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Protecting yourself against credit card hackers — criminals that engage in credit card fraud and identity theft — is a vital part of using your credit card responsibly. Understanding how credit card hacking works and the many ways thieves can gain access to your personal financial information can help you protect both your physical credit card and your digital credit card account information.

Read on to learn how to protect your credit card from hackers, as well as what to do if your credit card is hacked.

What It Means for a Credit Card To Be Hacked

A credit card hack occurs anytime your credit card or credit card account number falls into the wrong hands. That information is then used fraudulently to make purchases and/or to engage in identity theft.

Credit card theft can entail everything from stealing your wallet to hacking into large databases holding hundreds of thousands of credit card numbers.

Ways Credit Cards Can Be Hacked

Thieves use a variety of ways to get their hands on your credit card information. The biggest money scams in the U.S. are now done digitally through email, text messages, or fake websites. But there are still plenty of old-fashioned scammers who use snail mail, phone calls, and in-person ruses.

Here are some of the most common forms of both types of fraud:

•   Lost or stolen wallet containing credit cards. An old but still common trick for credit card thieves is to steal the physical card, then use it and the information it contains to make fraudulent purchases. In addition, if other personal information is included in your stolen wallet, such as your address and even your Social Security number, thieves can use your identifying information to set up other fraudulent credit accounts.

•   Phishing. Another common credit card hacking method is for a thief to attempt to get ahold of your credit card information through a phone call, text message, or email in which they impersonate a legitimate institution. For instance, a phishing email that appears as if it’s from your banking institution may entice you to click a link that takes you to a page where you’re then asked to enter your account information.

•   Dumpster diving. Criminals search through trash to find discarded statements, receipts, and other documents that contain your credit card number and identifying information such as your name and address. They then use that information to make fraudulent purchases or engage in identity theft.

•   Data breaches. Professional hackers can break into large retail, bank, financial, healthcare, social media, and other websites and steal reams of personal information that often include credit card and other personal financial information from thousands of users. The usual aim is to resell that data on the dark web. From there, criminal buyers use the data to commit credit card fraud and identity theft. If your data is on file at a breached site, you’re at risk.

•   Credit card skimmers. Thieves also can use gadgets that can extract your credit card information when you swipe it to pay or to withdraw money from an ATM. These most commonly are found at gas stations or on outside ATMs, though they’re becoming less common with the introduction of chip technology.

•   Inside jobs. Unscrupulous wait staff, store clerks, health-care billing workers, and others with access to credit card data may take a photo or otherwise copy your card information and use it to make fraudulent purchases. On a larger scale, sometimes these workers are part of a criminal ring that helps access financial data from thousands of individuals that’s then sold on the dark web.

•   Public Wi-Fi networks. Your credit card also may be vulnerable to a credit card hack if you use a public internet connection, which is why it’s important to follow cybersecurity tips. If someone is monitoring the network and you enter any sensitive information, such as your account information, a thief may be able to swipe it.

Protecting Your Physical Card

Although digital credit card theft is more common than ever, plenty of old-fashioned thieves are still out there and would like to get their hands on your physical card. So, it makes sense to stay diligent. Taking these steps can help:

•   Don’t reveal your physical card. Avoid giving your physical card to anyone, and never post photos on social media with your credit card showing.

•   Black out the security code on the back of your card. Instead, you can file it in your password manager or another safe place. If your card is stolen, it’s harder for thieves to use the account information for online purchases if they don’t have your security code.

•   Don’t sign your card. You can limit fraudulent in-person purchases if your stolen card is unsigned. You can write “See ID” in the blank area, then show your ID to store clerks in lieu of a signature. When a thief is asked for ID, they won’t be able to provide it, potentially preventing the transaction from going through.

•   Use a protective sleeve or wallet. These RFID-blocking layers can prevent your card from being read by a technical device.

•   Report lost or stolen cards immediately. If your card is compromised, make sure to alert your credit card issuer immediately. They will then close your card and issue a new one immediately. This is also a good idea if you’re notified that you’ve been part of a data breach.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Protecting Your Credit Card Account Information

In addition to your physical card, you need to protect your credit card data as well. Big credit card data hacks can mean your personal financial details and credit card account information are vulnerable. But there are steps you can take to protect yourself:

•   Only use reputable shopping sites. Often, fraudulent sites are set up as a ruse to collect credit card information. When you shop online, always buy from trusted merchants.

•   Avoid using your credit card when you’re on public WiFi. It can be easy for criminals to pick up your data when you’re using public internet networks. As such, you’ll want to avoid entering any personal or sensitive information while you’re using these networks, even if you’re on your own personal device.

•   Check your account frequently. Don’t just wait for your statement to arrive in your email every month. Get in the habit of regularly monitoring your credit card activity online, especially if you find your credit card keeps getting hacked. If you find a suspicious charge, report it immediately.

•   Be wary of phishing scams. You may get an authentic-looking email, text, or phone call asking for your credit card information. This may be a completely cold call or a data thief looking to fill in information they may not have for you, such as your expiration date or CVV security code. Never give your information to anyone asking for it. Banks, credit card companies, retailers, and other reputable places only take your information if you contact them.

•   Use smart passwords. Use strong passwords that include lowercase and capital letters, numbers, and symbols. Change your passwords frequently and remember that if it’s easy for you to remember, it’s probably easy for a thief to figure out. Password manager software can help you generate and keep track of strong passwords.

