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Thanks to the convenience of direct deposit, many people never even glance at — much less analyze — their pay stubs or paychecks anymore.

But reviewing the information on your pay slip, which serves as a receipt for the wages you receive each pay period, is more important than you might think. It can help you monitor your retirement savings, for example, and the other employee benefits you’re receiving. It also can allow you to track how much you’re paying in taxes. And if you know how to read a pay stub, you might even spot errors that could cost you money or cause some headaches if they aren’t fixed right away.

Knowing the details of where your wages can be an important part of successfully managing your money.

The Basic Components of a Pay Stub

Federal law doesn’t require that pay stubs be distributed. State laws, however, require pay stubs in 41 states, with different guidelines for the contents. Not only can the details shared about one’s pay and how it’s organized can vary significantly from one state to the next, it may well shift from one employer to the next. Some pay stubs and paychecks have much more streamlined details than others. But some of the basic elements you can probably expect to find on your pay slip include:

•  Identifying information about your employer

•  Identifying information about you

•  The start and end dates of the current pay period

•  Information about your earnings

•  Information about taxes and deductions from your pay

•  Employer-paid taxes

•  Employer-paid benefits

This information is important for accurate recordkeeping for you and your employer.

Recommended: Emergency Fund Calculator: Estimate Your Safety Net

Personal Information and Pay Period Details

The personal information and pay period details section of your pay stub is typically where the most basic intel can be found, including your Social Security number, tax-filing status, and federal, state, and local withholding allowances.

If you have direct deposit, you also might see the routing and account number for the checking and/or savings account you use for that.

Why It Matters: The top section of your pay stub is probably the easiest portion to skim through — but it’s also worth making sure the information is correct. If your name is misspelled or just one digit of your Social Security number is off, for example, it could cause you problems later. And the IRS recommends reviewing your income tax withholding choices at least once a year, early in the year, to help avoid any surprises when you prepare your income taxes.

Breaking Down Earnings

The earnings section is where many people quickly zoom in to see how much money is coming their way. But it’s not one single number you’ll find in this section. Here’s what the earnings on your pay stub or paycheck can tell you.

Gross Pay vs. Net Pay: What’s the Difference?

You’ll likely be interested in how much you received for a given pay period. When looking for that, keep the following in mind:

•  Your gross earnings equal the money you made before taxes and other deductions were subtracted.

•  Your net earnings indicate the amount you’re actually paid after those deductions are taken out. So the net figure is the amount of cash landing in your checking account if you have direct deposit and send all your wages there. (And if you don’t, this is the amount you’ll see on your paper paycheck.)

These two figures may appear in different areas on the pay slip, not necessarily at the top. They are important to track: Understanding the difference in your net vs. gross pay can be useful for budgeting, goal-setting, and deciding how much to save from each paycheck.

Regular Wages and Overtime Pay

The earnings section is typically broken down into a few different categories, which may vary depending on, say, whether you’re a salaried or hourly employee. It may include your regular pay rate and how many hours you worked, for example, plus overtime, holiday, and vacation pay rates and hours.

Bonuses, Commissions, and Other Compensation

Some people simply earn a straight salary. But others may have other forms of compensation, such as a commission on sales or a year-end bonus. These amounts and any other forms of compensation will be listed.

Year-to-Date (YTD) Earnings

You can gain further insight onto your earnings when you compare a given pay period’s numbers and YTD, or year-to-date, figures. The YTD figures show how your income is stacking up over the course of the year and can help you track where you are in terms of your expectations for this juncture.

Why It Matters: Checking payment details can help you be sure your hourly wages/salary and other compensation amounts are correct. What’s more, tracking how much you’re earning in other pay categories can be helpful for tax and other planning purposes.

Recommended: How to Calculate Gross Monthly Earnings From a Biweekly Pay Stub

Decoding Deductions and Withholdings

Here’s where you’ll see your gross earnings shrink down to your net pay, thanks to statutory (or obligatory) and voluntary deductions.

Required Payroll Deductions

The statutory deductions listed on your stub are taxes employers are required by law to withhold from an employee’s pay. These include:

•  Federal income tax withholding, which the government uses to pay for school, roads, national defense, and other government programs.

