InvestZ Archives | Page 43 of 160

Q: Does a Maintenance Margin Mitigate Risk?

Not for the trader. Margin investing is risky because traders can lose more money than they have in their account, creating a debt with the broker.

Aug

2024

What Is Maintenance Margin? How Margin Maintenance Requirements Work

What Is Maintenance Margin? How Its Requirements Work

By Laurel Tincher | Growing Wealth, invest, Investing | Comments Off

Maintenance margin, as it relates to margin accounts and trading, refers to the necessary amount of funds an investor needs to maintain in their brokerage account in order to utilize margin. Margin accounts work differently than other trading accounts. Instead of allowing the trader to do regular trades, the margin account allows leveraged trades.

This means that the trader can buy securities including stocks, bonds, or options for more than the amount that they have in their account, paying only a deposit on the trade. They borrow the rest of the cash needed for the investment from the broker.

Key Points

• Maintenance margin represents the minimum balance required in a trader’s margin account to avoid a margin call and continue leveraged trading.

• The Financial Industry Regulatory Authority mandates a minimum maintenance margin of 25%, but individual brokerage firms often set higher requirements for added security.

• Margin trading carries significant risks, as traders can incur losses exceeding their account balance, leading to margin debt owed to brokers.

• If a trader’s account balance falls below the maintenance margin, the broker can issue a margin call, requiring additional funds or asset liquidation within a specified timeframe.

• Understanding the distinction between maintenance margin and initial margin is crucial, as the initial margin is the upfront deposit required to open a margin account.

Maintenance Margin Definition

In margin trading, the maintenance margin is the minimum amount of funds that a trader must hold in their portfolio to avoid being issued a margin call, for as long as they are actively involved in a trade. If a trade they enter decreases in value, the trader may owe money, which is taken from their account.

Minimum margin requirements for leveraged accounts are regulated by the government. Currently the Financial Industry Regulatory Authority (FINRA) sets the maintenance margin at 25% of the total value of securities that a trader holds in their margin account.

Specific brokerage firms also maintain their own requirements. It is common for brokerage requirements to be higher than the government required amount to provide the firm with greater financial security.

Margin maintenance requirements shift based on various factors, including market liquidity and volatility. And different stocks have differing maintenance requirements: if they are more likely to be volatile, the requirements may be higher.

Does a Maintenance Margin Mitigate Risk?

Maintenance margin doesn’t mitigate risk for traders. Margin investing is risky because traders can lose more money than they have in their account, creating a debt with the broker, called margin debt.

When a trader opens a margin account, they must sign an agreement and deposit a certain amount into the account before they can start trading. To pay off any debt from assets that have lost value, the trader will need to deposit additional funds, deposit securities, or sell off holdings.

Therefore, margin trading isn’t recommended for beginner traders, and it’s important for traders to understand the risks and how it works before trying it out.

💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 11%* and start margin trading.

*For full margin details, see terms.

Maintenance Margin Requirement Examples

Let’s look at an example of how maintenance margin requirements work.

Let’s say a trader wants to purchase 100 shares of Company XYZ at $40 per share. They don’t have sufficient funds to purchase the entire number of shares. The trader can use a margin account which allows them to purchase the entire amount of shares but only deposit a percentage of the total price into the trade and also pay a financing fee. This deposit amount is known as the initial margin requirement.

In this example, the initial maintenance margin requirement is 40% of the purchase price of the trade. For the trader to purchase the full 100 shares, they need to maintain a balance of 40% of the trade purchase amount in their margin account.

When Maintenance Margin Requirements Aren’t Met

If the amount in their account dips below the minimum requirement, their broker will issue a margin call notification. Generally, the trader will have between 2-5 days to either add more funds to their account or sell some of the assets they are invested in to move enough cash funds back into their account.

If the trader doesn’t sell holdings or add funds to their account to meet the margin maintenance requirement, the broker may sell the trader’s securities without notifying them, and they have the right to decide which ones they sell. They are also allowed to charge the trader commissions and even sue the trader for losses.

A margin call can also be sent out if the brokerage firm changes their requirements, which they can do at any time.

Calculating Maintenance Margin

Each brokerage firm has their own maintenance margin requirements. The formula to calculate the maintenance margin is:

Account value = (Margin Loan) / (1 – Maintenance Margin %)

This can be used to determine the stock price that will trigger a margin call.

For example, a trader opens a margin account and deposits $20,000 into it, then borrows $10,000 from the broker in a margin loan in order to purchase 200 shares of stock at a price of $100 each. The broker’s maintenance margin is 30%. Here is what the calculation would be to figure out what account balance would trigger the margin call:

($10,000 Margin Loan) / (1 – 0.30 Maintenance Margin %) = $14,285.71

That means that if the trader’s account dips below $14,285.71, or if the price of the stock falls below $71.43 ($14,285.71 / 200 shares) then the broker will issue a margin call.

Maintenance Margin vs Initial Margin

When traders open a margin account, there is an initial margin amount they are required to deposit before they can start trading. This is set by FINRA, and brokers may also have their own additional requirements. The initial margin required by FINRA is currently $2,000 in cash or securities.

After a trader starts buying on margin, they must meet the maintenance margin on their account — at least 25% of the market value of the securities in their account.

The Takeaway

A maintenance margin is a monetary buffer for traders with margin accounts. The maintenance margin is a minimum balance required to execute leveraged trades. If a trader’s margin account dips below the minimum set by FINRA and the broker, the broker will issue a warning, or margin call, so that the trader can add cash to their account or sell holdings to cover the gap.

Maintenance margins do not mitigate risks for traders, and if an investor is utilizing margin as a part of their investment strategy, they should know what they’re getting into. Margin accounts have their pros and cons, but it’s important to keep the risks in mind.

