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Commonly Used Forms

<ul>
  <li><a href="https://assets.ctfassets.net/orqped9h4wgz/4hvv1VfiJWwCeX8YgaHSh7/d10066269c7b23b6ea88fb0a839da59d/2022-account-converstion-form-03142022.pdf" target="_blank">Account Conversion Form</a></li>

  <li><a href="https://assets.ctfassets.net/orqped9h4wgz/1eRmVctBj8hJHliwnYmbht/2f1ca1188551262aff6b3b7b0855a22d/change-of-address-profile-update-request-form-fillable.pdf" target="_blank">Change of Address Form</a></li>
</ul>

General Forms

    <ul>
    <li><a href="https://assets.ctfassets.net/orqped9h4wgz/6rmAc1PCbpsxyXRkD5WXOO/0d17840df41dfc98d705940d0ee670da/2022-beneficiary-pod-form-fillable.pdf" target="_blank">Add Beneficiary Form</a></li>

    <li><a href="https://assets.ctfassets.net/orqped9h4wgz/31ykb0O5JVptl2iLlpd8DT/15dd71ae5259c2c47088a07ce65d8591/Personal_Debit-ATM_Card_Application_Fillable_with_Agreement_2023.pdf" target="_blank">Personal Debit-ATM Card Application</a></li>

    <li><a href="https://assets.ctfassets.net/orqped9h4wgz/2TLNRGRiFsHeNgQRuUah7n/07383e2f204318a70c7ad29b08646497/direct-deposit-form-fillable.pdf" target="_blank">Direct Deposit Form</a></li>
    <li><a href="https://orderpoint.deluxe.com/personal-checks/welcome.htm" target="_blank">Reorder Checks</a></li>
    <li><a href="https://assets.ctfassets.net/orqped9h4wgz/45J2ybsMr8NpvOlR7RyLjI/832fe6d87dec6a91d5f5b9702b36227f/Trust_Account_Application_Fillable_2023Feb17_.pdf" target="_blank">Trust Account Application</a></li></ul>

Personal Forms

<ul>
  <li><a href="https://www.deluxe.com/shopdeluxe/business-checks/cat80024/t1/?pscid=SD:GBL_BusCks_BusinessChecks" target="_blank">Reorder Business Checks</a></li>

  <li><a href="https://assets.ctfassets.net/orqped9h4wgz/3nkTaEmMfekKI2VRZslVv0/a754eb88bfce010f8c2b28c7edd25231/2023_Business_Deposit_Account_Application_Feb_24_Fillable.pdf" target="_blank">Business Deposit Account Application</a></li>
</ul>

Business Forms

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Credit scores are three-digit numbers ranging from 350 to 850 calculated from credit bureau-reported data that represent a snapshot of your credit health and history. A high credit score is an indicator to potential creditors there’s a higher probability you’ll repay your debt. 

<p>Credit scores are three-digit numbers ranging from 350 to 850 calculated from credit bureau-reported data that represent a snapshot of your credit health and history. A high credit score is an indicator to potential creditors there’s a higher probability you’ll repay your debt. </p><p>Lenders generally offer lower interest rates on <a href="/loans/personal-loans">personal loans</a>, lines of credit, auto refinance loans, and home mortgages to borrowers they believe are most likely to pay them back—typically those with credit scores in the Very Good to Excellent (about 760-850) range.</p><p>In comparison, borrowers with a Fair to Poor credit score (about 670 or lower), or no credit score at all, tell potential creditors there’s a greater risk of repayment, and, as a result, may charge more to borrow money. A low credit score could also cost you in other ways.</p><p>Property managers and landlords may reject potential renters who don’t meet their credit requirements. A good credit history can improve your chances of securing a job when a credit check is part of the vetting process. Credit history-based scores are also used to set some auto and home insurance premiums.</p><p>Improving your <a href="/resource-center/personal-finance/what-affects-your-credit-scores">credit score</a> before borrowing may qualify you for more favorable interest rates, potentially resulting in lower monthly payments and savings over the life of the loan. </p><h2>9 ways to improve your credit score</h2><p>The power to get your credit score moving in the right direction is in your hands. Check out nine steps you can take now to improve your credit score and your credit health.</p><h3>1. Review your credit reports and dispute errors</h3><p>Credit reporting isn’t a perfect science—errors happen, and incorrect items could seriously damage your score. Pulling your credit report regularly and knowing <a href="/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags">how to read your credit report</a> can help you catch and dispute mistakes impacting your credit score. </p><p>All three credit bureaus provide one free credit report every 12 months (with some exceptions, such as for the unemployed) at <a href="http://annualcreditreport.com">AnnualCreditReport.com</a>. </p><p>Pull your reports and double-check that the following information is correct:</p><ul><li><p>Name</p></li><li><p>Addresses</p></li><li><p>Phone number</p></li><li><p>Birthdate</p></li><li><p>Accounts and account numbers</p></li><li><p>Payment history</p></li><li><p>Credit inquiries (soft and hard)</p></li></ul><p>Check for errors and look for addresses or accounts you don’t recognize. Next, file a dispute if there is an error or an account you don’t recognize. If you find an error in one credit report, it’s smart to check with the other two major credit bureaus in case they contain the same error. </p><p>You can also check for and contact the reporting bureau about any negative items that are too old to be reported. In the case of a late bill payment, that’s about seven years after a bill first went late. You can dispute with each credit bureau online, by mail, or by telephone.</p><ul><li><p><a href="https://www.experian.com/disputes/main.html">Experian</a></p></li><li><p><a href="https://www.equifax.com/personal/credit-report-services/credit-dispute/">Equifax</a></p></li><li><p><a href="https://www.transunion.com/credit-disputes/dispute-your-credit">TransUnion</a></p></li></ul><p>After you file a dispute, credit bureaus have about 30 days to investigate. If information is found to be incorrect, it must be removed. Following the investigation, you will receive a response from the credit bureau.</p><h3>2. Always pay on time</h3><p>Your payment history matters. More than any other single factor in your credit score, making on-time payments is critical because the impact of missing just one can linger on your credit report for up to seven years. Setting up automatic payments is a great way to make sure your payments are submitted by the due date each month.</p><h3>3. Consider becoming an authorized user on another person’s account</h3><p>When you become an authorized user on someone else’s credit card account, you’re effectively putting a portion of your credit score into that person’s hands. This can impact your scores positively, negatively, or have no impact at all. </p><p>For example, if they use their credit responsibly, it could help raise your credit scores—but if they start missing payments or you both make purchases that they’re not able to pay off in full each month, your scores could be negatively impacted. If the credit card issuer does not report authorized users’ activity to the credit bureaus, it would not influence your credit rating either way.</p><p>Make sure you team up with a credit card holder who is using their credit card responsibly, otherwise you might want to remove yourself as an authorized user.</p><h3>4. Add recurring payments to your credit reports</h3><p>Recurring payments such as for utilities, streaming services, and rent aren’t usually included on a credit report, however, some credit bureaus now offer services that may help increase your credit score by taking into account bills you already pay. </p><p><a href="https://www.experian.com/consumer-products/score-boost.html">Experian Boost<sup>TM</sup></a> adds on-time utility and subscription payments to your Experian credit report, and <a href="https://ecredable.com">eCredable®</a> allows you to add utility payments to your TransUnion report for a small fee. If you make those payments on time each month, you can have them counted toward your score on two of your credit reports. </p><p>Rent-reporting services will also report rent payments to the credit bureaus for a fee paid by either you or your landlord. So, on-time rent payments can help you build credit history, too.</p><h3>5. Consider a secured credit card or credit builder loan</h3><p>If you’re rebuilding credit or building credit from scratch, consider applying for a secured credit card. Secured cards are often easier to qualify for because they require a security deposit (usually equal to the credit limit) that minimizes risk for the card issuer. </p><p>Putting small purchases on the card and paying down the balance each month could help you establish an on-time payment history. After a certain number of on-time payments, you may even get your deposit back and offered an unsecured card.</p><p>Credit builder loans are a type of installment loan that work opposite most loans — you get your money after you repay the loan. The funds are put in an interest-bearing account, and you receive access to it at the end of the loan term or when you close the account. Like secured cards, credit builder loans are relatively easy to qualify for, and on-time payments reported to the credit bureaus can help improve your credit score. Some don’t require a credit check.</p><h3>6. Use credit lightly</h3><p>Suppose you already have access to credit accounts and some history under your belt, but you want to strengthen your credit score before applying for a credit card or loan. Lowering a high credit utilization ratio could be the fastest way to improve a credit score. Your credit utilization is the percentage of your credit limit that is in use. </p><p>Credit utilization is calculated both on individual cards and overall. Generally, you want to shoot for a credit usage below 30%; the highest credit scorers generally have credit utilization under 10%.</p><h3>7. Pay down credit card debt</h3><p>Increasing card payments, getting a new card, requesting an increase to your credit limit, or paying off credit cards with a debt consolidation loan are all strategies that could help you pay down your debt, lower your credit utilization and help improve your score when the new balances update on your reports.</p><p>Even if you’re not using a credit card, consider keeping it open unless there is a compelling reason to close it, such as poor customer service or fees you don’t think are worth it, since the available credit line you’re not using could help keep your utilization low. In addition, if it’s an older card, it may contribute to your credit score in the form of the length of your credit history and the average age of credit history.</p><h3>8. Space out credit applications</h3><p>There are two types of credit inquiries—soft and hard. Soft inquiries, such as when you pull your own credit report or when lenders prequalify you for a loan, don’t affect your credit score. Hard inquiries happen when you apply for new credit such as credit cards or loans, and the creditor pulls your credit report to make a decision about your application. That kind of inquiry can affect your credit score.</p><p>According to Fair Issac Corporation, or FICO®, <a href="https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries#:~:text=In%20general%2C%20credit%20inquiries%20have,or%20a%20short%20credit%20history.">credit inquiries have a small impact on your FICO score:</a> &quot;For most people, one additional inquiry will take less than five points off their FICO Scores.&quot; If you have a minimal credit history or many credit checks at once inquiries can have an outsized impact. So going on an application spree might hurt your score.</p><h3>9. Get into the habit of pulling your score</h3><p>Signing up for credit monitoring and pulling your credit reports regularly can help you track credit score growth and ensure the data on your credit reports are always accurate. Routinely checking your credit scores can also help you see the relationship between what you do and how it affects your credit score. </p><p>Many banks, credit unions, and credit card companies now offer free credit score monitoring you could follow (but be sure you are using the same score and model to compare). You could also get access to a FICO score for free with some credit cards. VantageScore® is also available for free from some credit cards and personal finance websites, and checking your own score won’t affect your credit score.</p><h2>How long will it take to improve your credit score?</h2><p>The amount of time it takes to improve your credit score depends partly on the factors that caused or are keeping your credit score low. Recovering from late payments, for example, will take longer than fixing an error that resulted in a low credit score. If you have no credit history, it could take up to six months for scoring models to generate your first credit score, and your credit score can improve from there with on-time payments and using credit lightly if you use credit cards. Past missteps won’t stay on your credit report forever.</p><p>Generally, the impact of late payments decreases over time, even though they remain on your credit report for up to seven years. Collections may also show on your credit report for up to seven years. Filing Chapter 7 bankruptcy can stay on your credit report for up to 10 years, and Chapter 13 for up to 7 years. Establishing new accounts with good payment records can help reduce the impact of past mistakes.</p><h2>The bottom line</h2><p>Improving your credit score takes time. Consistently paying on time, keeping an eye on credit utilization, keeping credit cards open, and disputing credit reporting errors can help you reach or keep a credit score that gives you access to the best terms on <a href="/loans/personal-loans">personal loans</a>, credit cards, and other forms of credit. </p><p>If you’re looking for a job or a new apartment to rent, improving your credit score could have a significant impact in the eyes of a potential employer or landlord who may want to take your credit health into consideration as part of the review process.</p>

Using fixed, low-interest credit to refinance variable, high-interest credit card balances can be a smart financial move. This practice, known as debt consolidation, can simplify your monthly finances, make your payments more predictable, and save you money on the cost of borrowing.

