, and enter the card number and access code. The balance will show up, and you’ll know exactly how much you can spend.
Can I win a Target gift card from legit contests online?
Yes, you can win Target gift cards from legitimate online contests. Just make sure you’re entering contests from reputable websites and companies to avoid scams.
Is it true that you can earn Target gift cards by taking surveys?
Yes, you can earn Target gift cards by taking surveys on websites like Swagbucks and Branded Surveys. These sites give gift cards, including ones for Target, as rewards for completing surveys. Keep in mind that you typically need to accumulate a certain amount of credits before you can cash out for a gift card.
How do I redeem a Target eGiftCard code in person?
To use a Target eGiftCard in stores, just show the barcode on your phone. I have done this in the past and it is very easy.
How To Get Free Target Gift Cards
I hope you enjoyed this article on how to get free Target gift cards.
There are many, many ways to earn free gift cards to Target as you learned above. From answering online surveys, taking pictures of your grocery shopping receipts, and using cash back sites, there are probably many ways that you can save some money at Target or SuperTarget by using Target gift cards.
I’ve earned many free gift cards over the years, and I absolutely love it. Just last week, I redeemed over $150 in gift cards to some of my favorite retailers.
Now, Qatar Airways Privilege Club members can earn Avios without flying and also snag a fast track to elite status, thanks to the release of two new credit cards, issued by Cardless, a fintech company.
The Qatar Airways Privilege Club Visa Infinite Credit Card.
The Qatar Airways Privilege Club Visa Signature Credit Card.
Applications for the cards go live on May 7, 2024. Here’s what to expect.
How the new Qatar Airways credit cards stack up
Qatar Airways Privilege Club Visa Infinite Credit Card
Qatar Airways Privilege Club Visa Signature Credit Card
Annual fee
Sign-up bonus
Earn 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days.
Earn 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days.
Loyalty program points
Earn 150 Qpoints after spending $5,000 in the first 90 days.
Earn 2 Qpoints for every $1,500 spent on qualifying purchases.
Earn 2 Qpoints for every $2,000 spent on qualifying purchases.
Earnings rates
5 Avios per $1 spent on Qatar Airways.
3 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
4 Avios per $1 spent on Qatar Airways.
2 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
Other perks
One year of Gold elite status with the Qatar Airways Privilege Club.
One year of Silver elite status with the Qatar Airways Privilege Club.
🤓Nerdy Tip
Prospective card applicants were able to join a waitlist in mid-April. If you joined that waitlist and apply within 30 days of the card applications going live, you’ll be eligible for an additional 5,000 bonus Avios on the Qatar Airways Privilege Club Visa Signature Credit Card or 10,000 bonus Avios on the Qatar Airways Privilege Club Visa Infinite Credit Card. These are in addition to the sign-up bonuses available to all applicants.
Elite status and benefits
The one year of automatic elite status with each card has no spending requirement. Additional Qpoints earned by spending on the card can help members qualify for status in subsequent years.
Benefits of the Gold status earned with the Qatar Airways Privilege Club Visa Infinite Credit Card include a 75% tier bonus on earning Avios with eligible flights; priority check-in and boarding; complimentary lounge access and four guest lounge passes every year; a free extra baggage allowance; and complimentary preferred seat selection. Gold elite members will also receive all the benefits of Oneworld Sapphire tier elite status and collect Avios while flying on Oneworld member airlines.
Benefits of the Silver status earned with the Qatar Airways Privilege Club Visa Signature Credit Card include a 25% tier bonus on earning Avios with eligible flights; priority check-in and boarding; complimentary lounge access and two guest lounge passes every year; an extra baggage allowance; and 20% savings on preferred seat selection. Silver elite members will also receive all the benefits of Oneworld Ruby tier elite status and collect Avios while flying on Oneworld member airlines.
Get a card that takes you farther
Sign up with NerdWallet to get a full picture of your spending and personalized recommendations for cards that will help you see the world.
The power of Avios
Avios points earned on these cards can be redeemed for flights with Qatar Airways, but also Oneworld Alliance airlines such as Alaska Airlines and British Airways, as well as partner airlines, including JetBlue Airways. The rewards can also be transferred to other Avios-based rewards programs, such as British Airways and Iberia Airlines. That transfer ability and access to partner airlines make Avios extremely valuable for optimizers who don’t mind learning how to maximize the value of their rewards.
Should you get a Qatar Airways card?
Unless you’re a frequent flyer with Qatar Airways and you really value elite status, there are easier and more flexible ways to earn Avios. For example, the Chase Sapphire Preferred® Card earns Chase Ultimate Rewards® that can be transferred to a variety of Avios-based rewards programs, including the British Airways Executive Club, Aer Lingus AerClub and Iberia Plus. These programs all give you access to the Oneworld Alliance award chart, including Qatar Airways. New cardholders can also qualify for a bigger introductory offer: Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s over $900 when you redeem through Chase Travel℠.
Why Nearly Every Purchase Should Be on a Credit Card
by Virginia C. McGuire, Paul Soucy
Credit cards are convenient and secure, they help build credit, they make budgeting easier, and they earn rewards. And no, you don’t have to go into debt, and you don’t have to pay interest.
Having children brings many joys. But for women, it can also have a financial dark side. Becoming a mother often results in a loss of pay and opportunities for career advancement, a phenomenon known as the motherhood penalty. In fact, women experience a 60% decrease in income compared to men in the decade after their first child is born, according to PricewaterhouseCoopers’ 2023 Women in Work Index.