•  Federal Insurance Contributions Act (FICA) taxes, which help fund Social Security and Medicare programs. (6.2% of your gross wages goes toward Social Security tax, and 1.45% of your gross wages goes to Medicare tax. Your employer matches these percentages for a total of 15.3%. These percentages can change, as determined by Congress.)

•  State income taxes, which will vary depending on where you live and work. Some states have no state income tax, while in other states, tax rates can range from typically higher (California) to lower (Arizona, North Dakota, and Oklahoma).

Elective Payroll Deductions

Other paycheck deductions you may see listed on your stub are for benefits you have a choice about, such as:

•  Health and dental insurance premiums

•  Life insurance premiums

•  Disability insurance premiums

•  401(k) or similar retirement plan contributions

•  Charitable giving

•  Union dues

Many of these costs may be pre-tax — deducted from your earnings before taxes are calculated — and others will be post-tax. If you aren’t sure whether certain of your benefits are pre- or post-tax and it isn’t clearly defined on your pay stub, you may want to ask someone in human resources, or HR, to break it down for you.

Why It Matters: It’s always a good idea to know what you’re paying for, so you can make choices that maximize your earnings. And understanding which payroll deductions are pre- or post-tax can help with budgeting and tax planning.

Employer Contributions

Knowing how to read this portion of your pay stub will help you see what your employer is paying for on your behalf, outside of your wages. This section may include a base amount paid by your employer for different types of insurance (which you can usually add to at your discretion), as well as any pension information, and the amount your employer is contributing to your retirement plan (based on an agreed-upon match based on your contribution amount).

The amounts your employer pays toward federal and state unemployment taxes may also be listed here with the acronyms FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act).

Why It Matters: Workplace benefits can be a valuable addition to your regular compensation. If you’re thinking about shopping for a new employer — or a competitor has approached you with a job — it can be helpful to compare the salary and benefits package you’re getting from your current company vs. potential offers. Knowing how to read a pay stub or how to read a paycheck can help you evaluate where these aspects of compensation currently stand.

Interpreting Additional Information on Your Pay Stub

Some other types of information that may appear on your stub include:

•  Paid leave: The time off you’ve earned minus the time you’ve already taken may be listed under the employer benefits portion of your stub, or these hours (vacation, sick time, personal/flex time) may appear in their own section.

•  Loan repayment: If you borrowed money from your 401(k) and set up a repayment plan using payroll deductions, you can look for the current amount paid and year-to-date amount paid in the elective deductions section.

•  Wage garnishment: If your employer received a garnishment order (because you have unpaid child support or alimony, taxes, student loans, etc.), that amount may be listed under “deductions” or “other deductions.”

•  Notes: This section of your pay stub may contain updates from the company ranging from an upcoming increase in your wages to a heads-up about a coming charity drive.

Why It Matters: Keeping track of these pieces of information — which are often unique to you — can be useful, whether you’re budgeting for the month ahead or planning for a future goal.

Either way, understanding and checking the math that went into getting this final number can help you catch mistakes. And understanding the difference in your net vs. gross pay can be useful for budgeting, goal-setting, and deciding how much to save from each paycheck.

The Takeaway

There’s a wealth of data on your pay slip that can help you understand and possibly optimize your earnings. You can see how much you’re contributing to your retirement plan and how much your employer might be matching. And you can keep tabs on the other types of employer-paid benefits you’re receiving that go beyond your wages. You also can check to see if you’re still happy with how much is being withheld each payday for federal and state taxes, and if you need to make adjustments so there aren’t any surprises come tax time.

Another way to make the most of your hard-earned money? Partner with the right bank.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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

What should I do if I notice an error on my pay stub?

Comparing your newest pay stub to older slips can help you determine if there is, indeed, a discrepancy, and it’s one of the benefits of knowing how to read a paycheck. If you’ve spotted what you believe to be a mistake, it’s a good idea to take it immediately to your employer, such as someone in HR. Make sure the report is documented (you may have to put the issue in writing), and follow up as needed to make sure it’s explained and/or addressed.

How long should I keep my pay stubs?

It can make sense to hold onto pay stubs for at least a year. You may need them for tax preparation or for proof of income if you’re applying for a mortgage or other large purchase.