<p>Using fixed, low-interest credit to refinance variable, high-interest credit card balances can be a smart financial move. This practice, known as debt consolidation, can simplify your monthly finances, make your payments more predictable, and save you money on the cost of borrowing.</p><p> If you’ve consolidated debt with a personal loan once and liked the results, you may be wondering if you should get a second (or a third) <a href="/personal-loan/debt-consolidation">debt consolidation loan</a>. Here’s what you need to know about obtaining multiple loans.</p><h2>What is debt consolidation?</h2><p>Debt consolidation means refinancing credit card balances, existing loans, medical debt, or other obligations into a single loan. You can use a zero-interest credit card balance transfer offer, a home equity loan or a personal loan that lets you pay back your debt in regular monthly installments. Many debt consolidation loans offer fixed interest rates and a defined loan term, typically two to five years, after which your debt is repaid.</p><h2>What are the benefits of debt consolidation vs. credit cards?</h2><p>Debt consolidation can simplify your finances, lower your interest costs, convert variable credit card interest rates to a single fixed rate, and create a defined plan for paying down debt.</p><p>Credit cards are a convenient way to pay for both everyday goods and big-ticket items and when the cost of living rises, credit cards can help bridge the gap. However, credit card debt can pile up fast.</p><p>Revolving credit card debt can become overwhelming. If you carry a balance, that balance can grow quickly if you use your card to cover expenses—and as high-interest charges compound. Rising interest rates can drive up your costs even further, increasing your monthly payment and ultimately adding to your debt.</p><p>Using a balance transfer credit card to shift high-interest balances to a new card with a 0% introductory APR can save you on the cost of interest but making the most of a balance transfer requires having the means and discipline to pay down all or most of that balance without adding any new debt before the intro rate expires. Depending on the transfer card’s borrowing limit and the amounts of the balances you’re transferring, you could end up with high utilization on the intro card. Carrying a balance of more than about 30% of a card’s limit can hurt your credit scores.</p><p>Consolidating multiple credit card balances into a single fixed-rate loan can make managing your debt simpler and more predictable. Here are a few of the benefits:</p><ul><li><p>One monthly payment instead of many (assuming you have only one debt consolidation loan at a time)</p></li><li><p>Fixed interest rate vs. variable rates</p></li><li><p>Lower interest rates, typically, than you’ll find on most credit cards<sup>[1]</sup></p></li><li><p>Regular monthly payments that don’t vary over the life of the loan</p></li><li><p>Pre-set payoff period, so your debt has an established endpoint</p></li></ul><p>By making it easier to meet your monthly payments and pay down debt, debt consolidation may also help you maintain your good credit. Budgeting and planning are predictable: You know exactly how much your monthly payments will be and how long you’ll need to make them. Lower credit card balances also mean lower credit utilization, which can benefit your credit scores.</p><h2>Is it possible to get multiple debt consolidation loans?</h2><p>You can have more than one debt consolidation loan at a time, but you’ll need to follow your lender’s guidelines. Some lenders limit the number of loans you can have at one time, or how soon you can apply for a second loan after receiving the funds from the first. If you’ve had problems making your payments on time, this may also affect your eligibility. LendingClub Bank doesn’t limit the number of debt consolidation loans you can have, though members are limited to $50,000 in total loans at once.</p><p>To get an additional loan, you’ll need to qualify. Your lender can help you understand your options. Interest rates may have changed since you last applied for a debt consolidation loan. Your credit score and income will also be a factor. Getting prequalified with your lender can give you the specifics you need. Find out:</p><ul><li><p>Your interest rate</p></li><li><p>What loan amount you could qualify for</p></li><li><p>Your monthly payment</p></li></ul><p>Once you know your options, you can decide how helpful a new loan might be.</p><h2>Is consolidating debt more than once a good idea?</h2><p>If debt consolidation is helping you stick to a payment plan and manage your debt successfully, consolidating new credit card balances for a second or third time might be appealing. You’ll see the same benefits you saw with your first debt consolidation loan. And, as a bonus, you’ll know what to expect as you navigate the process. But is debt consolidation a good idea when you do it more than once? Consolidating debt more than once can be a good idea, but you may want to proceed with caution. Here’s why:</p><h3>Debt consolidation can clear the deck for additional credit card debt.</h3><p>Say you’ve refinanced $10,000 in credit card debt to a debt consolidation loan. That freed up the credit lines on your cards, allowing you to accumulate another $10,000 in credit card balances. While consolidating those new credit card balances into another loan would make them more manageable, your debt isn’t decreasing; it’s growing.</p><p>Debt consolidation doesn’t automatically lead to a new round of credit card debt, of course, but it has the potential to open the door to new debt if you aren’t careful.</p><h3>Debt consolidation won’t resolve underlying money issues.</h3><p>Moving your revolving credit card balances to a fixed-rate loan can help you reset your finances. But it won’t solve any underlying problems that may be causing you to over-use credit. If monthly payments are a struggle–on credit card balances or a combined debt consolidation–you may be at risk for falling behind and damaging your credit. Consider retracing your steps to see where you can eliminate spending, meet your monthly expenses, boost your income, and resist using credit going forward.</p><h2>The bottom line</h2><p>Debt consolidation isn’t an unlimited resource. Eventually, if you’ve run up too much debt or are stretched too thin, your access to new funds may be limited. Working with your lender can help you understand your options, given current interest rates, your credit profile, and the new debt you’ve added since your last loan approval.</p><p>Does debt consolidation work the second time around? The answer may depend on how you use it–not just how often. Debt consolidation should advance your financial goals. A second (or third) debt consolidation can simplify your finances, boost your credit, and improve your financial health by helping you make on-time payments, lowering your interest costs, and steadily reducing your debt. If it’s moving you toward these goals, a new <a href="/personal-loan/debt-consolidation">debt consolidation personal loan</a> could be worth considering.</p><hr/><p>1. Interest rates vary based on creditworthiness, loan type, and other factors.</p>

An unsecured personal loan is a loan that doesn't require you to put up any form of collateral—like a car, personal savings, or house. Unsecured loans often provide quicker access to cash than secured loans. However, unsecured loans are considered greater risk by lenders, and may have higher interest rates or lower borrowing limits. 

