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The mean annual wage for a dermatologist as of May 2024 data (the most recent available) from the U.S. Bureau of Labor Statistics (BLS) is $347,810. This career can be a challenging and rewarding profession, both financially and emotionally. Dermatologists can help their patients look and feel their best. In some cases, they can even save their lives.

Read on to better understand what it’s like to work as a dermatologist, how much they earn, and the benefits and downsides of choosing this line of work.

What Are Dermatologists?

Dermatologists are doctors who specialize in the field of dermatology. They manage diagnoses and treatments relating to skin, hair, and nail health. They help patients with issues ranging from eczema and skin infections to acne and skin cancer.

Some dermatologists perform cosmetic procedures like laser treatments, injections, and chemical peels. An important role that dermatologists also take on is educating patients on sun protection to help them avoid running into skin damage and skin cancer.

As you might imagine, considerable training is involved to become a dermatologist. Typically, it can take 12 years of training and education. To complete this, some aspiring dermatologists will take out student loans. Their average student loan debt can be similar to what any other medical doctor takes on, meaning in the range of $200,000.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Dermatologists Make a Year?

It’s important to note that dermatologists will likely see their salaries rise over time. While their entry-level salary may be lower than the average figure, it should rise as their careers progress.

That being said, the lowest 10% of earners in this role make an estimated annual wage of $118,540 or lower. So even the lowest income is likely around or over the $100,000 a year salary level.

What is the Average Salary for a Dermatologist?

As briefly noted earlier, the average salary or hourly wage for a dermatologist can be affected by where they work.

This applies to the type of medical practice or healthcare setting they work in. Consider the annual mean wage by workplace, all of which can be relatively high-paying:

•   Outpatient care centers: $474,470

◦   Offices of physicians: $357,160

•   General medical and surgical hospitals: $276,280

•   Personal care services: $173,370

•   Merchant wholesalers, nondurable goods: $172,080

Next, take a closer look at how dermatologists’ salaries vary by the state they work in, according to the BLS. Please note that information is not available for all states.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Dermatologist Job Considerations for Pay and Benefits

In addition to receiving competitive pay, many dermatologists work full-time and therefore qualify for employer benefits.

•   If they run their own medical practice, they would need to purchase these benefits for themselves and their employees.

•   If they work for a practice they don’t own, for a medical group, or in a hospital setting, they should qualify for valuable employee benefits like paid time off, retirement accounts, and health care.

Pros and Cons of Dermatologist Salary

The main advantage of a dermatologist salary is that it is usually quite high. The tradeoff for that high salary may be a lot of student loan debt, as noted above.

To work as a dermatologist in the United States, you need to attend and finance medical school after receiving an undergraduate degree, which can be quite time-consuming and costly.

The Takeaway

Working as a dermatologist makes it possible to help people dealing with skin concerns, while earning a good salary. Dermatologists earn a mean annual wage of $347,810, which is a salary many people would be happy with. However, obtaining the necessary training can be quite expensive, so dermatologists may start their careers with considerable student loan debt to pay off.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Can you make $100k a year as a dermatologist?

It’s very possible to earn $100,000 a year as a dermatologist. The mean annual salary for a dermatologist in the U.S. is $347,810.

Do people like being a dermatologist?

Many people enjoy working as a dermatologist since this role can be fulfilling on several levels. Not only is the work interesting (diagnosing and resolving health concerns), but it involves helping people live healthier and happier lives.

Is it hard to get hired as a dermatologist?

It may not be challenging to find a job as a dermatologist once you have the proper qualifications. The field is growing at a rate that is at least on par with other professions, if not higher.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-039

If you have an interest in both art and technology as well as a knack for creating distinctive visual designs, you might consider a career as a graphic designer. On average, graphic designers make $68,610 a year on average in the U.S., according to the U.S. Bureau of Labor Statistics.

How much money a graphic designer makes, however, can vary widely depending on their education, experience, job location, and industry. But with a little career savvy, you can fulfill your creative passions without having to be a starving artist.

What Are Graphic Designers?

Graphic designers create visuals to bring ideas to life. They can render their projects by hand or by using design software. Graphic designers may get paid by the hour or earn a yearly salary working for a company.