Can I get a copy of a lost pay stub?

If you’ve lost a pay stub and don’t know where to locate your earnings statements electronically, ask your manager or HR for help logging on to the company website and finding what you need. If you don’t have direct online access to your personal payroll records, you can contact HR or the payroll department for help getting a copy of your pay stub.

Photo credit: iStock/AndreyPopov

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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.

SOBNK-Q324-079

Uncollected funds are checks or other deposits made to an account that have not yet been paid by the issuing bank. These funds may show up in your account, but usually as pending. That lets you know that the check has been received by your bank but has not fully cleared. Your bank must make sure that the money is received from the issuing bank before you can access it.

If you deposit a large check, your bank may make some of those funds available immediately, while holding onto the remainder of the amount of the check. If you try to access funds from a recent deposit that are still pending, you may be assessed an uncollected funds (UCF) fee. Learn more about how uncollected or pending funds work.

What Does an Uncollected Funds Hold Mean?

When you deposit checks to your bank account, the entire amount of the check may not be available to you immediately. This is especially true if the check is large or if you don’t have an established relationship with your bank. (Say, you opened your account less than a month ago.)

Because it usually takes a couple days for a check to clear, banks typically hold onto at least some of the funds for a brief period of time. This makes sure that the account on which your check is drawn has sufficient funds to pay the check.

The Expedited Funds Availability Act (also referred to as Regulation CC) specifies the details of these uncollected funds holds. Here are typical timelines for checks to clear:

•  Checks issued by the government, drawn on the same financial institution as the payee’s account, cashier’s checks, and certified checks typically clear by the next business day.

•  Most other checks take two business days to clear.

•  Some checks, such as ones deposited to a relatively new bank account, could take up to five business days to clear, or longer in some cases (such as if there’s reason to believe the check might be uncollectible from the paying bank or if the check has been redeposited).

Worth noting: Typically, a financial institution must make at least the first $225 of a check available the next business day.

If you write a check or use your debit card to access pending money in your account, you may be charged an uncollected funds (UCF) fee. Here’s why: The money is not yet part of your available balance. This may occur even if the check is valid and eventually clears. The timing lag reflects how financial institutions operate.

Recommended: 50/30/20 Budget Calculator

Advantages of Uncollected Funds

Here are some important ways that uncollected funds could benefit you.

Protection Against Fraud

While the delay in being able to access your money may seem frustrating at times, one advantage is that it can help prevent mobile banking check fraud and other forms of fraud. Having a delay between the time a check is presented to a bank and when the funds are made gives banks the time to verify and process checks.

Keeping the Banking System Safe and Affordable

In addition to helping protect individuals against fraud, this period of time also helps strengthen the overall banking system. If funds from presented checks were immediately available for withdrawal, it would likely increase the amount of people writing bad checks (which may be known as check kiting), which would drive up overall banking costs for everyone.

Helping You Manage Your Money

Knowing that you may be assessed an uncollected funds charge if you try to use pending funds may help you manage your money better. It’s a good idea to keep a small cushion of money in your checking account if possible. This can help ensure that you don’t need to rely on recently deposited money to pay your bills or make your usual transactions.

Disadvantages of UCF

Next, consider the potential downsides of uncollected funds.

Delay In Accessing Your Money

Probably the biggest disadvantage or frustration with the process of clearing a check is that it delays when you have access to your money. Say, a check representing passive income arrives or you receive a rebate, and you wonder when the funds will be available. This can be an especially challenging situation when you are counting on the money to make a different transaction.

Uncertain Delays

Pending funds may be frustrating to bank customers, and one of the biggest disadvantages is the potentially uncertain length of the delay. Again, checks will typically clear within two business days, and some may clear on the same business day, such as those that are a cashier’s check or a check written on a different account at the same bank.

Other checks may take several days or longer, depending on the bank and/or the amount of the check. For instance, certain ATM deposits and checks that raise reasonable causes for concern can take a longer period of time.

While typically no more than five business days should pass between when a check is deposited and when it’s made available, there are exceptions. If there’s a weekend in the middle of those days, that can mean a more significant wait. In addition, there can be cases in which Regulation CC permits financial institutions to add a “reasonable delay” (which could mean additional business days) for checks.