<p>An unsecured personal loan is a loan that doesn&#39;t require you to put up any form of collateral—like a car, <a href="/personal-savings">personal savings</a>, or house. Unsecured loans often provide quicker access to cash than secured loans. However, unsecured loans are considered greater risk by lenders, and may have higher interest rates or lower borrowing limits. Creditworthiness plays a big factor in both eligibility and interest rates for unsecured loans. </p><h2>How unsecured personal loans compare to secured personal loans </h2><p>Both unsecured and secured personal loans are very common and the differences come down to several key factors: </p><h3>Faster payouts </h3><p>The speed will often depend on who is lending you money: online lenders tend to process loans the quickest, while banks and credit unions tend to have longer processing times. Because they don&#39;t require collateral documentation, like car titles or home deeds, <a href="/personal-loan">unsecured loans</a> tend to grant faster payouts. This can be as soon as the day you apply, with an average of three business days. </p><h3>No risk of losing property</h3><p>As you are not required to put up any collateral—like your home, car, or savings—unsecured loans pose no risk of losing your property in the event of nonpayment. However, there are still consequences, such as damage to your credit score and the possibility of being sued if you miss payments or default on your loan. </p><h3>Higher rates</h3><p>Typically, unsecured loans will have higher interest rates than secured loans, but the exact amount varies greatly based on your creditworthiness. Generally speaking, the higher your credit score, the lower your interest rate, and individuals with fair or bad credit (FICO scores at 669 or lower) may face higher rates or difficulty getting an unsecured loan. </br></p><h3>Loan restrictions </h3><p>An <a href="/personal-loan">unsecured personal loan</a> can be used for almost any reason, like making home improvements, paying off accumulated medical bills, or consolidating credit card debt. However, be sure to check the terms of a loan so you understand any limits before you sign.</p><h2>Types of lenders that offer unsecured personal loans</h2><p>Unsecured loans can be obtained through traditional lending institutions as well as several other alternative lenders. </p><h3>Online lenders </h3><p>Online lenders tend to have a faster approval process and often offer more competitive interest rates than a traditional bank with lots of locations. Though there are no physical branches or agents you can speak to in person, many offer online chat, text messaging, and live phone support. </p><h3>Traditional banks</h3><p>Traditional brick-and-mortar banks offer unsecured loans, but they may carry more stringent credit requirements and higher interest rates. Some banks may offer better rates and higher loan amounts to established customers who have an account and an established credit history with them, but this isn’t always consistent or guaranteed. Even if they do claim to give you their best rate options, it’s important to shop around before committing to an offer. </br></p><h3>Credit unions </h3><p>Credit Unions are not-for-profit financial institutions that are member-owned and run. They typically offer many of the same lending options as traditional banks—including unsecured personal loans—at lower rates, especially if you’ve been with that credit union for a while. If you&#39;re looking for a fast loan, it&#39;s important to consider that the application process with banks and credit unions may take from one day to a few weeks. Explore all your options to find the best fit for your needs</p><h3>Peer-to-peer lenders</h3><p>Peer-to-peer lenders are financial platforms that connect individual borrowers directly with individual lenders (or groups of individuals). When evaluating this type of lender, pay attention to fees and eligibility criteria. Peer-to-peer lenders tend to offer borrowers lower interest rates than compared to traditional financial institutions, but may have additional costs. </p><h2>How do lenders determine interest rates on unsecured personal loans? </h2><p>Interest rates for personal loans can vary which can mean a difference in loan costs. In most cases, the interest rate is determined based on the eligibility factors of the borrower, so it&#39;s important to understand how lenders evaluate borrower risk.</p><h3>Credit score and history</h3><p>Unsecured loans can be riskier for lenders—without collateral to back the agreement, in the event of nonpayment, they’re responsible for sending the unpaid amount to collections or file a lawsuit to collect the money owed, which can take time and effort. Because of this, your credit profile plays a large factor in the interest rate you receive. Individuals with excellent credit (740 and higher) typically receive the best interest rates and terms.</p><h3>Debt-to-income ratio </h3><p>This ratio shows a borrower’s ability to manage repayment. It’s calculated by taking all your monthly debt payments and dividing by your gross monthly income. The lower your debt-to-income ratio the better. Typically, staying at or below 36% is ideal. </p><h3>Income and employment history </h3><p>A stable employment history gives lenders confidence that you have the means to repay the loan. In most cases, they’ll want to know your annual salary and may ask to see pay stubs to show you earn steady income.</p><h2>How to get the best rate on an unsecured personal loan</h2><p>Taking steps now to improve your finances can help you secure a better interest rate if you need one.</p><h3>Improve your credit.</h3><p>Credit scores are one of the most important factors in determining loan interest rates. In general, the higher your score, the lower your rate. So, if you’re able to improve your credit score before <a href="/personal-loan">applying for a personal loan</a>, <a href="https://www.experian.com/blogs/ask-experian/how-much-money-can-you-save-with-a-higher-credit-score/">the lower rates can save you money</a>. </br></br>The best starting point is to pay off any overdue bills and reduce existing debt to at least 30% of your limit on all your loan balances. Request a credit report and check it for any errors. If you do find any, report them immediately. </br></br>If you’ve opened multiple credit cards in a short period of time, wait until some of the inquiries clear off your account. It generally takes 18-24 months from the time an account is opened for the credit inquiry to clear.</p><h3>Find a co-borrower.</h3><p>Having a friend or family member with a good credit history apply with you as a co-borrower might help improve your chances of loan approval with a lower interest rate. Be sure to understand the responsibilities and potential risks involved for both parties.</p><p>Unlike with a co-signer, where the friend or family member acts as a guarantor and agrees to pay the loan in a scenario where you default, a co-borrower shares equal obligations for repayment and rights to the loan amount. If you’re comfortable sharing both the debt and the funds, a joint personal loan with a co-borrower might be a good choice. </p><h3>Get quotes from multiple lenders.</h3><p>Like all things in life, shopping around is the best way to find the best loan options available. By comparing quotes from multiple lenders, you’ll be able to find the best interest rate available to you. LendingClub, for example, allows you to check your loan rate without impacting your credit score. </p><h2>Important factors to consider in an unsecured personal loan (and lender)</h2><p>When it comes to personal loans, all lenders are not equal. Recognizing what to look for outside of interest rate will help you to avoid signing on the dotted line with a potentially iffy institution. </p><h3>Customer ratings and reviews </h3><p>If you&#39;re considering working with a lending institution for the first time, check with consumer protection agencies and third-party review sites to learn what their customers have to say first. Online resources like the <a href="https://www.bbb.org/">Better Business Bureau</a>, the <a href="https://www.consumerfinance.gov/data-research/consumer-complaints/">Consumer Financial Protection Bureau</a>, TrustPilot, and Google all allow you to quickly search past complaints, star ratings, and customer reviews. </p><h3>Exorbitantly high interest rates </h3><p>If you are being denied loans from reputable lenders and desperately need the funds, you might be tempted to resort to your only available options. The reality is many lenders who offer rates to those with bad credit do so in a predatory manner, sometimes charging <a href="https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/">near 400%</a> for short-term loans. This is particularly true among payday lenders, so weigh your options before committing. </br></br>If you find yourself in a dire financial situation with limited options, don&#39;t turn to the first lender who offers you money. Nonprofit and government organizations such as the <a href="https://www.nfcc.org/">National Federation for Credit Counseling</a> have experts on staff who can help you develop a smart repayment plan.</p><h3>Prepayment penalties or fees</h3><p>In addition to rates, consider the fees that often come with personal loans. Many lenders have origination fees—fees you pay at the beginning for processing a loan, of 1% to 8%—that help cover platform costs; and late fees—which are common and expected should repayment not be made on time. </p><p>Many may also have prepayment penalties or exit fees, which occur when you repay the amount owed before the loan term is finished. Because the total amount you owe may be tied to how long it takes for repayment, look for lenders who don’t charge prepayment penalties. </p><h2>Unsecured personal loan FAQ</h2><p>If this is the first time you’ve considered an unsecured personal loan, you might have some questions. </p><h3>What’s the difference between a secured vs. unsecured loan? </h3><p>Secured loans are protected by an asset, like a home, car, or other personal property, that’s used as collateral in the event of nonrepayment. It means you’re providing security to your lender that your loan will be repaid. If the lender is not repaid, they have the right to sell your collateral to pay off the loan. </p><p>In most cases, secured loans allow for higher borrowing limits, longer repayment terms, and lower interest rates. In contrast, unsecured loans don’t require collateral, which means lenders carry more of the risk and, therefore, tend to have stricter credit or eligibility requirements, and interest rates may be higher (depending on your credit history). In the case of nonrepayment, the lender can send the amount to a collections agency or sue in civil court, though the latter tends to be less common. </p><h3>Are unsecured loans safe?</h3><p>If they come from a reputable lender, <a href="/personal-loan">unsecured loans are safe</a> especially if you make your payments on time. The main risks have to do with your ability to repay the loan. Failure to repay or make on-time payments can cause your credit score will drop, which can impede your ability to qualify for credit in the future.</p><h3>How do I qualify for an unsecured personal loan?</h3><p>You must be 18 years old to qualify for an unsecured personal loan and be able to prove US citizenship. Lenders also look for a steady income, a low debt-to-income ratio and a good credit score. While the median FICO credit score range is 670 to 739, the higher your credit score, the more likely lenders will offer you better loan terms and interest rates.</p><h2>The bottom line</h2><p>Almost all individuals and businesses at some point need a loan to grow for the future, and millions of Americans do so safely and productively. But like with any financial product, never make a decision without researching. Once you understand what unsecured personal loans are, how they compare to other loan options, and what factors make for good interest rates and lenders, then you can confidently proceed in <a href="/personal-loan">taking out a loan</a> option that&#39;s best for you. </br></p><h3>Consider LendingClub when comparing your options</h3><p>With over 3 million members served since 2007, LendingClub is the nation’s largest online lending marketplace and offers access to credit with flexible amounts up to $40,000, lower interest rates, no pre-payment penalties, and fast funding. We treat our members the way we’d want to be treated with clear terms, fixed rates, and repayment plans that our members can actually afford. </p>

Take control of your money and personal wellbeing with tips to recognize burnout and restore your physical, financial, and emotional health.

