ENROLL IN ONLINE BANKING

PERSONAL BANKING

<p>Thank you for opening a new LendingClub account. We are excited you chose LendingClub for your banking needs, and hope you take full advantage of our convenient digital banking solutions. Start enjoying the features of your new account right away by enrolling in personal Online Banking. Follow the quick and easy steps below.</p>

Congratulations on your new account!

<h4>Enter Your Personal Information</h4><ul><li><p>Social Security Number</p></li><li><p>Date of birth</p></li><li><p>Email</p></li><li><p>Create a password (a unique password should be created for each individual owner of an account)</p></li><li><p>Review and agree to the Online &amp; Mobile Banking Agreement</p></li></ul><p></p>

Step 1

<h4>Security Verification</h4><ul><li><p>A code will be sent to the email address we have on file. Enter the code on the enrollment verification screen to confirm your identity.</p></li><li><p>Confirm your statement delivery settings and phone number, and set up two-factor authentication for an extra layer of security.</p></li></ul><p></p>

Step 2

Enroll in Online Banking in just a few quick steps.

Let’s get started!

<p>Get the LendingClub Mobile app to deposit checks, pay friends &amp; bills, and manage accounts on the go.</p><p><a href=https://itunes.apple.com/us/app/lendingclub-mobile/id532638447 ><img src='//images.ctfassets.net/orqped9h4wgz/5C8ypfIUO4xo1NgELpDQ6C/c0fbd3733ea38cd96ea438bb011823b8/hero-icon-1-image.png' alt='App store'/></a><a href=https://play.google.com/store/apps/details?id=com.q2e.firsttradeunionbank3351.mobile.production&hl=en_US ><img src='//images.ctfassets.net/orqped9h4wgz/3DaQxvssJYRHSpwAsz1U60/e8f395ddcd3375eec837efe0b3b5e456/hero-icon-2-image.png' alt='googleplay'/></a></p><p></p>

LendingClub Mobile app

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Chances are, you’re managing money differently today than you were a few years ago. If your shopping, spending, and money management have moved online and onto your phone, you might want to consider whether an online-only bank is a fit for you.

<p>Chances are, you’re managing money differently today than you were a few years ago. If your shopping, spending, and money management have moved online and onto your phone, you might want to consider whether an online-only bank is a fit for you. At a traditional bank, fees and interest charges support retail branches and other services you may no longer want or need. </p><p>Online banks don’t have retail locations. Instead, they hone in on providing online loans and deposit accounts with great rates, low fees, and digital features that make managing money easier now.</p><p>Would an online bank work for you? Read on to learn more about the benefits of online banking.</p><h2>How managing money went digital</h2><p>Managing money online is now a primary way to transact. How many of these digital money moves do you recognize?</p><ul><li><p>Using your phone to deposit checks</p></li><li><p>Shopping and paying bills online</p></li><li><p>Using an app to pay or reimburse friends and family</p></li><li><p>Opening a bank, investment, or cryptocurrency account online</p></li><li><p>Paying a contractor through a payment app</p></li><li><p>Using a digital wallet</p></li><li><p>Adding multi-factor authentication (single-use passcodes) to your accounts for security</p></li><li><p>Monitoring your credit online</p></li></ul><p>You may check your real-time account balance before making a big purchase. You receive text alerts that remind you to pay bills. You use an app to pay a babysitter or split a check.</p><p>Now that your relationship with money has gone mostly digital, how well does your bank support that relationship? If you’re not sure how to answer, you might want to look into an online bank.</p><h2>What is online banking?</h2><p>Online banking is what you do whenever you use a bank’s website or mobile app, but it also refers to a type of bank that focuses on digital banking. These banks don’t rely on retail locations to serve their customers (or members). </p><h2>How does online banking work? </h2><p>Just about everything happens online or by <a href="/mobile-app">mobile app</a>. You can:</p><ul><li><p><b>Use a banking website </b>to open and access your accounts;</p></li><li><p><b>Download an app </b>to get an instant read on transactions, transfer money between accounts, or send money to friends and family;</p></li><li><p><b>Pay bills </b>and receive security alerts on your phone; and</p></li><li><p><b>Use any ATM </b>to access cash (you may receive a refund for out-of-network fees).</p></li></ul><p>Online banking isn’t new: People have been using their bank’s websites to view accounts since the 1990s and mobile banking apps have been around for more than a decade. Online banks are taking digital banking to a new level by changing the economics of financial services.</p><p>Branch locations cost money to operate along with other trappings of traditional banking, like paper statements and paper checks. By focusing on the key digital banking features consumers want, and ditching legacy features that drive up overhead, online banks can provide a great digital experience while keeping costs low.</p><p>These savings translate to competitive rates on loans and savings, or <a href="/personal-checking/rewards-checking">rewards checking accounts</a> without maintenance fees—to name a few. You won’t get a nicely decorated branch to visit, but you will get the convenience of a bank that never requires you to visit a branch. And with less overhead, you may pay less and receive more on the loans, checking, and savings accounts you want.</p><h2>Traditional banks vs. Credit unions vs. Online banks</h2><p>When you shop for a bank online, you’ll find a wealth of options. Not every bank you find online is an online bank. Some, like credit unions, aren’t banks at all. Here’s a quick rundown on three common types of financial institutions:</p><h3>Traditional banks</h3><p>Traditional banks deliver a familiar mix of checking, savings, credit, and loans. Expect to find a network of national or regional retail branch locations, branded ATMs, online banking, mobile apps, and telephone-based customer service. Although banks can range from small community banks to nationwide megabanks, banks on the whole are full-service operations - a good place to look when you need a cashier’s check or safe deposit box. They’re also for-profit companies with profit margins to manage and shareholders to answer to.