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If you don’t pay your credit card bill, you could face more severe consequences than you might think. Though it will depend on your credit card issuer, you can generally expect to be charged a late fee as well as a penalty interest rate which is higher than the regular purchase APR.

Life happens, and, from time to time, payments are missed, especially if you’re dealing with emergencies such as losing a job or a family crisis. In the event you have skipped a credit card payment, it’s crucial you understand what can happen. That way, you can take steps to reduce the odds of it having a major impact on your financial health.

Here, you’ll learn more about this topic, including:

•   What happens if you don’t pay your credit card bills?

•   What if you miss one credit card payment?

•   What happens if you only can make minimum payments?

•   How can you pay off credit cards?

What Happens If You Don’t Pay Your Credit Card?

Consequences for missed credit card payments could include being changed late fees and possibly losing your grace period. It may also negatively affect your credit score since issuers report your payment activity to the credit bureaus — in most cases after 30 days.

There may be other consequences depending on how late your payment is and whether it’s your first time missing a payment.

Accruing Interest

When you don’t pay your credit card, interest will accrue and will continue to do so as long as you have a balance on your card. In essence, you are paying more for your initial purchase thanks to that interest.

The longer you go without paying your credit card, the more you risk your rate going up. Your credit card issuer may start imposing a penalty annual percentage rate (APR), which tends to be higher than your regular purchase APR. If this happens, you’ll end up paying more in interest charges. The penalty APR may apply to all subsequent transactions until a certain period of time, such as for six billing cycles.

Collections

Depending on your credit card issuer, your missed payments may go into collections if it goes unpaid for a period of time. You’ll still continue to receive notices about missed payments until this point.

More specifically, if you don’t pay your credit card after 120 to 180 days, the issuer may charge off your account. This means that your credit card issuer wrote off your account as a loss, and the debt is transferred over to a collection agency or a debt buyer who will try to collect the debt.

Once this happens, you now owe the third-party debt buyer or collections agency. Your credit card issuer will also report your account status to the major credit bureaus — Experian, TransUnion, and Equifax. This negative information could stay on your credit report for up to seven years.

It’s hard to tell what third-party debt collectors will do to try and collect your debt. Yes, they may send letters, call, and otherwise attempt to obtain the money due.

Some collections agencies may even try to file a lawsuit after the statute of limitations expires. In rare cases, a court may award a judgment against you. This means the collections agency may have the right to garnish your wages or even place a lien against your house.

If your credit card bill ends up going to collections, take the time to understand what your rights are and seek help resolving the situation. Low- or no-cost debt counseling is available through organizations like the National Foundation for Credit Counseling (NFCC).

Bankruptcy

You may find that you have to declare bankruptcy if you still aren’t able to pay your high credit card debt and other financial obligations. This kind of major decision shouldn’t be taken lightly. You will most likely need to see legal counsel to determine whether you’re eligible.

If you do file bankruptcy, an automatic stay can come into effect, which protects you from collection agencies trying to get what you owe them. If successfully declare bankruptcy, then your credit card debt will most likely be discharged, though there may be exceptions. Seek legal counsel to see what your rights and financial obligations are once you’ve filed for bankruptcy.

Making Minimum Payments

A minimum payment is typically found in your credit card statement and outlines the smallest payment you need to make by the due date. Making the minimum payment ensures you are making on-time payments even if you don’t pay off your credit card balance. Any balance you do carry over to the next billing cycle will be charged interest. You can also avoid late fees and any other related charges by making a minimum payment vs. not paying at all.

What Happens if You Miss a Payment

If you can’t pay your credit card for whatever reason, it’s best to contact your issuer right away to minimize the impact. Let them know why you can’t make your payment, such as if you experienced a job loss or simply forgot. For the latter, pay at least the minimum amount owed as soon as you can (ideally before the penalty or higher APR kicks in).

If this is your first time missing a payment but otherwise paid on time, you can try talking to the credit card company to see if they can waive the late fee.

Some credit card issuers may offer financial hardship programs to those who qualify, such as waiving interest rates, extending the due date, or putting a pause on payments (though interest may still accrue) until you’re back on your feet.

15/3 Rule for Paying Off Credit Cards

The 15/3 payment method can help you keep on top of payments and lower your credit utilization — the percentage of the credit limit you’re using on revolving credit accounts — which can impact your score.