Here’s a look at some of the duties you might have as a graphic designer.

•   Designing visual marketing materials: This may include creating brand logos, websites, brochures, advertisements, packaging, and other promotional materials.

•   Targeting an audience: Graphic designers must research and understand their target audience so their product can successfully communicate a client’s message.

•   Creating and editing images: This can include both illustrations and photographs.

•   Choosing colors, layout design, and typography: A graphic designer’s mission is to deliver a product that is effective and eye-catching.

•   Staying current: Designers need to be up-to-date with the latest design software and trends.

•   Maintaining deadlines: Graphic designers often need to juggle multiple projects while meeting strict deadlines.

Working as a graphic designer is generally not a job for introverted people. While you may do a fair amount of solo design work, you’ll likely be asked to collaborate with copy editors and marketing teams, meet with clients, and present designs to co-workers and clients for feedback.

Recommended: Best Low-Stress Jobs for Introverts With Anxiety

How Much Do Starting Graphic Designers Make a Year?

While most entry-level graphic designers won’t initially get paid $100,000 a year, it is a position that requires a specific skill set, so you’re likely to earn more than the minimum wage. The average entry level graphic designer salary in the U.S. is $55,951 as of October 29, 2025, but the range typically falls between $41,500 and $65,000, according to ZipRecruiter.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

What is the Average Salary for a Graphic Designer?

On average, graphic designers make anywhere from $37,600 to $103,030, with the average falling at $68,610.

How much you can earn as a graphic designer ultimately depends on how much experience you have and what particular design niche you choose. For example, a lead graphic designer makes $91,161 per year on average, according to ZipRecruiter, while a user interface (UI) designer salary averages $100,548.

While working as a graphic designer is not one of the highest-paying jobs in the U.S., people with an interest in both technology and art can find this career deeply fulfilling. The job also provides the opportunity to continually tackle new projects, keeping the work fresh and challenging.

Recommended: What Is a Good Entry-Level Salary?

What is the Average Salary for a Graphic Designer?

Geographic location can influence how much money a graphic designer can make in the U.S. Here’s a look at the average graphic designer salary by state.

Source: U.S. Bureau of Labor Statistics

Recommended: Is a $100,000 Salary Good?

Graphic Designer Job Considerations for Pay and Benefits

Within the field of graphic design, there are a number of specialty areas you might consider. Here’s a look at some of the most common types of graphic designers.

•   Web designers specialize in creating functional and visually appealing layouts, while ensuring the design elements are user-friendly.

•   User experience (UX) designers craft the user experience of mobile apps, websites, and other products.

•   User interface (UI) designers focus on the visual, interactive elements of apps, websites, and electronic devices to create aesthetically-pleasing interfaces.

•   Illustrators create visual designs for ad campaigns, magazines, books, and other media. Some may specialize in medical illustrations or children’s books.

•   Print designers come up with images and logos for brochures, business cards, and packaging materials.

•   Identity and branding designers create visual identities for companies and products.

•   Environmental graphic designers create visual designs for physical spaces, including museums, stores, and public spaces.

•   Motion graphic designers can work on animation and moving graphics for TV and movie title sequences, how-to videos, and more.

Degree requirements: To earn competitive pay, most aspiring graphic designers will need to obtain a bachelor’s degree from an accredited graphic design program. You may also need some additional technical training to meet hiring qualifications for the positions listed above.

Job benefits for a salaried graphic designer can include:

•   Health insurance

•   Dental insurance

•   Vision insurance

•   Vacation/sick leave

•   Retirement plan

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Being a Graphic Designer

Every job has its pluses and minuses. Here a look at some of the advantages and disadvantages of being a graphic designer.

Pros of Being a Graphic Designer

•   Creative fulfillment: Graphic designers get to stretch their artistic muscles by developing captivating visuals for their clients.

•   Good work-life balance: Salaried graphic designers typically work nine-to-five hours. Many have the opportunity to work from home.

•   Freelancing options: If you get tired of working in the same place with the same people, you can choose to freelance. Graphic design is a job you can do almost anywhere at any time.