<p>Workplace burnout was already a serious issue for many Americans before the pandemic. In 2024, the problem is even more widespread and has a major impact on our mental and physical well-being. Because money issues and mental well-being are closely correlated, burnout can also threaten your financial stability. </p><p>We explore how our mental health and finances interact, explain how to recognize the warning signs of burnout, and share practical tips and strategies to improve your mental, physical, and financial health.</p><h2>What is burnout?</h2><p>The American Psychological Association (APA) defines burnout as “physical, emotional, or mental exhaustion” caused by stress and tension, especially from extreme and prolonged physical or mental exertion or an excessive workload.</p><p>According to a survey, about 65% of employees said they suffered from burnout in 2023 and 72% said it&#39;s impacting their performance at work.<sup>[1]</sup> Nearly half (48%) of 18-to-29-year-olds said they feel drained compared with 40% of their peers aged 30 and up, while women (46%) reported higher levels of burnout than men (37%).<sup>[2]</sup> But even outside the workplace, the post-pandemic world continues to present a host of mental health challenges.</p><p><b>Economic uncertainty. </b>Ripple effects from the job losses, deaths, and financial upheavals of the pandemic continue. Consumers face ongoing <a href="https://www.lendingclub.com/resource-center/personal-finance/what-is-inflation-and-how-can-you-beat-it">inflation-related concerns</a>, a rollercoaster stock market, rumors of recession, an uncertain climate future, and worry over the impact AI could have on our society and work. Meanwhile, pandemic-era financial supports such as stimulus payments and eviction protections have largely expired. Some 83% of U.S. adults report feeling stressed about inflation, according to a poll conducted for the APA in late 2022; 69% say the economy in general is a major source of stress.</p><p><b>Socio-political issues. </b>Large-scale problems such as war, gun violence, political divisiveness, racial and gender injustice, and fears around artificial intelligence and climate change all impact our mental health. Repeated exposure to negative news cycles can make us feel powerless and hopeless, while a constant deluge of information causes mental fatigue and difficulty focusing.</p><p>The primary symptoms of both personal and professional burnout are “decreased motivation, lowered performance, and negative attitudes toward oneself and others,” according to the APA. Such mental health struggles can cause physical fatigue, difficulty making decisions or concentrating, memory problems, and a general lack of motivation. More than one-quarter of U.S. adults the APA surveyed say that most days, they are so stressed they can’t function.</p><h2>How mental burnout can result in financial burnout</h2><p>Money and mental health are closely connected. If seeing your hefty credit card balance makes you anxious, you might ignore the bill instead of paying it. That compounds your financial problems—and your stress.</p><p>Here are warning signs burnout may be affecting your finances:</p><h3>Emotional spending</h3><p>Do you use retail therapy to cope with your feelings? Shopping sprees may provide temporary relief or distraction, but ultimately mean more stress when the bill arrives. </p><h3>Convenience spending</h3><p>If work keeps you too busy to cook or shop, you might get takeout every night or pay for grocery delivery.</p><h3>Poor work performance</h3><p>Burnout often lowers your motivation and productivity. Failing to meet your work obligations could cost you a promotion, a raise, or even your job.</p><h3>Neglecting financial responsibilities</h3><p>Failing to review your retirement statements might cost you opportunities to improve your investment returns. Procrastinating on paying taxes could result in hefty penalties.</p><h3>Increased dependence on credit</h3><p>If stress is straining your finances, you may find yourself relying more heavily on loans, borrowing from family or friends, or using <a href="/resource-center/personal-finance/ways-to-pay-off-credit-card-debt-fast">high-interest credit cards</a> for day-to-day expenses.</p><h3>Late or missed payments</h3><p>Late payments can mean costly late fees and ballooning credit card balances. In addition, late payments that appear on your credit report can significantly hurt your credit score, making it harder to get credit in the future.</p><h3>Relationship strain</h3><p>Frequent arguments with your partner or family about money matters may signal financial stress is spilling over into your relationships.</p><h3>Not planning for the future</h3><p>When you&#39;re mentally exhausted, it may be difficult to focus on long-term financial plans and goals. Burnout can divert your attention away from important financial goals such as building a budget or emergency fund or saving for retirement or a home.</p><h2>12 strategies to help improve your mental health and avoid financial burnout</h2><p>The combination of financial difficulty and mental health problems can quickly become a vicious circle. A study from Hartford found that denial, anger, stress, depression, and anxiety all rose dramatically among workers facing financial problems.<sup>[3]</sup></p><p>Fortunately, you can combat burnout—and improve both your mental and financial health—by taking the following actions.</p><h3>Mental Health Strategies</h3><h4>1. Practice self-care.</h4><p>Healthy habits such as getting enough sleep, eating a balanced diet, and exercising can improve your mood and prepare you to face financial challenges. Find relaxing activities, like doing yoga or spending time in nature.</p><h4>2. Start meditating.</h4><p>Mindfulness meditation is proven to reduce stress and fight anxiety and depression, according to the APA. Join a meditation group, look for mindfulness resources online, or use free mindfulness apps to guide you.</p><h4>3. Revisit your priorities; set boundaries.</h4><p>Adjust your work-life balance by re-evaluating your priorities and eliminating less important activities or commitments. If you can’t stop doing something, set boundaries. For example, ask your boss about taking some responsibilities off your plate, or ask your partner for more help with childcare or housework.</p><h4>4. Ask for help.</h4><p>Talking to a friend may be all you need to feel better. If not, consult your primary care doctor and research the options your health insurance offers for mental health care. If you don’t have insurance, a <a href="https://data.hrsa.gov/data/reports/datagrid?gridName=FQHCs">Federally Qualified Health Center</a> can provide services based on your ability to pay. Mental health apps can match you with licensed therapists you can access as needed for a monthly fee (check out the reviews first).<sup>[4]</sup></p><h4>5. Be a friend to yourself.</h4><p>Negative self-talk heightens anxiety, depression, and stress. Practice positive, supportive self-talk—the way you’d speak to a friend with your problems. Viewing your worries as you would a friend’s can help you be more objective and maintain a healthy perspective.</p><h3>Financial health strategies</h3><h4>6. Assess your income and expenses.</h4><p>Write down all sources of income and regular expenses. Divide your expenses into essentials, such as rent, cellphone and loan payments, and extras, such as eating out or streaming subscriptions.</p><h4>7. Create a budget.</h4><p>If building a detailed budget feels too complicated, start with <a href="https://www.lendingclub.com/resource-center/personal-finance/50-30-20-rule-the-easy-budget-method-that-works">a simple approach to budgeting</a>. You can use a budgeting app or pen and paper—whichever works for you. Budgeting provides a sense of control over your finances and a better picture of your financial obligations. For example, if your expenses exceed your income, you’ll either need to cut back or bring in more money.</p><h4>8. Prioritize debt repayment.</h4><p>Debt is a top cause of financial stress, according to investment firm T.RowePrice. Develop a plan to <a href="https://www.lendingclub.com/resource-center/personal-finance/debt-snowball-vs-avalanche-which-should-you-choose">pay down your debts</a> systematically. <a href="https://www.lendingclub.com/resource-center/personal-loan/what-is-debt-consolidation">Debt consolidation</a> options, such as using a personal loan to pay off multiple high-interest credit cards, can make repaying your debt more manageable.</p><h4>9. Start an emergency fund.</h4><p>An <a href="https://www.lendingclub.com/resource-center/personal-finance/your-emergency-fund-the-essential-guide">emergency fund</a> provides a safety net against unexpected expenses. Ideally, save enough to cover three to six months’ worth of essential living expenses should you lose or quit your job. You can start with a smaller goal, such as $500, and put aside a little each month.</p><h4>10. Save for the future.</h4><p>Contribute to any retirement plan your job offers. If your employer makes matching contributions, put in at least enough money to get the maximum match. You can also open an individual retirement account (IRA) on your own.</p><h4>11. Automate your finances.</h4><p>Put your financial goals on autopilot by scheduling automatic contributions to your retirement plans and automatic transfers to your savings account each month. You can also set up automatic payments for bills to eliminate worries about missed payments and late fees.</p><h4>12. Reach out for help.</h4><p>Take advantage of your workplace&#39;s programs to help with budgeting, emergency savings, or financial education. The more you know about managing your money, the less intimidating it will feel. If you’re struggling with debt, connect with a non-profit, licensed credit counselor who can help you make a budget and <a href="/resource-center/personal-finance/ways-to-pay-off-credit-card-debt-fast">get out of debt</a>. </p><h2>The bottom line</h2><p>Burnout can wreak havoc on your mental health and finances, but recognizing the warning signs of burnout and taking action can gradually bring your life back into balance. As you work to improve your money and mental health habits, be patient with yourself and focus on what you can control, not what you can’t. </p><p>By setting realistic goals, taking small steps, and making consistent efforts, you can find your way to a happier, healthier, and financially stable life.</p><hr/><p>1. <a href="https://www.hrdive.com/news/employee-burnout-productivity/703405/">HR Dive.</a> &quot;65% of employees said they suffered from burnout in 2023 and 72% said it&#39;s impacting their performance at work.&quot;</p><p>2.  <a href="https://futureforum.com/research/future-forum-pulse-winter-2022-2023-snapshot/#which-groups-are-at-the-greatest-risk-of-burnout">Future Forum.</a> &quot;46% percent of women say they are burned out compared with 37% of men.&quot;</p><p>3. <a href="https://newsroom.thehartford.com/newsroom-home/news-releases/news-releases-details/2023/The-Hartfords-New-Study-Finds-Most-U.S.-Workers-Are-Happy-At-Work-Yet-Burnout-Persists/default.aspx">The Hartford.</a> &quot;A study from Hartford found that denial, anger, stress, depression, and anxiety all rose dramatically among workers facing financial problems.&quot;</p><p>4. <a href="https://psychiatry.ucsf.edu/copingresources/apps">University of California, San Francisco</a>. &quot;Mental health apps can match you with licensed therapists you can access as needed for a monthly fee (check out the reviews first).&quot; </p>

It's common to see the buy now, pay later (BNPL) payment option at online checkout — but should you use it? Learn what BNPL is, how it works, and alternatives for borrowing money.

<p>​​​Buy now, pay later is a form of short-term consumer financing that lets you pay for purchases in installments, often with no interest. ​​ </p><p>The popularity of buy now, pay later loans among a certain segment of shoppers has exploded over the last several years. From 2019 to 2021, the number of loans originated by major BNPL providers grew by a massive 970%. Wherever you check out online, it’s now common to see the buy now, pay later payment option — but should you use it? While BNPL loans are often interest-free and easy to qualify for, they can come with potential risks. </p><h2>What Is buy now, pay later and how does it work?</h2><p>Buy now, pay later (BNPL) is a type of short-term consumer financing that lets you pay for purchases in installments, often with no interest. BNPL loans are sometimes referred to as “pay-in-four” and “point-of-sale” installment loans because plans typically have four equal payments, and often used to finance small online retail purchases.</p><p>The average amount financed by a BNPL loan was $135 in 2021, according to Consumer Financial Protection Bureau (CFPB) data. Consumers commonly use BNPL services to buy beauty products and apparel; however, some shoppers have started using BNPL services to pay for everyday items like gas, food and groceries. Examples of BNPL service providers include Klarna, Afterpay, and Affirm.</p><h3>How does buy now, pay later work?</h3><p>BNPL plans provide short-term retail financing by fronting merchants cash to cover your purchase and allowing you pay off that purchase in installments later. A common payment plan is known as pay-in-four, where the purchase is broken up into four equal installments. Typically, the first payment is due immediately, followed by three additional payments spaced two weeks apart.</p><p>BNPL companies often charge no interest or finance fees on “pay-in-four” BNPL plans if you pay on time. However, should you pay late or one of your payments is declined, it could trigger extra fees. Aside from the pay-in-four option, BNPL loans may offer other payment plans like “pay-in-30” or long-term financing over several months. These extended payment arrangements may come with interest, so you must read the terms to understand exactly what you’re getting into.</p><p>The BNPL application process varies. Some BNPL providers have no credit check, so if you have poor credit, you could still qualify. Others do a soft credit check that doesn’t affect your score. For long-term installment options, a hard inquiry may be required, and that credit check could impact your score. </p><h2>What are the risks of using buy now, pay later?</h2><p>BNPL is easy to sign up for and usually interest-free, however, it’s a loan, and loans add another financial obligation to your budget. If you rely heavily on BNPL to make your retail purchases, it could cause you to accumulate multiple payment plans that become too difficult to manage. If you start missing payment due dates, it could lead to costly late fees. And if payments for BNPL plans overdraft your bank account, your financial institution could even charge you overdraft or non-sufficient funds fees.  </p><p>Falling behind on BNPL payments could affect your credit score and history in some circumstances. While these accounts are not generally reported to credit bureaus, BNPL companies can report your unpaid balance to a credit reporting agency or send you to collections. If a collections account shows up on your credit report, it can impact your ability to qualify for future loans and credit. </p><h2>Pros and cons: Buy now, pay later</h2><p>If you’re thinking about using BNPL for upcoming purchases, here are some benefits and drawbacks worth considering: </p><table><tr><th><p><b>Pros</b></p></th><th><p><b>Cons</b></p></th></tr><tr><td><p>Typically, BNPL plans have no interest or financing fees, so it’s like borrowing money for free (assuming you make all your payments on time and in full).</p></td><td><p>If your payment is late or the payment overdraws from your bank account, you could get hit with late fees from the BNPL company, and/or additional fees from your bank.</p></td></tr><tr><td><p>Applying online is usually quick; instant approvals for online purchases are common.</p></td><td><p>Interest may be charged on longer-term financing plans. </p></td></tr><tr><td><p>Some plans don’t require a credit inquiry; those that do may require only a soft credit check.</p></td><td><p>Unpaid BNPL debt could be sent to collections, which can negatively affect your credit history and score.</p></td></tr><tr><td><p>Payment plans can be used for in-store or online purchases.</p></td><td><p>Managing and tracking multiple payment plans could quickly lead to becoming overextended financially.</p></td></tr></table><h2>Who should consider using buy now, pay later?</h2><p>BNPL loans could be a good fit for one-off purchases you prefer not to pay for outright and only when you can comfortably afford the payments. If you use BNPL sparingly and always pay on time, you can avoid some of its dangers while enjoying the benefits, such as potentially interest-free payments. </p><h2>Alternatives to buy now, pay later </h2><p>BNPL plans aren’t always the best way to finance your online purchase. Depending on how much you need to borrow and for how long, below are three other options to consider instead of BNPL. </p><h3>Credit cards </h3><p>Credit cards offer a credit line with a limit you can use to make purchases and pay off the purchase on a revolving basis. While credit cards typically come with a higher, variable interest rate, you can avoid interest charges altogether if you pay off your balance in full at the end of the statement period. </p><p>Some credit cards also offer 0% APR introductory specials where you pay no interest for a certain period, such as 12 months. When making a big purchase — like a new sofa or back-to-school shopping haul — using a credit card with a no-interest special could be a way to charge the purchase and pay it off over several months for free.</p><h3>Small personal loans </h3><p>A <a href="https://www.lendingclub.com/personal-loan">personal loan</a> offers a cash lump sum you can use to consolidate high-interest debt or make large purchases, such as home repairs or improvements. Personal loans carry interest charges, and depending on the loan terms, usually have fixed monthly payments that can last for several years. A hard credit inquiry is typically performed when you apply for a personal loan. Having a credit score of 670 or higher may be necessary to qualify. However, an even stronger credit score of 740 or higher could help you get approved for lower interest rates.</p><h3>Cash</h3><p>If a purchase isn’t an emergency, you could wait and save up for it rather than borrowing money. Start by coming up with a dollar amount you want to save, and then break that large number into manageable weekly and monthly savings goals. Saving in cash doesn’t get you items in hand right away, but it can help you avoid incurring a new debt balance and payment. </p><h2>The bottom line</h2><p>The ease with which you can sign up for BNPL can make it tempting to overspend and become financially overextended quickly. If you have the cash to make a purchase instead, paying in full at the point of sale is best. While many BNPL plans are typically interest-free, late fees can rack up if plans become unmanageable and you wind up paying late. Unpaid BNPL debt could also show up on your credit report and impact on your credit score if the balance remains unpaid or is sent to collections. If you’re struggling to pay bills or build savings, it’s best not to use BNPL since a new payment could put a strain on an already tight budget. </p><h2>Buy now, pay later FAQ</h2><p>Below are a few quick facts about buy now, pay later loans: </p><h3>What apps let you buy now, pay later?</h3><p>Affirm, Afterpay, Klarna, and PayPal are examples of companies with apps offering BNPL loans. </p><h3>Does buy now, pay later affect your credit? </h3><p>Most BNPL companies charge late fees if you don’t pay off your balance in full by the due date, and your account may be frozen to prevent you from making any further purchases. If your unpaid balance is turned over to a collection agency, your collections account may be reported to the credit bureaus, which may impact your credit score.</p><h3>What is the interest rate on a buy now, pay later loan?</h3><p>Typically, pay-in-four plans are interest-free, but if you get long-term financing with a BNPL company that lasts several months, your loan may be charged interest. Some longer-term loans with BNPL companies may charge rates as high as 36% APR.</p><h3>Does buy now, pay later build credit?</h3><p>BNPL plans won’t help you build credit history because BNPL companies usually do not report accounts and payments to the credit bureaus. In some cases, BNPL could harm your credit history because unpaid balances can be sent to collections, which can hurt your credit score. That’s why it’s important to only take on payment plans you can manage and pay off your short-term loan in full. </p>