</p><h3>Credit unions</h3><p>Credit unions offer many of the same products and services as banks, but with a member-based business model that is not-for-profit. Rates and fees are typically competitive, and personalized service is a hallmark. Credit union membership is often based on where you live or work. </p><p>You can go to <a href="https://www.mycreditunion.gov/about-credit-unions/find-join-start">mycreditunion.gov</a> to find credit unions you are eligible to join. Expect a range when it comes to digital experience: Some credit unions are tech-forward while others are a few steps behind.</p><h3>Online banks</h3><p>Online banks center on digital experience instead of maintaining branch locations or their own network of ATMs. Online banks typically offer lower rates and fees on loans and higher interest on checking and savings and have strong mobile apps and customer service features. </p><p>As an example, <a href="/personal-checking/rewards-checking">Rewards Checking</a> at LendingClub Bank pays cash back rewards on Qualified Purchases using a debit card tied to Eligible Accounts, no maintenance fees, and no minimum balance requirements (aside from $25 to open the account).<sup>1</sup> Like traditional banks, online banks are regulated, for-profit companies with profit margins and shareholders to manage.</p><h2>Pros and cons of banking online</h2><p>If you’re comfortable managing your money digitally, an online bank may give you a better deal on basics like checking, savings, and loans. Because online banks are built to function virtually, they’re invested in offering technology that works. Of course, you should check out any bank you’re considering individually, to make sure they have the accounts, features, and competitive rates you want.</p><h3>Do you need a branch?</h3><p>Some people prefer banking face-to-face. You might use in-branch services frequently - for example, if you own a small business and make regular large cash deposits. Maybe you’ve developed personal relationships with the people at your bank branch, and that gives you a sense of security and belonging.</p><p>On the other hand, maybe you haven’t seen the inside of a bank branch in years. Maybe you only go grudgingly, when you can’t accomplish what you need online or at an ATM. Maybe your branch is now populated with automated tellers that handle tasks efficiently but can’t deliver a personal touch. Only you know whether you really need a branch to manage your money comfortably and effectively.</p><h3>Is an online bank safe?</h3><p><a href="/">Online banks</a> that are insured by the Federal Deposit Insurance Corporation (FDIC) offer the same protections as traditional banks. The FDIC insures up to $250,000 per depositor, per bank, for each ownership category including single accounts, joint accounts, trust accounts, and so on. Credit unions have similar insurance through the National Credit Union Association (NCUA).</p><p>Wherever you bank, online security is a serious concern. Card-not-present (online) fraud is rising; security features that protect your account data and identity are a must. Look for security tools like single-use passcodes and biometric (face ID or fingerprint) identification that works with your phone. Online banks are constantly improving security technology to stay ahead of fraud. Avoid public Wi-Fi when you’re banking or shopping. Seek out and use your bank’s security features to keep your data as safe as possible.</p><h2>9 features you may find at an online bank</h2><p>One of the best reasons to consider an online bank is their range of convenient, money-saving products and features. Here are nine useful items you might find at an online bank:</p><ol><li><p><a href="/personal-checking/rewards-checking">Fee-free rewards checking with no minimum balance requirement</a></p></li><li><p><a href="/personal-savings/high-yield-savings">High-yield savings accounts</a> and CDs that pay top interest rates</p></li><li><p>A <a href="/mobile-app">mobile banking app</a> that covers all your basic banking</p></li><li><p>Nationwide <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with rebates</a> on out-of-network fees</p></li><li><p>Faster direct deposits that let you access your paycheck sooner</p></li><li><p><a href="/personal-loan">Loans with competitive rates</a> and fast online application, approval, and funding</p></li><li><p>24/7 customer service by chat or phone</p></li><li><p>Security features like multi-factor authentication and alerts that keep you connected to your accounts in real time</p></li><li><p>FDIC insurance (Member FDIC)</p></li></ol><h2>The bottom line</h2><p>In a digital-first world, an online bank can provide you with the loans, checking, and savings you want, with lower costs and a higher upside. If you already manage your finances in the digital realm, choosing a bank that does everything online and by app might not require much adjustment. Choose the right banking partner (or partners), plug in, and enjoy the benefits of banking online.</p><p></p><hr/><p><i><b>Terms and Conditions</b></i></p><p><b>1. Rewards Checking Cash Back Rewards: </b>The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% cash-back on all Qualified Purchases using a debit card tied to Eligible Accounts. Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review: (1) Maintain an average monthly balance of at least $2,500.00; or (2) Receives at least $2,500.00 in Qualifying Direct Deposits.</p><p><b>Qualifying Direct Deposits </b><u>are defined as</u>: 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 <u>do not include </u>peer to peer payments or ACH transfers (funds transfers) from your external accounts.</br></br><b>Qualified Purchases </b><u>are defined as</u>: Signature-based purchases made using the debit card 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 <u>do not include</u>: (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). 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.</p><p></p>

