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If you are wondering how often you can apply for a credit card, the right pace will vary based on the person, their credit score, and the card issuer’s restrictions. While there’s no single hard number when it comes to that query, once every six months is a good pace.

If you have good credit, a more frequent pace can be fine. If you have poor credit, however, you might want to slow things down. Read on to learn the ins and outs of how often you can apply for a credit card.

How Applying for a Credit Card Affects Your Credit Score

If you want to apply for a new credit card, you may be concerned about whether applying for credit cards hurt credit score. Applying for a credit card can affect your credit score in a few ways, including credit utilization, new credit inquiries, the average age of your accounts, and your credit mix. Here’s a closer look.

New Credit Inquiry

There are two types of credit inquiries: hard versus soft credit inquiries. During a soft inquiry, which is also called a soft pull or a soft credit check, a credit card issuer will check your credit, but it won’t affect your credit score.

However, when you apply for a new credit card, the credit card issuer will probably do a hard credit check. Hard credit inquiries do negatively affect your credit score. Every hard inquiry can drop your credit score by up to five points. However, this impact won’t last forever. Hard inquiries remain on your credit report for up to two years but they can only impact your score for 12 months.

Credit Utilization

Credit utilization is the amount of revolving credit you are currently using divided by the total credit available to you. Credit utilization is usually expressed as a percentage. When you open a new line of credit, like a new credit card, your total credit limit increases, and your credit utilization ratio decreases. This can help build your credit score. Experts recommend keeping your credit utilization below 30%.

Credit utilization can affect your credit score. And if you are approved for a new card, when that credit limit is added to your current credit limit, your total maximum will likely increase, which can lower your utilization percentage.

Average Age of Accounts

The longer the average age of your accounts on your credit report, the higher your credit score will likely be for that category. When you open a new account, it will reduce the average age of your accounts. If you have established credit with multiple accounts that are several years old, a new account opening may not have a significant impact. If all of your accounts are new, adding additional new accounts may have a greater negative impact.

Credit Mix

Lenders like to see that borrowers have a variety of different types of credit. This shows that they can handle different types of payments. The impact of opening a new credit card has on your credit mix will depend on your current credit array. If you already have several credit cards, it may not impact your credit score much. If you don’t have any other existing credit cards, opening up a new credit card could improve your credit mix and therefore help build your credit score.

Recommended: How Many Credit Cards Should I Have?

How Often Should You Apply for a Credit Card

Now, about the question of how often you can apply for a new credit card: While there is no hard and fast rule about how often to apply for a credit card, some experts recommend waiting at least six months between credit card applications.

•   Those with poor credit may need to wait even longer between applications to maximize their chances of getting approved for a new credit card.

•   Those with excellent credit can probably apply for a new card more often, like every three months.

Why You Should Wait Before Applying

Here are some reasons why you should think twice and delay before applying for a new credit card:

•   If you don’t know how to use a credit card responsibly, you may want to consider waiting before applying for a credit card.

Worth noting: If you have bad credit from a maxed out credit card, you may want to work on building your credit score first. Some tips:

•   If your credit utilization ratio is high because you don’t have a high credit limit, you could try implementing the 15/3 credit card payment method. The 15/3 credit card payment method is when you make two payments each statement period instead of one. You pay half of your credit card statement balance 15 days before the due date on your statement, and then make another payment three days before the due date. This additional payment can help lower your credit utilization ratio throughout the month, which can also help improve your credit score.

•   Other reasons you may want to wait before applying for a credit card include if you’re buying or refinancing a home currently, since applying for a new credit card can result in a higher mortgage interest rate or potentially being declined from the mortgage altogether.

•   You should also evaluate the credit card benefits and welcome offer to make sure it is the right fit for you and the best offer that you can get. Credit card sign-up bonuses fluctuate throughout the year. Before applying for a credit card, you should do some research to see what the highest offer has been. If the current offer is significantly lower, consider waiting to apply for that card.