Many factors contribute to the motherhood penalty, and not every woman experiences it in the same way. Understanding the motherhood penalty can help women — and their families — sidestep this financial setback.
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How Does the Motherhood Penalty Work?
If you want to avoid the motherhood penalty and keep your budget on track, it pays to know your enemy. According to a 2023 article published in the scientific journal PNAS, women’s diminished earnings after the birth of a child is driven by both a reduction in employment and by lower earnings for those who remain employed. Let’s look at each of these factors.
Despite the fact that women today have achieved historic levels of education and are working at senior levels in the corporate world, they are still more likely than men to cut back on their working hours or stop working altogether after a baby is born. Some women may choose jobs that allow for more flexibility in hours even if those roles pay less.
Discrimination is a more insidious factor: Women make up nearly half of all U.S. workers and do the bulk of consumer spending, yet some hiring managers still believe that women’s earnings are not as critical as men’s for household support. (A quick look at any parent’s money tracker app would reveal just how untrue this stereotype is.) When two women are similarly qualified for a job, the one without children tends to earn more than the one who has kids. And when men and women hold similar positions, fatherhood seems to confer a salary advantage in many occupations.
Recommended: The Highest-Paying Jobs in the US
Why the Motherhood Penalty Matters
Dual-income households have been the norm among married couples for decades, and most households composed of married couples with children have two working parents, according to 2023 data from the Bureau of Labor Statistics. Families with two healthy incomes are most likely to be able to afford a home, and to be able to cover other large expenses, including the cost of kids. (A 2022 report from the Brookings Institution suggests that the average middle-income family today will spend more than $310,000 to raise a child to age 17.)
But the motherhood penalty takes an especially hard toll on families led by women. According to the 2023 Census, 21% of U.S. children are growing up in a household led by a single mother, who often has no other source of income than her own earnings. The motherhood penalty may contribute to the fact that nearly 30% of single-parent families are living below the federal poverty level.
Factors Contributing to the Motherhood Penalty
As noted above, the unspoken ideas that women belong at home caring for their children, or that women are not vital contributors to their family finances, continue to be a driver of the motherhood penalty. This is despite the fact that households where two parents work outside the home is now the norm in the U.S.
But there is another troubling scenario. Women may leave their job because childcare costs more than they earn. The cost of caring for an infant in a childcare center averages $15,417 per year per child. In big cities, the number climbs even higher: Washington, D.C. averages $24,243, for example. And even when women don’t stop working, they may scale back their hours, or take more flexible but less well-paid positions.
The motherhood penalty is unfair, and one additional factor adds to the unfairness: In households with two working parents, where each parent earns roughly the same amount, women still spend more time on caregiving responsibilities than men do — 12.2 hours per week on average, compared with 9 hours for men, according to a 2023 Pew Research Center report. Women also spend 4.6 hours doing housework to men’s 2 hours. Women’s work may be valued less, but as the old saying goes, it’s never done.
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Tips to Avoid the Motherhood Penalty
So what can women do to safeguard their finances from the motherhood penalty?
Consider your career choice. Women can begin to protect their financial future while they are still contemplating a career path. Some research suggests that the motherhood penalty disappears for mothers who work in business and post-secondary education. And in STEM careers, and fields such as medicine and law, mothers actually appear to earn more than women who don’t have kids.
Stand up for fair earnings. Exercise your right to be fairly compensated with every step you take in the working world. Applying for a job? Do your research to learn what is a good entry-level salary. Offered a position? Learn how to ask for a signing bonus — with unemployment relatively low, employers in industries from retail to engineering may pay you to come on board.
Change jobs. Women may be less likely to change jobs after becoming mothers, as switching jobs can be stressful and time off is often allotted based on seniority. Yet changing jobs is one way to bump up your salary. When you do switch, make sure you understand what is a competitive pay rate. A growing number of states, including California, Colorado, and New York, have passed pay transparency laws that require employers to post salary ranges when they advertise job openings.
Don’t share your status. It’s unlikely that you’ll be asked during a job interview if you have caregiving responsibilities, as doing so may violate federal and state laws. But many women casually disclose that they are parents during the interview process without thinking twice about it. Avoid talking about your personal life when interviewing for a job and consider that many employers examine applicants’ social media feeds during their screening process.
Advocate for fair pay and families. Research suggests that moms in women-dominated and low-paid professions face the greatest motherhood penalty. To help promote equitable pay that can sustain families, you can support raising the minimum wage. Lifting your voice in favor of government support for affordable childcare and for mandatory paid parental/caregiver leave can also help ensure that women who want to stay in the workforce after having a child can afford to do so.
The Takeaway
Despite the fact that women are working outside the home in historic numbers, the motherhood penalty still exacts a perilous price for many women and their families. Acknowledging that women are financially penalized for becoming parents is a first step in fighting back against the stereotyping and discrimination that is often at the root of this problem.
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FAQ
What is meant by the motherhood penalty?
The motherhood penalty refers to the fact that women’s earnings suffer after they have children, sometimes due to discrimination in hiring or the awarding of promotions, and sometimes because women scale back on work or stop working altogether after having a child.
How does the motherhood penalty affect a woman’s career?
The motherhood penalty results in lower earnings, and because future earnings are often based on current salary, the diminishment in income often persists as a woman progresses up the ladder.
How can I avoid the motherhood penalty?
A primary way to avoid the motherhood penalty is to know your worth. Do your research on salary before taking a job, and reevaluate your salary at least yearly by looking at comparable positions.
Photo credit: iStock/Pekic
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