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If you already have a personal loan but need more funds, you may wonder if you can take out another one. Some lenders will approve you for a second personal loan if you stay under their maximum borrowing cap. You may also be able to get a new personal loan from a different lender, provided you meet their requirements. Already having a personal loan, however, could make it harder to get approved. 

Read on to learn more about how many personal loans you can have at once, how stacking personal loans can impact your credit, and alternatives to consider.

Can You Have More Than One Personal Loan at Once?

Technically, there is no limit on how many personal loans you can have. Whether you can get approved for a second, or third, personal loan will depend on the lender and your qualifications as a borrower. 

Some lenders limit the number of concurrent personal loans you can have to one or two. They might also restrict you to a maximum borrowing amount (such as $50,000) across all of the personal loans you hold with them. 

If you’re maxed out with your current lender, you may be able to get a new personal loan with a different lender. Generally, lenders don’t reject applicants solely due to having an existing loan. However, they may decline approval if they feel you carry too much debt and might struggle to make an additional payment.

Does It Ever Make Sense to Have Multiple Loans?

There are some situations where it can make sense to have more than one personal loan. If you took out a loan to consolidate credit card debt, then got hit with an unexpected medical or car repair bill, for example, you may be better off getting a second personal loan rather than running up new and expensive credit card debt. Before taking out another personal loan, however, it’s worth checking to see if you might qualify for a lower-cost way to borrow money (more on that below).

If you’re looking to get another personal loan to bridge a gap between your spending and income, on the other hand, taking on additional debt could add to the problem. You may be better off looking at ways to reduce expenses and pay down your existing debt.

Ways Multiple Personal Loans Can Affect Your Credit

Having multiple personal loans can have both negative and positive impacts on your credit. Any time you apply for new credit, the lender will do a hard pull on your credit, which can cause a small, temporary dip in your scores. Multiple hard credit inquiries in a short period of time, however, can significantly harm your credit. Late or missed payments can also negatively affect your credit score. 

On the plus side, taking out a new personal loan and handling it responsibly (by making on-time payments) can positively influence your credit over time. 

Other Potential Complications

Here’s a look at some other ways that having multiple personal loans can affect your finances.

•   Multiple payments: A new personal loan means a new monthly payment. Before you add to your debts, it’s a good idea to review your budget to ensure you can manage an additional monthly loan payment.

•   Debt-to-income ratio: Each personal loan impacts your debt-to-income ratio (DTI). This ratio measures how much of your monthly income goes toward current debt. A higher DTI can make it harder to qualify for other types of loans, such as a mortgage, in the future.

•   Higher interest rates: A lender could approve you for an additional personal loan but at a high annual percentage rate (APR) because of your existing debt.

Getting Multiple Loans From the Same Lender

Before applying for an additional personal loan from your current lender, it’s a good idea to check their policies. Some lenders limit the number of outstanding personal loans you can take out at one time or cap the total amount you can borrow. In addition, some lenders require that you make a certain number of consecutive on-time payments (such as three or six) toward an existing loan before you can apply for another loan.

If you believe you’ll meet the lender’s requirements for a second personal loan — and you feel comfortable making the additional monthly payment — getting an additional loan from the same lender could be a smart strategy.

Qualifying for Another Personal Loan

If you apply for a personal loan with another lender, you won’t have to worry about a cap on the number of loans you have or the combined amount you can borrow. However, you will have to go through the whole application process, and the lender will likely perform a hard credit check.

You can get an idea of whether or not you’ll get approved for an additional personal loan by calculating your current DTI. To do this, simply add up all your current debt payments, including any auto loans, mortgage, credit cards, and student loans. If that number comes close to 50% of your monthly gross (pre-tax) income, another personal loan may not be in the cards. The max DTI for a personal loan is typically 50%. However, many lenders like to see a DTI that is less than 36%.

Alternatives to Multiple Personal Loans

When you need to cover unexpected expenses, a personal loan can be a great resource — but it’s not your only option. Here are some alternatives to personal loans you might consider.

0% Interest Credit Card

If your credit is strong, you may be able to take advantage of a credit card with a 0% introductory APR. The promo rate can last up to 21 months; after that, the card will reset to its regular APR.

If you can use the card to cover your costs and repay the balance before the 0% rate ends, it’s the equivalent to an interest-free loan. If you’ll need a significantly longer period of time, however, this route could end up costing more than a personal loan.

Home Equity Loans or Lines of Credit

A home equity loan or home equity line of credit (HELOC) may be worth exploring if you own a home and have built up significant equity. A home equity loan is a single lump sum you repay (plus interest) over time. A HELOC is a revolving line of credit that you can draw from as needed; you pay interest only on what you use. 