How Many Credit Cards Can You Apply for at One Time

Technically, you can apply for as many credit cards at once as you want. However, you likely won’t get approved for all of them. And you could trigger a slew of hard credit inquiries. So putting in a load of applications likely won’t be worth the negative impact on your credit score.

Credit Card Issuer Restrictions

How many credit cards you can apply for at one time will vary based on the credit card issuer. Each card issuer has its own rules and restrictions about applications. American Express, Bank of America, Capital One, Chase, Citibank, Discover, U.S. Bank and Wells Fargo all have their own issuer restrictions regarding applications, cards and welcome offers.

Credit Card Tips

Once you have been approved for an additional credit card, you need to know how to manage multiple credit cards. Try these strategies to stay in good financial health:

•   Understand your obligations. There are several credit card rules to understand so that you maintain your credit score, while taking advantage of the credit card benefits. One of the more important ones is to always pay at least the minimum amount due on time.

•   When you are issued your credit card, it will have an expiration date. The credit card expiration date is usually three to five years after being issued. You can find the expiration date on the credit card itself. After the card expires, the issuer will usually give you a new card, as long as your account is still active.

•   However, what happens if you don’t use your credit card is that the issuer may close your account. So make sure you are using your credit card.

•   Also, make sure you are using your credit card responsibly. That means keeping an eye on your credit limit, your credit utilization ratio, and when your payments are due.

Recommended: What Is a Credit Card Expiration Date?

The Takeaway

How often you should apply for a credit card will depend on a variety of factors, like your credit history, the card issuer, the current offers available, and more. It can be wise to not apply for new credit cards more often than every six months. And once you have a new credit card, make sure to use it responsibly.

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

FAQ

How long should I wait to apply for another credit card after being approved?

Some financial experts recommend waiting at least six months between credit card applications. However, there is no hard and fast rule about how often to apply for a credit card. It will vary depending on your credit score and the restrictions from the card issuer.

Do I have to wait six months to apply for another credit card?

Waiting six months between credit card applications is not a defined requirement. If you have poor credit, you may need to wait longer than six months between applications to maximize your chances of getting approved for a new credit card. If you have excellent credit, you can probably apply for a new card more often, like every three months.

How often can I apply for a credit card without hurting my credit?

Each credit card application results in a hard inquiry, which hurts your credit score temporarily. Keep that fact in mind as you consider applying.

Photo credit: iStock/Eva-Katalin

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

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


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

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If you’re wondering whether you can pay utilities with a credit card, the answer is likely yes. In many situations, you can break out the plastic and charge your electricity, wifi, phone, and other basic expenses.

That said, while using a credit card as your payment method may be the most convenient option for you, there are some factors to consider to make sure you are doing what’s best for your overall financial picture. While it can help you build credit, some bill processors may charge convenience fees. If you carry a balance on your credit card, you may end up paying interest as well.

In these ways, it may not be the most economical nor the most financially wise move to make. Read on to learn how to size up this situation and decide how to pay your utility bills.

What Bills Can You Pay With a Credit Card?

You typically can pay for most bills using your credit card. Some of these include:

•   Rent

•   Car insurance

•   Medical bills

•   Cell phone bills

•   Internet fees

•   Cable

•   Utilities (like electricity and sewage)

•   Subscription and streaming services

•   Taxes

Recommended: How to Build Credit With a Credit Card

Pros and Cons of Using a Credit Card to Pay Bills

Paying utilities with a credit card may seem like a great choice, there are some risks and downsides. Even if the answer to “Can you pay a utility bill with a credit card?” is yes, it may not be the best move. Consider these pros and cons before making your decision.

Pros

First, consider the benefits of using a credit card to pay your utility bill:

•   Potential to build credit score: Most credit cards report your payment activity to all three major credit bureaus — Experian, Equifax, and TransUnion. Paying consistently on time is one of the main factors that could help build your credit score.

•   Earn rewards: Using a cash back or rewards credit card to pay utility bills could help earn a percentage back on your spending or points toward, say, travel. Some cards may earn you higher rewards than others.