•   Sign up for two-factor authentication. With two-factor authentication, a one-time code is texted or voiced to your phone when you log into a financial account. This helps to ensure the account holder is the one logging on. Other types of secure authentication, such as face ID, are used by some organizations.

Recommended: Tips for Using a Credit Card Responsibly

Steps to Take When Your Credit Card is Compromised

If you think you were a victim of credit card fraud and/or identity theft, it’s important to act fast. The Fair Credit Billing Act (FCBA) limits your financial responsibility for credit card fraud to up to $50, so you won’t be on the hook for more than that in the case of bogus credit card charges that have led you to request a credit card refund. Even better, many major credit card issuers offer zero-dollar liability protection.

But if the thieves go on to use your personal information to commit other types of financial fraud, you may be liable. Acting fast will also help minimize the onerous work involved in untangling identity theft.

Here’s what to do if what to do if your credit card is hacked, or you see suspicious charges on your statement or other signs of fraudulent activity:

Contact Your Credit Card Company

As soon as you spot anything, call your credit card company. Tell them you think your card and card information is vulnerable and request a new card with a new account number. Most credit card issuers will comply right away (unlike if you were falsely disputing a credit card charge). However, you may be without a credit card for a bit while you wait for the new one to arrive.

Sign Up for Fraud Alerts

If you’ve received a letter or other notification that your personal data may have been compromised, you can place a fraud alert at all three credit bureaus — Equifax®, Experian®, and TransUnion® — that may be monitoring your account. This stops unauthorized individuals from accessing your account information for a year, at which point you can request for it to be renewed.

Freeze Your Credit

A stronger step than setting up a fraud alert is to freeze your credit. When you ask for a freeze, the three top credit reporting agencies will make sure no one can ask for your credit report without your approval. The downside: A freeze can make it more cumbersome for you to legitimately apply for new credit.

File a Police Report

If you’re a victim of credit card fraud, you may need to file a police report. You may need that documentation as you move through different steps to report identity theft and other fraud as you try to recoup your losses. Your credit card issuer can help you determine if a police report is necessary. You can also report the fraud to the Federal Trade Commission on its website.

Recommended: When Are Credit Card Payments Due

Credit Card Security and Fraud Protection

There are a number of steps that credit card companies can take to increase credit card security and curb credit card hacks. For instance, some credit cards have two-factor authentication to protect access to your account.

Credit card companies can also offer the option to freeze your card immediately. You often can do so through their website or via their app if you notice suspicious charges or other activity.

And, as mentioned previously, some credit card issuers offer a zero-liability policy. As long as you report unauthorized or erroneous card transactions no later than, say, 60 days after the first statement on which the problem occurred, the card issuer won’t hold you liable for any fraudulent charges.

The Takeaway

Credit card hacks can be costly, onerous, and time-consuming. But you can take steps to avoid hacks by protecting both your physical card and your online credit card information.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How can I protect my credit card from being hacked?

You can fight credit card hacking by checking your account regularly for any suspicious charges, being mindful of phishing scams, shopping online with caution, and keeping your physical card and your digital card information safe. If anything were to happen, make sure to report any suspicious activity as soon as possible and to use credit freezes and fraud alerts when necessary.

Can a hacker steal my credit card information?

Yes. Credit card hacks include stealing your physical card or credit card information and making fraudulent purchases directly with your account. Or thieves may use your stolen personal information to set up a new fraudulent account in your name. Credit card hacks also happen when thieves steal financial information from databases at large retailers, financial institutions, and other businesses.

Can hackers use a credit card without a CVV?

Yes, although it can be more difficult for hackers to use a credit card without a CVV. The CVV number is often requested in transactions that don’t occur in-person as an additional layer of security to ensure that the person actually has the physical card.

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Photo credit: iStock/Talaj

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.

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If you have a thin credit profile or want to build your credit, you may come across secured credit cards when searching for a card you can qualify for. But what’s the difference between a secured vs. unsecured credit card? And how can you gauge which one is right for you?

Here, delve into how both types of credit cards work and the differences between secured cards and unsecured credit cards, so you can decide which to choose.

What Is a Secured Credit Card?

Like a traditional, or unsecured, credit card, an unsecured credit card is a type of revolving loan. This means that it offers a line of credit that you can borrow from as needed and then repay. However, with a secured credit card, you’ll need to put down a deposit, which “secures” the credit card.

The bank holds onto that money as a form of collateral if you default on payments, but it’s refundable if you close your account or upgrade to an unsecured credit card. Your secured credit card’s credit limit, an essential part of what a credit card is, usually is the same amount as your deposit. The deposit is typically at least $200 to $500, though it can range as high as $25,000 depending on the specific card and how much you can afford to put down.

A secured credit card is designed for building credit. So, if you’re working on rebuilding your credit or don’t have much in the way of a credit history because you’re young or new to the country, it could be a good option. The age requirement to get a credit card that’s secured is the same as for an unsecured credit card.

How Secured Credit Cards Work

As mentioned, you’ll need to put in a deposit to open a secured credit card. Your available line of credit is usually the same amount as your deposit. Just like how credit cards work when it’s an unsecured card, you’ll need to repay the balance, and your credit limit will get replenished as you make payments.

As with an unsecured credit card, there’s a minimum monthly payment you’re responsible for. If you carry a balance from month to month, you’ll incur interest charges. Your credit card activity, including your payment history, is generally reported to the three major credit bureaus, Experian®, Equifax®, and TransUnion®.

