If you’re finding it hard to be optimistic about increasing your riches, you may want to start adding financial affirmations to your everyday routine. Affirmations specifically targeting money have the power to change self-defeating or negative self-talk when it comes to your finances. And when you start replacing a pessimistic mindset about earning, spending, and getting out of debt with a positive one, you’re more likely to take the needed steps to attract the wealth you want — or so the thinking behind daily affirmations goes.
Reciting affirmations may seem awkward at first and the truth is, some people won’t find daily money mantras a game-changer. The good news is, daily money affirmations don’t cost anything and you control the story. Here’s the lowdown on financial affirmations so you can decide if they’re right for you.
What Are Money Affirmations?
Money affirmations are positive words, phrases, and sentences designed to turn discouraging thoughts about money into positive ones. The hope is by regularly speaking these uplifting statements to yourself, either in your head or out loud, you’ll reprogram your brain. When you swap out the old notions for the new thoughts and they become your new truth, you can get busy putting them into action.
The types of financial affirmations vary depending on what your money goals are. For example, you can create statements about increasing your income, getting out of debt, saving money, and expressing gratitude for the financial abundance you already have.
Creating your own personal affirmations are all about dealing with your specific money issues or blocks and how you can move forward.
While there’s no set rule on how many times a day you should verbalize your money affirmations, it helps to be consistent so it becomes a habit. A good start might be picking one powerful affirmation and repeating it throughout the day. Or you could choose three to five affirmations that you recite for five minutes or several times in a day.
Be forewarned that taking on too many at once may feel overwhelming and scatter your focus. Once you get the hang of it and it feels more doable, you can try adding more.
Track your credit score with SoFi
Check your credit score for free. Sign up and get $10.*
Optimizing Your Money Affirmations
Positive affirmations may work better if you put them in present tense, such as “I can,” “I am,” or “I have” instead of using language such as “I will,” “I should,” or “I could.” Why? Statements promising future outcomes suggest you could be a certain way instead of dealing with the reality of where you are now.
It can take a while to retool your thinking, so try not to get discouraged if in the beginning, progress seems slow or non-existent. Remember, it took years to shape your current beliefs, so it can take some time to adjust to new ones.
Pros and Cons of Money Affirmations
As mentioned earlier, affirmations don’t always appeal to or work for everyone. Depending on your current state of mind and life circumstances, financial affirmations may seem trivial, frivolous, or simply not a priority. If you’re experiencing some stressful times or financial hardships, you may not have the emotional or mental bandwidth to take them on.
On the flip side, many people find that daily practice empowers them, provides clarity, and motivates them to take more financial control and responsibility.
Before you take the plunge, here’s some pros and cons to consider:
Pros of Using Money Affirmations
• Give you a wider perspective on your core values surrounding your finances
20. Each day is an opportunity for me to change my money story.
21. Money well-spent is a source of good and positive things.
22. The more I give, the wealthier I become.
23. I use money to improve my life.
24. Wealth flows into my life consistently.
25. There are countless ways I can bring more money into my life.
26. Everything I need to build wealth is available to me right now.
27. I choose to focus on money coming to me with ease.
28. My income can exceed my expenses.
29. I deserve to increase my income.
30. There are no limits to the amount of money I can make.
31. I can profit off of my skills.
32. I’m happy to pay my bills for all they provide me.
33. I’m grateful for the money I have now and the money that’s on its way to me.
34. Money can expand my life opportunities and open me up to new experiences.
35. The money I earn and spend makes me happy.
36. My net worth is not my self-worth.
37. I move from poverty thinking to financial abundance thinking.
38. My life is full of riches beyond money and my happiness is surging.
39. I have a millionaire mindset. I think like a millionaire, I act like a millionaire, I feel like a millionaire, I am a millionaire.
The Takeaway
Changing long-held, entrenched beliefs about money can be challenging. Incorporating a regular routine of financial affirmations offers the possibility of changing your mindset to a positive and hopefully productive one. While these affirmations may not appeal to everybody, if you feel stuck and want to take some baby steps toward improving your money picture, affirmations may be worth a try.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How do you write affirmations for money manifestation?