•   Help meet reward signup bonuses: Some credit cards offer a sign-up bonus if you can meet a certain spending requirement within a predetermined amount of time. Since you need to pay utilities every month anyway, charging it on a credit card can get you closer to the minimum spending requirements.

•   Convenient way to track spending: By putting your utility payments in your credit card, you can track it through your credit card statements each month, or when logging into your account online.

•   Easily dispute payments: Say you accidentally pressed the payment button twice, or there are some suspicious charges on your utility bill. Using a credit card means you can dispute it through your credit card issuer.

•   Can set up automatic payments: Depending on your utility company, you may be able to authorize automatic credit card payments. It could be helpful to ensure you pay utilities on time.

Cons

Next, review the potential disadvantages of breaking out your plastic to pay your utility bills.

•   Could negatively affect your credit score: Not paying your credit card bill on time could mean your score takes a dip. Plus, if you use your credit card for more than just utility payments, racking up a large balance could affect your credit utilization ratio (the percentage of available credit you’re using on revolving credit accounts). Higher credit utilization could signal to credit scoring agencies and lenders you need to rely on credit in your financial life. As such, could lead to negative affects on your credit score.

•   Potentially pay fees: Some utility companies charge a convenience fee, which is typically a percentage of your bill amount. In most cases, this fee is to help offset the processing fees charged by credit card companies. The cost may not be able to offset any rewards you earn. Fees can also easily add up if you regularly use your credit card for utility payments. Consider carefully whether this payment method is the best financial choice.

•   Possible interest charges: Aside from potential negative effects on your credit score, you’ll end up paying interest on any balances you carry from month to month. Often, the rates are in the double digits and higher which means you end up paying more overall for your utilities.

Recommended: Does Paying Utility Bills Build Credit?

Should You Pay Bills With a Credit Card?

Paying bills with a credit card can be a smart choice if you’re looking to build your credit and earn rewards. It does mean you need to be mindful of your credit behavior before doing so, or else you could face consequences such as excessive fees and interest charges.

For instance, perhaps you consistently pay your credit card bills each month (ideally the entire balance) and like the buffer you get between the grace period and when the payment is due.

In this case, you may be able to reap the benefits of using a credit card. However, if you get charged a convenience fee each time (and you have multiple bills to pay) and can only afford the minimum credit card payment, then you may want to reconsider using credit cards.

Whatever your choice, be sure to check the terms of your credit so you know when your due date is and other charges such as the interest rate and late fees.

How to Pay Utilities With a Credit Card

There are several options to pay utilities with a credit card, including directly through the utility company or through a third-party processing company. Each option typically asks you to sign up for an account online and verify information such as your address and other personal details. To pay, simply follow the prompts presented to you on the screen. There may be an option to select to charge your utility bills each month automatically.

Before pressing the “submit” button, look for information indicating any convenience fees you’ll pay in dollar amounts. Some utility companies also accept credit card payment by phone — call to check to see if this is an option for you, if you like. You want bill pay options to suit your needs, not just those of service providers.

Recommended: How to Pay Your Bills When You’ve Lost Your Job

How On-time Utility Payments Can Improve Your Credit

Utility payments aren’t directly reported to the three major credit bureaus, so they don’t necessarily have an effect on your credit. However, if you use a method of payment that does report to the credit bureaus — like credit cards — then it could have an effect.

For instance, if you consistently make on-time credit card payments, credit bureaus will report the positive behavior. Credit scoring agencies may look at this behavior more favorably and build your score as a result.

There are some credit bureaus that report your utility payments, but not all do. If you need the answer, you can look at your annual free credit report to learn more.

Tips to Paying Bills With a Credit Card

Whenever you pay by credit card, you’ll want to use your plastic responsibly and carefully. This holds true for paying utility bills by credit card, too. Here are some pointers.

•   Monitor your bank account to ensure there’s enough money when you pay your credit card bill, or you could risk overdraft or NSF fees.

•   Be sure to make at least the minimum credit card payment to prevent late fees and negative impact on your credit report.