•   Being part of a team: You’ll likely collaborate with design teams, clients, and marketing professionals.

•   Career longevity: As long as you stay current and on top of your game, you can work as a graphic designer at any age. You could even potentially pick up freelance work as a retiree.

Cons of Being a Graphic Designer

•   Sedentary lifestyle: Being a graphic designer doesn’t require the physical demands of a trade job. You’ll spend a lot of time behind a computer monitor.

•   Solitary work stints: While it’s true you’ll have chances to work with a creative team, much of your hour-to-hour creating happens alone.

•   Stressful deadlines: Even though office hours are typically nine to five, advertising campaigns and projects have hard deadlines you’ll be expected to meet.

•   Difficult clients: Clients may be critical of what you come up with, or they may constantly change their minds.

•   Limited advancement opportunities: Graphic designers tend to stay in their lane. However, you could be moved into a managerial position, and there is still the potential for pay raises every year.

The Takeaway

If you crave expressing yourself as a visual artist, working as a graphic designer can pay you an average of $68,610 a year for doing what you love.

Being a graphic designer also allows you to work in an energetic, collaborative atmosphere, while reaping creative and financial rewards.

Whatever career path you ultimately choose, you’ll want to make sure your potential earnings can cover your everyday living expenses. Try creating a budget and check out financial tools that can help track your spending.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can you make $100k a year as a graphic designer?

The average salary for a general graphic designer is $68,610 in the U.S. While it’s not impossible to make $100,000, you would have to be at the top of your skill set and acquire some specialized experience.

Do people like being a graphic designer?

For many people, graphic design is a stimulating and rewarding career. Individuals who enjoy working on innovative, visual projects and collaborating with creative teams will probably like being a graphic designer.

Is it hard to get hired as a graphic designer?

Landing a job as a general graphic designer can be competitive. You may find it easier to get hired if you have a particular design specialty, such as UX (user experience), UI (user interface), or product design.

Photo credit: iStock/Moyo Studio

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-043

Because a credit score is an important indicator for determining a consumer’s creditworthiness when buying a car, those with excellent credit histories tend to have an easier time borrowing money on favorable terms compared to those with lower credit scores. However, industry data shows that high-risk borrowers remain viable candidates for auto loans. In other words, there is no universally defined credit score needed to buy a car.

Read on to learn how your credit score can affect buying a car, plus some tips for purchasing a car with a lower credit score.

What FICO Score Do Car Dealers Use?

There are a few different scoring models that car dealers may use for determining a customer’s credit score. They may use the FICO® Auto Score, an industry-specific model featuring a score range from 250 to 900. The auto industry also may use VantageScore® 3.0 or 4.0, which has a score range from 300 to 850.

No matter which scoring model is used, a bad credit score falls on the lower end of the range and a good credit score sits on the higher end of the range.

What Is the Minimum Credit Score to Buy A Car?

There may not necessarily be a minimum credit score required to buy a car. Consumers with deep subprime credit scores (300–500) have obtained financing for new and used vehicles in 2025, according to the credit bureau Experian. Although the percentage of borrowers in this category is very low, this indicates that even those with the lowest credit scores still may have access to auto financing.

Average APR by Credit Score Ranges

Consumers from all credit score categories have obtained auto loans in 2025, but car buyers with excellent credit histories tended to secure the lowest annual percentage rate (APR) financing, according to Experian. When assessing what is a good credit score to buy a car, Experian’s data confirms that consumers in the super prime and prime categories obtain the lowest interest rates on average for financing.

Based on June 2025 financing data for new vehicle purchases, here are the average APRs you can expect by credit score range:

•   Deep subprime (300-500): 15.97%

•   Subprime (501-600): 13.38%

•   Near prime (601-660): 9.97%

•   Prime (661-780): 6.78%

•   Super prime (781-850): 5.27%

How to Buy a Car With a Lower Credit Score

Obtaining a loan to purchase a new or used vehicle when you don’t have great credit can be cumbersome, but it’s not impossible. Here are some ways a consumer with poor credit may be able to obtain auto financing:

Make a Large Down Payment

Offering a large down payment on a vehicle purchase may allow car buyers to obtain more reasonable rates and better terms for financing, resulting in more affordable monthly loan payments. By putting more money down at the time of purchase, lenders also may view the loan as less risky, thus increasing your odds of approval.