A review of affirmations on the internet found that they generally have two things in common: they often start with “I” and they are in the present tense. Some people feel money mantras should be short (mo’ money!); others think they just need to resonate with the people who recite them.
How do you attract the abundance of money?
Of course, the idea of attracting something like the abundance of money is based more on belief than anything else. If you believe you can attract it, that belief may lead you to take action – perhaps, to start a business or at least to make a plan. So to attract the abundance of money, you may want to start by believing that you are capable of becoming rich.
How do I get a millionaire mindset?
The first step of getting a millionaire mindset is ridding your mind of self-defeating thoughts. But just being positive isn’t enough. You likely want to develop attitudes associated with successful people: being open to learning, not fearing failure, and being proactive.
Photo credit: iStock/atakan
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Gross income is the amount of money earned before any payroll deductions for taxes, insurance, retirement contributions, and such. To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).
The calculation for gross monthly income can differ depending on paycheck frequency. Below we’ll show you how to calculate your gross pay for different payroll schedules.
• Gross monthly income is calculated by adding up all sources of income before deductions.
• It includes wages, salaries, tips, bonuses, commissions, rental income, and other forms of income.
• To calculate gross monthly income, add up the amounts earned from each income source.
• Gross monthly income is important for budgeting, loan applications, and determining affordability.
• It is essential to accurately calculate gross monthly income to make informed financial decisions.
How to Calculate Monthly Pay From Biweekly Pay
There are two different monthly pay figures to understand, gross and net. Each is useful in different situations. When you’re applying for a loan, most lenders use gross monthly income to determine your debt-to-income ratio (DTI). However, many people find it easier to budget based on net or take-home pay. A budget planner app can help you decide the best approach for your situation.
As we spelled out above, if you’re paid biweekly (every two weeks), the formula for gross monthly income is:
(Gross pay amount × 26) ÷ 12
Hourly workers can also use this next formula if they work a consistent number of hours per week:
(Hourly salary × weekly hours worked × 52) ÷ 12
To find net monthly pay, substitute the actual amount of your paycheck for the gross amount in the first formula.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
There are 26 biweekly pay periods in a year. Employees who get paid biweekly will receive 26 paychecks from January to December.
It’s important to note that receiving pay biweekly differs from receiving pay twice a month on the same dates. Workers who receive biweekly checks can’t just multiply one paycheck by two to find their monthly salary.
Employees who get paid twice a month — for instance, on the 15th and 30th — can find their monthly gross income simply by adding together the gross figures on their two monthly paychecks.
• Biweekly: Paid every other week, or 26 paychecks per year.
• Semimonthly: Paid twice a month on the same dates, or 24 checks per year.
• Weekly: Paid once a week, or 52 checks per year.
• Monthly: Paid once a month, or 12 checks per year.
Employees who receive biweekly pay get two checks or direct deposits each month, except for two months of the year when they receive three paychecks. Employees who are paid biweekly might get a paycheck every other Wednesday or Friday, or whatever day their employer chooses.
With semimonthly pay, an employee might get paid on the 15th and 30th of every month. There are always two paydays, for a total of 24 per year instead of 26.
An employee who gets paid twice a week is on a semiweekly schedule. This would entail eight paychecks each month.
Pros and Cons of Biweekly vs Semimonthly Pay
For employees, there are pros and cons to biweekly pay. Depending on their expenses and savings strategy, someone might prefer a biweekly or semimonthly schedule.
For most workers, the main pro to biweekly pay is the third “bonus” check they receive two months out of the year. By budgeting for two paychecks every month, workers can designate the occasional third check for special line items like vacations, holiday gifts, paying off debt, or boosting savings.
For others, biweekly checks just make budgeting and managing expenses more challenging. Semimonthly pay is preferable because it offers an accurate reflection of real monthly income.
Also, each semimonthly check can be dedicated to particular expenses. For example, the second check of the month can go to rent, utilities, and other housing costs, which are often due the first of the month.
Compared to weekly paychecks, both biweekly and semiweekly checks require better cash management on a weekly basis. For someone who lives paycheck to paycheck, biweekly pay periods might mean they run out of money before the next check arrives.