Instead of making one payment when you receive our monthly statement, you pay twice — one 15 days before the payment due date, and the other three days beforehand. This plan is useful if you want to help build your credit history and pay on time.

The Takeaway

Missing your credit card payment may not be a massive deal if it just happens once or twice, but it can turn into one if you continue to ignore your bill. While it’s not exactly fun to have to pay a late fee, you may be able to negotiate with the credit card issuer to waive it if you are otherwise a responsible user. Even if not, it’s better than being bumped up to the penalty APR or, worse still, having your account go to collections.

Are you looking for your first or a new credit card? Consider the SoFi Credit Card. With perks like cash back rewards on all purchases, no foreign transaction fees, and Mastercard ID Theft Protection, it may be just the right choice for your personal and financial goals.

The SoFi Credit Card: The smarter way to spend.

FAQ

How long can a credit card go unpaid?

The statute of limitations, or how long a creditor can try to collect the debt owed, varies from state to state, which can be decades or more.

What happens if you never pay your credit card bill?

If you never pay your credit card bill, the unpaid portion will eventually go into collections. You could also be sued for the debt. If the judge sides with the creditor, they can collect the debt by garnishing your wages or putting a lien on your property.

Is it true that after 7 years your credit is clear?

After seven years, most negative remarks on your credit report, such as accounts going to collections, are generally removed.

Photo credit: iStock/MStudioImages

¹See Rewards Details at SoFi.com/card/rewards.

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 .

This article is not intended to be legal advice. Please consult an attorney for advice.


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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Known as the Home of the Blues, Memphis is a music lover’s paradise, but there are plenty of other reasons to visit this incredible city. You’ll be able to explore its deep history, both in terms of music and the heart of the Civil Rights Movement of the mid-20th century. Plus, there are museums, parks, and more waiting.

Here, you’ll learn more about the best things to do in Memphis, Tennessee, as well as discover ideal times of year to visit. In addition, you’ll get a good idea of the average trip costs so you can budget accordingly.

Best Times to Go to Memphis

Memphis is at its most comfortable during the spring and fall months, typically from late April through the beginning of June and again from late August to the middle of October. For instance, in April, you’ll find temperatures in the 70s during the day, and in October, you’ll experience similarly warm temperatures.

For music lovers, also consider visiting for the annual Beale Street Music Festival, which takes place each May. Some of music’s biggest names perform at this three-day event. 2022’s headliners included Megan Thee Stallion and Van Morrisson, so you know there’s something for everyone.

Recommended: Where to Find Book Now, Pay Later Travel

Bad Times to Go to Memphis

Summer and winter will be less crowded in Memphis, but the weather is less than ideal for many. Summer travel in Memphis can be hot and humid. The average high temperature in July is in the 80s to low 90s Fahrenheit, making that one of the worst times to visit Memphis. Late fall and early winter tend to be cloudy in Memphis, but there’s not a high chance of snow. Rainfall tends to peak in early December and mid-April.

Average Cost of a Memphis Vacation

Before you start making a list of the top things to do in Memphis, get an idea of how much a trip there will cost you once you arrive. According to Budget Your Trip, an individual spends an average of $34 on dining every day. Local transportation is actually more expensive at $47 per day, so you might want to look into renting a car to get around.

Hotels, however, can be reasonably priced at around $134 per night in Memphis, and perhaps even less if you try some hacks to save money on hotels.

Here’s how the costs break down if you plan to spend a week in the city; there will be some incidentals as well:

•   One Person Total: $1,172

•   Two Person Total: $2,343

One note: You may want to also budget for travel insurance in case the unexpected were to happen, or look into what kind of credit card travel insurance your issuer provides.

Recommended: Credit Card Miles vs. Cash Back

10 Fun Must-Dos in Memphis

As you plan a trip to this Tennessee city, you’ll likely want to map out an itinerary, even if just loosely, to make sure you hit the highlights. Here, culled from top online reviews and seasoned travelers, is advice on the 10 best things to do in Memphis.

1. Pay Homage to the King

We would be remiss to start off a list of best things to do in Memphis without mentioning Graceland, the home of iconic singer Elvis Presley. Open for tours on a daily basis, your ticket gives you access to 120 acres. Explore Elvis’s mansion (including the Jungle Room), his most iconic outfits, and the exterior grounds.