Get Cosigner Assistance

Buying a car with the assistance of a cosigner is another way to potentially bolster your chance of securing favorable financing. A cosigner agrees to share the responsibility of repaying the loan, effectively promising the lender that if you don’t make the payments they will. If the cosigner is creditworthy, it puts the buyer in a much better position to obtain financing than going it solo.

Consider a Less Expensive Car

Especially if you are buying a car with bad credit, it is important to know how much you can realistically afford to spend — and then stick to that budget, even if the dealer tries to upsell you. Additionally, finding a less costly car will reduce the amount you need to borrow, and it may be easier to get approved for a smaller loan amount than a larger one.

Benefits of Good Credit When Buying a Car

The benefit of a good credit score when buying a vehicle is that you may secure lower interest rates compared to consumers with poor credit. Unless a consumer buys a vehicle outright with cash or receives 0% APR financing, the consumer will eventually face monthly principal and interest payments until they’ve paid off the loan balance in full. Auto financing terms may vary in length, with some maturing at 60 months, 72 months or 84 months.

Car loans with a high APR may cause consumers to pay a long-term premium above and beyond the actual sales price of the vehicle.

How to Monitor Your Credit Score

There are a number of ways you can monitor your credit score for free, including through your credit company or another financial institution where you have an account, as well as through a credit service or credit scoring website.

Contrary to what you may expect, your credit report does not include your credit score, though it does provide valuable information about your credit history and debts, which is why it can still be helpful to read over your credit report before making a major purchase like a car.

Credit scores can fluctuate over time depending upon financial circumstances, and credit score updates occur at least every 45 days. That’s why it’s important to take a look at where your score stands right before you begin the process of car shopping.

Also keep in mind that it’s common for credit inquiries to occur when you’re shopping around to see what auto loan terms you qualify for. While soft inquiries don’t affect your credit score, hard inquiries, such as those that happen when you’re comparing rates for an auto loan, can ding your score. However, most major credit scores will count multiple car loan inquiries made within a certain period of time — typically 14 days — as one inquiry.

What to Expect in 2025

Based on the trends outlined in Experian’s Q2 report for 2025, prime borrowers with good credit in 2025 may continue shifting away from gas-powered vehicles in favor of new electric and hybrid vehicles.

Experian’s research also shows that subprime financing remains low, with less than 6% of new car loans and less than 25% of used car loans in 2025 going to consumers in the subprime risk category. These trends could continue through 2026.

The Takeaway

While it is possible to buy a vehicle with bad credit in 2025, consumers in the subprime or deep subprime risk categories may want to explore ways of improving their credit scores to help secure financing with more favorable terms. As far as what credit score you need to buy a car, any score is potentially sufficient for obtaining financing.

If you want to check your credit or work to improve your score before buying a car, a money tracker app allows you to easily keep track of your credit score.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

Photo credit: iStock/tolgart

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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.

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 Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-028

If you have an 810 credit score, congratulations. The score is considered excellent and could help you qualify for loans with more favorable terms or premium rewards credit cards.

Let’s take a closer look at what an 810 credit score means and some different strategies that could help boost your credit score.

What Is a Credit Score?

A credit score is a three-digit number that reflects a consumer’s creditworthiness, or ability to pay back loans in a timely manner. Scores range from 300 to 850. Generally speaking, the higher the credit score, the better you tend to appear to a potential lender.

The two most popular credit scoring models are FICO® and VantageScore®. To calculate your score, both use credit history information provided by the three major credit bureaus: Experian, TransUnion, and Equifax.


💡 Quick Tip: Your credit score updates every 30-45 days. Free credit monitoring can help you learn about your score’s normal ups and downs — and when a dip is cause for concern.

Reasons to Care About Credit Scores

There are several reasons why a good credit score is essential to your financial health. Here are three to keep in mind.

It can increase your chances of being approved for a loan

The higher your credit score, the more likely lenders will approve loan or credit card applications. Whether it’s to purchase a house, buy a car or private student loans, having access to loans can help you achieve some big financial goals. Note that some banks may also run credit checks before issuing you an account.