Your deposit on a secured credit card isn’t used to make payments should you fall behind or miss payments altogether. If you’re unable to make payments and your account goes to default, you’ll lose your deposit. Plus, it can hurt your credit. If the balance you owe is larger than the deposit, you might be on the hook for the difference owed.

Secured credit cards may offer a “graduation” option. In other words, if you make on-time payments and show a track record of responsible financial behavior, the credit card issuer might offer you an unsecured credit card.

Recommended: Tips for Using a Credit Card Responsibly

Pros and Cons of a Secured Credit Card

Let’s look at some of the advantages and downsides of a secured credit card:

Pros of a Secured Credit Card	Cons of a Secured Credit Card
May qualify with a low credit score or limited credit history	Need to provide a deposit
Could be easier to get approved for than an unsecured credit card	Credit limit is usually low
Can be a way to build or rebuild credit as activity is reported to credit bureaus	Can have higher interest rates and more fees than secured credit cards
Offers a revolving line of credit you can use as long as you make payments	Could lose your deposit if you’re late or miss payments

What Is an Unsecured Credit Card?

Also known as a traditional credit card, an unsecured credit card doesn’t require a deposit or collateral of any sort. Instead, you’re offered a credit limit based on your creditworthiness and other factors, such as your income and existing debt. The lender simply has your word that you’ll pay back what you borrow, which is why you’ll also generally need a higher credit score and a more robust credit history to qualify.

Just as with a secured credit card, the credit remaining on an unsecured credit card dwindles as you rack up a balance. Once you make a payment, your limit replenishes. For example, say your credit limit is $5,000. If your balance is $500, your credit limit goes down to $4,500. Once you pay off your balance, your credit limit goes back up to $5,000.

The annual percentage rate (APR) and terms associated with an unsecured credit card are usually better than they are for a secured credit card. Typically, the better your credit score, the better your rates and terms are for an unsecured credit card. The average credit card APR is currently 22.3%; meanwhile, many of the top secured credit cards have APRs that are close to 30%.

How Unsecured Credit Cards Work

Because an unsecured credit card is a form of revolving credit, you have access to that credit line as long as you remain in good standing and your account stays open. Unsecured credit cards also require you to make minimum monthly payments to avoid incurring late payment fees and harming your credit score. You’ll owe interest on any balance that carries over from month to month.

Sometimes, unsecured credit cards might offer perks, such as cash-back rewards and travel insurance.

Pros and Cons of an Unsecured Credit Card

Here are some of the pros and cons of traditional, or unsecured, credit cards:

Pros of an Unsecured Credit Card	Cons of an Unsecured Credit Card
Higher credit limits compared to secured credit cards	Can be harder to get approved for
Need at least a fair credit score to qualify (580+)	Can still incur interest and fees
Can help you build your credit	May entice you to spend more than you can afford due to higher credit limits
Opportunity to earn rewards and enjoy other benefits	Could damage your credit if not used responsibly

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Similarities Between a Secured Credit Card and an Unsecured Credit Card

When it comes to a secured credit card vs. an unsecured credit, there are a number of similarities:

•   Both are revolving lines of credit, so you’ll have access to those lines of credit as long as you keep the card open and your account in good standing.

•   Your payments are reported to credit bureaus. If you make on-time payments, your credit score will improve. Conversely, it can drop if you don’t use your credit card responsibly.

•   The process of how to apply for a credit card is usually similar with a secured vs. unsecured credit card. You can usually fill out an application online, in person, over the phone, via an app, or through the mail.

•   Both secured and unsecured credit cards come with interest rates and fees. Depending on the card, there might be an annual fee.

•   Both types of credit cards usually offer a grace period, which is the period between when your billing cycle ends and your payment due date. During this time, you may not be charged interest as long as you pay off your balance in full by the payment due date.

•   While it’s less common among unsecured credit cards, both types of credit cards might feature perks, such as cash-back rewards, car rental insurance, trip and travelers insurance, extended warranties, and price protection.

Recommended: What is a Charge Card

Differences Between a Secured Credit Card and an Unsecured Credit Card

There are a handful of features that set these types of credit cards apart:

•   For starters, secured credit cards require a security deposit, whereas unsecured credit cards do not.

•   The credit limit for a secured credit card usually matches the deposit amount. With unsecured credit cards, the credit limit usually depends on a handful of factors, such as your creditworthiness.

•   Secured credit cards generally carry higher interest rates and fees, whereas unsecured credit cards typically have lower interest rates and fees.

•   Unsecured credit cards usually have one variable interest rate, meaning the card’s interest rate fluctuates over time based on an index. Secured credit cards can have a fixed or variable rate.

Secured vs. Unsecured Credit Card: Which Is Right for You?

Now that you know the similarities and differences between a secured and unsecured credit card, you can start to assess which one might be right for you. Here’s a high-level overview to help you better compare what sets secured vs. unsecured credit cards apart:

Secured Credit Card	Unsecured Credit Card
Requires a deposit to open	Does not require a deposit
Usually available for those with thin credit histories or lower credit scores	Usually need at least fair to good credit to qualify
Lower credit limits, which are based on the amount of the deposit	Higher credit limits, which are based on creditworthiness
Fewer card options available	Variety of card options, such as cash-back cards, travel cards, business cards, and retail cards

Staying on Top of Your Credit After Choosing a Card

No matter if you decide on a secured credit card or an unsecured credit card, it’s important to stay on top of your payments. Ideally, you’ll pay the balance in full each billing cycle. Otherwise, you’ll owe interest.