The Takeaway
To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub, multiply by 26, then divide by 12. (Do not use this formula if you’re paid twice a month on the same dates, rather than the same days of the week.) For your monthly net pay, substitute your net or take-home pay for the gross amount in the same calculation.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
How do you convert biweekly pay to monthly income?
To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).
How do I calculate my gross monthly income?
Gross monthly income is the total of all paychecks and income received in a month, including any side hustles, rental income, etc., but before taxes and other deductions.
How do you calculate gross income from a W-2 form?
Gross wages cannot always be found on a W-2 form due to various pre-tax deductions. Instead, look at the gross amount listed on the employee’s final paycheck for the year.
Photo credit: iStock/Eva-Katalin
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
By Austin Kilham |
Credit, relay |
Comments Off on Why Did My Credit Score Drop After a Dispute?
Under federal law, you are allowed to dispute information that shows up on your credit report both with the company that reported the information and with the reporting bureau that recorded it. There’s no fee for filing a dispute, and the credit reporting bureaus may make changes based on the information that you provide.
This can be great news if your credit report changes in your favor and your credit score gets a boost. However, it is possible that when information on your reports gets changed, your credit score actually takes a hit.
Here’s a closer look at why your credit score may have dropped after a dispute, plus other common reasons your score might drop.
Can a Dispute Hurt Your Credit Score?
When you dispute your credit report, it’s important to understand that the dispute itself does not cause your credit score to drop. In other words, you aren’t punished for questioning the information on your credit report. That said, the information in the dispute could have a negative impact on your score. For example, if the information in your dispute demonstrates that you have a lower credit limit than previously reported, your credit score could take a hit.
Track your credit score with SoFi
Check your credit score for free. Sign up and get $10.*
Common Reasons for Credit Scores to Drop
As you manage your credit score and work to build credit, there are a number of reasons your credit score may drop. Here’s what to look out for.
Your payment history — whether you have a track record of paying off your debts on time — is a big part of how your credit score is calculated. In fact, it makes up 35% of your FICO score, which is calculated by the Fair Isaacs Corporation. Your score will likely fall if you make late payments or if you miss payments entirely.
Derogatory Remark on Your Credit Report
A derogatory mark on your credit report is a negative item that indicates you didn’t pay back a debt according to agreed upon terms with your lender. These marks tend to remain on your report for seven to 10 years. Examples include bankruptcies, missed payments, debts in collection, foreclosures, and repossessions.
Change in Credit Utilization Rate
Your credit utilization rate indicates how much of your available credit you are currently using. You can find it by dividing your available credit by your current debt. The higher your utilization rate, the more debt you are carrying in comparison to the amount of credit you have, which may suggest that you’re overextended. Banks might get worried about your ability to pay off your loans. That’s why the amount you owe makes up 30% of your FICO score, and why a higher utilization rate can hurt your score.
Reduced Credit Limit
Your credit limit has an impact on your credit utilization rate. If your limit is reduced, your utilization rate could increase, hurting your credit score. You can lower your utilization rate by paying off some of your debts.
You can also ask one of your credit card companies to raise your credit limit. They’re usually happy to do it as long as your account is in good standing.
Closed Credit Card
The length of your credit history comprises 15% of your FICO score. When you cancel credit cards — when consolidating credit card debt, for example — you may be reducing your credit history. You could also be reducing your credit mix, which makes up 10% of your FICO score.
Similarly, paying off a loan might have a slight negative effect on your credit score because it can reduce your credit history and credit mix. That said, it could also have a positive effect on your record if it reduced your credit utilization rate.
Multiple Lines of Credit Opened or Applied for
New credit accounts make up 10% of your FICO score. Banks worry that when a person opens several lines of credit in a short period of time, they are at greater risk of defaulting on their loans. As a result, new lines of credit can ding your credit score.
Not only that, but simply applying for new credit can hurt your score. When you apply for a credit card or loan, your lender will make what is known as a “hard inquiry” to view your credit report. Lenders may see those seeking new credit as more risky, so hard inquiries can also have a negative effect.
Mistakes on your credit report can lead to a lower score. That’s why it’s important that you monitor your credit report regularly and report errors to the credit reporting bureaus as soon as possible. You can request a free credit report from each of the credit reporting bureaus — TransUnion, Equifax, and Experian — once a year.