If you’re in the market for a new car, you might be wondering if your current credit score will help you get a good deal or hold you back. Your credit score is an important part of the process, but it’s not the only factor. Though good and excellent credit scores help when taking out any line of credit, it is possible to buy a car with a less-than-ideal score.

<p>If you’re in the market for a new car, you might be wondering if your current credit score will help you get a good deal or hold you back.  </p><p>To buy a car, a credit score of around 660 or higher is typically needed to secure favorable loan terms, though higher scores can lead to better interest rates and more financing options. Lower scores may still qualify for loans but often come with higher interest rates. </p><h2><b>What credit score do you need to buy a car?</b> </h2><p>According to Experian’s Q1 2024 <a href="https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2024/experian-safm-q1-2024.pdf">State of the Automotive Finance Market</a> report, the typical car buyer needs a credit score of 755 for new car loans and 686 for used car loans. However, don’t be alarmed if your score isn’t there yet—these are just averages, and qualifying for an auto loan can be subjective. A higher credit score doesn’t guarantee approval and a below-average credit score won’t necessarily prevent you from qualifying either.  </p><h3><b>Minimum credit score to buy a car</b> </h3><p>There’s no universal minimum credit score to buy a car—<a href="https://www.experian.com/blogs/ask-experian/what-is-the-lowest-credit-score-to-buy-a-car/">credit score minimums</a> vary from lender to lender. With that said, Experian’s State of the Automotive Finance Market report found that 69% of vehicles financed were for borrowers with a credit score of 661 or higher.  </p><h2><b>Benefits of a higher credit score</b> </h2><p>Of course, having a good credit score (670-739<sup>[1]</sup>) is always better—and it increases your chances of qualifying for a car loan. </p><p>It makes sense. Think about the process from a lender’s perspective. Imagine you’re trying to decide whether or not to lend a stranger money, with the promise they’d return the funds. Would you lend money to someone with a history of missed payments? Or would you prefer to lend money to someone who has historically made their payments on time? That’s why lenders prefer applicants with good credit scores. </p><h3><b>It can save you money</b> </h3><p>A good credit score can also keep money in your wallet. If you have a higher credit score, auto lenders are more likely to offer you loans with favorable terms, like a lower interest rate, longer-term (e.g., a five-year loan versus a three-year loan), or larger loan amount.  </p><p>How much you save may vary by lender. For example, if you have a $20,000 new car loan with a 36-month term, here’s how your credit score could impact your monthly payment and total interest. </p><table><tr><td><p>FICO score </p></td><td><p>720-850 </p></td><td><p>690-719 </p></td><td><p>660-689 </p></td><td><p>620-659 </p></td><td><p>590-619 </p></td><td><p>500-589 </p></td></tr><tr><td><p>Annual percentage rate (APR) </p></td><td><p>7.40% </p></td><td><p>8.55% </p></td><td><p>10.30% </p></td><td><p>12.42% </p></td><td><p>16.76% </p></td><td><p>17.65% </p></td></tr><tr><td><p>Monthly payment </p></td><td><p>$621 </p></td><td><p>$632 </p></td><td><p>$648 </p></td><td><p>$668 </p></td><td><p>$711 </p></td><td><p>$720 </p></td></tr><tr><td><p>Total interest paid </p></td><td><p>$2,365 </p></td><td><p>$2,746 </p></td><td><p>$3,334 </p></td><td><p>$4,059 </p></td><td><p>$5,584 </p></td><td><p>$5,902 </p></td></tr></table><p><i>Source: </i><a href="https://www.myfico.com/credit-education/calculators/loan-savings-calculator/"><i>myFICO.com</i></a><i> as of 8/8/2024</i> </p><h3><b>You have a higher chance of approval</b> </h3><p>If you have a good credit score, you have a better chance of qualifying for a loan through a traditional lender, such as a bank or credit union. These lenders may offer better rates unlike dealership financing which can sometimes be more expensive with less favorable terms—such as prepayment penalties.  </p><h3><b>You can score better interest rates</b> </h3><p>A better credit score can help you score lower interest rates. As you can see from the table above, the interest savings are significant from tier to tier. A credit score in the top tier only pays $2,365 of interest over the life of the loan. Conversely, a score between 500 and 589 leads to $5,902 of interest—an extra $3,537. </p><h3><b>You may have lower monthly payments</b> </h3><p>Owning or leasing a car can be expensive. And auto loan payments plus the cost of car insurance can be a steep line item in your monthly budget. But the higher your credit score, the more likely you are to secure a lower monthly payment for your car loan. That’s less money going out the door and more in your bank account.  </p><h2><b>How to get a car loan with no credit</b> </h2><p>If you have a less than ideal credit history—or no credit history at all—you aren’t relegated to bicycles and public transportation until the end of time. You may still be able to get a car loan. You can improve your strength as an auto loan applicant through a few strategic moves, even if you have minimal or poor credit.  </p><h3><b>Make a bigger down payment</b> </h3><p>When you purchase a car, you’ll have the option to make a down payment. This reduces the size of your loan and helps build positive equity in your vehicle. Lenders like that.  </p><p>More specifically, lenders prefer a lower loan-to-value ratio (LTV). So, if you make a bigger down payment, you decrease your LTV.  </p><p>Keep in mind depreciation waits for no one. Your car&#39;s value takes a hit as soon as you drive off the lot. A down payment can help offset that inevitable drop. </p><h3><b>Find a co-borrower</b> </h3><p>There’s nothing wrong with leaning on the financial shoulder of a partner or relative. If you have lower credit scores (or no credit whatsoever), you can apply for an auto loan with a co-borrower or cosigner that has better credit. That said, it’s worth mentioning that your cosigner effectively promises to cover the loan if you stop making payments.  </p><h3><b>Build credit first</b> </h3><p>Even if you don’t have credit, it’s possible to find a less conventional lender that’s willing to give you an auto loan. However, your loan offer might include higher interest rates, prepayment penalties, or other less-than-desirable terms. If you can manage without a car, it might be a wiser personal finance decision to build credit first and avoid high interest rates.  </p><h2><b>3 Ways to build credit and save money when buying a car</b> </h2><p>Building credit helps you qualify for an auto loan and secure the best terms, such as a lower interest rate. This translates to lower monthly loan payments and more money in your pocket. Fortunately, building credit’s not as complicated as you might think. </p><h3><b>Avoid late payments</b> </h3><p>Your payment history accounts for 35% of your FICO credit score. If you want to increase your score, make your payments on time, every time. This is low-hanging fruit for all wannabe credit-builders out there.  </p><h3><b>Lower your credit utilization</b> </h3><p>Behind payment history, your credit utilization significantly impacts your credit score. By lowering this metric (e.g., paying down credit card debt), you can improve your score and rake in savings on your auto loan. </p><h3><b>Check your credit report</b> </h3><p>Have you checked your credit report recently? If not, you might be selling yourself short to auto lenders. Credit reports aren’t impervious to errors—it’s more common than you’d think.  </p><p>As part of a <a href="https://www.consumerreports.org/credit-scores-reports/consumers-found-errors-in-their-credit-reports-a6996937910/">ConsumerReports study</a>, 5,858 volunteers checked their credit reports for mistakes, and 34% of participants found at least one error.  </p><p>Did you know you’re entitled to free credit reporting each year? You can get a copy of your report from the major credit bureaus: Equifax, Transunion, and Experian.  </p><hr/><p> </p><h2><b>Auto loan credit score FAQs</b> </h2><h3><b>Can an auto loan help me build credit?</b> </h3><p>When you take out your loan, your credit score might take a dip. This is normal because you’re increasing your total debt. But as you make on-time payments and repay your loan, your credit score could increase.1 </p><h3><b>What credit score do I need to buy a car with no money down?</b> </h3><p>Minimum credit score requirements vary from lender to lender—regardless of your down payment. That said, a down payment is still worth considering, especially if you want a lower monthly car payment.  </p><h3><b>How will my credit score affect my car loan?</b> </h3><p>The better your credit score, the better your odds at getting a car loan with favorable terms. A higher score could translate to better rates and the option of a longer term. However, your credit score alone doesn’t guarantee approval or denial (or even access to the best rates).  </p><h3><b>Does my credit score matter when buying a new vs. used car?</b> </h3><p>Your credit score always matters when taking out a loan. So it will still be taken into account regardless if the car is old or new. But if you’re paying cash, the dealer may not need to see your credit report or credit score.  </p>

Pride of homeownership also means managing (and paying for) what can often feel like an insurmountable list of repairs and improvements. Sometimes it's difficult to know when to DIY a home repair project or find a handyman or other professional better equipped to handle it for you. Learn which common home improvement projects are simple enough to tackle on your own, and when to call in the experts.