There are also on-site museums dedicated to the King of Rock ‘n Roll’s career and cars. If you really want to make the most out of your time at Graceland, you can also stay at a hotel on the grounds. If staying in the city, consider a rental car or shuttle for the 20-minute drive. Ticket prices range from $28 to $215 for the Ultimate VIP Tour. (If you’re buying the top of the line tickets, you may want to swipe with plastic when paying to earn credit card rewards.) graceland.com/

2. Visit the National Civil Rights Museum

Memphis is also known for another King — civil rights legend Dr. Martin Luther King, Jr., was assassinated at the city’s Lorraine Motel in 1968. Now the location has been transformed into the National Civil Rights Museum with interactive exhibits, films, and oral histories cataloging centuries of the quest for freedom and equality in America.

Exhibit material starts with the struggle against slavery in the early 1600s and moves forward through today’s continuing Civil Rights Movement. Walk through a recreation of the Montgomery Bus Boycotts of the 1950s, the Memphis Sanitation Strikes, and more. The museum is closed on Tuesdays so plan your visit in advance. civilrightsmuseum.org/

3. Stroll Down Beale Street

This nearly two-mile stretch of road in downtown Memphis is a celebration of all things music. Considered the official Home of the Blues, you’ll find clubs and restaurants to satisfy any music lover’s thirst for live entertainment.

There’s always something going on at Beale Street. Just show up to explore on your own, or download the official app to create a plan. Note that a security checkpoint goes up on Friday and Saturday nights. Those under 21 must be accompanied by an adult after 9 p.m., and the street is strictly 21+ after 11 p.m. In other words, weekend nights on Beale Street are on the list for fun things to do in Memphis for adults but not kids. bealestreet.com/

4. March with the Peabody Ducks

One of the best things to do in Memphis with kids is to head to the downtown Peabody Hotel for the daily Duck March. Occurring at 11 a.m. and 5 p.m. each day, this decades-long tradition involves five North American mallards who live at the hotel. Each group of ducks lives at the hotel for three months before returning to farm life outside the city.

They’re brought down from their Royal Duck Palace on the rooftop to swim in the lobby fountain. Participants must be at least five years old, and the hotel recommends arriving 30 minutes early to get a seat. Seeing the Peabody Ducks is definitely an affordable family travel option. peabodymemphis.com/peabody-ducks

5. Tour the Belz Museum

What started out as a private art collection has turned into five permanent exhibits displaying Asian and Judaic art, as well as the Holocaust Memorial Gallery. The Belz Museum also brings in special exhibits twice a year.

One of the most comprehensive collections at the museum is the Chinese art exhibit, which is known as the largest such collection in the southeast United States. You’ll see many pieces from the Qing dynasty, which lasted from the mid-1600s through the early 1900s. The Belz Museum is closed Monday and Tuesday.

6. Take in Some Thrilling Basketball

Love basketball? Check out an NBA game at FedExForum, which is home to the Memphis Grizzlies (nba.com/grizzlies/tickets). The season runs from October to April. The stadium also hosts University of Memphis men’s basketball, which is a NCAA Division I. You can also check out the Division I women’s team on campus at the Elma Roane Fieldhouse.

7. Marvel at the Mighty Lights

Put this on your list of free things to do in Memphis: the nightly Mighty Lights on the downtown waterfront. Every evening, the city’s two iconic bridges (the Hernando de Soto and Harahan) are lit up in a huge display of LED lights. You’ll see the show at the hourly and 30-minute marks starting at sundown, followed by a grand final at 10:30 p.m.

Scout out a spot to watch along the Mississippi riverfront parks, or scope out an aerial view in the city. The Fourth Bluff and Mud Island are both good options to check out. mightylights.com/

8. Snap Selfies at Mud Island River Park

Tap into your inner river rat at Mud Island River Park. It takes just a few minutes to walk to it from downtown Memphis, and you’ll enjoy lounging on this Mississippi River island. It’s also a perfect spot for some social media selfies thanks to the huge Memphis sign, which spans 50 feet.