Home equity loans and HELOCs are secured by your home, which lowers risk for the lender. As a result, they may come with lower interest rates than personal loans. A major downside of this type of loan is that, if you default on the loan, you can lose your home.

Recommended: Secured vs Unsecured Personal Loans: Comparison 

The Takeaway

You can have as many personal loans as you like, provided you can get approved. Some lenders limit the number of loans they’ll extend to an individual at any one time, or cap the total amount one person can borrow. To get an additional personal loan with a new lender, you’ll need to meet their qualification requirements. Having an existing personal loan could make this harder to do. However, you may get approved if your monthly income is sufficient to cover the new payment.

Taking out more than one personal loan at once can be a good option if interest costs are lower than other borrowing options. But before you jump in, you’ll want to consider how it will impact your overall debt, credit score, and credit history. 

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

View your rate

FAQ

How long should you wait between loans?

A general rule of thumb is to wait at least six months between applying for new credit. Submitting multiple loan applications in a short time frame can result in several hard inquiries on your credit report, which can lower your credit score. It may also signal to lenders that you are in financial distress, which could make it harder to get approved for a new loan.

Do multiple loans affect credit score?

Multiple loans can positively and negatively impact your credit. Each new loan application can result in a hard inquiry on your credit report, which may temporarily lower your score. Having multiple loans can also increase your debt-to-income ratio, which can make you appear less creditworthy to lenders. If you consistently make on-time payments on all of your loans, however, it can positively impact your credit history over time.

What happens if you pay off a loan too quickly?

Paying off a loan early can have mixed effects. While it can save you interest payments, some lenders may charge prepayment penalties, which could offset the benefits of early repayment. When you’re shopping for loans, it’s a good idea to ask if there is an early payoff fee. Some lenders do not charge them.

Paying off a loan early can also have a slightly negative impact on your credit by bringing down your average credit history length and reducing your credit mix.

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.

SOPL-Q324-034

It’s common knowledge that a person’s credit score can have a significant impact on their ability to get the best deals on loans and credit cards. And those opportunities can potentially save borrowers many thousands of dollars over a lifetime. But exactly what the credit rating scale involves is a mystery to many people. That’s a problem for potential applicants who’d like to build their score before shopping around for a loan.

Read on to gain insights into how credit scores are calculated, what the different credit ranges mean, and what you can do to qualify for the best interest rates.

The Three Major Credit Bureaus

Credit bureaus are independent agencies that collect and maintain consumer credit information and then resell it to businesses in the form of a credit report. The Fair Credit Reporting Act allows the government to oversee and regulate the industry.

There are three major credit bureaus that most lenders pull data from:

•   Equifax®

•   Experian®

•   TransUnion®

Commonly used credit scoring systems are FICO® and VantageScore, each of which ranges from 300 to 850.

What Actually Factors into Your Credit Score?

Here’s a closer look at the popular FICO Score system, which uses a scoring model that sources data from credit bureaus to calculate your score. Elements used in the FICO scoring model (as of this writing, the latest version is FICO Score 10) include:

•   Payment history: 35%

•   Credit utilization: 30%

•   Length of credit history: 15%

•   Credit mix: 10%

•   New credit: 10%

Wondering what those terms mean? Here’s a closer look:

Payment History

Payment history looks at whether you pay your bills in a timely manner. Do you have a history of paying bills a couple weeks late, or are you the type who always pays your cable bill even before it is due? That’s the kind of thing that will come into play here.

Credit Utilization

“Amount owed” is pretty self-explanatory — it’s how much total debt you’re currently carrying. Your “credit utilization ratio” may not be quite so clear. That’s the amount of credit you actually use compared to the amount of credit available to you. Lenders generally like to see a credit utilization ratio of 30% or lower. Some even recommend no more than 10%.

Here’s an example: Say you owe $500 on each of two credit cards, and one has a credit limit of $1,000 and the other has a limit of $3,000. The amount you owe is $1,000 out of a credit limit of $4,000. So you are using 25% of your available credit. Your credit utilization is therefore 25%. 

Length of Credit History

This factor looks at the age of your oldest and newest accounts and the average age of all your accounts. To lenders, longer is better.

Credit Mix

Credit mix considers the variety of your debt — is it primarily credit card debt? Do you carry student loan debt or have a mortgage? A desirable mix is a combination of revolving debt (lines of credit, credit cards) and installment debt (loans with fixed repayment terms like student loans and car loans).