<p>Pride of homeownership also means managing (and paying for) what can often feel like an insurmountable list of repairs and improvements. Sometimes, it&#39;s difficult to know when to DIY a home repair project or find a handyman or other professional better equipped to handle it. Learn which home improvement projects are simple enough to tackle on your own and when to call in the experts. </p><h2><b>13 simple DIY home repairs you can handle</b> </h2><p>With a bit of planning and a lot of elbow grease, you might be surprised at what you can manage by yourself. Just make sure to consider the time, materials, and tools you’ll need to ensure success and keep your costs from skyrocketing. </p><h3><b>1. Fix leaky faucets and pipes</b> </h3><p>According to the Environmental Protection Agency (EPA), <a href="https://www.epa.gov/watersense/statistics-and-facts">household leaks</a> account for nearly 900 billion gallons of wasted water each year nationwide. The good news? The culprits are often worn-out washers, bathroom faucets, and gaskets, which are relatively easy to replace with the right tools. You&#39;re already halfway there if you have an Allen wrench, pliers, and a Phillips-head screwdriver. </p><h3><b>2. Clean gutters</b> </h3><p>If you (or a friend) can climb a ladder, you can clean the gunk out of your gutters without calling in the cavalry. Don’t forget to check the downspout, which can get clogged with leaves and other debris. </p><h3><b>3. Remove water stains from a ceiling</b> </h3><p>Instead of repainting your entire ceiling to cover up a small water-stained spot or area, try bleaching it out first. Mix a solution of water and 10% bleach in a spray bottle and wait a day or two. If it&#39;s an old stain, try using mildew remover from the hardware or grocery store. Both methods usually remove stains within the next day and can be used on flat or textured ceilings. </p><h3><b>4. Replace caulking</b> </h3><p>Save up to 10% on your annual energy bills by removing and replacing old, dried-out caulking around bathtubs, faucets, windows, and more. Not only will fresh caulk prevent drafts, water leakage, and damage, but it’s also a fairly simple undertaking. There are many <a href="https://www.homedepot.com/c/ah/how-to-caulk/9ba683603be9fa5395fab9012f8277f">tutorials with step-by-step instructions</a> that will have you caulking like a pro in no time. </p><h3><b>5. Unstop a toilet</b> </h3><p>If your toilet isn&#39;t flushing, you can usually repair it yourself by adjusting or replacing the chain and flapper in the tank. Got a stubborn clog? Loosen it up by pouring some dish soap and letting it soak before using your plunger. </p><h3><b>6. Unjam a garbage disposal</b> </h3><p>Most of us are used to diving our hand into the disposal to remove an errant bottle cap or other hard object from the garbage disposal. When something really gets stuck in the impeller blades, it can jam them up and cause them to freeze. One simple way to clear this type of obstruction is with a 1/4-inch hex wrench. Insert it into the hex-shaped hole on the underside of the disposal and crank it a few times in both directions to free up the blades. Just make sure to disconnect your disposal first. </p><h3><b>7. Weatherstrip drafty doors and windows</b> </h3><p>Weatherstripping drafty doors and windows is an easy and cost-efficient way to save energy and make your home more comfortable. And in most cases it doesn’t take a professional. Online tutorials show just how easy it is to <a href="https://www.bobvila.com/articles/door-weather-stripping/">DIY without employing help</a>. </p><h3><b>8. Patch wall holes</b> </h3><p>Repairing nail holes and other minor holes in your drywall is another project that virtually anyone can do. Use a spackle knife to cover the hole with drywall mud, use sandpaper to smooth it out, let it dry, and then add a fresh coat of paint. </p><h3><b>9. Paint interior walls</b> </h3><p>A DIY paint job doesn’t take special skills or know-how, but it does take patience and preparation. Before tackling any paint project, make sure to cover all furniture with a drop cloth and arm yourself with plenty of painter’s tape. </p><h3><b>10. Touch up old appliances</b> </h3><p>Spray-on paint like Rust-Oleum for small items that don’t generate heat can give your appliances the renovation they need without fully refurbishing. For larger or heat-producing appliances, try liquid stainless steel paint. </p><h3><b>11. Reupholster furniture</b> </h3><p>Most people reupholstering furniture couldn’t possibly be a do-it-yourself project. Ana Verdi, a designer at Thompson Fine Home Renovation, says “anything with straight lines” can be easily reupholstered without professional help. In fact, the fanciest tool you’ll need is a staple gun, and there are tons of tutorials to get you started. </p><h3><b>12. Silence a squeaky door hinge</b> </h3><p>Although WD-40 is a great lubricant for many purposes, this product can attract dirt and turn the hinge pin black when used on interior or exterior door hinges. Instead, try quieting a squeaky door by reaching for petroleum jelly, bar soap, or olive oil. All of these are naturally lubricating products that are likely already on hand around the house. </p><h3><b>13. Restore a deck</b> </h3><p><a href="https://www.thisoldhouse.com/decking/21014865/go-from-an-old-deck-to-new-in-4-steps">Spruce up your neglected deck for summer</a> by slathering it with a fresh new stain. For basic repairs, check out tutorials online to see if you can tackle them by yourself before calling in a pro. </p><h2><b>11 home projects to leave to the pros</b> </h2><p>We love the DIY spirit, but some home repair projects call for more than an online tutorial and a trip to the hardware store. And knowing when to do it yourself and when to call a pro is an essential part of homeownership. The last thing you want is to find yourself out of money and in over your head. </p><h3><b>1. Foundation repairs</b> </h3><p>Unless you’re a structural engineer, you’ll have no way of really knowing how deep your foundation problems go. DIY fixes like adding more concrete or replacing old floor boards may help in the short term, but in many cases you’ll be treating a symptom, not the cause. Your foundation is the most important part of your home, so call in an expert to make sure the job is done right. </p><h3><b>2. Electrical upgrades</b> </h3><p>Installing a dimmer switch is one thing—handling faulty electrical wiring is another. And the danger isn’t in getting an unpleasant shock. In the US, there are 51,000 <a href="https://www.esfi.org/home-electrical-fires">home electrical fires</a> every year. That’s more than enough reason to play it safe and call in an electrician. </p><h3><b>3. Gas leaks</b> </h3><p>If you notice