You may have access to better loan rates and terms

Lenders are more likely to offer consumers with better credit scores lower interest rates and more favorable terms because they’ve proven they pay back their loans on time. A higher credit score may also get you access to other types of products such as premium rewards credit cards.

You could save money

When you move into a new home, the utility company or your landlord may check your credit score to determine how much of a security deposit you’ll need to put down. Typically, the lower your score, the higher your deposit. Though the money is often refundable, it’s usually held in a third-party account that you won’t have access to. Potential employers may also run a credit check before you’re offered a job.

Is an 810 Credit Score Considered Good or Bad?

An 810 credit score is considered very good. In fact, just 22.5% of consumers in the U.S. have a credit score of 800 or higher, according to Experian. By comparison, the national average credit score is 715.

What Does an 810 Credit Score Mean?

Having an 810 credit score means you’ve proven through your credit behavior that you are likely to pay back loans on time. As mentioned above, a score of 800 or above places you in the top tier of consumers.

You are also considered to be in the “exceptional” range for your FICO score and “superprime” for your VantageScore. This means lenders are more likely to approve you for loans and offer you access to products such as loans with lower interest rates and premium credit cards. Landlords and utility companies may also ask for a lower security deposit amount (if at all).

How to Build Credit

Looking to build your credit? You have several avenues to explore. Below are a few to consider. Note that there’s no one-size-fits-all solution, so it’s a good idea to research all the options available to you.

Use a Credit Card

Even if you’re just starting out in your career or only have fair credit, you may still be able to be approved for a credit card. For instance, you can open a credit card that’s specifically for college students. Or you may want to consider a secured credit card, where you pay a refundable security deposit that acts as your credit line.

Whatever purchases and payments you make on the card are reported to the three major credit bureaus. This in turn helps to establish your credit history.

Become an Authorized User

An authorized user means that your name will be put on someone else’s credit card account. You can use the credit card much like the primary cardholder can, though this person is ultimately responsible for ensuring the minimum payments are paid on time.

If the primary cardholder has a good credit score, then their positive credit history may be added to yours.

Add Monthly Bills to Your Credit Report

Some free credit monitoring services will report your utility and rent payments to your credit report. Doing so can help build your credit history. Even if there is a small fee involved, it may be worth using for a few months, depending on your financial situation.

Take Out a Credit Builder Loan

Credit builder loans are designed to help borrowers who are looking to build their credit. They’re similar to a personal loan, except you don’t initially receive the loan proceeds. Instead, the money will be held in a separate savings account until you pay off the loan. Meanwhile, your payment activity will be reported to the credit bureaus.

How Long Does It Take to Build Credit?

It can take several months for you to establish and build credit. This is because credit scoring models need enough information from your credit history in order to assess your creditworthiness.

As you work on building your credit, do your best to practice good financial habits.

Credit Score Tips

Even if you have an excellent credit score, it’s a smart idea to keep up good credit behavior. This includes:

•   Consistently making on-time payments

•   Keeping your credit utilization, or the percentage of the available limit you’re using on revolving credit accounts, as low as possible

•   Avoiding applying for too many new loan or credit accounts at once

•   Keeping your longest credit card or loan account open

•   Regularly monitoring your credit score

•   Checking your credit history and immediately disputing any errors you find

How to Check Your Credit Score

Wondering how to find out your credit score for free? You have several options. The first is your credit card statement. Many credit card issuers provide customers with a complimentary look at their score. To find it, you may need to log into your account or check your monthly credit card statement.

Another option is to use credit score monitoring tools; some are free, others require a payment. Before opening an account, compare each tool to see which one best serves your needs.

The Takeaway

It’s good news if you have an 810 credit score and a sign that you have a track record of paying back your loans. A good score may help improve your access to loans with better terms or premium or luxury credit cards. If you want to improve your score — or just maintain it — you can try practicing good financial habits, like consistently making on-time payments, keeping tabs on your credit score, and disputing any errors.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is a decent credit score for a 23-year-old?