•   Check to see whether any convenience fee is worth it or is offset by any rewards you earn.

•   Watch your credit utilization to prevent it from going too high.

•   Monitor your credit card transactions, and report any fraudulent activity.

The Takeaway

In many cases, you can pay for utilities with a credit card. But you’ll need to weigh whether this is the best move for you. It might be a way to conveniently take care of bills, earn rewards, and build your credit. Or it could lead to more credit card debt, interest payments, and convenience fees.

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

FAQ

Is it better to pay utilities with a credit card or bank account?

The choice to pay with a credit card or bank account depends on your financial situation and preferences. There are benefits to using a credit card such as earning rewards and tracking your payments, but you may have to pay a convenience fee for the privilege. And you could accrue more high-interest debt if you can’t pay the full balance each month.

Can I pay my mortgage and utilities with a credit card?

In most cases, you can pay your utilities with a credit card. Unfortunately, most mortgage companies don’t allow you to pay your monthly payments with a credit card. There may be third-party processing companies that allow you to do so, but you’ll most likely pay a convenience fee.

Is paying a bill with a credit card considered a cash advance?

No, paying a bill with a credit card isn’t considered a cash advance. However, some aspects of using payment apps, like PayPal and Venmo, may be treated that way.

Photo credit: iStock/miniseries

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


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

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

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If you’re considering a new credit card, frequent travelers may benefit from using a credit card with Priority Pass. Depending on the airport you happen to be in, you may be able to access lounges in the Priority Pass network. That could give you a welcoming lounge to relax, work, game, or even sleep in, plus food, drink, and other perks when traveling.

However, since there are different levels of access with Priority Pass, it’s important to understand what exactly the program offered involves, and whether it may make sense to become a member. Finding the right credit card can involve considering a variety of factors, so arm yourself with this intel.

What Is Priority Pass?

Priority Pass is a company offering a network of over 1,400 airport lounges, restaurants, and other services in 148 countries. Different features at qualifying airport lounges include free drinks and food, wifi, spa treatments, showers, and sleeping areas.

You can join Priority Pass with an annual membership, with different access tiers based on how often you travel. Some credit cards — typically luxury travel ones — offer free Priority Pass membership just for being a cardholder. That can make your time preflight or during a layover feel like a posh experience.

Depending on your membership, you may be able to bring guests free of charge into lounges.

Benefits of Priority Pass

There are an array of credit card rewards, such as cash back vs. miles. Here, a closer look at what you’ll enjoy if you get Priority Pass with your credit card.

Airport lounges within the Priority Pass network are popular with travelers because there are no requirements to access them other than being a member vs. some lounges that require you to fly with a certain airline on a specific class to gain access. Other benefits include worldwide access, luxury amenities, and complimentary food and drink. Here’s a closer look.

Airport Lounges

There are over 1,400 airport lounges worldwide, with many offering access within three hours of your flight. Though specific features differ between lounges, you can typically expect perks like complimentary food and beverages, wifi access, comfortable seating, workstations, and alcohol at select lounges. Some airport lounges may even allow you to pre-book or reserve lounge access so you’re guaranteed a spot when you arrive.

Restaurant Access

Priority Pass members also have access to a network of restaurants at select airport terminals. You will receive a credit to go towards a meal at participating restaurants, which can be a great way to save money on food. Depending on where you dine, there may also be promotional offers on occasion. Any amount you spend over the credited amount you will need to pay out of pocket. To receive the credit, you’ll typically present your Priority Pass card to a restaurant staff member and your boarding pass information.

Private Suites

How’s this for a perk? Select airports also offer private sleeping areas for you to rest, helpful if you’re between long haul flights. Most commonly, you’ll access through Minute Suites available at select locations. Members receive access to a private room which may include blankets, a workstation, white noise machine, and a daybed sofa if you want to take a nap.

Game Lounges

Some Priority Pass locations also offer lounges with gaming features. Called Game Space, these are locations where members can relax and play at various gaming stations with offerings for different ages. This might help time seem to pass a little more quickly before your flight.