Identity Theft
Monitoring your credit report is also a good way to catch fraudulent behavior. If you’ve been subject to identity theft, bad actors may have used your personal information to open fraudulent accounts, which could have a negative effect on your credit score. Report these accounts immediately.
Types of Credit Report Errors to Look Out for
When reviewing your credit report, look out for the following errors:
• Personal information errors. Check your name, phone number, address, etc.
• Accounts that belong to another person with the same name.
• Fraudulent accounts that you didn’t open.
• Account status errors. Check for closed accounts that are reported as still open, accounts incorrectly reported as late or delinquent, incorrect payment information, and the same debt listed more than once.
• Balance and credit limit information that is inaccurate or out of date.
Correcting Errors on Your Credit Report
If you spot a mistake on your credit report, you can file a dispute with the credit reporting bureau. The mistake may be on your credit report with each bureau, so you may need to file a separate dispute with each.
You’ll need to file your dispute in writing and use the credit reporting bureau’s dispute form if they have one. Include documents that support your dispute, and be sure to keep a record of what you send.
Disputing information on your credit report can be an important part of ensuring that your credit score is as accurate as possible. You won’t be penalized for filing a dispute, though in certain circumstances, it is possible that your credit score will drop if information in your dispute has a negative impact on your credit.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
See exactly how your money comes and goes at a glance.
FAQ
Why did my credit score go down for no reason?
Your credit score likely didn’t go down for no reason at all. It’s possible that a creditor reported new information to the credit reporting bureaus that had a negative impact on your credit report. Or there could be a mistake on your credit report. Regularly monitoring your credit report can help you catch errors.
Why did my credit score drop after filing a dispute?
Your credit score may have dropped after you filed a dispute if information in that dispute had a negative impact on your score. You are not penalized for filing the dispute itself.
Does losing a dispute hurt your credit?
Losing a dispute does not necessarily hurt your credit, but it may leave it unchanged if the information you were hoping would boost your score is rejected.
Photo credit: iStock/pepifoto
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
The 20’s can be a really busy, really exciting time, whether you’re finishing school, building a career, getting married, or starting a family (or some combination thereof). Add to that things like traveling, hanging out with friends, and discovering your passions in life, and it can be hard to prioritize financial planning.
But it’s important not to miss out on this important decade when major financial progress can be made. Establishing good money habits doesn’t have to be hard. Plus, skills like managing debt well and saving methodically for the future can set you up for a lifetime of financial wellness. Here’s how to start on that path.
10 Financial Tips for Your 20s
Here are some of the most important components of good money management and building wealth. The following advice can help you enjoy financial stability in your 20s and beyond.
1. Open Your Own Bank Account
If you’re a 20-something who doesn’t already have a bank account, you’ll want to open one. It can be the hub of your daily financial life. With a checking account, you can direct-deposit your paychecks, easily pay bills electronically, and have a debit card for daily spending.
You’ll also probably benefit from a savings account, so you have a safe place to store your money while earning interest. Having FDIC-insured bank accounts means your money is secure, and it’s easier to stay organized and work toward financial goals.
💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.00% APY, with no minimum balance required.
2. Budget Wisely
If you’re like many young adults, you may earn a limited income while building your career. Creating and sticking to a budget can be a very helpful move. Alongside budgeting for your basic living expenses, you can also accommodate the “wants” in life (fun spending, such as dining out, travel, and concert tickets) and savings goals into your budget. Financial planning in your 20s can be hard to accomplish without a strong budget in place.
There are various ways to learn how to budget as a beginner, like the envelope system or the 50/30/20 rule. It may take a bit of experimentation to find a method that suits you. Another option: There are many apps that will help with this task, including those offered by your bank. Checking your account balances is another good step, as it helps you stay in touch with your money and course-correct if you are out of sync with your budget.
3. Don’t Overspend While Having Fun
Of course, you want to enjoy your 20s. Hanging out with friends, going to concerts, and decorating your first home are all worthy pursuits. However, being a financially responsible adult involves slowly chipping away at savings goals like retirement (more on that in a minute) or a down payment for a home. It can be helpful to set aside 10% to 15% of your earnings each month for your savings goals to make sure they aren’t ignored.