a leak in your gas line, call the gas company right away and don’t attempt to seal it yourself. Carbon monoxide poisoning is typically caused by incorrectly installed gas lines or appliances, so attempting a DIY fix isn’t worth the risk. Plus, most gas providers will send someone to diagnose and fix the issue for free. </p><h3><b>4. HVAC repairs</b> </h3><p>Air conditioners and furnaces are complex instruments made of gears, gasses, chemicals, and electricity. Even one small error could throw the whole system off and leave you with a hazardous mess. Contact a certified HVAC specialist to take care of any necessary replacements, upgrades, or repairs. </p><h3><b>5. Major plumbing</b> </h3><p>Though many plumbing repairs can be done yourself, it’s best to call in a professional for bigger jobs like replacing old underground piping or making major sewer repairs. Otherwise you may find yourself with a much bigger problem on your hands, like mold damage or flooding. </p><h3><b>6. Asbestos removal</b> </h3><p>According to the US Consumer Product Safety Commission, the best thing to do with <a href="https://www.cpsc.gov/safety-education/safety-guides/home/asbestos-home">asbestos material</a> that’s in good condition is to leave it alone. If the material is intact and undisturbed, you won’t need to worry about harmful asbestos fibers getting released. If the asbestos is damaged or needs to be moved for an upcoming home repair, call in an expert who can safely remove it. </p><h3><b>7. Tree removal</b> </h3><p>It’s not surprising that extreme heights and chainsaws can be a lethal combination in the wrong hands. If you don’t have proper safety gear or a working knowledge of tree physics (yes, that’s a thing), leave the tree cutting to the pros. </p><h3><b>8. Painting the exterior</b> </h3><p>Adding a fresh coat of paint to your home’s exterior is a great way to increase your curb appeal, but it’s not the same as painting the walls. Exterior home painting means also dealing with trim, soffits, rake boards, and sometimes siding. “Don’t paint your house yourself unless you have the time, tools, skills, and stamina to do the work,” says home improvement expert Don Vanderhort. “Depending on the size and height of your house and the condition of the existing siding, <a href="https://realestate.usnews.com/real-estate/articles/10-house-painting-rules-you-should-never-break">preparing and painting a house on your own</a> can be a tedious, difficult job.” </p><h3><b>9. Removing walls</b> </h3><p>Is the wall load-bearing? If you don’t know, don’t attempt to remove it on your own. You don’t want to wake up to a caved-in ceiling, or worse. </p><h3><b>10. Replacing windows</b> </h3><p>On paper, replacing old windows sounds fairly straightforward. A poorly executed window installation could lead to higher energy bills, not to mention water leaks and mold damage. Call in an expert and call it a day. </p><h3><b>11. Any project that would void a warranty</b> </h3><p>Many manufactures have strict warranty guidelines, so make sure to do your research before embarking on a new DIY home improvement job. Manufacturers of HVAC systems, roofing supplies, paint, refrigerators, and concrete may be able to void your warranty if you don’t follow their repair guidelines. </p><h2><b>Home repairs for renters: Know your rights</b> </h2><p>According to Ann O’Connell, attorney and legal editor at <a href="https://www.nolo.com/legal-encyclopedia/repairs-maintenance-entry-rented-premises-29739.html">Nolo.com</a>, “Under most state and local laws, landlords must offer and maintain housing that satisfies basic habitability requirements.” Heat, water, electricity, adequate sanitation, and a safe living environment are all things your landlord is required to maintain. In exchange, it’s your responsibility as a renter to take good care of your unit. </p><p>Simple fixes like unclogging a drain pipe or steam cleaning a dirty carpet are projects you can safely DIY. Just make sure to check with your landlord or property manager first. Without prior approval, you may run the risk of losing your security deposit. </p><p>Have a serious or emergency repair that your landlord is refusing to cover? You may be protected under your state’s <a href="https://www.findlaw.com/realestate/landlord-tenant-law/how-does-a-tenant-use-repair-and-deduct.html">“repair and deduct”</a> laws. Consult a landlord-tenant attorney if you think you may be eligible. </p><h2><b>Paying for your home repair project</b> </h2><p>Whether you’re ready to try DIY or calling in a pro, you’ll need to decide how you want to pay for your project. You may have the cash flow to pay for smaller projects out of pocket, but if you’re making major repairs or significant upgrades, a home improvement loan could be a smart financial decision. </p><p>With LendingClub Bank you could receive a <a href="/personal-loan">personal loan</a> at a fixed rate that is lower than your credit card, helping you save money over the long term. Plus, you can check your rate for free and see your potential loan offers in seconds without impacting your credit score.  </p><hr/><h2><b></br>DIY Home Repair FAQs</b> </h2><h3><b>What are the most common DIY home repairs?</b> </h3><p>Fixing squeaky doors and windows, patching drywall, unclogging toilets, and painting interior walls are all popular projects that can be safely undertaken by DIYers. Make sure you have the proper tools and enough time to do the job well, and remember, there’s no shame in calling a pro if you get stuck. </p><h3><b>Where can I find a pro if I need one?</b> </h3><p>First, you’ll need to determine whether the job calls for a licensed contractor or a handyman. You’ll also want to research whether permits are required and if the project involves an existing warranty. </p><p>Once you’ve decided on what you need, there are a number of avenues to explore. One of the best ways to find the right person for the job is to ask trusted friends and family members for a reference. You can also explore free services like HomeAdvisor or Thumbtack, both of which offer reviews and free cost estimates. </p><h3><b>How do home improvement loans work?</b> </h3><p>A <a href="https://www.lendingclub.com/personal-loan/home-improvement-loan">home improvement loan is a personal loan</a> that can be used to pay for home repairs and improvements large and small, from energy-efficient upgrades, to kitchen remodels, to landscaping and more. Collateral is not required, and, unlike revolving credit card debt, a personal loan offers a fixed rate and payments that are repaid over a set length of time. </p><p>You’ll know exactly how much you’ll pay each month and for how long. This transparency can give you more control over your budget and may even save you money. </p>