This can make it difficult to plan for when and how to cover your other expenses. Few people would want to have pending funds in their bank account when they need to pay their rent or go grocery shopping.

Fees for Uncollected Funds

Say you do try to spend against pending funds. In addition to the transaction not going through, there could be a steep fee. The amount of a UCF fee can vary depending on the bank, but they generally are around $30 to $40, similar to the amount of a non-sufficient funds (NSF) fee.

You might want to check what your bank charges, and be vigilant about not spending funds until you are sure the money is available. That can help you avoid incurring fees.

Recommended: Guide to Check Verification

Difference Between Insufficient and Uncollected Funds

Another kind of fee that many banks charge for accessing funds is called a non-sufficient funds fee, often referred to as an NSF fee. (An NSF fee is similar to, but slightly different from, an overdraft fee. With an NSF fee, the transaction doesn’t go through; with an overdraft fee, the bank covers the shortfall so the transaction can be completed.)

While UCF fees and NSF fees are similar (and usually a similar amount), there are a few key differences:

•  Non-sufficient funds (NSF) fee: A fee charged for accessing funds greater than your total balance. For example, if your checking account balance is $300 and you write a check for $500, you may be charged an NSF fee.

•  Uncollected funds (UCF) fee: This uncollected funds charge is assessed for trying to use funds that are still pending, usually from a recent check deposit. If your checking account balance is $300 and you deposit a check for $600, your available balance may still only be $300, until the check clears. If you write a check for $500, it may not go through and you may be assessed a UCF fee.

How to Avoid UCF Fees

Just like avoiding overdraft fees, there are a few simple ways to avoid UCF fees.

•  One is to maintain a small cash cushion in your account. This helps ensure that even if you don’t have access to the full amount of recently deposited checks, you can still pay your bills.

•  Another strategy involves setting up balance alerts or regularly checking your balances to make sure you can cover withdrawals or payments without risking UCF fees.

•  You might also schedule your payment dates strategically. For instance, your credit card company might be willing to move your payment due date to better sync with your payday schedule, so you aren’t sitting and worrying about situations with pending funds.

Recommended: What Happens If a Check Bounces?

The Takeaway

When you deposit a check to your bank account, the entire amount of the check is usually not available right away. Instead, it generally takes a couple of business days for checks to clear and the money to be deposited to your account, and could take longer in some cases. While this process is going on, the funds may show up in your account in a pending status. If you try to access these funds, via writing a check or using your debit card, your bank may not complete the transaction. What’s more, it may charge you an uncollected funds (UCF) fee.

Looking for a bank with low or no fees and a competitive interest rate? See what SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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

Can banks remove the check hold upon request?

It may be possible for a bank to remove the hold on a check, depending on their policy. Banks are not required to remove check holds, but it doesn’t hurt to ask. You can call the bank’s customer service line, or, if your bank has physical branches nearby, stop in and talk to the branch manager. Depending on the bank’s policy, the amount of the check, and your history with the bank, they may remove all or part of the hold at your request.

How long can a bank legally put a hold on uncollected funds?

Regulation CC governs the availability of funds deposited in checking accounts and allows financial institutions to put a hold on recently deposited funds for a “reasonable period of time.” This is generally considered to be two to five business days, but may go longer in some situations (say, depending on such factors as whether deposited by ATM or another method, or in situations in which a bank believes the funds may be uncollectible from the paying bank).

How is check kiting related to uncollected funds?

Without allowing time or uncollected funds to clear, check kiting could occur. This means a criminal could write a check on an account with insufficient funds, present it at another bank, withdraw the cash that would have instantly become available, and then skip town before the bank realized there were insufficient funds. Now, most banks classify recently deposited funds as uncollected funds for a period of time so they can verify that there are funds clear. This can lower the risk of check kiting.

Photo credit: iStock/Oddphoto

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOBNK-Q324-077

If you purchased your home with a VA loan but are ready to move on, you may be able to benefit from VA loan assumption. VA loan assumption allows someone else to take over your existing VA loan mortgage — and unlike when you originated your VA loan, the new borrower doesn’t necessarily have to be a military servicemember, veteran, or surviving spouse to qualify. However, your eligibility for this program depends on a few factors, including when you took out your VA loan, and has a few caveats to understand. We’ll explain below.