At the very least, make sure to make the minimum payment each month. That way, your credit will stay intact and you’ll avoid late fees. If you’re struggling to make payments, reach out to the lender and see what they can do. They might be able to change the payment due date so it’s more in line with what’s feasible for you, or let you temporarily skip a payment to catch back up.

Recommended: When Are Credit Card Payments Due

The Takeaway

Whether you should apply for a secured credit card and an unsecured one may depend largely on your credit history and score. A secured card may be best if you have yet to establish credit or have a low credit score, while an unsecured card can be beneficial if your credit is more established and you want to earn rewards.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Is an unsecured or secured credit card better?

Whether a secured vs. unsecured credit card is better depends on your situation. An unsecured credit card might be better if you’re having trouble getting approved for a secured card and can afford to make the deposit. On the other hand, a secured credit card may be better if you have at least an average credit score, are looking for a higher credit limit, and would like more card options.

Should your first credit card be secured or unsecured?

It really depends. If you have a thin credit history, are looking to build credit, and can afford the security deposit, a secured credit card might be the best route to take as they’re generally easier to qualify for. Note, however, that you’ll probably need to stomach a higher interest rate and a lower credit limit. While an unsecured credit card doesn’t require a deposit, it might be harder to get approved for one if your credit is less-than-stellar or you don’t have much of a credit history yet.

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Photo credit: iStock/cesar fernandez dominguez

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Thinking about refinancing your mortgage? Even in a tough interest rate environment, there are scenarios where refinancing makes sense. In each instance, you’ll want to do your research to ensure the changes to your mortgage meet your financial goals.

To help clarify your goals with refinancing your mortgage, we’ve compiled the following questions to ask when refinancing a mortgage. By the end of this article, you should have a good idea of what you’ll want to change with your mortgage to help meet your financial goals.

20 Questions to Ask When Refinancing a Mortgage

1. Should I switch lenders?

It’s possible another lender could offer you better rates and terms, but it’s a good idea to check with your current lender. Your current lender will want to keep your business and may have incentives to offer you. In any case, shopping around when you’re refinancing is a good idea, and will only count as a single inquiry on your credit if you can do it within 45 days.

2. Can I switch loan types?

Changing your loan type could be an advantageous move. If you have an FHA loan, for example, you’ll always be paying mortgage insurance. A mortgage refinance to a different loan type can eliminate the mortgage insurance payment and save you money.

You do have to counter that with the possibility that the interest rate may be higher than your current mortgage rate, offsetting the savings. Be sure to do the math to make sure it’s a smart move.

3. What’s my new interest rate?

Refinancing a mortgage loan means you’ll get a new interest rate, which could be higher or lower than your previous mortgage. You may have heard it only makes sense to refinance when interest rates are lower than what you currently have. In many cases, that’s true, but if you need a large sum from a cash-out refi, need to remove a borrower from the loan, or have another situation where refinancing is necessary, you’ll still want to shop around to get the best interest rate possible.

4. What is my interest rate type?

When you refinance, you’ll have the option to change your rate type. The choice is usually between adjustable-rate mortgages (ARM) and fixed-rate interest types. With an adjustable-rate mortgage, you may initially have a lower rate, but the rate can change with market conditions. A fixed-interest rate mortgage stays the same for the life of the loan.

5. What’s my new term length?

Refinancing a loan could bring a new term length. If you want to pay your mortgage off faster, a 15-year mortgage could work. If you need to keep your monthly payment low, you may want to opt for a 30-year mortgage. If you can manage a slightly higher monthly payment, the 15-year mortgage is a great way to save money long-term.

6. What’s the new payoff date?

Take a look at the proposed new payoff date. Where do you imagine yourself being in your life at that point? Are you comfortable if you have to stretch the payoff date further into the future? Or does a quicker payoff fit better with your future plans? Consider how much the change will cost and whether you’re willing to accept that.

7. Will I be paying mortgage insurance?

Mortgage insurance is one of the fees on your mortgage you should get rid of as soon as you can. It only serves the lender, and if you have 20% equity or more, you should be able to drop it (sometimes without a refinance, depending on your loan type). If you’re refinancing and don’t have 20% equity, you’ll get a new mortgage and still need to pay mortgage insurance.

8. What closing costs will I pay and how much will they be?

You might be wondering what the fees for refinancing will be, or even, “Can I refinance for free?” The best answer lies with your lender. When you’re comparison shopping, get a loan estimate, which will disclose the interest rate, monthly payment, closing costs, and estimated costs for taxes and insurance for your new loan.

There are lenders that offer no-closing-cost loans, usually in exchange for higher interest rates or by adding closing costs to the loan. Compare these expenses to closing costs to see which is a better deal.

9. What will my new payment be?

Your mortgage payment will likely change, sometimes significantly depending on the interest rate you qualify for and the term that you choose. To get a good estimate of how that could change, use a mortgage calculator.

10. Can I afford the new payment?

Evaluate how the new payment fits in your monthly budget. If it’s too affordable, you may want to consider a 15-year loan. If it’s too much of a stretch, consider whether you really want or need to make a change.

11. Will I save any money?

The only way to know if you’re going to save any money on a refinance (if that’s your goal) is to:

•   Calculate how much the mortgage is going to cost in total. The Consumer Financial Protection Bureau (CFPB) advises consumers to look at the cost savings of your monthly payment versus how much the loan will cost you in total. Even if you can get a lower interest rate and lower monthly payment, you could end up paying more for the mortgage if the mortgage term is longer.