Also be smart about your spending. According to the 50/30/20 budget rule mentioned above, 30% of your take-home pay should go toward “wants” vs. 50% for “musts” and 20% toward savings and additional debt repayment.
There is plenty of advice available about cutting costs on groceries, streaming platforms, subscriptions, and travel. It’s wise to balance “in the moment” fun with working your way toward long-term aspirations, like your own home.
4. Avoid Credit Card Debt
Credit card debt comes with pricey interest charges and fees which can make it hard to pay it down. As of this writing, the average credit card interest rate on new offers was almost 25%. Think about it: Purchases cost a lot more than they seem to in the moment when you consider that interest getting tacked onto the purchase price. Plus, those high rates can mean that paying only the minimum amount due on your balance will take quite a while to pay off.
Whenever possible, it’s best to avoid taking on credit card debt. Otherwise, the interest charges will just mount. If you do have credit card debt, explore offers for balance transfer cards that give you no or super low interest rates for a period of time so you can hopefully get out of debt. Or consider a lower interest personal loan or talking to a debt counselor at a nonprofit like NFCC (National Foundation for Credit Counseling).
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
5. Be Smart About Student Loans
If you’re out of school and are paying back student loans, that can certainly take a bite out of your disposable income. Whether you have a federal or private student loan, you can benefit by regularly making extra payments, whenever possible, so you can pay down your debt faster and spend less on interest. If the amount you owe seems overwhelming, you might look into options for switching repayment plans or consolidating your loans.
6. Earn Interest on Your Money
As noted briefly earlier, it’s possible to earn interest on savings by keeping it in a savings account. To earn even more, 20-somethings can turn to high-yield savings accounts that tend to earn more interest than traditional savings accounts do, which is of course a good thing. These accounts also keep your cash liquid, meaning your funds are very accessible. You’ll often find the best rates at online-only banks.
If you have additional funds available and are comfortable with taking on more risk, you can look into investing in your 20s. You might seek professional guidance on managing your money, though there’s likely a cost for working with a financial advisor.
7. Prioritize Goals
If you can buckle down and focus on the money goals that matter now, your long-term financial fitness can benefit greatly. You can develop a financial strategy for achieving the following, as they apply:
• Buying a home
• Child rearing expenses
• A child’s college education
You can create a savings account (preferably a high-yield savings account) for whichever ones may apply. A way to make saving seamless is to automate your savings. That means setting up recurring transfers from your checking account, usually just after payday. That way, you don’t have to remember to build these accounts.
One other very important account to begin building is an emergency fund. This should hold three to six months’ worth of living expenses. It’s a great cushion to have if you are hit with a major unexpected expense or get laid off. Even contributing $20 or so per pay period is a good start. The critical thing is to begin earmarking funds in this way.
8. Invest Early for Retirement
It takes decades to save for retirement, so the younger you can start saving, the more time your savings have to grow. Once you enter the working world, if your employer offers a 401(k) plan or a different retirement account type, you may want to participate. You can really benefit from this kind of tax-advantaged saving. If your employer matches some of your contributions, that’s even better. It’s akin to free money that helps you grow your savings for the future.
• Say you start saving at age 25 and put away $10,000 a year for 15 years at a 6% return, and then stop saving. If that money just sits there, earning interest, you’ll have $1,058,912 at age 65.
• Now, say you have a friend who starts saving $10,000 a year at age 35, does so for 30 years, and earns the same 6% return. Your pal will have $838,019 at age 65.
They saved twice as long as you did, but wound up with less money. That’s the beauty of compounding interest in action. And it can serve as an important incentive to start saving ASAP.
9. Pay Your Bills on Time
It may seem like a no-brainer that it’s important to pay bills on time. But doing so isn’t just about the joys of punctuality; it’s also a great way to build your credit score. Paying bills on time is one of the largest components of your credit score, and a solid credit score can help you borrow money in the future (say, when you take out a mortgage) at the best possible rates.
Not sure where your credit score stands? You can pull a free copy of your credit report annually from each of the big three credit reporting agencies to see how you’re doing and correct any errors you might find.