What Is VA Loan Assumption?

VA loan assumption is a process in which a new borrower can “assume,” or take over, an existing VA mortgage loan. As mentioned above, you don’t have to be eligible to take out a VA loan to be eligible to assume one.

In other words, using VA loan assumption, the homebuyer could take over the existing VA loan rather than securing a brand-new mortgage to buy the home (or buying it in cash). A VA loan has some benefits vs. a conventional loan, and assuming the loan may offer the buyer a lower interest rate (as VA loans often have competitive rates). On the seller side, loan assumption could attract more buyers and help a home sell more quickly.

Eligibility for VA Loan Assumption

Even when a new buyer is taking over a VA assumable loan, the original lender will still want to see proof of the new borrower’s creditworthiness. (After all, repayment of the remainder of the balance will now fall to the new borrower.) Here’s what you need to know about eligibility requirements for VA loan assumption:

For the Assumer

The person taking over the loan still needs to prove their creditworthiness to the lender or VA. The VA doesn’t specify a minimum credit score, but most lenders want to see a score of at least 620.

The assumer’s debt-to-income ratio (DTI) also matters, and should be no higher than 41%. They’ll also need to have sufficient income and be able to pay the VA loan assumption fee, which is 0.5% of the total loan balance — and the difference, if any, between the home’s sale price and the existing loan balance.

For the Seller

Those who took out a VA loan to purchase their home anytime after March 1, 1988, are eligible to sell their home via loan assumption. Be sure to triple-check that your lender will release you from the liability of the loan — otherwise, if the new borrower fails to repay or makes late payments, it could hit your credit score. And once the deal goes through, recheck to be sure your lender has finalized the release. (If you don’t yet have a VA loan but are wondering what is a VA loan and could I get one, briefly: You may be eligible for a VA loan if you are a member of the military, veteran, Reserve or National Guard member, or surviving spouse. You’ll need to get a Certificate of Eligibility from the VA in order to apply for a VA loan.)

Recommended: VA Loan Calculator

Benefits of VA Loan Assumption

As mentioned above, VA loan assumption has benefits on both sides of the table.

For buyers, taking advantage of a VA assumable loan could be very attractive if current mortgage rates are generally higher than the rate on the existing loan. Although creditworthiness still needs to be proven to the lender, if you’re wondering how long does it take to assume a VA loan, rest assured that the underwriting process may be faster since the mortgage is already written.

For sellers, having an assumable loan could expand your pool of potential buyers and help the house sell faster. Transferring a loan may also take less time than going through the process of waiting for the buyer’s new mortgage to pay off your debt.

Risks and Considerations

While there are benefits that can make VA loan assumption worth considering, there are risks and drawbacks to consider, too.

For one thing, while the new borrower doesn’t need to be eligible for a VA loan to take one over, you won’t be able to take out a new VA loan until the loan that’s being assumed is fully paid off. (Normally, you can use a VA loan multiple times to buy a house.) Additionally, you must check with your mortgage lender to ensure you can obtain release of liability for the loan to avoid impacts to your credit score after managing the loan is out of your hands.

On the buyer’s side, assuming a loan may offer better interest rates — but require more cash up front to pay the owner for the equity they’ve stored in the home. Depending on how long the loan has been in place, that total may be higher or lower than a traditional down payment.

VA Loan Assumption Process

If you want to put your home on the market with the option to assume your VA loan, you’ll need to take these steps.

1.    First, reach out to your lender and let them know your intentions. You can also use this opportunity to ask about the release of liability once the loan has been transferred.

2.    In your home sale listing, market the fact that an assumable loan option is available. This may be attractive to many buyers and increase the speed of your sale.

3.    Once you have a prospective buyer, you’ll need to offer full disclosure about the terms of the loan. (If the buyer turns out to be a service member, veteran, or surviving spouse, inquire about a “substitution of entitlement,” which is used when one person who is VA-loan eligible takes over a loan from another.)