This 52-acre park also features a scale model of the Mississippi River to give you a sense of the true breadth of the world’s third largest river basin. Traveling with pets? Mud Island is also a great location for a long walk with your dog. memphisparks.com/park/mud-island-park/

9. Drop into the Stax Museum of American Soul Music

Not only is Memphis home to the blues and rock ‘n roll, it has also played a pivotal role in America’s soul music scene. The Stax Museum is the original home of the legendary Stax recording studio, which was the recording label of iconic artists like Otis Redding, Isaac Hayes, Shirley Brown, and many others.

Explore the rich history of the studio through exhibits and artifacts. You’ll even get the chance to see Isaac Hayes’ custom Cadillac Eldorado, decked out in 24-karat gold trim with a mini-fridge and television on the inside. The Stax Museum is closed on Mondays; tickets are $13 for adults and $10 for kids 9-12; children 8 and under are free. staxmuseum.com/

10. Wander Through Meeman-Shelby Forest

Needa dose of nature? Memphis has that, too! Head 20 minutes outside of downtown Memphis for the enchanting Meeman-Shelby Forest. You can explore 13,000 acres of wilderness that is home to a diverse range of ecosystems. Discover sandy beaches and swamplands (home to the Bald Cypress tree).

There are plenty of recreational activities to enjoy, including trails, a nature center, and a disc golf course. tnstateparks.com/parks/meeman-shelby

The Takeaway

From a huge music scene to pivotal moments in history, from parks to nightly light shows, Memphis has attractions worth exploring for all ages. It doesn’t matter if you have a few days or a full week — it’s easy to fill your schedule with tons of fun things to do in Memphis on any budget.

FAQ

Is Beale Street worth a visit?

Beale Street is considered a must-visit if you’re visiting Memphis, whether it’s your first time or you’ve vacationed there before. Home of blues music, you’ll get a truly unique flavor of entertainment any time of day or night.

What is the best month to visit Memphis?

If you have a completely open calendar and are ready to head to Memphis at the perfect time of year, consider going either in mid-spring or mid-fall. You’ll miss the heat of summer and clouds of winter, so you can explore the top things to do in Memphis, Tennessee, in the best possible weather.

What is Memphis most popular for?

Memphis is best known for its music scene, both historically and today. It’s considered the home of the blues as well as the hometown of rock ‘n roll (Elvis Presley’s Graceland is there), so you’re sure to find something to enjoy.

Photo credit: iStock/benedek

¹See Rewards Details at SoFi.com/card/rewards.

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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Whether it’s protecting personal belongings from fire or theft or serving as a source of liability insurance if a guest gets hurt inside the home, renters insurance can provide plenty of benefits for the tenant.

But can a landlord require renters insurance? The short answer is yes. Let’s take a closer look at the nuances of this coverage and why a landlord might want to make it mandatory.

Can a Landlord Require Renters Insurance in All States?

In most states, the answer is yes, they can. (Oklahoma may currently be an exception.) What’s more, landlords can usually determine a minimum policy amount that their renters must carry. When that happens, the landlord will likely be more concerned about the amount of the liability coverage a tenant has, because that can have a financial impact on the landlord if, say, damage from a fire or an overflowing bathtub occurs. They may be less concerned about the amount of personal property coverage that a tenant has in their renters insurance policy.

It’s important to note that while landlords are allowed to require tenants to have renters insurance, there are no states that require renters insurance. However, this could change, so check your state’s laws.

To get a good understanding of what a landlord requires for the apartment you want to lease, be sure to read the lease language carefully. It may contain a clause, for example, that requires a new tenant to provide proof of renters insurance within a certain period of time. If more clarity is needed, ask the landlord for an explanation before signing the lease.

Reasons Why Landlords Require Renters Insurance

Mandating renters insurance can be part of a landlord’s tenant screening process, just like checking a renter’s credit scores may be. Buying and maintaining a policy could be a sign that they’ll be able to consistently pay the rent and are willing to take responsibility for the rented space and their belongings.

Requiring this type of coverage could also lower a landlord’s overall liability. Let’s say a tenant doesn’t have an insurance policy, and some of their belongings are stolen. That tenant may decide to sue the landlord to get the money to replace those items. Similarly, if a tenant or their guest is injured on the property, they may choose to bring the landlord to court to help cover medical bills. It’s also possible that, if someone gets injured in a rented space and doesn’t have renters insurance, the hospital caring for the injured party might sue the landlord. Even if the landlord’s policy covers the hospital bill, this could result in higher insurance premiums for the landlord.