New Credit

New credit looks at what accounts have recently been opened in your name, or if you’ve taken out any new debts. Trying to access a considerable amount of credit in a short period of time can have a negative impact on your credit score.

Recommended: Credit Card Utilization: Everything You Need To Know

How’s Your Credit?

Where your credit score falls on the scoring table determines how “good” your credit is. Here’s a breakdown of the credit rating scale according to FICO standards.

•   Excellent or Exceptional: 800-850

•   Very Good: 740-799

•   Good: 670-739

•   Fair: 580-669

•     Poor: 300-579

Ready for a plot twist? Your credit score may not be consistent. Some reasons why:

•   There are different scoring systems, and variations in how various lenders and creditors report information. 

•   Also, FICO can tweak their algorithm depending on the type of loan you’re applying for. If you’re looking to get an auto loan, your industry-specific FICO Score may emphasize your payment history with auto loans and deemphasize your credit card history. In effect, each consumer has multiple credit scores.

•   You may also hear the phrase “educational credit score.” This can refer to the proprietary scoring models used by TransUnion and Equifax, not necessarily to be used by lenders, which can help educate consumers about their credit scores. Since they may or may not reflect the credit score that potential lenders use, it can be wise to make sure you know what kind of credit score you are viewing.

You are probably curious how your credit score stacks up to the national average. The average three-digit number in the U.S. is currently 714. 

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Trying to Build Your Credit Score With Credit Card Debt

You’ll notice that a lot of information around improving your credit scores focuses on debt reduction. After all, 30% of your FICO Score is based upon outstanding debt. By paying that down on time, you may be able to build your credit score. For this reason, one potential action item for those trying to have a positive impact on their credit history is to work on paying down credit card debt.

Credit card debt may be the highest-interest debt you’re carrying. Compare these numbers:

•   The average credit card interest rate on interest-accruing accounts with balances was 22.76% mid-2024, according to the Federal Reserve. 

•   A rate of 6.53% was established for federal undergraduate student loans for the 2024-2025 school year.

•   The average mortgage rate was 6.37% in September 2024 for fixed-rate, 30-year conforming loans. 

That means if you have credit card debt, it could be your fastest growing debt. By getting rid of it, you may be able to significantly reduce your outstanding debt. Here are a few techniques:

•   One way to get out of credit card debt is to consolidate it into a lower-interest option. With a balance transfer credit card, you can move your high-interest debt to a 0% interest card. The catch is that the 0% interest is temporary, and after a given amount of time (typically 12 to 21 months), the interest rate shoots up.

•   Another option is to take out a personal loan, which can consolidate multiple high-interest credit card debts into one monthly payment, often at a lower interest rate. For example, in September 2024, the average personal loan rate was 12.38% vs. almost 23% for credit cards, as noted above. Personal loans are typically unsecured loans with a fixed interest rate and terms of two to seven years. This could help you pay off your debt more quickly, which might help build your score. 

•   One other tip for potentially building your credit score: Thoroughly review your credit report for errors. Mistakes happen, and some of them can bring down your score. You can file a dispute online to correct or remove the information.

Recommended: Using a Personal Loan to Pay Off a Credit Card

The Takeaway

Credit scores, calculated based on information in your credit report, influence the interest rates you qualify for on loans and credit cards. The higher your score, the less you’ll likely pay in interest. The factors that determine your score include your history of on-time payments, your total debt compared to the amount of credit available to you, the types of debt you have managed, how much credit you have recently sought, and the age of your accounts. 

One of the best ways to build your credit score is to pay down credit card debt. A common way to consolidate high-interest credit card debt is with a low-interest personal loan. 

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What are the levels of credit ratings?

The levels of credit ratings are typically:

•   Excellent (or Exceptional): 800-850

•   Very good: 740-799

•   Good: 670-739

•   Fair: 580-669

•   Poor: 300-579

How does the credit rating scale work?

Credit rating scales typically work by factoring in various indicators of an individual’s creditworthiness. For example, common components of your credit score will be your history of on-time payments, your credit utilization ratio, the length of your credit history, your credit mix, and how many new accounts you have applied for and how recently. These can indicate how well you have managed debt in the past and how likely you are to be responsible with credit in the future. 

How rare is a 700 credit score?

The current average credit score in the U.S. is 714, so a score of 700 or higher is not that rare. To be more specific, recent reports indicate that 17% of Americans have a score between 700-749, 24% are between 750-799, and 23% are between 800-850. In addition, credit scores tend to be higher among older generations.

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.

SOPL-Q324-042

In 2024, there are nine states with no income tax, meaning residents may enjoy a major tax break when they go to file. (One of these states, though, does tax interest and dividend income.) It’s worth noting, however, these nine states earn revenue in other ways, including higher sales and property taxes.