Opening a bank account online is a convenient way to manage your money without setting foot in a local branch. Today, many online-only banks, traditional banks, and credit unions have easy online applications, so you can shop around and open an account from the comfort of your home. 

<p>Opening a bank account online is a convenient way to manage your money without setting foot in a local branch. Today, many online-only banks, traditional banks, and credit unions have easy online applications, so you can shop around and open an account from the comfort of your home. Whether this is your first time opening an account or you need a quick refresher, here’s a step-by-step guide to opening a bank account online.</p><h2>4 steps to open a bank account online</h2><h3>1. Decide where to open an account.</h3><p>Shopping around with many banks and credit unions before opening an account can help you choose the right home for your money. So, consider putting together a list of financial institutions to compare based on customer reviews, banking app features, and available perks.</p><p>Since you work hard for your money—and want to keep it safe—looking at how each bank or credit union protects your financial information and accounts is also important.</p><p>Financial institutions have different security features to protect data. Encryption is used to hide your information, and you may be required to set up two-factor authentication to verify your identity each time you log into your account.</p><p>For example, financial institutions could ask you to set up a password and activate two-factor authentication to enter the mobile <a href="/mobile-app">banking app</a>. When logging in on a non-mobile device, you may need to put in a password and answer security questions. These security measures are in place to make it more difficult for unauthorized people to gain access to your money.</p><h4>Know how your money is kept safe</h4><p>FDIC and NCUA insurance are government guarantees that protect up to a combined $250,000 in bank accounts at banks or credit unions, respectively. In the event a financial institution closes, these guarantees ensure you’ll be able to retrieve your money. Most banks have FDIC insurance and most credit unions have NCUA insurance, but it’s worth double-checking before opening an account.</p><p>Financial institutions also provide protection in the event you lose your debit card. If someone gains access to your PIN or the card itself is lost or stolen and you report the loss within two business days, you’re typically only liable for up to $50 in fraudulent charges. You’ll be able to report the loss quickly by setting up alerts that notify you when your card is being used—even if you hadn’t yet noticed your card was missing.</p><p>Even if you haven’t lost your card but you notice unauthorized charges on your periodic account statement, you’ll have 60 days (from the date you receive your statement) to report it, which is why it’s important to always review your statements when you receive them. Reporting after two months could make you responsible for more of the fraudulent charges.</p><h3>2. Choose an account type.</h3><p>After choosing a financial institution, the second step is choosing the type(s) of account you need. Four main types of bank accounts exist—<a href="/personal-checking">checking accounts</a>, savings accounts, money market accounts, and certificates of deposit. Here’s an overview of each.</p><h4>Checking accounts</h4><p>Checking accounts are deposit accounts you can use for day-to-day transactions. They typically come with a debit card to make purchases or withdraw money at ATMs. Some accounts come with paper checks, or you can order them. You can also use checking accounts to deposit checks, direct deposit your paycheck, make wire transfers, and more.</p><p>Traditionally, checking accounts have paid little or nothing in interest. However, some high-yield checking accounts offer a higher-than-average return.</p><p>Other factors to review when shopping for a checking account are the monthly maintenance fees, ATM fees, the minimum deposit to open the account, and the minimum balance you must maintain to keep the account open.</p><h4>Savings accounts</h4><p><a href="/personal-savings">Savings accounts</a> are a place to stash money for emergencies or financial goals, such as new furniture or a vacation. Savings accounts typically offer higher APYs than checking accounts. However, <a href="/personal-savings/high-yield-savings">high-yield savings accounts</a> may offer a better return.</p><p>Unlike checking accounts, savings accounts do not typically come with checks or a debit card. Some banks and credit unions may charge a fee if you have more than a certain number of withdrawals from your savings account in a month.</p><h4>Money market accounts</h4><p>Money market accounts are like a checking and savings account hybrid. APYs for money market accounts can be comparable to those of savings accounts, and they may also limit how many transactions you can make per month. But like a checking account, money market accounts may come with a debit card and checks, giving you more payment options.</p><h4>Certificate of deposit (CD) accounts</h4><p>A CD is a deposit account that offers a fixed rate of return over a specified term. When the CD matures, you get the money you initially deposited plus interest, and you can withdraw funds or roll the CD into another term.</p><p>Terms for CDs generally range from a few months to five years or more. In general, the <a href="/personal-loan">longer your loan term</a>, the higher the APY you can earn. However, withdrawing from the CD early can result in fees or forfeiting a few months’ interest. Also, if interest rates on savings products rise due to inflation, you could be stuck with low interest until the CD matures. (In that case, paying a fee or penalty to unlock the money may be worth it.)</p><h3>3. Fill out the online application.</h3><p>The process of opening the account involves filling out an online form and choosing an account authentication method, such as security questions to answer upon login. Here’s the information you could be asked to provide when opening an account:</p><ul><li><p>Name and physical address</p></li><li><p>Phone number and email address</p></li><li><p>Date of birth</p></li><li><p>Social Security number or taxpayer identification number</p></li></ul><p>To process your application, banks may review your checking and savings account history using information obtained from a credit reporting agency. Your credit report can include information such as where you’ve opened bank accounts, and if you have any returned checks, unpaid balances, or fraudulent activity on past accounts.</p><p>Some banks may deny your application if you have an unfavorable banking history, such as a record of overdrafts or unpaid balances. However, an unfavorable banking history doesn’t mean you can’t get a checking account. Paying down unpaid bank overdrafts could help improve your chances of getting an account. You can also search online for second-chance banking options that are easier to qualify for. If you’re not sure what information is on your banking history record, you’re entitled to <a href="https://www.annualcreditreport.com/index.action">review your credit report annually for free</a>.</p><h3>4. Add money to your account.</h3><p>Now you’re in the home stretch—time to fund your account. The online application process usually includes a step where you can connect an external account to transfer funds to your new account. During the connection process, the new bank may make small deposits—and withdrawals—of a few cents in your existing bank account to verify that it is correct. You’ll then contact the new bank with the exact amounts to confirm.</p><p>If you don’t set up the first deposit into your new checking account during the application, you could fund your account later through other methods, like setting up a direct deposit with your employer, depositing cash at a branch and ATM, or depositing checks or money orders using mobile check deposit.</p><h2>How to open a bank account for a minor online</h2><p>You typically need to be at least 18 to apply for a bank account. You can open an account on behalf of a minor, but that process requires different paperwork and may require permission from the child’s parent or legal guardian.</p><p>Depending on the purpose of the account, consider whether the bank is the best place for it. Savings accounts can help teach children to save, and teens may benefit from learning to manage a checking account.</p><h2>How long does it take to open an account?</h2><p>It could take just a few minutes to open a bank account online, particularly if you already have a relationship with the financial institution. However, it might take several days if the bank needs more information from you. For example, if the bank can’t verify your identity, you may be asked for other documentation before the account can be set up.</p><h2>The bottom line</h2><p>Most banks offer online applications, so you have many options to consider. Even if you’re already a customer at one bank, expanding your options to look at what other banks offer might help you find higher APYs, lower fees, or better perks.</p><p>Before shopping around, consider how much money you have available to deposit and how often you will want access to it. Also, check if there are conditions you must meet to avoid monthly fees. While some online bank accounts have no fees, others might charge you a fee if you don’t meet direct deposit or balance requirements each month.</p><p>Fees are not the whole story, though. If you plan to use a smartphone to conduct your banking business, you’ll want to check that the bank has an easy-to-use mobile app and find out how responsive customer service is in case you need to call in for support.</p>

What does it take to achieve financial independence early in life? The end goal for many FIRE followers is early retirement—but it’s not the only goal.