•   Calculate your break-even point. You can do this by dividing the closing costs by the amount you’ll save every month. If your closing costs are $4,000, and you’ll save $200 every month, then your break even point is 20 months. If you plan to stay in the home at least 20 months, then the amount is probably worth it if the total cost is also acceptable to you.

12. Can I refinance if I have less than 20% equity?

You can refinance if you have less than 20% equity, though you’ll still need to find the right loan and the right lender. You’ll have fewer options, as most lenders do look for 20% equity for refinanced loans. You may want to consider other financing methods where you can get equity out without refinancing.

13. Can I refinance without a credit check?

There are programs that offer refinancing without a hard credit check in all loan types, including: conventional, FHA, USDA, and VA. Take a look at the chart below for details on programs, qualifications, and what limitations you may encounter:

Program name	Who and what qualifies?	Limitations
FHA Streamline	FHA-insured properties that are not delinquent	Cash out limited to $500, may have higher interest rate
Fannie Mae RefiNow	One-unit primary residences for borrowers at 100% or less of the area median income with up to 65% debt-to-income (DTI) ratio	Cash out limited to $250, fixed-rate loans only
Freddie Mac Refi Possible	One-unit primary residences for borrowers at 100% or less of the area median income with up to 65% DTI ratio	Cash out limited to $250, fixed-rate loans only
USDA Streamline Assist	USDA mortgages with no delinquent payments for 12 months prior	Income limits, must reduce the monthly amount by at least $50 to qualify
VA IRRRL	For existing VA loans that have been owner-occupied at one point	No cash out, cannot pay off a second mortgage, may pay closing costs

14. Can I refinance multiple times?

It is possible to refinance multiple times, provided the numbers work out. You’ll need to qualify with your income, debt-to-income (DTI) ratio, and credit score each time. Keep in mind that the cost of refinancing each time may not make sense, so be sure to work out the numbers and consult with your lender on a solution that works for you.

15. How do I prepare for a refinance?

The best way to prepare for a refinance is by getting your finances in order. Check your credit score, your home’s value, and pay off debt where you can. Your personal qualifications are the biggest factor in getting a refinance with the best rates and terms.

16. What’s the purpose for the refinance?

You may be considering a refinance for any number of reasons, including to secure a lower interest rate, consolidate your debts, to take a cosigner off the loan, to pay off the loan sooner, to get rid of mortgage insurance, to change loan types, or to change interest rate types. If you are refinancing to pay for major expenses, consider that a home equity line of credit (HELOC) may be another option.

Recommended: What Is a Home Equity Conversion Mortgage?

17. What are you sacrificing for this refinance?

Are you sacrificing a great interest rate so you can remodel the kitchen (and is that OK with you)? Are you pulling equity out of your home to give your monthly budget some breathing room? How much more will you pay over the life of the loan if you refinance? When you understand how amortization affects what you pay for the whole mortgage, it can help you make decisions that are better for your long-term financial health.

18. How does the refinance bring you closer to your financial goals?

A refinance should help you with your money or life. If there’s no benefit, you can walk away. If your goal is to separate your finances from a former partner, a refinance is essential to getting you closer to your goals. If your goal is to update your home, a refinance may be able to help you do that. Think about your goals, financial and otherwise.

19. Do I need cash out?

If you want cash refunded to you when you refinance with a new mortgage, you’ll want a type of loan called a “cash-out refinance.” You can use the cash to pay off debt, finish your basement, cover the costs of adoption, start a business, buy a boat, or nearly any other purpose you can think of. The CFPB does advise consumers to be judicious when taking cash out of their home equity.

20. Is this the right time to refinance?

There’s never going to be a perfect time to refinance, even when interest rates drop. But if your finances qualify you for a refinance and you’re ready to meet your next financial goal, then it might be a good time to refinance.

Why Asking These Questions Is Important

There are a lot of questions here, but if you’re clear on what you need and want, the refinance process will go more smoothly when you begin to work with your lender. You’ll be able to:

•   Understand what options are available to you

•   Grill your lender on important details

•   Comparison shop and get the best deal

•   Understand how a refinance will affect your finances

Deciding Whether to Refinance Your Mortgage

Refinancing your mortgage can be a great financial move, but it’s not right for everyone. Even after figuring out what you need and evaluating the options out there, you still might be worried about whether you’re making the right move or not.

That’s normal. A good lender can help answer any additional questions you have when refinancing your mortgage. They can help you see the different options available to you and what financial implications they may have.

Recommended: How to Get Equity Out of Your Home

The Takeaway

It can sometimes feel like there are as many reasons to refinance your mortgage as there are lenders willing to give you a loan. Asking yourself these questions can help you pinpoint whether a refinance is right for you, right now, given your specific financial and life circumstances.

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.

A new mortgage refinance could be a game changer for your finances.

FAQ

What is not a good reason to refinance a mortgage?

An interest rate drop isn’t by itself a good reason to refinance a mortgage. Refinancing should help you meet your overall financial or life goals. It won’t make sense in every situation, so it’s important to evaluate how changes in your monthly payments, loan term, and overall amount paid (including closing costs) will affect your finances over the long term.

What is a good rule of thumb for mortgage refinancing?

If it helps you meet your financial goals, a refinance could make sense. You may need a cash-out refinance to pay for a new roof. Or you may want to refinance to a shorter term with a better interest rate so you can pay down the home faster. Those are examples of how refinances can improve your financial situation.