Read on for details on this important financial issue that can impact one’s quality of life significantly.

Which States Don’t Have Income Tax?

Across the U.S., only nine states don’t charge income tax:

•   Alaska

•   Florida

•   Nevada

•   New Hampshire

•   South Dakota

•   Tennessee

•   Texas

•   Washington

•   Wyoming

It’s worth noting that while New Hampshire doesn’t charge taxes on earned wages, it does tax interest and dividend income.

Recommended: How to File Your Taxes for the First Time

Alaska

Not only does Alaska have no state income taxes, but the Last Frontier is also devoid of state-level sales taxes. (Localities can leverage their own sales taxes, however.)

The state’s economy largely depends on oil and gas, as well as tourism and fishing. The median home price is approximately $354,333 (compared with the national figure of $362,870), but Alaska isn’t exactly a cheap place to live. The state has a cost of living that’s 25% higher than the national average.

Plus, Alaska’s remoteness and 60-plus days every year with almost no daylight make it a tough — though beautiful — place to live.

Florida

Florida is known for its beaches, theme parks, retirement communities, and gators. With three national parks (and even more national seashores, preserves, etc.), Walt Disney World and Universal Studios, and beach paradises like Miami and Destin, Florida brings in a lot of tourism money.

While Florida has no state income tax, its sales taxes and property taxes are considered average. If you can withstand hurricane season, you might appreciate Florida’s cost of living. With a cost of living index of 103.1, it’s just above the national average of 100. 

For many people, the state’s wallet-friendly profile can allow them to make ends meet and maybe stash some cash in an online savings account.

Nevada

Nevada may be most famous for the Las Vegas Strip, which is probably why the state does so well with its sin taxes on gambling and alcohol. While those excise taxes may be high, the state income taxes sure aren’t. 

Like Florida, Nevada is just above the national average cost of living, with a score of 102.7 versus the U.S. average of 100. It seems that many people have felt the pull of living here: It’s one of our country’s fastest-growing states.

New Hampshire

If you’re thinking about moving to New Hampshire because it doesn’t have income tax, consider this: Overall, New Hampshire doesn’t fare that well in terms of cost of living, with a current figure of 113.6 vs. the national average of 100. But this desirable state offers stunning foliage in the fall, great skiing in the winter, and a beautiful landscape to explore in warmer weather.

Note: New Hampshire does charge state income tax on interest and dividends. The state will phase this out in 2025.

South Dakota

Those who live in South Dakota primarily work in agriculture, though the state’s economy also depends heavily on a mix of forestry, mining, and tourism. (The state is home to Badlands National Park and Mount Rushmore.)

Not only does South Dakota have no state income tax, but the state’s overall cost of living is below the national average at 93.4.

Tennessee

From the honky tonks of Nashville to the stunning mountain vistas of the Smokies, Tennessee has a lot of appeal. Plus, it doesn’t hurt that the state has no income tax.

Tennessee’s sales tax is among America’s most expensive, but as for overall cost of living? Tennessee ranks 10th most affordable in the country at 90.3.

Texas

Everything’s bigger in Texas, except your state income tax bill. That’s because Texas doesn’t have state income tax. Overall, cost of living in Texas is promising — it comes in at 92.4 vs. the national average of 100 in terms of affordability. And property taxes recently clocked in at 46th out of the states, meaning you may be able to enjoy relatively low housing costs compared with elsewhere.

Texas is a huge state with a lot to offer. Cities like Houston, Dallas, and Austin have plenty of restaurants, sports teams, and music festivals; the Gulf Coast region is great for fishing and relaxing on the beach; and the state’s natural landscape is vast and varied.

Washington

Not to be confused with our nation’s capital of Washington, D.C., this state has no state income tax. While property taxes are average (ranking 23rd in America), sales tax rates range from average to on the high side.

With three national parks, a famous city packed with coffee and nightlife, and plenty of whale watching, Washington makes a great state to visit and live in. Just be aware of its cost of living: Washington’s is high at 115.1 compared with the average of 100 for the country.

Note: High earners may pay taxes on capital gains in Washington.

Wyoming

Wyoming has some of the most beautiful landscapes in the country, including the Grand Tetons and part of Yellowstone. Perhaps that’s why its tourism industry is on the rise. The state also depends heavily on agriculture (cows and sheep) and mining.

In addition to not having state income taxes, Wyoming also has some of the lowest property tax rates in the country. Even better, the cost of living in Wyoming is under the national average (95.1 vs. the average of 100).