Here’s a related possibility: Suppose there’s a fire in an apartment complex and, because of smoke damage, tenants need to temporarily find other places to live. Tenants without renters insurance may not be able to pay for temporary lodgings and may attempt to get those funds from the landlord. In some states, the landlord may in fact need to provide relocation benefits for tenants who don’t have their own coverage. So, requiring a policy can shift part of the financial burden from the landlord to the affected tenants.

Continuing with the fire scenario, let’s say it’s one that was accidentally set by a tenant, and it damaged several parts of the building. Let’s also say that the landlord’s insurance policy will cover the costs, minus the deductible on the landlord’s policy. That can help to cover cleanup and remodeling expenses but the deductible can be significant—and the tenant’s renters insurance may cover the dollar amount of that deductible. This reduces the landlord’s out-of-pocket expenses, which can be a real plus for that landlord.

Recommended: What Does Renters Insurance Cover?

Proof of Insurance

If a landlord requires renters insurance, they may ask for proof of existence. Perhaps they’ll want to see a statement from an insurance company or a copy of the policy itself, though they may also simply take a tenant’s word for it.

Sometimes, a landlord will want to be listed on the policy as an “additional interest.” When that happens, the landlord will be notified if the policy coverage lapses because of non-payment or because the tenant cancels the policy.

Note that naming someone as an “additional interest” is different from naming them as an “additional insured.” The second term refers to people who are also covered by a tenant’s policy, perhaps a roommate or partner.

Securing a Policy

When deciding what policy to buy, it’s important to factor in the value of personal belongings that need to be covered and what is affordable. Different insurance companies offer different coverages at differing price ranges. After determining the value of personal belongings and budgetary constraints, it may be time to compare policies and see which ones fit in your budget.

The National Association of Insurance Commissioners (NAIC) says the average renters insurance policy costs between $15 to $30 per month. Compare that to the cost of replacing personal belongings, which would typically be much higher. And that’s not even factoring in the benefits of having liability coverage and additional living cost coverage, such as temporary lodging if you need to leave the rented space.

Recommended: Most Affordable Renters Insurance for Apartments

Actual Cash Value Versus Replacement Costs

Some policies pay out the actual cash value of lost or damaged belongings, while others cover the full costs of replacing what was lost or damaged.

Let’s say that a three-year-old laptop was stolen from a tenant’s apartment. If that person’s policy uses cash value when reimbursing the tenant, the amount would be what the laptop originally cost minus any depreciation that took place over that three-year period. If the policy is a replacement cost one, then the tenant would be reimbursed what it would cost to get a similar laptop today.

Review the policy’s deductible. This is the amount that the policyholder is responsible for before insurance coverage applies. Typical deductibles fall around $500 or $1,000, although they may be higher. Some policies may offer deductibles that are a percentage of the policy’s coverage amount.

The Takeaway

Renters insurance can provide peace of mind to tenants in the event their property is stolen or damaged. It can also help lower a landlord’s overall liability and financial burden. Though there’s no federal law mandating renters insurance, landlords in most states are able to require tenants to have it. Before signing on the dotted line, double-check the lease agreement to confirm whether you need to purchase a policy. A typical renters insurance policy costs around $15 to $30 per month, but coverage and cost may vary.

Ready to start shopping? SoFi has partnered with Experian to offer renters insurance that’s affordable and easy to apply for and understand, with instant quotes available.

Experian allows you to match your current coverage to new policy offers with little to no data entry. And you can easily bundle your home and auto insurance to save money. All with no fees and no paperwork.

Photo credit: iStock/staticnak1983

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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.

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When shopping for a new health insurance policy — or when your employer introduces a new health plan — you might wonder what certain health insurance terms mean.

In this guide, you’ll discover health insurance terminology for beginners and anyone who’s ever been confused about a policy, so you can make informed decisions.

Top Health Insurance Terms to Know

Discover the health insurance definitions that can help you better utilize health insurance for you and your family.

Accident-Only Policies

These policies pay only in cases that were due to an accident or injury.

Benefits

These are the health care services covered by the insurance plan for an individual. Your health benefits might also be called a “benefits package.”

Claim

An itemized bill that shows all of the services and procedures that were provided to the member.