Related Resource Center

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.

<p>From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce Stackit<sup>TM</sup> from LendingClub Bank—a <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">new browser extension</a> that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.</p><h2>Limited Time Offer to Double Your Cash Back Through 12/31/22</h2><p>Stackit is a free, new cash back and rewards program available to personal loan members that’s easy to download and install. Eligible members can activate their favorite offers with one click to start saving while stacking cash back offers with existing loyalty program rewards at eligible stores.</p><p>“We’re relentless when it comes to giving customers more, and Stackit is a perfect example of this,” said Amber Carroll, SVP of Membership and Lifecycle Marketing. “Stackit appears as you shop so it’s easier to activate. You can redeem your cash back for gift cards from hundreds of online stores. And you can continue accumulating loyalty points from merchants and rewards from credit cards while we stack coupon savings and cash back earnings on top of all of it,” she said. “Stackit demonstrates our promise to help members make smart money moves that are both easy and rewarding.”</p><p>To celebrate the new Stackit rewards program, LendingClub is offering its personal loan members double the cash back on eligible purchases made now through the end of the year. To start earning and stacking rewards, eligible members can simply <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">add the new Stackit Extension</a> to their browsers—<b>doubling their earnings for a limited time through 12/31/22.</b>* Cash back can be redeemed for e-gift cards through the Earnings Dashboard.</p><h2>New Name, Better Rewards</h2><p>Earlier this year, LendingClub soft-launched its exclusive member rewards program as a separate Chrome browser extension test that was made available to a small subset of customers. Drawing from these learnings,Stackit is LendingClub Bank’s new and improved rewards program featuring a new extension, expanded browser availability, and enhanced account integration that is rolling out to a wider member audience beginning in November.</p><p>Currently, any LendingClub personal loan member can download and start using the new Stackit browser extension. (Users of the old LendingClub Chrome Extension can continue earning cash back through 11/30/22; any amount remaining in users’ accounts after 11/30 will automatically be paid out via PayPal. Members are advised to add the new Stackit Extension to continue earning cash back and rewards, including double cash back, on future purchases.) In addition to Chrome,Stackit expands browser availability to Safari and Edge, and enables members to view recent transactions and cash back earnings inside their LendingClub account instead of a third-party site. Planned rollouts to LendingClub members with Auto, Deposit, and other accounts beyond personal loans are expected, however, timing is still under consideration.</p><p><i>*Double Cash Back Offer on eligible transactions expires 12/31/22. See </i><a href="/legal/terms-of-use"><i>Terms of Use</i></a><i> for full details. Offer is subject to change without notice.</i></p><p>Stackit is a non-deposit product offered by LendingClub Bank.</p>

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. 

<p>Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. However, recent <a href="https://www.fdic.gov/analysis/household-survey/">FDIC research</a> shows approximately 7.1 million Americans are “unbanked,” meaning they do not have a basic checking or <a href="/personal-savings">savings account</a>.</p><h2>Being Unbanked Increases Costs for Families</h2><p>Reasons for being unbanked (and underbanked) vary from not having enough money to meet a minimum balance and high or unpredictable fees, to having a history of credit, ID, or banking problems, and/or a general distrust of financial institutions.As a result, this drives unbanked individuals to expensive, alternative financial outlets—such as check cashers, payday lenders, and pawn shops that charge high fees for financial products and services—to manage their money. </p><p>Such fringe financial “solutions” hold people back from making meaningful financial progress, many of whom are living on low incomes and, likely, already struggling to make ends meet. Without a <a href="/personal-checking/rewards-checking">checking account</a>, these families wind up overpaying for basic financial transactions, making it difficult for them to build savings and assets over time.</p><h2>More Rewarding Banking for More People</h2><p>In light of this, we’re proud to share that recent improvements to LendingClub Bank’s <a href="/personal-checking/rewards-checking">award-winning Rewards Checking</a> has earned us official certification by the national Cities for Financial Empowerment Fund as meeting the BankOn National Standards for trust and affordability for consumer transactional accounts.Key features of our award-winning Rewards Checking account include:</p><h3>Low Minimum Opening Balance</h3><ul><li><p>Access Rewards Checking with an opening deposit of only $25</p></li><li><p>Freedom from Fees Save more of your hard-earned money with no overdraft, monthly maintenance, and incoming wire transfer fees<sup>1</sup></p></li></ul><h3>Unlimited Cash Back</h3><ul><li><p>Earn <a href="/personal-checking/rewards-checking">unlimited 1% cash back</a> on Qualified (signature-based) Purchases when using your Rewards Checking debit card<sup>2</sup></p></li></ul><h3>Free ATM Access</h3><ul><li><p>Enjoy <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with no LendingClub ATM fees</a>, plus get unlimited ATM fee rebates on fees charged by other banks<sup>3</sup></p></li></ul><h3>Get Your Paycheck Early</h3><ul><li><p>Set up direct deposit into your account and you could be eligible to receive your money up to 2 days earlier<sup>4</sup></p></li></ul><h3>Earn Interest</h3><ul><li><p>Earn an APY that’s more than the national average with account balances of at least $2,500<sup>5</sup></p></li></ul><h3>FDIC Insurance</h3><ul><li><p>Rest easy knowing your deposits are FDIC-insured up to the maximum amount allowed—$250,000 per depositor for each ownership category</p></li></ul><h3>Best Online Experience</h3><ul><li><p>Based on our easy-to-use mobile app and award-winning <a href="/personal-checking/rewards-checking">online checking account</a>, NerdWallet named us <i>Best Bank or Credit Union for Online Experience</i></p></li></ul><h2>What Our Members Say</h2><p>It’s important knowing we’re offering products and services that are helping to improve the financial lives and stability of all Americans, including unbanked and underbanked individuals and families, in every community across the United States.Here’s what some of our members have to say about their Rewards Checking experience with LendingCLub Bank:<i>“I never knew how much money I was losing with my old bank whenever I used an ATM. [LendingClub Bank] reimburses fees from ATM’s and now I look forward to getting the cash back every month.”</i></p><p><b>Robin</b>, a LendingClub Bank Member<i>“The rewards checking account with cash back every month has helped me ditch my credit card and debt.”</i></p><p><b>Lauren</b>, a LendingClub Bank Member</p><p>Read more member reviews.</p><h2>Your Financial Well-Being Matters to Us</h2><p>At LendingClub Bank, making <a href="/personal-checking/rewards-checking">checking accounts</a> more rewarding for more people is an example of our belief that financial well-being should be attainable for everyone—not just for those who can afford it. Everything we do is centered around empowering our members to meet their personal financial goals by enabling access to a broad range of financial  products, services, and educational resources, all designed to help them pay less when borrowing and earn more when saving. </p><p><i>Testimonials reflect the real-life experiences of individuals who used our products; however, individual results may vary.</i></p><p><i></i></p><hr/><h4><i>Terms and Conditions</i></h4><p><i>Accounts subject to approval. $25 minimum opening deposit required. See Product Terms &amp; Conditions for additional details.</i></p><p><i>1. Miscellaneous fees may apply. View Product Terms &amp; Conditions for complete details.</i></p><p><i>2. The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% </br>cash-back on all Qualified Purchases using a debit card tied to an Eligible Account.</i></p><p><i>Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review:</i></p><p><i>1). Maintain an average monthly balance of at least $2,500.00; or 2). Receives at least $2,500.00 in Qualifying Direct Deposits.</i></p><p><i>Qualifying Direct Deposits are defined as: Recurring Automated Clearing House (ACH) credits, including payroll, pension or government payments (such as Social Security) made by your employer, or an outside agency. We may require documentation to verify that credits are Qualifying Direct Deposits. Qualifying Direct Deposits do not include peer to peer payments or ACH transfers (funds transfers) from your external accounts.</i></p><p><i>Qualified Purchases are defined as: Signature-based purchases made using the debit card </br>tied to an Eligible Account. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and is based on how the transaction is transmitted at the time of processing. Qualified Purchases do not include: (1) any goods or services purchased that are returned or otherwise credited to your Eligible Account; (2) unlawful purchases; or (3) purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Checks, gift cards, cryptocurrency, casino chips, peer to peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents).</br> </br>We may report the value of Cash Back Rewards to the IRS as required by law. Any client whose tax status would require us to impose tax withholding of any sort will not be eligible for Cash Back Rewards.</br> </br>Accounts are reviewed after the end of each month. Any earned Cash Back Rewards will be credited to your account on or before the 10th calendar day of the next calendar month. The Eligible Account must be open and active at the time the Cash Back Reward is credited.</i></p><p><i>3. LendingClub does not charge a fee for using another bank’s ATM. Plus, get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you. ATM surcharge rebates apply to cash withdrawals from a Rewards Checking account. ATM fees will be rebated at the end of each statement cycle. Excludes international exchange fees. LendingClub makes its best effort to identify those ATM fees eligible for rebate. In the event that you have not received a rebate for a fee you believe is eligible, please contact Customer Service at 800.242.0272. LendingClub reserves the right to modify or discontinue the ATM surcharge rebate program at any time. Out-of-network ATM fees cost $2.50 on average — source: CNBC as of 01/26/2022. If someone were to use an out-of-network ATM 6 times per month at an average fee of $2.50 per withdrawal, they would spend $180 in ATM fees in 12 months.</i></p><p><i>4. Any account features that enable you to receive direct deposits, or that enable direct deposit funds to be made available to you early, are contingent upon and subject to the payor’s support of such features. </i></p><p><i>5. Annual Percentage Yield (APY) accurate as of 8/1/2022. Rate tiers are as follows: 0.00% APY applies to balances of $0.00–$2,499.99, 0.10% APY applies to the entire balance on balances of $2,500.00–$99,999.99, and 0.15% APY applies to the entire balance of $100,000.00 or more. Rates are variable and are subject to change, at the discretion of the bank and without notice, at any time after an account is opened. Fees may reduce earnings.</i></p>