4.    At the time of sale, you’ll need to wait for the borrower to be qualified by your lender or the VA to ensure they’re deemed creditworthy enough to take over the loan. Closing will also involve the cash payment to make up the difference to the agreed-upon purchase price.

5.    Once the loan is transferred, ensure you have documentation of your release of liability from the VA or your lender.

VA Funding Fee for Loan Assumption

While VA loans are generally low-cost ways to buy a home, they do come with a funding fee — and assumed loans have one too. However, the fee is only 0.5% in the case of assumed VA loans, which is far lower than the 1.25%-3.3% it might cost to take out such a loan in the first place.

Recommended: VA Loan Buyers Guide

Release of Liability

We’ve said it before, but it bears repeating: As the seller, you’ll want to make sure you have a document stating your liability for the loan has been released once the loan transfer is completed. Otherwise, you may see impacts on your credit score for financial behaviors you have no control over.

Comparison: VA Loan Assumption vs. New VA Loan

Here’s how VA loan assumption vs. new VA loans compare, at a glance.

The Takeaway

Assuming a VA loan can be a valuable way for borrowers to save money on interest (and enjoy a shorter repayment period) while also allowing veterans to market their home for sale in an attractive way.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

FAQ

Who can assume a VA loan?

Anyone who can prove their creditworthiness to the lender and afford to pay the difference can assume an available VA loan. However, if that party would not be qualified to take out their own VA loan in the first place, the original lender will not be able to take out a new VA loan until the existing one is paid off by the new borrower.

Does the assumer need to be a veteran?

The assumer of a VA loan does not need to be a veteran. However, if they are not a veteran, the original VA loan borrower will not be able to take out a new VA loan for themselves until the original loan has been paid off.

Can any VA loan be assumed?

Any VA loan issued after March 1, 1988 is eligible for assumption.

Photo credit: iStock/SethCortright

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.

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

SOHL-Q424-001

A cardholder name is the name of the account holder or authorized user, printed or embossed on a debit or credit card. It helps ensure that transactions are linked to the correct account. However, it may not be the same as the individual’s legal name.

While it is typically no longer common for a merchant to verify a cardholder name with a person’s identification, many merchants do reserve the right to refuse a purchase if the name on the card does not match a person’s actual name. Learn more about cardholder names and the role they play in your financial life.

Definition and Importance of Cardholder Name

When you open a bank account, you will enter your personal information, including your legal name, as part of the account opening process. Depending on the type of account that you open, your bank may send you a credit or debit card to more easily make transactions on your account. In most cases, the name on your account will be embossed or printed on your card — this is referred to as your cardholder name.

While most of the time, your cardholder name is also your full and legal name, that is not always the case.

•   You may use a nickname (say, Jon Smith vs. Jonathan F. Smith) or other variation of your name. For instance, people with a hyphenated last name may not use both of those names.

•   In some cases, you may change your name after opening the account (often in cases of a marriage or divorce).

•   It may be that you made a typo or misspelled your name when you opened the account. (You can typically correct that and have a new corrected card issued to avoid problems.)

In most cases, with bank accounts and credit card accounts, you must use your legal name. This is part of efforts to prevent bank fraud and money laundering. That said, in some instances, you may be able to use, say, a preferred first name vs. your legal first name.

What’s more, merchants do reserve the right to deny a purchase if there’s a mismatch between the name on the card and a person’s name (say, on their ID) when they are using a debit card or a credit card.

For these reasons, it can be a wise move to make sure your cardholder name matches your legal name.

Cardholder names are important because they help align the transactions made with your card and your account, whether that may be your checking account (in the case of a debit card) or your line of credit (with a credit card).

Where to Find Your Cardholder Name

The most obvious place to find your cardholder name is on the front of your credit or debit card itself. It is often embossed (or raised), but many cards today show the cardholder name with the letters printed vs. being raised.

If you have lost your card or don’t have immediate access to it and want to check your cardholder name, you may also be able to find it in your online banking account.

Common Issues With Cardholder Names

While it’s common for a cardholder’s legal name to be their cardholder name, there are a few times when this might not be the case.