Coinsurance

This refers to the percentage of the medical charge you must pay out of your own pocket after meeting your deductible. The rest will be paid by your health insurance company. If you have a 15% coinsurance plan, you would pay 15% of each medical bill (after paying the full deductible), and the insurer would cover the rest.

Contract

In most cases, this means the insurance policy, which is a contract between the insurance company and the policyholder.

Copayment

The amount you pay out of pocket when you receive medical care or a prescription drug. A copayment is typically paid in person at the doctor’s office.

Deductible

This refers to the amount you must pay out of pocket before your insurance starts paying some of your health care expenses. The deductible resets at the beginning of the year or when you enroll in a new health insurance plan.

If your deductible is $2,000, your health insurance plan won’t cover any services until you have paid $2,000 out of pocket for the year. Someone with a high deductible and lots of medical costs could consider getting help in the form of medical loans, which are personal loans for medical and dental procedures.

Disability Benefits

If you are unable to work because of an illness or injury, the insurance company pays for lost wages. You’ll receive a portion of your income until you are able to return to work. Each policy defines what constitutes a “disability,” so you’ll need to meet those requirements and submit medical paperwork before receiving payment.

Health Insurance

Health insurance terminology 101: This is a contract that requires your health insurer to pay some or all of your health care costs in exchange for a premium.

Health Maintenance Organization (HMO)

An HMO is a health plan that provides health care services to members through a network of doctors, hospitals, and other health care providers.

HMOs are popular alternatives to traditional health care plans because they usually have lower-cost premiums while still offering a variety of services.

Health Savings Account (HSA)

This is pretax money you set aside to pay for qualified medical expenses. You and your employer may contribute.

HSA funds roll over if you don’t spend them by the end of the year.

Indemnity Plan

Sometimes referred to as a fee-for-service plan, an indemnity plan allows you to go to any physician or provider you want, but requires that you pay for the services yourself and file claims in order to get reimbursed.

Mandated Benefits

This refers to the health care benefits that state or federal law say must be included in health care plans. Mandated health insurance benefit laws may require plans to cover substance abuse treatment or maternity services; cover treatment by providers like chiropractors, acupuncturists, and midwives; or include dependents and domestic partners.

Out-of-Pocket Maximum

This is the most you’ll pay for expenses covered by the plan in a calendar year. If you reach your deductible, insurance will begin paying some expenses covered by the plan. If you hit your out-of-pocket maximum, insurance will pay all expenses covered by the plan. (Monthly premiums don’t count toward your out-of-pocket maximum or deductible.)

Out-of-Network Services

This is when you seek out services from providers who aren’t in your HMO’s or PPO’s network. Usually, HMOs will only pay for care received within its network. If you’re in a PPO plan, you will have to pay more to receive services outside the PPO’s network.

Preexisting Condition

This health insurance term refers to a medical problem or illness you had before applying for health care coverage. If you have a preexisting condition, it’s a good idea to shop around and educate yourself when choosing an individual health plan.

Preferred Provider

This refers to a provider who has a contract with your health plan to provide services to you at a discount. If you have a favorite doctor, you might want to see if they are a preferred provider or “in network” for any new insurance plan.

When you’re looking to find a new physician, choosing a “preferred provider” found via the plan’s website will help keep medical costs down.

Your health insurance or plan may have preferred providers who are also “participating” providers. Participating providers can also have a contract in place with your health insurer, but you may have to pay more.

Preferred Provider Organization (PPO)

PPO plans provide more flexibility than HMOs when choosing a doctor or hospital. They also feature a provider network, but have fewer restrictions on seeing out-of-network providers.

PPO insurance will pay if you see a provider out of the network, though it may be at a lower rate.

PPO plans usually cost more than HMO plans.

Premium

This is the amount paid to the insurance company to obtain or maintain an insurance policy. Usually it’s a monthly fee.

Provider Network

This is a list of all the doctors, specialists, hospitals, and other providers who agree to provide medical care to the members of an HMO or PPO.

Waiting Period

This is the time an employer may make employees wait before they are eligible for coverage under the company’s insurance plan.

The Takeaway

Do you know your HMO from your PPO and HSA? Have you looked closely at copays, deductibles, and out-of-pocket maximums? Knowing health insurance terms can help you make an informed decision when looking at health insurance policies.