10. Build Your Credit
Speaking of credit scores, it takes time to build a credit history, and you need to take out credit to do so. A credit card is a great place to start. If you can apply for a credit card in your 20s and make payments on it month after month, this can positively impact your credit score. Just be sure not to charge more than you can afford to pay off.
Another tip is to keep your credit utilization ratio low; under 30% is good, and under 10% is even better. Here’s an example of how this plays out: If your credit limit is $10,000, a wise move is to avoid carrying a balance of $3,000 (30%) or more on it. Ideally, you should keep that number at $1,000 (10%) or lower.
The Takeaway
The basics for smart money management in your 20s is a combination of getting financially savvy, starting to save, and avoiding pitfalls like too much debt. Taking proactive steps today will keep your money in good shape and prepare you to navigate and enjoy the years ahead.
Having the right banking partner is also an important facet of money management at every age.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
FAQ
Should a 20-year-old have a financial advisor?
While hiring a financial advisor isn’t necessary, some 20-year-olds may find it valuable. This is especially true if you’re earning a high income and aren’t sure how to best save and invest your money.
How can I be financially stable at 20?
Financial stability at age 20 can involve several factors, such as spending within your means, managing debt well, and starting to save for an emergency fund and long-term goals.
What is the best financial advice for a young person?
There are several important pieces of financial advice for a young person. Finding a budget that works for you and sticking with it is valuable, as is making sure you are earning a competitive rate of interest on your emergency fund and other savings. Allocating any extra money to pay down debt, such as high-interest credit card debt, is also a wise move.
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
While bad financial decisions can set you back, it’s important to remember that mistakes can also be an opportunity to learn and grow. While you can’t go back and undo the things you’ve done or didn’t do (if only!), you can acknowledge where you went wrong and change your behavior moving forward.
Below, take a look at some of the most common financial missteps people make, as well as what can be done to overcome them.
15 Bad Financial Decisions
Here’s a look at where things can go wrong, and how you set them right.
1. Not Paying Down Your Credit Card Debt
Just making the minimum payment on your credit cards each month can drain your pockets and damage your credit. The reason: When you carry a balance, interest keeps on building, making the total balance higher and even more challenging to pay off. Debt also shows up on your credit report and can have a negative effect on your scores.
To break the pattern, consider putting any extra money toward the card with the highest interest rate, while paying the minimum on the rest. When that card is paid off, you can tackle the next-highest interest debt, and so, until you’re out of debt.
2. Putting Important Financial Decisions off to the Side
Delaying important financial decisions, such as saving, investing, and paying off debt, can cost you money and put your goals further out of reach. A good way to stop the procrastination cycle is to break down your financial goals into small to-dos that feel manageable. You might want to set aside time once a month to check in on your finances and make one small change that can help you get closer to your goals.
3. Not Protecting Personal Financial Information From Fraud
Identity theft and financial fraud are all too common these days, and not taking a few steps to protect your personal and financial information can come back to haunt you. The financial damages caused by fraud can last for months or even years. What’s more, the recovery process usually isn’t easy, and may even involve working with the IRS or Social Security Administration to clear your name.
To protect your information, it can be smart to regularly check your credit reports (and report any suspicious activity immediately). You’ll also want to avoid sharing your personal data unless absolutely necessary and never over public wifi.
💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.
4. Overspending so You Can’t Save
Overspending means you’re spending everything you earn (and not putting anything into savings) or, worse, you’re spending more than you’re bringing in. This can be a costly financial mistake that puts your goals further from your grasp. It means you may be living just paycheck to paycheck.
To change course, you may want to take a look at the last three months of financial statements and assess exactly how much you are spending each month and on what. This can be eye-opening, and you may immediately see some easy ways where you can cut back. Any money you free up can then become money saved, and little by little, it will add up.
5. Not Having Any Backup Options
A recent study found that not even 44% of Americans could not afford an unexpected expense of $1,000 from their savings. Without an emergency cushion, many Americans are at risk of going into high-interest debt should they face an unexpected bill or any loss of income.