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.

<p>Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.</p><p>As the leading digital marketplace bank in the U.S. built on the belief that innovative, creative solutions deliver more value and a better experience, we’re always looking for new ways to provide more. In early 2021, LendingClub became a bank holding company operating a national bank, allowing us to expand our products and level the playing field for everyone.  </p><p>“Every day we help members leverage their money so they can earn more when saving and pay less when borrowing,” said Amber Carroll, Senior Vice President of Membership &amp; Lifecycle Marketing at LendingClub. “We&#39;re working to redefine banking, which means ensuring our interests are well aligned with those of our members and introducing new ways to better serve their needs.” </p><p>Since the beginning of the pandemic, how we work, live, and manage our finances has evolved in ways most of us would never have imagined. Increasingly, more Americans across varying credit profiles are struggling to stretch their dollars between paychecks. According to a recent survey from LendingClub and PYMNTS, even among workers earning more than $100,000 per year nearly half are living paycheck to paycheck.  </p><p>At LendingClub, we’re inspired every day by our members who continue to strive for financial well-being during these unprecedented times—such as by consolidating their credit card debt into a single, more manageable payment, refinancing their auto loan to free up room in their budget, or taking advantage of a CD or high-yield savings account to invest in their future. The Club is working hard to help members reach their goals and we’re incredibly proud to help simplify their path. As one of member recently shared: </p><p>“This is the third time I have utilized LendingClub&#39;s great rates and lending plans to assist with home repairs and debt consolidation. Their application and payment processes are quick and simple to use. I have saved so much time and money using this funding!” — Christine, a member from Texas </p><p>We believe everyone deserves a better financial future. If you’re ready to improve your financial well-being and are not already a member of the Club, we can help. From banking smarter with your <a href="/personal-deposits/online-banking">personal checking and savings</a>, to working toward larger financial goals—like <a href="/personal-loan">consolidating debt</a>, <a href="/auto-refinancing">refinancing an auto loan</a>, or making home improvements—you can easily check your rate for a personal loan in minutes, with no impact to your credit score. </p><p>Thanks again to all of our members for helping us achieve this incredible milestone.  </p>

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 

<p>In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. </p><p>During the webinar, Anuj Nayar, our Financial Health Officer, discussed:</p><ul><li><p>Our journey to get to where we are today </p></li><li><p>Lessons learned from our 15-year history as a fintech pioneer</p></li><li><p>How we’re leveraging our digital marketplace bank to further our mission to help Americans on their path towards financial health</p></li><li><p>We recently reported Q4 2021 and year-end earnings</p></li><li><p>New data on the financial health of U.S. consumers from our latest Paycheck-to-Paycheck report</p></li></ul><p>A historic milestone, as one of the first fintech company to acquire a national bank we’ve paved the way for other fintechs to follow suit. With 15 years under our belt, more than 3.9 million members, and over $70 billion in loan originations, the marriage of LendingClub’s marketplace fintech business with all the benefits of being a bank is fundamentally changing the nature of our business and influencing change across the banking industry as a whole. We’re also creating something new for our members -- a bank that puts the customer at the center of what we do. </p><p><a href="https://vimeo.com/686043451">Check out the video below to learn more.</a></p>

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  

<p>LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  </p><p>This includes our yacht loan business. Yacht loans are simply not in line with our mission to help <i>everyday </i>Americans on their path to financial health and we plan to grow our auto refinance business to take its place.  </p><p>During the review, we also thoroughly examined relationships and operating activities for the fintech partners. As a result of our review, we are asking certain partners to modify their activities and/or operations to match expectations and contractual commitments, and we have begun exiting certain partners. As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers.   </p><p>As a pioneer in this space, we have a unique perspective. We operated for 15 years as a fintech with a partner bank model and now we operate as a fintech, a bank, and a partner bank. We work hard at LendingClub to maintain and build a robust, secure, compliant and scalable enterprise. We are guided by our core values, our extensive experience, our deep data set and technology investments, and governed by strong controls, to deliver on behalf of our members, communities, shareholders, partners, and team members.  </p><p><b>These business model changes will have no material effects on our business operations </b>and we plan to report more details when we issue our Full Year 2021 and Q4 earnings in a few weeks. </p><p><i>Scott Sanborn CEO </i> </p><p>LendingClub</p><hr/><p><i><b>Safe Harbor Statement</b></i></p><p><i>Some of the statements above, including statements regarding  the effect on our business operations as a result of the business model changes, are &quot;forward-looking statements.&quot; The words &quot;anticipate,&quot; &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;may,&quot; &quot;outlook,&quot; &quot;plan,&quot; &quot;predict,&quot; &quot;project,&quot; &quot;will,&quot; &quot;would&quot; and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include those factors set forth in the section titled &quot;Risk Factors&quot; in LendingClub&#39;s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission, as well as in LendingClub&#39;s future filings made with the Securities and Exchange Commission. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. </i></p>

Related Impact

{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.

<p>A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.</p><h2>What is Revolving Credit?</h2><p>Revolving credit is a type of credit that lets you borrow money as needed up to an amount called your credit limit. Borrowing reduces your available credit, and repayment replenishes your credit limit (minus the interest and fees charged). Revolving credit does not have a fixed number of payments. This differs from installment credit which lets you borrow a lump sum and pay it back over a set number of fixed monthly payments.</p><h2>How Does a Revolving Line of Credit Work?</h2><p>It helps to think of a revolving line of credit as a renewable source of funds within a set credit limit. The lender sets the credit limit upon application approval. You can use as much of your credit limit as you need, paying interest only on the money you borrow. As you repay what you’ve borrowed (plus interest and fees), your available credit replenishes, and you can continue borrowing against your revolving line up to the credit limit.</p><h3>Types of Revolving Credit</h3><p>The most common revolving credit products are lines of credit and credit cards.</p><p><b>Lines of credit </b>come in different forms, including home equity lines of credit (HELOCs), personal lines of credit, and business lines of credit. Credit lines are typically issued by banks and credit unions, and generally you can draw on your line using special checks, ATM, telephone, and online banking. You’ll only pay interest on the money borrowed from your line of credit. </p><p>Some lines of credit may be limited in how the funds can be used, such as only for balance transfers from credit cards.</p><p><b>Credit cards</b> are revolving credit accounts that, unlike lines of credit, require you make a purchase or cash advance to access your credit line. While card issuers reserve the right to change your credit limit, you can access your available credit as long as your account is in good standing. When you make purchases on a credit card, you can repay the balance in full by the end of your billing cycle to avoid interest charges and fees. If you don’t pay your outstanding balance in full,the balance “revolves,” or rolls over, to the next month and will accrue interest until paid in full. </p><p>Note: Both lines of credit and credit cards can be secured or unsecured. Secured accounts require collateral; unsecured accounts do not. For example, a HELOC uses your home as collateral. Credit cards are typically unsecured, but some secured cards require cash deposits as collateral.</p><h3>Why is Revolving Credit Important?</h3><p>Revolving credit offers greater borrowing flexibility than installment credit. For instance, if you get a $10,000 installment loan for a home remodeling project, you typically receive all the money at once and must start repaying on the entire loan balance immediately plus interest on that amount—even if you don’t use the funds right away. If you need more money, you’ll have to apply for a new loan.</p><p>On the other hand, if you get a line of credit or credit card with a $10,000 limit, you can draw on it as needed—say, $1,000 in January, $2,000 in April and $1,500 in June­—and interest will accrue only on the amounts you borrow. As you pay back what you’ve borrowed, your available credit is restored up to your credit limit, so you can make future purchases without needing to apply for additional credit.</p><p>Since it doesn’t require fixed monthly payments, revolving credit can also offer greater payment flexibility than installment loans. If money is tight in a particular month, you have the option of only making the minimum payment on a revolving account, potentially making it easier to meet other financial obligations.</p><p>Revolving credit can also serve as a financial cushion. Even if you never use it, it’s there in case you need quick access to small amounts of cash in an emergency.</p><h3>What Are the Risks of Revolving Credit?</h3><p>Revolving credit has some drawbacks you should be aware of.</p><p><b>Collateral risk:</b> If you fail to make payments on a secured revolving credit account, you could lose your collateral. With a secured credit card, that loss could be a few hundred dollars. With a HELOC, you stand to lose your home.</p><p><b>High interest rates:</b> Revolving credit typically has higher interest rates than installment credit. Interest rates for most credit cards and many lines of credit are also <i>variable</i>, meaning they can change over time based on economic conditions.</p><p><b>Excessive debt: </b>If you only make the minimum payment on a credit card, you could accumulate a large balance. Credit card interest is typically <i>compounded</i>, meaning interest accrues on both the balance of your purchases and on previously applied interest. Compound interest can cause your balance to snowball until it’s difficult to pay down.</p><h3>How Does Revolving Credit Affect Your Credit Score?</h3><p>Revolving credit could help your credit score in several ways.</p><ul><li><p><b>On-time payments:</b> Making revolving credit payments on time could boost your credit, since timely payments are a major factor in your FICO®  Score.</p></li><li><p><b>Responsible credit utilization:</b> Keeping your revolving credit balance below 30% of your credit limit could increase your credit score.  Ideally, you would pay your credit card balances in full each month.</p></li><li><p><b>Diverse credit mix:</b> A variety of accounts, including installment credit and revolving credit, could show lenders you can successfully manage different types of debt.</p></li></ul><p>Revolving credit could also have negative impacts on your credit score when not managed responsibly. </p><p><b>Late payments: </b>Missing payments could have a significant negative impact on your credit score. Setting up auto-payments on your revolving credit accounts can help ensure you never miss a due date.</p><p><b>Excessive credit utilization:</b> Consistently carrying balances that exceed 30% of your available credit limit can reduce your credit score. </p><p><b>Hard inquiry:</b> When you apply for revolving credit, creditors perform a credit check called a <i>hard inquiry</i>, which could cause a small, temporary dip in your credit score.</p>