What should you look out for when refinancing a home?

When you’re refinancing a mortgage, ideally you want it to benefit you financially. Bear in mind that a new mortgage with a lower monthly payment could still cost you more over time if you extend the loan term.

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Photo credit: iStock/dusanpetkovic

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

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Your home equity could be a powerful tool for helping you meet your financial goals. If you need to pay for an extensive renovation, fund adoption expenses, or supplement your retirement income, there are many ways you could extract equity from your home in order to better your life.

But how exactly do you get the equity out of your home? What are the best methods that are affordable and make sense for your situation? Whether you’re thinking of a cash-out refinance, a home equity loan, or another option, you’ll want to carefully evaluate the costs, risks, and impact on your financial situation.

We have you covered. We’ll go over how to get equity out of your home, the different methods for accessing the equity in your home, and the pros and cons of each.

What Is Home Equity?

Home equity is the amount of total ownership you have in your home over what you owe on your mortgage. It is the amount you would receive if you were to sell the home today.

Equity is best expressed mathematically. To calculate your home equity, subtract your outstanding mortgage amount from your home’s current market value:

Home’s value – your mortgage = equity

For example, if your home is worth $500,000 and your mortgage is $300,000, you would have $200,000 in equity ($500,000 – $300,000 = $200,000).

5 Ways to Take Equity From Your Home

If you’re ready to take the next step and seriously consider taking some equity out of your home, you have five main options, including: a home equity loan, home equity line of credit (HELOC), cash-out refinance, home sale, and equity-sharing arrangement.

Home Equity Loan

If you’re looking at pulling equity out without refinancing, a home equity loan or a HELOC is the move you’re going to want to make. A home equity loan offers a low interest rate because it uses your home’s equity to secure the loan. Because of the way it works, you may have access to a larger sum of money at a lower interest rate than you would if you used another source, such as a credit card.

Home equity loans disburse funds upfront. The loan would have a fixed interest rate and a set repayment plan. You’ll start repaying the loan from your first payment (vs just paying interest for some period of time).

The main negative with a home equity loan is that it uses your home as collateral. If you fail to make payments, the lender could start foreclosure proceedings against you. Another drawback is that if you don’t need all the money you’re borrowing at one time, you are getting it all nonetheless, as a lump sum, and you’ll be paying interest on that full amount.

HELOC

A HELOC is another type of home equity loan secured by your home’s equity, with the main difference being that the amount you borrow is more flexible. With a HELOC, you apply for a loan with a maximum amount. If approved, that maximum amount becomes like a credit limit. You borrow what you need when you need it, and when you repay what you have borrowed, the full credit limit becomes available to you once again.

One advantage of a HELOC is that you only need to make payments on what you’ve borrowed. This minimum payment is determined by your lender when you apply for the loan, but is usually a lower amount during the initial draw period.

Cash-Out Refinance

Another option for accessing your home’s equity is through a cash-out refinance. This is where you replace your existing mortgage with a new, bigger mortgage and take the difference in cash.

It works if interest rates are great and you have a significant amount of equity in your home. (Most lenders will only allow you to borrow up to 80% of your home’s equity, especially if you want a good rate.) As a quick example: If your home is worth $300,000, the lender may be able to loan out $240,000. If your existing mortgage is $200,000 and you get the full $240,000, then approximately $40,000 (less any closing costs) could be refunded to you.

Sale

When you sell your home, all of the equity that you have accumulated — less the costs associated with the sale — can be converted to cash. There is also the possibility for you to enter into a sale-leaseback arrangement. This is where you sell your home and then lease it back from the new owner. Just as with a sale, you gain access to almost all of the equity you’ve accumulated over the years. You also get to stay in your home, provided you find the lease agreement acceptable.

Equity Sharing Arrangement

With an equity sharing arrangement, the homeowner enters into an agreement with a company that provides some money to the homeowner in exchange for a percentage of the home’s appreciation. The company is essentially an investor that bets on the value of your home rising.

There typically isn’t a monthly payment. The investor gets their money back when you buy them out or sell the home.

The main thing to look out for with this option is how much the investor asks in return for the loan. The long-term costs for this option could potentially be significant — usually 10% equity or more.

Pros and Cons of Using Home Equity

After looking at all of your options for accessing the equity in your home, the pros and cons of the methods look like this:

Home Equity Loan
Pros	Cons
Access to large amounts of cash	Home is used as security on the loan
Low interest rates	Home equity lending takes time
Large, upfront sum	Longer loan terms could mean you’ll pay more
Fixed interest rate and repayment schedule	Not very flexible
HELOC
Pros	Cons
Access to large amounts of cash	Home is used as security on the loan
Low interest rates	Home equity lending takes time
Flexible loan amounts	Longer loan term could mean you’ll pay more
Flexible repayment	Adjustable interest rate
Cash-Out Refinance
Pros	Cons
One loan payment for home mortgage plus cash you are borrowing	Must pay closing costs for a new mortgage
Access a large amount of cash	May have a higher monthly payment
Could potentially get better loan terms	Potentially higher rates
Home Sale
Pros	Cons
Access 100% of your home’s equity	No longer own the home
No need to qualify for a new mortgage or home equity loan	Must pay selling costs
No home maintenance costs	May need to find additional housing
Equity Sharing
Pros	Cons
No monthly payment	You won’t realize all the equity gains of your home
Don’t need to pay back until you sell the home or buy the equity back	Equity sharing percentage could be quite large
May not need good credit to qualify	Need sufficient equity to qualify
Shared risk	Complex agreements

How to Get Equity Out of Your Home

If you’ve made up your mind to extract some equity from your home, the process looks something like this:

Determine how much equity you have in your home

To figure out how much equity is in your home, start with a good estimate of your home’s market value. A real estate agent or assessor can provide this for you. Online estimates can get close, but they won’t be as accurate. The more accurate (and unbiased) an estimate you can get, the better you’ll be able to gauge how much equity you have. Use the formula from above (home value – your mortgage = estimated equity).