Advantages of Living in a State Without Income Tax

Before packing up the boxes and budgeting for moving expenses, it’s important to weigh the pros and cons of states with no income tax. Here are some of the advantages:

Money-Saving Benefits for Families and Retirees

Living in a state with no income taxes can inject extra money into a family’s budget. However, it’s important to remember that states may make up that lost revenue through other types of taxes, like higher sales and property taxes.

Retirees may especially appreciate living in one of the nine states without income taxes, as they also don’t tax retirement distributions. (Illinois, Mississippi, and Pennsylvania also give this tax break to retirees; Alabama doesn’t tax pensions.)

Recommended: Financial Tips for People in Their 40s

Economic Benefits

Businesses are often attracted to tax-friendly states. While they’ll be paying more attention to states with corporate tax breaks, there’s a lot of overlap between the two. (Six of the 10 most tax-friendly states for businesses don’t have state income taxes.)

States that attract businesses will theoretically have more job opportunities, making them a smart place to move if you’re looking for higher pay and more options.

Easier Tax Filing

Living in a state without income taxes makes tax season a little easier. After all, it’s one less place to file.

It also means you may save money on tax filing. Tax software and accountants may charge more if you want to include state filing each year.

Considerations Before Moving to a State With No Income Tax

Clearly, living in a state without income tax has some benefits. But it’s important to consider the potential downsides to living in a no-income-tax state.

Higher Property and Sale Taxes

While it varies by state, some of the states without income tax make up that revenue through higher sales and/or property taxes.

Researching sales and property tax rates, as well as a state’s cost of living, can give you a fuller picture beyond the income tax rate.

Funding for Government Projects

If states are earning less revenue from income taxes, that can sometimes mean there’s not as much budget to tackle government projects. Proponents of state tax argue that they help fund important priorities, like education and infrastructure.

How Does No Income Tax Impact Cost of Living?

Income taxes are just one of many factors used to calculate a state’s cost of living. Without having to budget for state income tax — which goes as high as 13.30% in California — residents in these states already have an advantage.

But cost of living depends on more than just state income taxes. Economists also consider factors like housing, food, transportation, gas, and healthcare when calculating a state’s cost of living.

For example, Washington may not have income tax, but it has some of the highest home prices in the United States. Currently, the average home value is $600,477 versus the national average of $362,870.

And remember: Though some states may not have income tax, they may charge higher sales and property taxes.

How Does No Income Tax Impact Your Tax Return?

If you live in a state that doesn’t require you to file a tax return, you’ll still have to file a federal return. However, you can omit the state-level step in your process. 

It also means your paycheck will have fewer taxes withheld throughout the year — leading to a higher take-home paycheck.

The Takeaway

Is living in a state without income tax all it’s cracked up to be? For some, it can mean serious savings. But it’s important to consider other taxes, like sales and property taxes, as well as a state’s cost of living, when making any big decisions about where to live.

Expecting a big tax refund this year, whether from federal or state returns? Consider putting it in a high-yield bank account.

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.

FAQ

Is it better to live in a state with no income tax?

People may find more flexibility in their budget when they don’t have to worry about paying state tax. They’ll also have an easier (and potentially more affordable) experience when it’s time to file their taxes.

That said, residents may find they’re paying more in other taxes — sales and property taxes, primarily — and may encounter higher costs outside of taxes, like housing and food.

Ultimately, people should consider cost of living and tax rates alongside other important factors when choosing a place to live, such as climate, access to healthcare, proximity to friends and family, the job market, and more.

What is the most tax-friendly state?

Determining the most tax-friendly state for your situation depends on a few factors, like your main source of income (paycheck, capital gains, etc.), your propensity for spending (how often you’ll encounter sales tax), and property ownership (do you own or rent your home?).

That said, Alaska is objectively the most tax-friendly state, as it places the lowest tax burden on its citizens overall. However, that may be balanced by a higher cost of living.

What is the best state to live in to avoid taxes?

Alaska is currently the state with the lowest tax burden when you factor in income tax, sales taxes, and property taxes. The Last Frontier has no state income tax or state-level sales taxes (though individual localities can impose their own taxes), though it ranks somewhere in the middle for property taxes.

What are the three least taxed states in the US?

The three least taxed states in the U.S. are Alaska, New Hampshire, and Wyoming. These states are considered to be highly tax-friendly not only because of their lack of state income tax but also because of their sales and/or property tax rates.

Photo credit: iStock/Martina Birnbaum

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As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% 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 Eligible 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 an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% 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 Eligible 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 Eligible 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 Eligible 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 Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% 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 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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