{noun} The total annual cost to borrow money, including fees, expressed as a percentage.

<h2>What is Annual Percentage Rate (APR)?</h2><p>Annual percentage rate (APR) is the cost of borrowing money on an annual basis. APR is expressed as a percentage, to make it easier to compare the cost of credit. </p><p>APR and interest rate are sometimes used interchangeably, however, APR and interest rate are different. APR includes both interest plus fees applied over the course of a loan. Because APR is a more complete measure of the cost of credit, it is usually higher than the interest rate.</p><h2>How is Annual Percentage Rate Calculated?</h2><p>To calculate APR on a loan, you’ll need to know a few other numbers first:</p><p><b>Interest:</b> The total interest charges paid over the life of the loan, also known as the cost of borrowing money.</br><b>Fees:</b> Review the terms and conditions of the loan to find the fees that apply to your loan. Fees vary by loan type and lender. </br><b>Principal:</b> The original loan amount.</p><p><b>Days in the Loan Term (n):</b> Since APR measures the annual cost of borrowing money, multiply 365 (days) by the number of years in the loan term. For loan terms under one year, use the number of days.</br></br>The formula to calculate APR is: </p><img src="//images.ctfassets.net/orqped9h4wgz/6cJEgR4ftSGoIaSuKLlek6/a3ce252e07839182be4e7550cd09e08a/Formula-Calculate-APR.png" alt=""/><p>The steps to calculate APR are:</p><ol><li><p>Find the interest charges</p></li><li><p>Add the fees</p></li><li><p>Divide the sum by the principal balance</p></li><li><p>Divide by the number of days in the loan’s term</p></li><li><p>Multiply by 365</p></li><li><p>Multiply by 100</p></li></ol><h3>Credit Card APRs</h3><p>Credit card APRs do not reflect fees and since a credit card has no set loan amount or fixed repayment term, its APR is simply its interest rate.</p><p>Under the Truth in Lending Act, passed in 1968, lenders and other financial institutions must disclose APR when offering credit. </p><h2>Why is Annual Percentage Rate Important?</h2><p>Knowing the annual percentage rate helps you understand the true cost of borrowing. </p><p>For example, all lenders are required to disclose APR, which makes it easier to compare loans from different banks and make a more informed borrowing decision.</p><h2>Are There Different Types of APRs?</h2><p>There are different categories of APRs depending on the type of financial product.</p><h3>Credit Card APRs</h3><p>Credit cards have several APRs that may apply to different transactions or account activities.</p><ul><li><p><b>Purchase APR: </b>The rate you pay for purchases. </p></li><li><p><b>Balance transfer APR: </b>The rate applied if you use a card to pay down balances on other credit cards or loans. </p></li><li><p><b>Cash advance APR:</b> The rate charged on ATM withdrawals or cash-equivalent transactions, like money-order purchases. </p></li><li><p><b>Introductory APR: </b> A promotional interest rate for a limited period of time that is lower than the card&#39;s regular APR, sometimes as low as 0 percent APR.</p></li><li><p><b>Penalty APR</b>:  A higher-than-normal rate that results from violating a card’s terms of service. </p></li></ul><h2>What’s the Difference Between Fixed and Variable APRs?</h2><p>APRs can be fixed or variable. A fixed APR remains unchanged for the life of your loan. A variable APR fluctuates in sync with a published market index, like the U.S. Prime Rate.<b>   </b></p><h3>Adjustable-Rate Mortgages</h3><p>Home loans with variable interest rates are called adjustable-rate mortgages (ARMs). With an ARM, your APR is fixed for an initial term (typically one, three, or five years, but sometimes as long as 10 years), then resets every six or 12 months, based on market rates. </p><h2>What Affects APR?</h2><p>The APR you&#39;re offered depends on a few factors: </p><ul><li><p>Whether a loan or line of credit is secured or unsecured</p></li><li><p>Current economic conditions</p></li><li><p>Your credit history</p></li></ul><p>Lenders may also consider your income and assets, down payment, and where you live when determining your APR.</p><h2>How Do You Get a Good APR?</h2><p>Getting the best APR on a loan or credit card typically requires shopping around. </br></br>Start by prequalifying with multiple lenders. Prequalifying is a quick process where you provide some basic information about your income and borrowing goal. Then, lenders respond with a preliminary, non-binding estimate of the loan amount and APR. This is typically done through a soft credit check, which doesn’t impact your credit.</p><p>Then, compare the preliminary offers and submit a full application to your lender of choice. With your detailed financial information and a hard credit inquiry, which will impact your credit, lenders can make a formal loan offer that includes your APR, fees, and repayment terms. </br></br>If you’re unhappy with the terms you’re offered (or if lenders decline your applications), your credit history might be the culprit. If this is the case, you can work to pay down your existing debts and bring late payments current, which can improve your credit score and chances for approval over time.</p>

{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 

<h2>What Is Accrued Interest? </h2><p>Accrued interest is the amount of unpaid interest that has accumulated as of a specific date, either on a loan or credit card you’re repaying or on an interest-bearing account or investment.  </br> </br>Accrued interest can be owed or earned. For example, with a loan or credit card, it’s the amount of interest (payment you owe) that has been incurred since you made your last payment. With an interest-bearing account or an investment, such as a bond, it&#39;s the interest (income you earned) that has accumulated since the last time you received a payment from the financial institution or bond issuer. </p><h2>How Does Accrued Interest Work? </h2><p>The way accrued interest works depends on several factors, including the type of account, the balance or principal, the interest rate, timing, and whether you are borrowing money (such as with credit cards, auto loans, and personal loans), or earning money (such as with interest-bearing checking or savings accounts).  </p><h2>Accrued Interest on Loans </h2><p>Personal loans, auto loans, and other types of debt charge interest to their borrowers. Most lenders use the simple interest method of accounting, which means that interest that accrues each day is based only on the principal balance of the loan and doesn&#39;t compound on previously accrued interest. </p><p>For example, on a personal loan, the interest on your debt accumulates daily based on your current loan balance and interest rate.  When you make a loan payment, a portion of your total payment amount goes toward the interest that has accrued since your last payment and the remainder goes toward paying down the principal balance of your loan. </p><p>If you have a fixed interest rate, the daily interest amount will go down over time as your principal amount owed decreases with on time payments. With variable rate loans, the amount of interest that accumulates can fluctuate along with the loan&#39;s interest rate, however there&#39;s generally a downward trend with timely payments.  </p><p> </p><h2>Accrued Interest on Bank Accounts </h2><p>Generally, with interest-bearing deposit accounts, such as a high-yield checking or savings account, interest typically accumulates daily and is paid out monthly. The amount of interest that accrues is based on your balance and the account&#39;s annual percentage yield or APY (which may adjust higher or lower as rates rise or fall) and compounding interest. The higher the APY and your balance, the more you&#39;ll earn. </p><p>Also, most banks and savings institutions will compound the interest you earn, usually daily. This means that the interest that accrues each day is based not only on your principal account balance but also on the interest that has accumulated since the last payment.  </p><p>For example, let&#39;s say you have a $10,000 balance in a savings account with an interest rate of 5%. On the first day, your balance earns $1.37 in interest, and that gets added to your interest-earning principal—compounded—at the end of the day. That happens every day. </p><p>By the end of the year, your principal will have grown to $10,512.67—$500 in interest on your principal balance, and $12.67 from the interest earned on your interest.  </p><p> Calculation for daily interest rate: </p><p>0.05 / 365 = 0.000136986 </p><p> Calculation for first day’s interest: </p><p>0.000136986 x 10000 = 1.36986 </p><p> While your interest rate is 5% compounded daily; your total return including compounding, or <a href="https://blog.lendingclub.com/apr-vs-apy-whats-the-difference"><u>annual percentage yield</u></a>,  is 5.1267%. </p><p>Compounding interest increases your savings over time, especially in a rising interest rate environment. </p><h2>Accrued Interest on Bonds </h2><p>If you&#39;re investing in bonds, interest is typically paid out every six months, and the amount that accrues between payments depends on the face value of the bond and its interest rate. This calculation is known as yield to maturity. </p><p>Interest on bonds does not compound; that is, you don’t earn interest on your interest. </p><h2>How Accrued Interest Affects Borrowers </h2><p>If you borrow money, understanding accrued interest gives you an idea of how your loan&#39;s costs are incurred. As you make your regular monthly payments, for instance, the amount of interest that accumulates over time decreases. And if you make additional principal payments on top of your regular payments, you can reduce how much interest accrues even more.   </p><p>Keep in mind that, if you make an extra payment on a loan the lender may use some of that money to pay off the interest that has accrued since your last regular payment unless you specify otherwise. You can request that the lender put the full amount of your additional payment toward the principal balance, saving you more money on interest in the long run. </p><p>Understanding how accrued interest works is particularly important if you have student loans. While college students aren&#39;t typically required to make monthly payments while they&#39;re still in school, interest accrues from the moment the loans are disbursed.  </p><p>For borrowers with federal subsidized loans, the federal government will typically pay interest that accrues while they&#39;re in school and during future deferment periods. If you have unsubsidized loans or private student loans, all the interest that accumulates while you&#39;re in school (and during periods of deferment or forbearance) is added to your balance once repayment begins.  </p><p>If you want to avoid a growing balance, consider making interest-only payments while you&#39;re still in school. </p><h2>How Accrued Interest Benefits Savers </h2><p>If you have an interest-bearing deposit account, look into how often (daily, weekly, monthly, quarterly, semi-annually, annually) your financial institution compounds the interest that accrues in your account. The more frequently interest is compounded (e.g., daily vs. quarterly) makes it possible for you to earn more interest more quickly. </p><p>And if you&#39;ve invested in bonds, understanding how accrued interest works can help ensure that you get the money you&#39;ve earned, especially if you sell the bond between scheduled interest payments. For example, if you sell a bond three months after your last payment, you won&#39;t receive the amount of interest that accrued during that time. Because the buyer will receive the full semi-annual (every six months) interest payment despite only owning the bond for three months, they should pay you the amount that has accrued since your last payment on top of the price of the bond. </p><h2>How Is Accrued Interest Calculated? </h2><p>On loans, lenders generally calculate interest on a daily basis using either a 360-day or 365-day year. The lender will divide the loan&#39;s interest rate by one of those numbers to determine your daily interest rate, which it then applies to your balance. </p><p>On interest-bearing deposit accounts, interest generally accrues daily. Depending on how often your financial institution compounds interest, the amount that accrues each day may be calculated based on the principal balance plus previously accrued interest. </p><h2>What Is an Example of Accrued Interest?  </h2><p>Let&#39;s say you have a personal loan with a $20,000 principal balance and a 12% interest rate. To calculate the amount of interest that accrues every day, you&#39;ll do the following equation: </p><p>Calculation for daily interest rate: </p><p>0.12 / 365 = 0.000328767123288 </p><p>Calculation for daily accrued interest: </p><p>0.000328767123288 x $20,000 = $6.58  </p><p> In other words, you&#39;ll have $6.58 in daily accrued interest. Over 30 days, that amounts to $197.40.</p>