Speaking of insurance, check out a variety of insurance offerings at SoFi Protect, bringing you fast, easy, and reliable insurance.

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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Making it to high school graduation is a big deal. For most people, it’s taken 13 years of education since starting in kindergarten.

This is a time to celebrate, but also to start planning for the next step into adulthood. Taking care of the practical stuff now can allow more time to enjoy your senior year and relax before moving on to the next big thing.

To help get you started, check out these tips to close out high school on a high note and prepare for summer and beyond.

Preparing for High School Graduation

1. Keeping Up Your Grades

You’re almost across the finish line. Yet, slacking off and letting grades slip could be a red flag for the college you plan on attending in the fall.

The extent to which colleges look at senior year grades varies. If an A in calculus drops to a B, that’s probably not a cause for alarm. Rather, having grades fall below a college’s admissions standards could run the risk of a rescinded offer. Staying on top of your coursework and taking some challenging classes your senior year could pay off in the fall.

2. Ordering Your Cap and Gown

To attend high school graduation, you’ll likely have to look the part. If you have an older sibling or friend who graduated before you and is around your size, you can kindly ask to borrow their cap and gown, assuming it’ll match your classmates’ at graduation.

Renting a cap and gown could save money if that option is offered at your high school. Rentals may require a deposit and will likely need to be returned right after the ceremony to discourage graduates from walking off with them amid all the excitement.

If you go the rental route, you may still need to purchase a tassel unique to your graduating class.
Traditionally, there is a moment during the ceremony when graduates are asked to flip their tassel from one side of their cap to the other, which signifies graduation.

3. Return Library Books

At many high schools, failing to return library books, or pay any accrued late fees could make you ineligible to walk at graduation. If there are any other fees or outstanding holds that will prevent you from walking at graduation, take care of them as soon as possible. Your guidance counselor or another administrator at the school may be able to help if you’re not sure.

4. Picking a Graduation-Day Outfit

Yes, you will be wearing your cap and gown for the ceremony. But what about photos afterward? Pick an outfit that is both stylish and one you feel comfortable in. There’ll likely be a lot of photos to celebrate this accomplishment, and wearing an outfit you feel your best in can help make you feel good in front of the camera.

5. Reserving Tickets for Graduation

Some schools may limit the number of tickets a student can reserve for graduation due to venue capacity. In some cases, students may be able request additional tickets, but they are not always guaranteed. If your school has a ticket limit or request process, stay on top of deadlines.

6. Inviting Family and Friends to Graduation

Once you know how many tickets you have to your graduation, you’ll need to invite family or friends to the ceremony. Parents, siblings, grandparents, or close friends may all want to come watch, but if there are ticket restrictions, you may be limited in who you can invite.

Consider sending the information for the ceremony including date, time, location, and any parking instructions in writing via email or text so your family members can easily reference relevant details to see you walk across that stage.

7. Taking Photos with Friends and Family

Graduating high school is a major accomplishment. This is a day you’ll want to remember and you’ll want to get photos with family and friends on the big day. Scope out some meaningful locations for a few photos. If you run hurdles, perhaps you want some photos out on the school track.

8. Registering for Dorm Room Necessities

If you’re expecting gifts from family and friends in honor of your graduation, consider registering for dorm room necessities like towels, twin-XL sheets, duvet, or a mini-fridge. Letting your family know what you want and need for the next four years could make it easier for them to purchase something you’ll actually use.

9. Celebrating With Friends and Family

High school graduates have passed numerous milestones from kindergarten to senior year. Besides the homework and exams, many high schoolers have put countless hours into varsity sports, drama club, marching band, or other extracurricular activities.

High school graduation is a well-deserved moment to have fun and celebrate the culmination of these accomplishments. Whether you’re moving away for college or commuting from home, your schedule may change significantly.

Spending time with family and friends, attending senior activities, and throwing a graduation party are some ways to honor the occasion and process the transition.

10. Plan Your Graduation Party (If You’re Hosting One)

Graduation parties are popular for high schoolers (and their families). If you — or your parents — are hosting a party you’ll want to determine details like the date, time, and location, budget for the event, and guest list.

You’ll want to invite guests and track RSVPs so you can get an accurate headcount for food and drink at the event. From there, you can look into decorations and any party rentals (like chairs, flatware, plates, table cloths, and more).