Misspellings and Variations

Occasionally you may apply for a new credit or debit card with a variation of your full legal name. You may also make a typo on your application, causing the bank to send you a card with a misspelling of your name. While technically you may be able to use your debit or credit card with a name that is not your full and legal name, it’s wise to contact your bank or financial institution to get a replacement card with your correct name.

Married Names and Name Changes

Legally changing your name (such as when you get married or divorced) may cause your cardholder name to be different from your new legal name. While it is common for people to contact their financial institution to update the name on their account (and debit or credit card), it may not be required.

It can be a smart idea to have your cardholder name updated to match your new legal name at your earliest convenience. To update the name on your account as well as your cardholder name, contact your bank or credit union (or your credit card issuer). They can usually change the name on your account as well as ship you a new card with your updated name.

Recommended: Savings Account Interest Calculator

Cardholder Name vs. Authorized User

Many credit card and other financial accounts allow the primary account holder to add authorized users to their account. A fact about debit cards and credit cards is that an authorized user is someone who can use the card to make purchases but ultimately is not responsible for the account or the debt.

Here are some points to know about this arrangement:

•   Generally, each authorized user who is added to an account will receive their own card with their own cardholder name.

•   In some cases, an authorized user’s card will have the same card number as the primary account holder, while other times each authorized user has a different credit or debit card number.

Regardless, when adding an authorized user to an account, be sure you trust the person to use the card responsibly as it’s your personal finances on the line.

Protecting Your Identity: Best Practices

Identity theft is a real and growing concern, with the Federal Trade Commission (FTC) receiving more than one million reports of this problem via its website in 2023. It’s smart to take precautions to safeguard your personal details to avoid this scenario and related bank fraud.

One best practice for protecting your identity is to make sure to shield your credit or debit card from unauthorized use. Avoid giving out your debit card’s personal identification number, or PIN, and don’t lend your cards to people.

If you’re a frequent online shopper or place orders by phone, you might look into using what are known as virtual card numbers to further protect your account. Many credit cards offer the ability to generate these virtual card numbers which are good for a one-time use. They are typically created via a browser extension or an app.

Recommended: How to Write a Check

The Takeaway

Most credit and debit cards have the name of the account holder or authorized user embossed or printed on the card, as a way to ensure that only the correct person with privileges uses the card. While often the cardholder name is the full and legal name of the account holder, that is not always the case if, say, you have recently changed your name or you use a variation of your name. In these instances, you may want to update your card so it reflects your legal name.

Are you shopping for a bank account with a debit card and other features to suit your financial needs? Check out all that SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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

Can my cardholder name be different from my legal name?

Yes, the name on your card may differ from your full and legal name and you may be able to still use your card to make purchases or withdraw money. However, it can be wise to have your card updated if, say, you changed your name when you got married or if your name was accidentally misspelled. Your bank or card issuer can revise your account information and send you a new card with an updated cardholder name.

What should I do if my cardholder name is incorrect?

While you may be able to make purchases with the card and be legally liable for any purchases made to your account, even if the name is not your full and legal name, it’s wise to update it. You can contact your bank, credit union, or other financial institution. They will be able to send you an updated card, usually at no cost to you.

How does my cardholder name affect online purchases?

When using a debit card or a credit card online, you will usually be asked to enter your cardholder name during checkout. You may also need to enter your name to register as a customer. While in most cases your legal name and your cardholder name match, if not, you’ll want to make sure to type in the name that is actually printed on your credit or debit card when you are entering your payment information. If the name on your card differs from your legal name, you may want to have your cardholder name updated to align with it.

Photo credit: iStock/Ridofranz

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOBNK-Q324-112

While not common in the United States, a crossed check has parallel lines running across it or across its top left corner, indicating that it is only able to be deposited, not cashed. This can provide an additional level of security and can help prevent fraud.

Learn more about crossed checks and how they impact financial processes.

Definition of a Crossed Check

A crossed check is one that is marked, usually with two parallel lines horizontally across the entire front of the check or just across the top left corner. The words “& Co.”, “& Company”, “And Company” or “Not Negotiable” may also appear with the lines.

A crossed check may not be directly cashed — instead, the funds from a crossed check must be first deposited into an account such as a checking account. It can’t be signed over to anyone else, nor can the payee “uncross” it (though the payor might be able to).