Chances are, at 23 you’re probably still building your credit. According to Experian data, the average credit score for people aged 18 to 25 is 681. If yours is higher, then it’s considered above average.

What is the highest credit score possible in 2024?

The highest credit score you can achieve is 850 for both FICO and VantageScore scoring models.

Is a credit score of 800 good at age 23?

Whether you’re 23 or not, an 800 credit score is considered excellent.

Photo credit: iStock/Makhbubakhon Ismatova

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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.

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 Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Having multiple credit cards brings certain benefits. On average, Americans use three to four credit cards at a time, often to take advantage of various perks and rewards programs. Another reason to own multiple credit cards is they can boost your credit score when managed sensibly.

That said, juggling credit lines can get out of hand, and it’s easy to fall behind with payments and face hefty interest charges. Here’s a guide to managing multiple credit cards, how to know if you have too many, and more.

Steps for Managing Multiple Credit Cards

Here’s how to manage your credit cards wisely and the steps to take to avoid unnecessary interest charges and fees.

Keep Track of Terms

Know what you are signing up for when you apply for a credit card. While a card may offer perks like sign-up bonuses, free vacations, and 0% interest rates initially, it may also charge high fees and exorbitant interest rates later on. Every credit card has different terms and conditions that are often buried in the small print.

Before applying for a new credit card, check the interest rate, or APR. Also look for penalty APRs, purchase APRs, and cash advance APRs. A penalty APR is charged if you don’t comply with the card’s terms and conditions. A purchase APR is the interest rate charged for purchases or carrying the balance over to the next month. A cash advance APR applies if you use your credit card to borrow cash.

A card may also offer an introductory 0% APR, for a limited period. However, once that period is over — or if you miss a payment — the interest rate can skyrocket. Many cards also charge an annual fee for card ownership, a maintenance fee, cash advance fees, foreign transaction fees, returned payment fees, and late payment fees.

If a card offers cash back, find out how much you need to spend to accumulate points or cash back. Check the fine print to find out what types of purchases are qualified and if there are any caps on earning cash and points. Also, read the rules on redeeming rewards, such as when they might expire or be forfeited.

For a sign-up bonus, you might be ineligible if you have owned the same card previously or another family member has the same card.


💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Pay on Time and in Full

You will likely incur fees if you miss payments due on your credit card. Also, if you make only the minimum payment on your credit card, you will increase your debt and pay unnecessary interest. But if you pay off your balance in full each month, you are in effect getting a free loan.

If you have multiple credit cards to juggle, it will take dedication to monitor the balances and due dates to avoid late payments, interest charges, and fees. However, managing credit cards responsibly can build your credit history.

It’s also a good idea to check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Set Up Autopay

Once you understand the terms, conditions, and payment due dates of your various credit cards, set up automatic payments to avoid missing a payment. Missing a payment will mean that you are charged interest, and depending on the balance on the card, the interest payments can be steep.

Set Reminders

Managing multiple credit cards may require setting reminders. For example, if you signed up for a card with an initial period of 0%, you should know when that period ends. Also, keep track of when rewards expire, and when you should redeem points or rewards.

Recommended: What Are Cash-Back Rewards and How Do They Work?

Simplify Your Payment Due Dates

You may want to change the payment due dates for your cards to make budgeting easier. For example, if the payments for multiple cards all fall on the same day or week, it can be difficult keeping enough cash on hand.

Consider scheduling due dates close to a payday or soon after a direct deposit. It might take one or two billing cycles for your request to take effect.

Know When to Use Each Card

There’s little point juggling multiple credit cards if you don’t use the right card for the right purpose. That’s why studying each card’s terms and conditions is crucial to optimizing the benefits of your cards. For example, some travel cards come with travel protections that will reimburse you if a trip has to be canceled, and co-branded airline cards may offer free checked bags or upgrades.

Keep a Record of Your Credit Card Features

Organization is the key to managing multiple credit cards. You can use a notebook, spreadsheet, or a personal finance app — whatever it takes for you to be able to access the information you need easily.

Some key data to have at your fingertips are the interest rate, credit limit, issue date, annual fees, and payment due dates, the balance from month to month, and the key facts about the rewards program (minimum spending limits, expiration dates, qualified items).