It’s generally recommended to have enough cash set aside to cover all your living expenses for three to six months. In some situations, this amount should be as much as 12 months. To get there, you may want to put a percentage (10%, for example) of your monthly take-home income into a high-yield savings account or online bank account — online banks often offer higher interest rates than traditional banks. If that doesn’t seem doable, it’s fine to start smaller and gradually work up. Consistently saving a modest amount, such as $25 per paycheck, can be a good habit to start.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
6. Paying High Amounts on Multiple Monthly Subscriptions
Subscription streaming services, box deliveries, and apps that bill on a monthly basis can add up to a significant sum. And, since these service providers typically bill automatically, you may not even be fully aware of what you are paying for each month, or that you may be overpaying for some of these services.
To cut your monthly bills, go through your statements and tally up everything you are currently paying for on a recurring basis. Can anything go? Could you get a better deal on some of these services? It never hurts to shop around or call up a service provider and ask for a lower price.
7. Not Investing Any of Your Money
You may think you have to be rich or an expert on stocks to start investing, but this is a common money misconception. And one that can leave you ill prepared for the future.
While investing can be intimidating (and does come with some risk), there are easy ways to get started. If you don’t want to do the work of picking and choosing investments, for example, you might start investing with a robo-advisor. These are digital platforms that provide automated investment services based on your goals and tolerance for risk. Robo-advisors are typically inexpensive and require low opening balances.
8. Not Planning for Retirement
When you don’t plan for retirement, you forgo the factor of time that is key to achieving your goals. Giving your investments a long time to grow is vital to having a nest egg you can retire on. If your employer puts any matching funds towards your retirement fund, that can be a valuable boost, too.
However, there is more to retiring than starting an IRA or contributing to a 401k. You’ll also want to consider when you want to retire, what kind of lifestyle you will want to lead, and how much money you will need. This can help you determine how much you should be putting away each month starting now.
9. Making Small but Unnecessary Purchases
An iced cappuccino here, a pay-per-view there. These little extras may not seem like a big deal, but they add up. Consider that spending just $50 a week eating out costs you $2,600 a year. That sum could go a long way toward paying off your credit card or car and help you take a big step toward achieving financial freedom.
To curb impulse buys and cut back on spending, you might want to set a weekly spending limit for “extras.” (Yes, you are earmarking some money for fun little splurges.) To keep to your limit, consider taking out that amount of cash at the beginning of the week and leaving your credit card at home. That way, when the money’s gone, you can’t spend any more.
10. Allowing Your Credit Score to Drop
A low credit score can keep you from obtaining competitive rates on loans and credit cards. It could block you from housing and employment opportunities. Poor credit can also be costly, since the financing options available to you will be more expensive.
To start building a better credit profile, you may want to put all your bills on autopay, so you never make a late payment. Paying down any credit card debt can also be helpful, since how much of your available credit you are using also factors into your score. If you have an old credit card you rarely use, it can be a good idea to still keep that account open, since the length of your credit history is another factor that impacts credit scores.
11. Not Making Budgeting an Important Priority in Your Life
Budget may sound like a bad word. But in truth, not tracking how much money you’re making versus how much you’re spending can be a bad financial decision with many repercussions, including never getting ahead and having constant money stress.
Making a budget, on the other hand, can mean the difference between staying in debt vs. getting out of it, remaining in your rental vs. becoming a homeowner, and working overtime vs. going on vacation. Convinced? You can start budgeting by assessing what’s currently coming in and out of your bank each month, and making a plan for how you want to allocate your income, making sure that some money goes to savings each month. There are multiple budget methods and apps; take some time to experiment until you find the right fit.
12. Financing Purchases Rather Than Saving for Them
While some purchases, such as a house, usually require financing, many others can be achieved through saving instead of going into debt. Whether you want a new laptop or a high-end refrigerator, financing can make a big purchase more expensive. Plus, the ease of buying on credit can make you think you can afford a lot more than your income allows.
A wiser strategy can be to determine what you want to buy, how much it will cost, and when you, ideally, want to get it. You can then start putting money aside each month and when you meet your goal, buy the item with cash.
13. Using Savings to Pay Off Debt
It may seem counterintuitive, but paying off debt with your savings is not always a good idea. Draining your bank account can leave you vulnerable to financial emergencies, causing you to plunge back into debt.