11. Writing Thank You Notes

As you receive graduation gifts, keep a log of who sent each gift. Show your gratitude for thoughtful gifts by writing a thank you note to each sender. Express your thanks for the gift, and mention a couple specific details about the item they sent and how you plan to use it. Close out your thank you with a thoughtful note about when you hope to see them next (or how great it was to see them at your graduation party) and thank them once again.

Generally, it’s best to send your thank you notes soon after receiving the gifts, so staying organized as you approach graduation can be helpful.

12. Landing a Summer Job

Between hanging out with friends and going on family trips, you might have time to take on a part-time or full-time summer job. These experiences can help boost your resume and gain references for internships and jobs down the road.

Additionally, putting in some hours now can further pad your college savings for tuition and living expenses. If all goes well, you may be invited back to work next summer.

13. Managing Your Schedule and Setting Goals

College schedules can be a big adjustment for students. Instead of following a strict bell schedule like most high schools have, college students are responsible for managing their own schedules with little oversight.

Each college course’s credit hours usually indicate how many hours that class meets per week. Full-time students typically take between 12 and 18 credit hours each semester, which translates to roughly the same number of hours in class. This means college students have more flexibility than high school students in planning their schedule for completing homework and other assignments. That flexibility also means more responsibility for their own time management.

Students might consider preparing for this adjustment by trying out a few planning systems — e.g., paper, digital, or a combination of both — to see what works best for them so they’ll be ready to hit the ground running in the fall.

Some things to plan for, other than class schedules, might be a summer job schedule, family vacations, summer parties with friends, or savings goals.

14. Cleaning up Your Social Media Presence

High school can feel like a bubble. Some students have known each other since elementary school.

Upon graduating and leaving this familiar environment, graduates will encounter an influx of new friends, coworkers, employers, and professors. To put your best foot forward in these scenarios, it could be worth revisiting your social media posts on platforms like Facebook, Instagram, and Twitter.

Many people have said or posted things online they aren’t proud of or no longer reflect their current opinions on a subject. Checking to see what posts you’re tagged in, too, can help refine your online presence and give peace of mind as you head into the “real world.”

In serious cases, colleges have rescinded students’ admission for inappropriate and offensive conduct on social media.

Recommended: 25 Smart Things to do With Your Graduation Money

Preparing for College

While finishing senior year and taking care of high school graduation, getting ready for college is just around the corner. There are plenty of ways to prepare for college before the fall semester rolls around. Let’s take a look at some of the key things you may want to consider.

1. Creating a Plan to Pay for College

Pay for college often requires students to pull together a few different types of funding. In addition to savings or using your grad money to pay for college expenses, students can also rely on financial aid including scholarships, grants, federal student loans, and work-study.

Typically, college-bound high school seniors will fill out the Free Application for Federal Student Aid (FAFSA®) in February. This form is the first step in applying for federal student aid, which can include scholarships, grants, and loans, depending on a student’s eligibility.

Students who are looking to fill gaps in funding may consider private student loans — which are offered by private lenders and lack benefits offered to federal student loans, like deferment or forgiveness options. Check out SoFi’s guide to private student loans for more information.

2. Researching Classes and Majors

Generally speaking, most programs do not require incoming freshmen to declare a major right away. Still, taking some time before registration to learn about different majors and general course requirements can help students figure out what they want to study, create a balanced schedule, and graduate on time.

3. Getting Ready to Move Away From Home

Students planning to attend college away from home may be feeling a mix of excitement and stress about moving.

Putting that energy into planning for college living arrangements might alleviate some of those feelings.

If coordinating with roommates ahead of time is a possibility, students might consider splitting up the list of room necessities — one roomie can bring the microwave and another can bring the mini-fridge. If the college provides those things, there are many other items that can make the transition from home to college dorm easier.

Recommended: College Essentials: What to Bring to College

The Takeaway

Graduating from high school is a huge accomplishment. As you approach graduation day, make sure you have met graduation requirements and have no holds on your student account that will prevent you from walking. Get ready for the big day by ordering your cap and gown, picking your grad day outfit, reserving tickets for the ceremony, and planning a celebration with friends and family.

3 Student Loan Tips

1.    Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.

2.    Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

3.    Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

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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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