Free Guests

Priority Pass members can take guests into lounges with them, often without an additional fee. Children are also allowed and may either count as an additional guest or be allowed in completely free of charge.

Recommended: How Do Credit Card Payments Work?

Why Get a Priority Pass Credit Card

Getting a credit card with Priority Pass access opens you up to a possible better travel experience than if you were to travel without lounge access. Many credit cards offer Priority Pass Select, a membership tier offering you access to certain airport lounges, restaurants and other experiences through the Priority Pass network.

You don’t need to pay an additional membership fee — your credit card’s annual fee typically should suffice. Priority Pass memberships can run up to several hundred dollars per year. If your credit card annual fee is around the same price, it may be worth it signing up for a card that offers Priority Pass as part of its rewards, especially if you can access other perks that more than offset the cost.

Examples of Credit Cards that Offer Priority Pass Membership

Credit card reward offers and perks can change quite often. Currently, these are among the credit cards that offer Priority Pass membership:

•   Capital One Venture X Rewards Credit Card

•   Chase Sapphire Reserve

•   Citi Prestige Card

•   The Platinum Card and Marriott Bonvoy Brilliant Card, both from American Express

•   Bank of America Premium Rewards Elite Card

Recommended: Guide to Automated Credit Card Payments

Pros and Cons of Paying for Priority Pass vs as a Priority Pass Credit Card Perk

There are both benefits and drawbacks to paying for Priority Pass membership yourself or getting on through

Pros

First, consider the advantages of getting Priority Pass as a credit card benefit.

•   Squeeze value out of card: Getting a credit card with Priority Pass membership included can help you to maximize the value of your card. As you evaluate credit card rewards, you want the benefits to more than offset the fees you pay.

•   Save on travel costs: Even if you don’t spend much time in airports, you can save money when traveling with the free meals feature at select Priority Pass restaurants.

Cons

Next, consider the potential disadvantages of getting Priority Pass with your credit card.

•   Fees: No matter if you have a credit card with airport lounge access or pay for a Priority Pass membership out of pocket, you probably have to pay an annual fee one way or another to gain access.

•   Charged for guests: Depending on the membership tier (even for memberships attached to a credit card), you could be charged for each guest that enters with you. If you’re using your membership that’s included with your credit card, you may want to ask if guests are free, or else you may get a “surprise” charge on your next statement. This can be important when traveling on a budget as a family too.

•   Select benefits: Not all Priority Pass memberships are the same. Ones attached to credit cards may change at any time, so you’ll need to ask what is included and what’s not. For example, some restaurants may not offer perks or discounts if you hold a certain credit card.

Priority Pass Tips

There are several ways to get the most out of your Priority Pass membership, whether or not you pay for it out of pocket or get one through a credit card.

•   To enroll out of pocket, head to the Priority Pass website and select the membership tier you want, and pay for the annual fee. You will need to provide details such as your name and address. Once paid, Priority Pass will send your membership card in the mail — you can activate the card online.

•   If you signed up for a credit card with Priority Pass access, you will also need to activate it. Depending on your credit card, you may need to activate your membership by first logging into your credit card account and selecting the correct link to follow the appropriate prompts.

Other tips to get the most out of your Priority Pass membership include:

•   Look up lounges in advance: When planning your flight itinerary and comparing airfare options, it can be wise to look at what layovers are available to you. If flights with similar itineraries are around the same price, consider booking one with better lounge access during your layover. Also check what lounge access you may have when coming back on your return flight. Some airports may also have more than one lounge, so pick one that seems like the best fit.

•   Prebook when possible: Some locations allow you to reserve a spot at an airport lounge. If it’s during peak travel season or you want to guarantee a place, pre-booking can increase the chances you don’t have to wait.

•   Check to see what benefits you have: Priority Pass Select memberships can vary, so it’s better to check ahead to see what you get. Same goes even if you’re paying for a different membership tier out of pocket.