Crossed checks originated with the British, codified with the Bills of Exchange Act of 1882 in the United Kingdom and the Negotiable Instruments Act of 1881 in India. Crossed checks (sometimes referred to as crossed cheques) are still common in certain areas of the world, including several European and Asian countries, Mexico, and Australia. However, they are virtually unused in the U.S. banking system.

If you are overseas and sending a crossed check to someone in the U.S., you should make sure that the recipient has an account that is able to accept it.

Recommended: APY Calculator

Benefits of a Crossed Check

Here are a few of the benefits of crossed checks:

Enhanced Security

Whether you’re using online or traditional banking, security can be paramount for many consumers. When you cross a check, you are ensuring that the check cannot be cashed and instead must be deposited into an account. This increases security and ensures that there is a trail of who deposited the check.

Fraud Prevention

Another benefit of crossing a check is helping to ward off fraud. While it is typical for banks to require identification when cashing a check, this process is not quite as secure as requiring a check to be deposited into a bank account, such as a high-yield checking account.

By requiring deposit, a crossed check can be fully verified and the transaction then processed. This can help reduce the risk of banking fraud.

Risk Mitigation

Businesses often engage in risk mitigation, trying to reduce the risk of certain types of transactions. Using crossed checks can help reduce the risk of something going wrong with a particular type of check. This is because a crossed check is required to be deposited into a bank account and cannot immediately be cashed. This can provide an additional level of security to these types of check payments, allowing time for verification and lowering the overall risk of the transaction.

Limitations and Drawbacks

While there are some benefits and reasons to use crossed checks, there are a few limitations and drawbacks that you’ll want to be aware of.

Restricted Use

One of the biggest drawbacks is that the recipient may not have a bank account that is able to accept crossed checks. This is especially true if the recipient lives in a county where crossed checks are not particularly common (such as the United States). If a U.S. bank does accept a crossed check, you will have to wait for it to clear vs. being able to cash it.

Delayed Access to Funds

Another drawback is that it may cause delays for the recipient to access their money. When you cash a check at a bank or other financial institution, you can generally receive the money right away. However, with a crossed check, the check must be deposited into an account with a financial institution. This may mean a delay of several days for the check recipient to access their money, depending on how long it takes for the check to clear.

Example of a Crossed Check

You are unlikely to see an example of a crossed check in the U.S. However, if you are in another country, you might see one. It would likely have these elements:

•  It would have two crossed parallel lines that were added when the payor was writing the check. These might go horizontally across the entire front of the check. Or they might cross the top left-hand corner on a diagonal.

•  Sometimes, the words “& Co.” or “not negotiable” (or similar phrases) may also be added.

Typically, it’s not possible for a recipient to uncross a check once these marks have been made.

Recommended: 39 Passive Income Ideas to Help You Make Money

The Takeaway

A crossed check (sometimes referred to as a crossed cheque due to its British origins) is marked by two parallel lines across the front of the check. A crossed check cannot be cashed directly — instead, it must be deposited into an account at a bank, credit union, or other financial institution. This can help to mitigate risk, prevent fraud, and enhance the overall security of the process. While crossed checks are not generally used in the United States, they are still quite common in several other countries around the world.

If you are based in the U.S. and looking for a bank account that can make money management easier, see what SoFi offers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible 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

Are crossed checks still widely used?

Crossed checks are still widely used in the banking industry, but only in certain countries. Crossed checks are not very common in the United States, which may explain why many Americans have not heard of them or are not familiar with them. Rather, they are usually part of personal banking in some European and Asian countries, as well as Mexico and Australia.

Can a crossed check be uncrossed?

Generally a crossed check can not be uncrossed by the payee. The whole purpose of crossing a check is to make sure that it must be deposited into a bank account. This lets the signer of the check be able to track where the funds have gone, in case there are any issues. However, in some cases the payor (the person making out the check) could write “crossing canceled” across the face of the check to undo the crossing.

Are crossed checks common in the United States?

Crossed checks are not common in the United States, though they are still widely used in other parts of the world. In fact, because crossed checks are so uncommon in the United States, you may have trouble depositing a crossed check in the U.S.

Photo credit: iStock/AndreyPopov

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOBNK-Q324-115