Decide how to take equity out of your home

Examine the list above to determine which means of accessing the equity in your home feels right for you, whether it be a home equity loan, HELOC, home sale, or other method.

Shop around for a lender

If you elect to extract equity with a cash-out refi, HELOC, or home equity loan, you’ll need to look for a lender that offers competitive rates and terms for what you want. Comparison shopping is a good idea; keep in mind shopping around won’t count against your credit if you do it within a 45-day window.

Qualify for a loan

Once you’ve narrowed down your choice of lenders, submit a full application. Your lender will start reviewing your documents to verify income, employment, identity, and loan details. The lender will also check your credit score and debt level to ensure you qualify for the loan.

Get an appraisal

Your lender will order the appraisal for your loan, which is necessary to determine the exact value of the property and how much equity you have in the home. It’s pretty common to be able to get a desktop appraisal or use an automated valuation model (AVM) to determine the value for a home equity loan or HELOC. (An appraisal will also likely be needed if you sell your home or enter into an equity-sharing arrangement.)

Close on the loan

After an underwriter has reviewed your file, the lender will send loan documents for you to review and sign. If there are any closing costs, you may be directed to bring funds to closing.

Receive funds

Money from the loan will be deposited into an account of your choosing.

Which Method of Getting Equity Out of Your Home Is Best for You?

The best method for taking equity out of your home depends on your goals. Do you need the largest amount of money while maintaining ownership of the home? Perhaps a cash-out refinance is for you. Do you like the idea of having a flexible line of credit that you can use when you need it? A HELOC might suit your needs. Do you want to access 100% of your equity and not be responsible for the costs of homeownership anymore? Then perhaps selling your home is the answer.

If it fits with your life plans, then it will make the best sense financially, even if there’s another method that may offer a lower interest rate.

The Takeaway

When you’re planning to get equity out of your home, the most important thing to take into consideration is how you’re going to use it. Since taking equity out of your home usually means you’ll be paying on the loan longer, you’ll want to carefully consider which method helps you meet your financial goals.

SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.

Unlock your home’s value with a home equity line of credit brokered by SoFi.

FAQ

Is it a good idea to take equity out of your house?

Taking equity out of your home typically means you’ll take longer to repay the loan (though not always — it depends on the terms and rates of your loan). Even if you get a lower interest rate and lower monthly payment, a longer loan term could mean that you’ll pay more for your mortgage because of the added years you’ll have on the mortgage.

How do you pull equity out of your home?

To pull equity out of your home, you’ll need to get in contact with a lender that offers financial tools that can grant you access to your equity. These may include home equity loans, HELOCs, or cash-out refinances. You may also consider selling your home or getting into an agreement with an equity-sharing company.

What is the best way to release equity from a house?

The best way to pull equity from your house is the one that helps you meet your financial goals. If you need to remodel your home and you know exactly how much it is going to cost, a home equity loan may work best. But if you want simplified finances, a single payment from a cash-out refi could be the answer.

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Photo credit: iStock/Korrawin

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

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.

^²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.

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A credit card number — that long string of digits on the front or back of every credit card — contains more information than you might think. Though credit card numbers may seem rambling and random, each digit actually has a specific purpose and place. The number you see on a credit card provides information about the individual account holder, the payment network, and the card issuer. It also uses a special formula to help prevent transaction errors and fraud.

Here, gain a deeper understanding of the significance of each digit.

What Is a Credit Card Number?

A credit card number is a set of digits — usually 16 — that’s printed on the front or back of a credit card.

It’s important to note that your credit card number is not the same thing as your account number. Your credit card number includes your account number, but it has additional digits (an account number typically has 12), and it provides more information. When you make a credit purchase online or on the phone, you can expect to be asked for your full card number to authenticate the transaction.

Though the information provided by every credit card number is basically the same, the format may differ a bit from card to card: Sometimes the numbers are raised; sometimes they’re flat. And generally, although not always, the digits are divided into four sets of four (xxxx xxxx xxxx xxxx).

The format for credit cards and debit cards is similar — which is why you might pull out the wrong card from time to time.

Who Decides What Your Credit Card Number Is?

Your credit account number is assigned by the financial institution that is your credit card issuer. But the structure and sequence of the digits in your credit card number must follow a rigid set of standards imposed by the International Organization of Standardization (ISO) and enforced by the American Network of Standards Institute (ANSI).

All card issuers follow these rules, so consumers can use their cards or card numbers no matter where they are in the world.

Credit Card Number Structure

Even if you know what a credit card is and how credit cards work, you may not be familiar with what the numbers on your card mean. Though most credit card numbers have 16 digits, the length may vary. Of the four major card networks, Visa, Mastercard, and Discover card numbers all have 16 digits, while American Express card numbers have only 15. Here’s what those digits actually mean.