•   Check benefits for authorized users: Some credit cards with Priority Pass memberships don’t allow authorized users the same access, whereas some do.

The Takeaway

Getting a credit card with Priority Pass membership can be beneficial, but only if you use this perk. You may also pay a higher annual fee since luxury credit cards are typically the only ones offering this type of benefit. If you’re not a frequent traveler, you may be better off with another credit card. You could likely pay out of pocket for the occasional use of a lounge.

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

FAQ

What is the advantage of having a Priority Pass?

Priority Pass can make spending time in airports more comfortable and affordable. Having Priority Pass allows you access to over 1,400 airport lounges, restaurants, and services in over 148 countries.

Do you need your credit card with Priority Pass?

In most cases, you don’t need your credit card when accessing a Priority Pass lounge. You will need your membership card and your boarding pass.

Does Priority Pass give you free lounge access?

Yes, Priority Pass can give you free lounge access to over 1,400 airport lounges globally.

Photo credit: iStock/jacoblund

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


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

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Women have more financial power than ever before — 45% of them earn more or as much as their husbands, they currently control more than $10 trillion of the total U.S. household financial assets, and they may control trillions more in the ongoing transfer of wealth between generations. In 2023, women’s purchasing power added billions to the economy — or “she-conomy,” as it was dubbed. Women ages 25 to 54 also made historic gains in the labor market in 2023, and they were primary contributors to its strength, according to research from the Brookings Institution.

Yet there’s one thing many women aren’t doing with all their monetary might: investing. An eye-opening 64% percent of women have never invested, SoFi’s 2024 Women and Finances Survey found. That’s 17% more than the number of men (47%) who have never invested.

This investment gender gap could have serious repercussions for women now and in the future. Investing can be an important tool to help build wealth. The sooner an individual begins investing, the more time their money has the potential to grow. Almost half (48%) of female investors say their biggest regret is not investing sooner, according to another 2024 survey by SoFi. And because women outlive men by about six years, their money needs to last longer.

So why aren’t women investing? And what can be done to reverse this troubling trend? Read on to learn about the obstacles holding women back, and ways they can break through and start investing (literally!) in their future.

Women’s Financial Priorities vs Financial Realities

*Priorities for next two-to-three months.

Source: SoFi 2024 Women and Finances Survey

First, let’s be clear: It’s not that women aren’t interested in investing. They are! In fact for 2024, their financial priorities are similar to men’s, per the Women and Finances Survey findings. The desire to save for retirement and invest more money is nearly equal between the two genders.

And when they do invest, women tend to employ longer-term strategies and therefore tend to get better returns.

Where the difference between the two genders comes into play is what men and women are actually doing with their money. In the short-term, women are focused on keeping up with their living expenses, while men are more likely to invest and save for retirement.

Source: SoFi 2024 Women and Finances Survey

There are a number of reasons women aren’t investing, no matter how much they might want to.

1. The Confidence Conundrum

For many women, uncertainty about investing, and how good they might be at it, is holding them back. Women worry they don’t know enough about investing to get started. Nor do they feel confident about making investments — 43% say they don’t have the confidence to do it “right.”

Source: SoFi Survey, March 2024

Even when women do take the plunge and start investing, they still feel unsure of themselves. Only 57% of female investors think of themselves as investors. The rest believe they don’t have the experience to be considered investors.

That may be because women have a very specific view of what an investor is — typically as finance professionals or individuals who are extremely experienced and savvy about the investing process and the stock market.

Women’s lack of confidence extends beyond investing. They also have doubts about how well they’re managing their money overall compared to men.

💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.

2. The Wage Gap Still Exists

Another investment obstacle for women: Having the money to invest. While their financial power has grown, especially in the last few years, women continue to earn less than men do. For every $1 men earn, women earn just 82 cents — and this number has barely budged in 20 years, according to an analysis by the Pew Research Center.

Source: Pew Research Center

It stands to reason that when you’re not earning as much, you may not have extra money to invest. As noted above, in a March 2024 SoFi Survey, 53% of women said they aren’t investing because they don’t have the funds to do so.