A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.

<p>A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.</p><h2>What Is a Charge-Off?  </h2><p>A charge-off on your credit report indicates the financial institution or creditor has written the account off as a loss and has stopped attempting to collect on a debt that you owe. However, a charge-off does not mean your debt is forgiven—it may be transferred to a collection agency or sold to a debt buyer. As long as the debt remains outstanding, you&#39;re still responsible to pay it. </p><h2>How Does a Charge-Off Work? </h2><p>When you miss a payment on a loan or credit card or have a bank account with a negative balance, the creditor or financial institution will attempt to collect the amount you owe. At some point, the creditor may determine the debt is uncollectible and decide to charge it off. This means the creditor has written off the remaining balance as a loss.  </p><p>At this point, the creditor will report the account as “Charged Off” to the credit reporting agencies which will appear on your credit reports along with the account balance. If the charge-off is legitimate and you can&#39;t convince the creditor to remove it, a charge-off can remain on your credit reports for up to seven years after your first missed payment. </p><p>Once a creditor has charged off a debt, they may decide to sell it to a debt buyer or transfer it to a debt collection agency for pennies on the dollar. If this happens, your account will be closed, interest will stop accruing on your balance, and your credit report will reflect that the account was &quot;Charged Off.&quot; However, you will still be liable for paying off the debt to the debt collection agency. Additionally, the collection agency may report a collection account for the same debt, further impacting your credit score. </p><h2>Will a Charge-Off Impact Your Credit Score? </h2><p>Your payment history is the most influential factor in your FICO credit score. Missing just one payment could have a significant negative impact on your credit score. </p><p>If a debt balance remains unpaid long enough for the creditor to stop attempting to collect payment, the worsening delinquency and subsequent charge-off could have a long-term  and far reaching impact to your credit score.  </p><p>For example, a low credit score and history of nonpayment may make it more difficult to get approved for credit in the future. It may also impact your ability to get approved for a residential lease or to qualify for lower interest rates on auto or homeowners insurance.  </p><h3>How Can You Repair a Charge-Off? </h3><p>The best way to repair a charge-off is to prevent it from happening. If you start missing payments, don&#39;t ignore the situation. Contact your lender and ask if there’s anything that can be done to help you avoid a charge-off situation. </p><p>In the event your debt is charged off, as long as there is a balance, you’re still responsible for repayment which is why you should consider ways to pay off the debt as soon as possible to avoid having it go to collections. Even if you cannot pay off the debt in full, you may want to consider negotiating a payment settlement with the creditor for less than what you owe or, if necessary, having the debt discharged in bankruptcy.  </p><p>In some cases, you may be able to negotiate with the lender to remove the charge-off from your credit report in exchange for full payment—a process known as “pay for delete.” Even if you can&#39;t get it removed, paying off the balance could potentially reduce the impact to your credit score.  </p><p>If the creditor does sell the debt to a collection agency, you&#39;ll face more attempts to collect the amount you owe. Some debt collectors may even resort to lawsuits to force collection through a court order. </p><h3>How Can You Limit Charge-Off Damage? </h3><p>The timeframe for when a creditor decides to charge-off an account ranges from 120 to 180 days from your initial delinquency date. You&#39;ll typically receive letters and phone calls reminding you of the past-due payment, urging you to get caught up. Don&#39;t ignore the creditor—this is the best time to talk to the lender to see if you can avoid a charge-off. </p><p>If you&#39;ve had an account charged off recently, contact the creditor as quickly as possible to verify the accuracy of the account details and look for opportunities to pay off some or all of the debt to avoid transfer to a collection account and further damage to your credit score. </p><p>In some cases, a charge-off could be reported in error. If this happens, it could damage your credit score, so you should act quickly to dispute the negative item with the credit reporting agencies. As long as the dispute isn&#39;t frivolous, the credit bureaus are required to investigate it and remove or update the information if it&#39;s found to be innacurate.  </br> </br>To contact the credit bureaus:  </p><ul><li><p><a href="https://www.equifax.com/personal/credit-report-services/credit-dispute/"><u>Equifax</u></a> </p></li><li><p><a href="https://www.experian.com/contact/personal-services-contacts.html"><u>Experian</u></a> </p></li><li><p><a href="https://www.transunion.com/credit-disputes/dispute-your-credit"><u>TransUnion</u></a> </p></li></ul><p>If the creditor decides to charge-off your account, it&#39;ll only report only to the credit reporting agencies that it normally reports to. For many lenders, it&#39;s all three, but some lenders may only report to one or two of the major credit bureaus. </p>

{noun} An interest rate that remains the same for a set time, usually for the life of the loan.

<p> An interest rate that remains the same for a set time, usually for the life of the loan.</p><h2>What Is a Fixed Interest Rate?</h2><p>A fixed interest rate is an interest rate that remains the same for a set time, usually for the life of the loan. With fixed-rate financing, borrowers can enjoy payment stability and avoid the risk of a variable interest rate—which may increase substantially over time, especially in rising interest rate environments.</p><h2>How Do Fixed Interest Rates Work?</h2><p>When you take out a loan with a fixed interest rate, your loan terms will define the fixed rate period.</p><p>Generally, for financial products like fixed rate mortgages and personal loans, your interest rate will remain the same throughout your loan term, as will your monthly payment amounts.</p><p>For financial products such as adjustable rate mortgages, the interest is variable, which means it can change periodically. Often, an adjustable rate mortgage (ARM) will have an initial period where the rate is fixed. After the fixed period, your interest rate may stay the same or it may adjust based on prevailing interest rates at the time.</p><h2>What Is the Difference Between Fixed and Variable Interest Rates?</h2><p>Fixed interest rates generally won’t change—either for the life of your loan or during a predetermined fixed period. In contrast, variable interest rates fluctuate based on market conditions and may change at any time.</p><h3>What Benefits Do Fixed Interest Rates Offer?</h3><p> Having a fixed rate loan offers several benefits for your finances.</p><ul><li><p><b>Financial Predictability. </b>A fixed interest rate makes it easier to plan your finances since your monthly payments don’t fluctuate over the fixed period, usually the life of the loan. Such predictable payments can  help you more easily manage your budget and alleviate stress.</p></li><li><p><b>Eliminate Interest Rate Risk. </b>With a fixed interest rate, you don&#39;t have to worry if interest rates start to increase in a volatile economy. Compared to loans with variable rates, a fixed-rate loan with a lower interest rate could save you money in a rising interest rate environment.</p></li><li><p><b>Potentially Lower Borrowing Costs. </b>With fixed-rate loans, you’ll know your total borrowing costs—including interest and fees—before you sign your loan documents. With variable-rate loans, it’s difficult to calculate your total borrowing costs since your interest rate may change substantially over time.</p></li></ul><h3>What Are the Drawbacks to Fixed Interest Rates?</h3><p>While a fixed interest rate can help you plan your finances for the long term, there are a few drawbacks to consider.</p><ul><li><p><b>Potentially Higher Rates. </b>Adjustable-rate financial products often have lower interest rates for an initial, introductory fixed period which may temporarily lower your cost to borrow. Fixed-rate products don’t offer such “teaser” rates.</p></li><li><p><b>Risk in Decreasing Interest Rate Environments. </b>If interest rates start going down, you may end up paying more to borrow on a higher interest rate than if you took out a new loan.</p></li><li><p><b>Refinancing Costs. </b>Even if you decide to refinance to get a lower rate, refinancing costs may outweigh the savings you may realize, and the process can be time-consuming. It’s  important to compare the total cost of borrowing of your existing versus a potentially new loan before making a decision.</p></li></ul><h2>What Can You Do to Get a Good Fixed Interest Rate?</h2><p>Generally, having a high credit score and a demonstrated track record of responsible debt management can help you land a lower fixed interest rate. In contrast, if you have a low credit score and a spotty history of on-time payments, the lender may view you as a higher-risk borrower and may not offer you the best fixed interest rate they have available.</p><h2>Can You Switch from a Variable Interest Rate to a Fixed Interest Rate?</h2><p>In most cases, you can&#39;t switch from a variable to a fixed interest rate on an existing loan. While you may be able to refinance your loan—either with your current lender or a new one—and move to a fixed-rate loan that way, it’s important to consider how well you would be able to cope with economic uncertainty. A low variable rates may be tempting initially, but should economic conditions sour and rates begin to rise rapidly, it may be difficult to find a good fixed rate when you want one. Or you may experience an unexpected obstacle, like job loss, that could make refinancing into a fixed interest rate loan difficult.</p><h3>Are Credit Card Interest Rates Fixed?</h3><p>Generally, credit card interest rates are variable, not fixed.</p><h3>Are Student Loan Interest Rates Fixed?</h3><p>It depends on the type of student loan. Student loans like Perkins Loans and PLUS Loans have fixed interest rates. Many other direct federal student loans—both subsidized and unsubsidized—have fixed rates as well.</p>

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