<p>What does it take to achieve financial independence early in life? The end goal for many FIRE followers is early retirement—but it’s not the only goal. If you’d like to spend less, save more, and build creative, new options for yourself by becoming more financially independent, the FIRE movement and its philosophy may be what you’re looking for. </p><h2><b>What is the FIRE movement</b>​<b> &amp; how does it work</b>​? </h2><p>The Financial Independence Retire Early (FIRE) movement is a financial planning philosophy and lifestyle that encourages followers to drastically cut expenses and spend less, save aggressively, minimize or eliminate all debt, and invest wisely to achieve financial independence—and possibly retire well before your late 60s or early 70s. </br></br>Inspired by the 1992 book <i>Your Money or Your Life</i><i><b> </b></i>by Vicki Robin and Joe Dominguez, the FIRE movement invites and challenges you to consider accumulating wealth by being satisfied with less. While going full FIRE may not be something everyone will want or be able to strive for, FIRE tools can help you set some ambitious financial goals and provide a mindset for achieving them.</p><h3>How does it work?</h3><p>The FIRE movement encourages saving money and adjusting your lifestyle dramatically to reach financial independence as quickly as possible. It starts with your FIRE number, the amount of money you need to retire or to attain your vision of financial independence. Two formulas can help you calculate your FIRE number:</p><h3>The rule of 25</h3><p>The FIRE rule of 25 says you’ll need to save roughly 25 times your annual expenses to have enough of a nest egg to draw out expenses indefinitely without running out of money. If you need $60,000 per year to live, your FIRE number is $60,000 x 25 = $1.5 million.</p><h3>The 4% rule</h3><p>The FIRE 4% rule refers to the amount experts say you can withdraw from your retirement savings each year without running out of money over a 30-year retirement. There’s some debate about whether the 4% rule is the right rule of thumb for an early retirement that might go well beyond 30 years. The rule is also based on historical market data, which might not be matched in the decades to come. Some experts suggest using 3.3% as a guideline instead. Still, for estimating purposes, 4% gives you a quick calculation of what your savings might yield in retirement income. Say you already have $750,000 in retirement savings. Based on the 4% rule, you can withdraw $30,000 per year, adjusting each year for inflation, without worrying too much about depleting your savings.</p><h2>Key elements of the FIRE lifestyle</h2><p>How do you get to $1.5 million in retirement savings quickly? FIRE followers design their lifestyles around their financial goals aligned around a few key pillars:</p><h3>Be frugal. </h3><p>Many forgo expensive homes, cars, and other worldly goods in favor of saving 30% to 70% of their incomes. Getting there may require extreme measures. For example, FIRE followers may choose to live with family to save on rent, explore van life or tiny homes, or work remotely from a location with a lower cost of living.</p><h3>Work hard. </h3><p>To maximize income, FIRE followers may hold down multiple jobs or freelance in their spare time. </p><h3>Avoid debt.<b> </b></h3><p>Carrying high-interest credit card debt or lingering student loan debt cuts into your ability to save. FIRE followers aim to pay down existing debt as quickly as possible and avoid taking on future debt.</p><h3>Save aggressively.</h3><p> In addition to putting aside a high percentage of their incomes, this group maximizes their tax advantages and returns by using a combination of savings accounts, traditional and Roth retirement accounts, and investments.</p><h2>Does ​the FIRE philosophy work for everyone?</h2><p>Some FIRE tactics, like saving as much as possible or cutting back on spending, work for just about anyone. However, the goal of saving 25 times your annual expenses by the time you’re 35 or 40 and retiring early on 3% to 4% of your savings may not be the right approach for everyone—especially people with lower incomes or people who live and work in major metropolitan areas where the cost of living is high. If your income barely covers your basic expenses, this plan may not be doable for you. </p><p>The FIRE lifestyle isn’t always sustainable. Missing out on vacations, swapping weekend time with the family for a second job, and denying yourself simple luxuries like owning a car ultimately may feel limiting to some. Setting ambitious FIRE goals may be more realistic if your income is high and your responsibilities are few. Throw a couple of kids and a mortgage into the mix, however, and early retirement can start to feel a lot more challenging.</p><p>Still, retiring at age 35 isn’t the only goal. Financial independence might mean saving enough money early in your career to give yourself better options in midlife. For example, you may want to take a sabbatical, start a new midlife career, downshift to part-time work or consulting, or simply worry less about meeting your day-to-day living expenses. For some, retiring early might mean exiting the workforce comfortably at 60, having paved the way with good financial habits over your adult lifetime.</p><p>FIRE can’t account for all of life’s unpredictability, especially if you’re young and the path forward is long. If the markets don’t perform as well in the next 25-30 years as they have in the past, you may have to save more, withdraw less, or continue working to make up the difference. You may have surprise medical expenses that consume a large chunk of your savings. (You may also inherit money or invent a million-dollar product.) FIRE can’t remove uncertainty, but it can help you to be resilient: Learning to budget, developing a savings habit, avoiding debt, getting serious about investing—these skills can help you navigate the changes life throws at you, pre-and post-retirement.</p><p>The FIRE movement isn’t everyone’s cup of tea, but many in the movement feel empowered by taking control of their finances and working toward their goals. FIRE followers encourage each other to stick to their plans and continually improve their financial standing, which is useful counterprogramming in a consumerist culture.</p><h2><b>Is there a right way to achieve financial independence and retire early</b>?</h2><p>Achieving financial independence and retiring early means different things to different people. When thinking about your financial goals, FIRE encourages you to consider different versions of financial independence and early retirement. These may become your ultimate goals or may provide milestones to measure your success along the way. Here are a few ways some choose to interpret the FIRE movement:</p><h3>Barista FIRE </h3><p>Barista FIRE means saving enough money to exit the rat race and work in a less demanding job. Barista FIRE requires less money than traditional FIRE by lowering the amount you would need to withdraw from your savings. For instance, if you needed $4,000 to cover your monthly expenses and could earn $1,500 working part-time, your Barista FIRE number would be 25 x $30,000* = $750,000. This is much less than the $1.2 million if you had to plan to withdraw a full $4,000 per month with the traditional FIRE. </p><p>Attaining Barista FIRE can be an important psychological marker. Even if you don’t choose to work part-time when you reach Barista FIRE, it may be reassuring to know that you have the financial freedom to do so.