The First Number: Industry Identifier

The first digit in a credit card number is known as the Major Industry Identifier (MII), and it can tell you both the industry associated with the card and the payment network.

Payment Network

Most credit cards start with a 3, 4, 5, or 6. These numbers represent the major payment networks, each of which has its own identifier:

•   American Express cards begin with a 3

•   Visa cards begin with a 4

•   Mastercard cards typically start with a 5, but may start with a 2

•   Discover cards start with a 6

Knowing your credit card’s payment network can be useful, because the network determines which merchants will accept the card. Your favorite local market or small boutique might accept credit card payments with a Mastercard, Visa, or Discover card, for example, but they may not let you pay with American Express.

Recommended: When Are Credit Card Payments Due

Industry Association

There are many different types of credit cards. Some credit cards are meant for general use, while others may be geared to a more specific purpose. The MII can tell you which type of industry your card is most associated with. Here’s what some MIIs generally mean:

•   1: Airlines

•   2: Airlines and financial

•   3: Travel and entertainment

•   4: Banking and financial

•   5: Banking and financial

•   6: Merchandising and banking

•   7: Petroleum

•   8: Health care and communications

•   9: Government and other

The Next 5 Numbers: Identification Numbers

The next five digits complete the Bank Identification Number (BIN), or Issuer Identification Number (IIN). This can tell you who the card issuer is.

The credit card issuer is the financial institution that offers the card and manages your account. Some of the largest credit card issuers in the U.S. include American Express, Bank of America, Capital One, Chase, Citi, Wells Fargo, and Discover.

When you apply for a credit card, it’s the issuer who accepts or declines your application. When you make a purchase, you’re borrowing money from the credit card issuer, and when you pay your bill, you’re paying back that money. Any time you check your balance, request a higher credit limit or a lower interest rate, or obtain a replacement card, you’re doing it through your credit card issuer.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

The Next 9-12 Numbers: Account Identifier

The remaining digits on the card — except for the very last one — identify the account and the cardholder.

Don’t worry, there isn’t a secret indicator in your card number that tells people how often you’re using your credit card or if you’re paying your bills on time. This part of your card number simply represents what account the card is connected to.

If your card is lost or stolen, or your card number is compromised in a credit card scam, you may notice that the number on your replacement card has changed, even if your account number hasn’t. So if you’re keeping a list of card numbers in a secure place, you may have to update that card number.

Recommended: Tips for Using a Credit Card Responsibly

The Last Number: Checksum

The last digit of a credit card number is referred to as the “checksum” or “check digit.” Card issuers and payment networks use it to catch errors and help protect against unauthorized card use. (Let’s face it: Even if you follow all the so-called credit card rules, things can happen.)

When a card is used for a purchase or payment, this digit is used as part of a mathematical formula called the Luhn algorithm to verify the card’s validity. If the checksum doesn’t work, the transaction is quickly rejected. (If you’ve ever mistyped your card number when shopping online, you’ve seen this algorithm in action.)

Most major networks use the final digit as the checksum. However, if you have a Visa credit card, it may be the 13th digit.

What About the Other Numbers on the Card?

Besides the card number, there are two other sets of digits that also can play a critical role when you use your credit card.

Card Verification Value (CVV)

The Card Verification Value (or CVV number on a credit card) or Card Verification Code (CVC) is also used to protect the card owner. If you do a lot of online shopping, you’re probably very familiar with this three- or four-digit number, which usually is found on the back of a credit card near or inside the signature strip.

On some cards, there may be seven digits in this spot. If this is the case, the first four digits you see are the last four digits of your credit card number. The last three digits in the grouping represent the CVV.

If you have an American Express card, the CVV is a four-digit number located on the front of the card, just above the logo.

The CVV is designed to help protect against identity theft. If you aren’t presenting your card in person during a transaction (because you’re using it online or over the phone), providing the CVV can help prove you’re in possession of the physical card.

Expiration Date

The expiration date offers yet another layer of protection for the card holder. Most businesses require that you provide the credit card number, the CVV, and the card’s expiration date when you make an online purchase.

The credit card expiration date typically appears on the front of the card with two digits for the month and two digits for the year (xx/xx). But if the account number is printed on the back of the card, you’ll likely find the expiration date there.

Even if you never need to use it to make a remote purchase or payment, it can be a good idea to glance at your card’s expiration date from time to time. That way, you can ensure you always have a current card in your wallet.

You’ll also know when it’s time to watch for the arrival of a replacement card. If a new card doesn’t arrive in the month the old card expires, you can call the issuer and immediately take steps to protect yourself if it appears the card has been lost or stolen. (The phone number for customer service is also on your card.)

The Takeaway

At first glance, the number on your credit card might look like a meaningless jumble. But if you take a closer look, you’ll find each digit has a purpose — to provide information, to help keep your account secure, and to make the card more user-friendly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Where do I find my credit card number?

Your credit card number may appear on the front or back of your credit card.

Is the credit card number the same as the account number?

No, the two numbers are linked, but they are not the same. Your credit card number includes your account number, but it has more digits, and those extra digits are important to how each transaction is processed.

How long is a credit card number?

A credit card number typically has 16 digits, but the number can vary. American Express uses a 15-digit format for its credit cards.

Can a credit card number be stolen?

Yes. A credit card number can be stolen in multiple ways: through the theft of a physical card, during a data breach, with a card skimmer, or if the cardholder uses an unsecured website or public Wi-Fi when making a credit transaction.

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Photo credit: iStock/max-kegfire

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.

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