A better strategy can be to use a debt repayment method such as the snowball method. This involves putting extra money toward the smallest revolving debt balance each month, while continuing to make minimum monthly payments on your other debt. When the smallest balance is paid off, you can move on to the next smallest balance, and so on. This can help you start saving money right away and motivate you to keep going.
14. Withdrawing From Retirement Savings Early
It can be exciting to watch your retirement account grow throughout your career. And, it can be tempting to want to touch that money before you are officially “retired.” However, taking early distributions from your retirement account can be among the worst money mistakes you can make. For one reason, you will likely have to pay penalties and income tax on the amount you withdraw. For another, you will lose the opportunity to continue accruing gains on that money.
Remember: The main benefit of a retirement account is to let your money compound and grow over time. When you withdraw retirement funds early, you lose that opportunity to secure your future and take a big step backward.
15. Not Recognizing and Avoiding Scams
Yes, it’s getting harder to detect scams; they are becoming ever more sophisticated. And they prey upon both young and old consumers. To avoid scams, you’ll want to be suspicious of any text, email, or snail mail offer that seems too good to be true, and avoid clicking on any links in an email or text claiming to be from one of your financial institutions. If you receive this kind of message, a smart move is to call customer service or log onto your online accounts to see if the information in the email or text is correct.
Also beware of appeals with a sense of urgency; say, that you must pay a fee immediately to unlock your account or receive delivery of an important package.
Since scams are constantly evolving, it’s worth your time to search online every six months or a year to see what’s new and make sure you have your guard up as much as possible.
Tips for Recovering From Bad Financial Decisions
If you’ve made some poor financial decisions, you might feel embarrassed or scared. It can help to remember that one accident or blunder doesn’t spell doom for your finances forever. Here are some ways you can start turning things around.
Acknowledging Bad Financial Decisions and Taking Action
Even if you’ve made one of the worst money mistakes, a smart first step is to simply acknowledge your misstep, take a step back, and at first do nothing. A rash attempt to fix a problem can actually make it worse. Once you’ve accepted and assessed the damage, you can put a recovery plan into action.
Taking Steps One at a Time
Building your credit or paying off a mountain of credit card debt won’t happen overnight. And, if you set your sights too high, you might be tempted to give up before you even get started. A better bet is to break your larger goals into a series of small, achievable steps. Each time you accomplish one of these mini-goals, you’ll likely feel a sense of accomplishment. This can motivate you to save money and crush other goals, little by little.
Do Not Shame Yourself, but Forgive Yourself
Everyone makes mistakes. Even if you have been doing your best, it’s possible to have a credit card balance get out of hand or have your identity stolen after you accidentally click on a phishing text link.
Forgiving yourself is crucial to your emotional health and will help you take positive action to undo your mistake. A bad decision doesn’t have to define you; instead, it can be something you learn from and overcome. The mental energy spent beating yourself up can be better used to help address the problem.
Improving Your Money Mindset
If you have a positive money mindset, you will likely make better money decisions. Having a negative view, on the other hand, can keep you from setting goals and taking positive action. For example, if you think you will never get out of debt, you may not feel motivated to even try. However, putting a positive spin on the situation — that, with a plan, you will be able to one day be debt-free — can motivate you to start (and keep) attacking your debt.
The Takeaway
Though everyone tries to do their best with their money, mistakes happen all the time. No one likes losing money, but it’s vital to remember that one or even several financial slipups can be overcome by keeping a positive mindset and taking the recovery process one step at a time.
If you want to gain better control of your finances, help is available, starting with the right banking partner.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.
FAQ
What are the consequences of poor financial decisions?
Poor financial decisions can lead to a low credit score, lack of savings, and overreliance on debt. It can also make you vulnerable to financial emergencies and limit your access to loans and credit cards with favorable rates and terms.
Do bad financial decisions lead to bad financial habits?
Yes, if left unaddressed, bad financial decisions can lead to bad financial habits. Not putting money aside for emergencies, for example, can cause you to rely on your credit card to cover a large, unexpected expense, and lead to a cycle of high interest debt that can be hard to get out of.
Can bad financial decisions be overcome?
Yes, you can overcome bad financial decisions by identifying where you went wrong and coming up with a realistic plan to address the problem moving forward. You can also likely benefit from budgeting and managing debt well.
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