</p><p>*$4,000 - $1,500 = $2,500 x 12 months = $30,000</p><h3>Lean FIRE<b> </b></h3><p>Lean FIRE is the least amount of savings you would need to retire without working. Lean FIRE envisions a scaled-down version of retirement where you live minimally on $40,000 a year or less. If you were able to whittle your expenses down to $3,000 per month, your Lean FIRE number would be $900,000. Here, years of living frugally and avoiding debt may act as a training ground for a low-expense retirement—if it doesn’t burn you out. </br></br>In any case, reaching Lean FIRE means you’ve crossed an important line: Retirement is now possible for you. </p><h3>Fat FIRE<b> </b></h3><p>Fat FIRE is for those who want to live on $100,000 a year (or more) in retirement. Fat FIRE followers plan to travel and enjoy life, and don’t want to worry about paying for medical expenses or elder care down the road. It provides for a less stressful retirement by giving you a bit more wiggle room in your budget. With Fat FIRE, reaching an annual income of $100,000 in retirement would of course require $2.5 million in retirement savings. </p><h2><b>How do social security benefits play into FIRE?</b> </h2><p>In any of these scenarios, the impact on whether and how much you will receive in Social Security benefits should be considered. </p><p>Essentially, early retirement will very likely decrease your Social Security benefit because you’ll be missing out on your prime earning years. The reason for this is because Social Security benefits are accrued over your working life and calculated by taking your highest 35 earning years and averaging them out to a monthly earning. If you’re not earning (or earning much less) during your prime earning years, it can have a significant impact on the Social Security benefits you’ll receive in retirement.</br></br>Depending on how much you do receive in Social Security benefits, it can help reduce the amount of money you’ll need in retirement (and the target expense figure you use to calculate your FIRE number). But depending on how early you hope to retire, you’ll also need to account for extra withdrawals during the years before your Social Security benefits begin. Your FIRE number is useful for estimating a savings goal and giving you a target to aim for. </br></br>Before you embark on FIRE, and well before you’re ready to retire, you’ll want to double-check your math to make sure your living expenses will be covered for the duration.</p><h2><b>7 strategies to reach financial independence, retire early (FIRE) status</b> </h2><p>The FIRE movement provides several strategies to help you quantify your goals and break them down into actionable steps. Your FIRE number and the goals that go with it are entirely up to you. Whether you go all-in or use FIRE strategies to attain smaller financial goals, these seven FIRE-inspired strategies may help:</p><h3>1. Embrace a vision. </h3><p>When your entire financial focus is on paying monthly bills, it’s hard to work toward big-picture goals like being financially independent and retiring early. Having a vision for your future can help guide you and deserves your attention. It’s important to lift your head from the grindstone long enough to make room for lifelong goals while also managing the day to day.</p><h3>2. Get out of debt, stay out of debt. </h3><p>High-interest debt can drag down your finances and keep you from reaching your financial goals. Manage your revolving debt carefully. Where you can, pay down high-interest credit card balances or consider <a href="https://www.lendingclub.com/personal-loan/debt-consolidation">using a debt consolidation loan</a> to lower your interest costs and help eliminate your consumer debt. <a href="https://www.lendingclub.com/auto-refinancing">Refinancing a high-interest car loan</a> or student loan debt may save you money or speed up the repayment process. </p><h3>3. Maximize your income. </h3><p>If your income doesn’t leave much room for savings, look for ways to reduce expenses and earn more on the side. In the short term, you might find a side gig or source of passive income to supplement your paycheck, or proactively move up the pay scale at your current job. Longer term, consider a career that will earn more income or think about starting your own business if your current job doesn’t offer the growth potential you’ll need.</p><h3>4. Prioritize savings.<b> </b></h3><p>FIRE movement followers save 30% to 70% of their income to meet their financial goals. If saving this much feels unrealistic right now, how about a consistent 10% to 15%? FIRE followers also take savings seriously, seeking out <a href="https://www.lendingclub.com/personal-savings/high-yield-savings">high-yield savings accounts</a> and <a href="https://www.lendingclub.com/personal-savings/cd">using CD ladders</a> to earn the most interest to grow their hard-earned dollars.</p><h3>5.  Invest wisely. </h3><p>As you build wealth, investments play a critical role in getting to your FIRE number. Investing can also help you maintain your savings throughout your retirement years. Finding a good financial advisor can help, but don’t overlook the value of learning about investing yourself. The better you understand the fundamentals of investing, the more effective you can be at managing your money, whether you work with an investment pro or not.</p><h3>6. Live below your means.</h3><p> Our consumer culture encourages us to spend, spend, spend—on our homes, cars, kids, technology, fashion, dining out, travel, pets, fitness, on and on. But meeting your financial goals means channeling your money away from spending and toward debt reduction and savings. The difference is mathematical, but it’s also philosophical: Create a lifestyle that serves your financial goals.</p><h3><b>7. Get an early start. </b></h3><p>Embracing the FIRE movement early in your working career means getting a head start on long-term savings. The earlier your start puts more time on your side. Whether the goal is early retirement, financial independence, or simply putting yourself on a solid financial footing, now is the best time to start.</p><h2>The bottom line</h2><p>The FIRE movement brings the sometimes-distant goals of financial independence and retirement into focus. By putting numbers to big-picture financial objectives, FIRE makes long-term savings more concrete and measurable. And while there’s no way to make saving 25 times your annual expenses easy—or remove the risk of an entirely obligation-free retirement over multiple decades—FIRE offers real steps to get you there. </p><p>At the same time, FIRE provides a framework for thinking about money. By making conscious choices about saving and spending, by challenging yourself to consider how much money is enough (to live on or to retire on), you can use your money to do more than pay your bills or buy things. Even if you don’t become a dedicated FIRE follower, at the very least the philosophy of aiming for financial independence to retire early can help you be more intentional with what you do with your money. That alone is a step in the right direction.</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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