3. Women Worry About the Future More, But Still Invest Less

Financial worries about the future weigh on women’s minds. For many, achieving their goals feels like a long-shot. For example, 58% of women worry their money won’t last through their retirement.

Yet women are less likely than men to understand how investing now could help them reach those goals, and they don’t invest as much in the stock market and for retirement as men do. For instance, while men invest 28% of their income for retirement, women invest just 19%.

Source: SoFi 2024 Women and Finances Survey

4. The Fear Factor

It’s tough to invest money if you’re worried you’re going to lose it, and that’s a very real financial fear women grapple with. Thirty-two percent say the reason they don’t invest is the concern that they’ll lose their money or make a bad investment.

That may explain why women are investing significantly less than men in the stock market — 38% of women have invested less than $2,000, compared to 27% of men. And 25% of men have $50,000 or more invested in the markets vs. 14% of women.

Source: SoFi 2024 Women and Finances Survey

When women do invest, they are typically more conservative in their investment choices, and their portfolios are not as diversified as men’s are.

Source: SoFi 2024 Women and Finances Survey

💡 Quick Tip: It’s smart to invest in a range of assets so that you’re not overly reliant on any one company or market to do well. For example, by investing in different sectors you can add diversification to your portfolio, which may help mitigate some risk factors over time.

Closing the Investment Gap

Now for the good news: Women have strengths and innate advantages that can be harnessed to work in their favor. We know that female investors are great investors. For instance, as noted above, women tend to get better returns on their investments as a result of leveraging longer-term strategies.

Plus, the fact that women are more conservative in their investing strategies than men is not necessarily a bad thing. It typically means they are less likely to act impulsively or to exceed their risk tolerance.

The trick is for them to get started with investing. And investing for women begins, of course, with money. Almost half of women say the biggest investment motivator is not wanting to live paycheck to paycheck, which is true of men, as well.

Source: SoFi 2024 Women and Finances Survey

How You Can Start Investing

Tapping into your personal motivation is key. Whether it’s building up your savings, putting together enough money for a house, or building your retirement nest egg, make that your North Star and begin working toward that goal. And remember, it’s never too late (or too early) to start. Here’s how to do it:

Make a plan.

Setting your financial goals can help you determine when you might need the money, which in turn can affect how you invest and what you invest in. This is the foundation of your plan: a goal, a timeline, and your initial questions about which investments are best for your situation.

Get smart.

Understanding how the market works can help women feel more confident about investing. But women can’t do it alone. One of the most important things in your investing journey is finding like-minded people who can have those “let’s figure it out” conversations with you. It’s also an easier way to learn the language around investing, and become familiar with how to buy stocks and other investment options. You can also talk to a financial advisor if you feel it would be helpful. Knowledge is power.

Save more.

Having enough money to invest is a major impediment for women. But know this: No amount is too small to invest. If your employer offers a 401(k), enroll in it and contribute as much as you can. Aim to contribute at least enough to get your employer’s matching contribution, which is, essentially, “free” or extra money. Many investment options will allow you to contribute smaller amounts if you set up an automatic transfer or contribution to the investment account.

Make your first investment.

Open a brokerage account and/or an IRA if you’re saving for retirement choose what to invest in, whether it’s stocks, mutual funds, or exchange-traded funds (ETF).

Commit to the plan.

Once you’ve started investing, keep at it. The more you do it, the more confident and capable you’re likely to feel. And you’ll also have the satisfaction of knowing you’re taking concrete steps to help secure your financial future.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For the SoFi 2024 Women and Finances Survey we surveyed 636 SoFi paid product members across the U.S. A paid product member is anyone with an open account with SoFi. Gender was self-identified through the survey. 314 women, 280 men, 13 gender non-conforming, and 29 preferred not to identify.

For the March 2024 SoFi Survey, we surveyed 1,500 women with a household income of $100K+ and at least some college completed.

Photo credit: iStock/Hiraman

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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.

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