Give Each Card a Purpose

Allocating a purpose for each card will tell you what type of card you might want to get next. For example, you might have a card that offers travel rewards, another card for cash back on groceries, but you might want to also get a card that offers rewards for buying gas. Keep a record of which card serves what purpose.

Carry Only the Cards You Use

Don’t carry all your cards with you all the time. You risk losing them, plus it will make your wallet uncomfortable to carry! There’s no need to carry an airline card that you only use to book flights. Make sure you know which cards charge an inactivity fee, and set up reminders to use the card to avoid such penalties.

Recommended: Find Out Your Credit Score for Free

Use an App to Track Your Card Balances

It’s a good idea to use an app to track your card balances. Apps are particularly useful because they alert you when a payment is due or delinquent. Some apps perform free credit monitoring, help you find a credit card for a specific merchant, and track your loyalty programs.

Signs You Have Too Many Cards

How many cards is too many? That depends on how well you manage them. Here are some indicators that you should consider closing some accounts.

You Can’t Pay the Balance Off Each Month

If you can’t pay off all the balances on your cards each month, you are in danger of falling deeper into debt and having to pay interest. You also risk increasing your credit utilization ratio. When your ratio gets too high, credit card companies may turn you down and credit checks for future employment may be affected..

You’re Missing Payments

If you find it hard to keep track of your credit cards, miss payments, or lose rewards, it’s a sign you might have bitten off more than you can chew. Simplify your financial management by choosing three or four of the most advantageous cards for your lifestyle and cancel the rest.

You’re Earning Too Few Rewards

If you rarely redeem rewards, it might not be worth keeping the card. Not only are you paying a fee for a card that gives you little benefit, but you also have the hassle of keeping track of the card’s features and balance. It might be best to nix these credit cards.

Which Cards Should You Stop Using?

When deciding which credit cards to stop using, list out the benefits of each card. Look at your spending history with that card over the past year and look at what you have gained. If you have spent little and gained little, it’s time to lose the card.

Similarly, if a card charges high annual fees and provides few benefits, don’t keep the card. Also look at the interest rate. If you have a balance on a high-interest card, pay off that debt and close down the card.

When Does It Make Sense to Close a Card?

It makes sense to close a card when you only use it to avoid an inactivity fee, if it provides few benefits, if the fees and interest rate are high, or if you are having trouble paying off the balance each month.


💡 Quick Tip: One way to raise your credit score? Pay your bills on time. Setting up autopay can help you keep your account in good standing.

The Takeaway

Having various cards can be advantageous because you can benefit from rewards and loyalty programs, build your credit history, and take advantage of interest-free credit if you pay off the balance each month. However, each credit card may charge various fees, and managing multiple credit cards can be a headache.

When opening a new credit card, make sure the fees, rewards, limitations, and penalties make sense for you. Also consider if you can manage the card and pay off the balance each month on time. Lastly, review your portfolio of cards regularly in case it makes sense to close down an account.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do I manage multiple credit cards?

Managing multiple credit cards comes down to organization. Keep track of all your cards and their various features, including due dates, what you should use them for, the rewards they offer, balances, interest rate, and penalties and fees. There are apps and online tools that help you to manage cards and monitor your credit score.

What is the 15/3 credit card rule?

The 15/3 credit card rule is a strategy to lower your credit utilization ratio. A credit utilization ratio of 30% or below can make you more attractive to lenders. Most people make one credit card payment a month by the due date. With this strategy, a cardholder makes two payments each month. This could reduce your credit utilization ratio if you make the payment before the end of your billing cycle. But keep in mind that even if you regularly pay your credit card balance in full each and every month, you may still be carrying a large balance throughout the month, and your credit score may be affected.

How many credit cards is too many?

How many credit cards you should have depends on your lifestyle and how well you manage them. Feeling overwhelmed and making mistakes like not paying off balances on time are indicators that you cannot keep track of your cards. Other indicators that you may have too many credit cards are that you are not seeing much benefit in the way of rewards but are paying high fees, or you have a significant balance on a card with a high interest rate.

Photo credit: iStock/Sitthiphong

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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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