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

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

What happens if you go below maintenance margin?

Generally, if a trader or investor’s account goes below the maintenance margin, their brokerage will send them a margin call, or otherwise warn them that they need to deposit funds or sell holdings.

What does current maintenance margin mean?

Current maintenance margin refers to the literal current maintenance margin set by financial regulators or by a specific brokerage. For example, it may be 25% of the value of an investor’s total holdings.

What is the difference between maintenance margin and minimum margin?

Minimum margin refers to the minimum amount of collateral needed in a margin account to execute leveraged trades, while maintenance margin is the total capital that needs to remain in the account as the investor continues to utilize a margin account.

Who sets the maintenance margin?

FINRA currently sets the maintenance margin, which is 25%. But specific brokerage firms can set their own beyond that, and often, at a higher threshold.

Why is my maintenance margin so high?

Maintenance margin requirements can be determined by a number of factors beyond regulatory minimums, such as market conditions and volatility, and the specific types of securities an investor is trading.

What does 25% maintenance margin mean?

Twenty-five percent maintenance margin means that an investor must hold 25% of the total value of their holdings in their account. It is the minimum amount of equity that must be maintained in their margin account.

Photo credit: iStock/StockRocket

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

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.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN1023010

Aug

2024

What Is an Exponential Moving Average (EMA) in Stock Trading? How Does It Work?

What Is Exponential Moving Average (EMA)?

By Laurel Tincher | Growing Wealth, invest, Investing | Comments Off

An exponential moving average (EMA) is a commonly used average price calculation done for a specific time period that places more weight and importance on the most recent price data. Since it is weighted this way it reacts faster to recent price changes than a simple moving average (SMA) which is a type of average price calculation, which equally weights all data points within a time period.

Moving averages are technical analysis trading indicators used by traders to help them understand the direction, market trend, and strength of price movement of an asset. They measure the average price of a security by taking averages of the prices of the security over a specific period of time, and can be used to show traders the location of support and resistance levels. Read on to learn more about the meaning of EMA in stocks, the EMA formula, and how to calculate EMA.

Key Points

• An exponential moving average (EMA) gives more weight to recent price data, making it a useful tool for traders to gauge market trends and price movements.

• The formula for calculating EMA incorporates the current price, the previous EMA, and an exponential smoothing constant, allowing for dynamic adjustments based on market behavior.

• Calculating EMA involves determining the simple moving average first, then applying a weighting multiplier, and finally using the EMA formula to derive values.

• While EMAs can effectively indicate support and resistance levels, they have limitations, such as lagging indicators and the potential for false signals in flat markets.

• Traders often use EMA alongside other indicators to enhance their analysis, helping them make informed decisions about entry and exit points in their trading strategies.

What is EMA?

An EMA, exponentially weighted moving average, is a type of moving average (MA) used by traders to evaluate the potential trajectory of a financial security. Using the EMA calculation, the most recent price data has the greatest impact on the moving average, while older data has a lower impact. The previous EMA value is included in the calculation, so the current value includes all the price data.

As noted, it reacts faster to price changes than a simple moving average, which may be helpful to some investors.

EMA Formula

The formula for calculating EMA is:

EMA = (K x (C – P)) + P

Where:

C = Current Price

P = Previous Period’s EMA (for the first period calculated the SMA is used)

K = Exponential Smoothing Constant (this applies appropriate weight to the most recent security price, using the number of periods specified in the moving average. The most common smoothing constant is 2, but the higher it is the more influence recent data points have on the EMA)

💡 Quick Tip: Are self-directed brokerage accounts cost efficient? They can be, because they offer the convenience of being able to buy stocks online without using a traditional full-service broker (and the typical broker fees).

How to Calculate EMA

Technical analysts follow three steps to calculating an EMA.

1. Calculate the simple moving average (SMA) to find the initial EMA data point. The SMA is used as the previous period’s EMA for the first calculated data point of the EMA. To calculate the SMA of the last 20 days, a trader would add the amounts of the last 20 closing prices of the security and then divide that sum by 20.

2. Calculate the weighting multiplier for the number of periods that will be used to calculate the EMA. The number of periods used for the EMA has a significant impact on the value of the weighting multiplier.

The formula for finding the weighting multiplier is:

EMA(current) = ((Price(current) – EMA (prev)) x Multiplier) + EMA(prev)

3. Calculate the EMA using the formula described above.

Some traders also use the open, high, low, or median price instead of the closing price for the EMA calculation.

Example of EMA

Taking the above into consideration and following the three steps to calculate EMA, here’s an example of how it might all come together.

Again, here’s the EMA formula: EMA = (K x (C – P)) + P

We’ll assume that the previous period’s EMA is 50, and that the current price is 60. We’ll also assume that our smoothing constant is 2, for simplicity’s sake.

So: EMA= (2 x (60 – 50)) + 50 = 70

What Does EMA Show You?

An EMA follows prices more closely than a SMA since it puts more weight on recent data points. This is helpful for determining when to enter and exit trades. EMA is a lagging indicator that shows market trends and directions and the strength of price movements. It’s best used in trending markets.

By looking at past trends traders can gain an understanding of what might happen with a security’s price in the future, which may help them identify investment opportunities. Although past performance is no guarantee of future performance.

Limitations of Using EMA

Although EMA is a very useful trading tool, it does have some constraints.

• Spotting trends and directions using EMA is difficult in a flat market.

• The EMA shows present market trends but is not a predictor of future trends and prices. It also doesn’t show exact highs and lows or precise entry and exit points.

• The EMA can show false signals and can show more short term price changes that aren’t trading indicators.

• Even though it is weighted toward recent prices, the EMA does rely on past price movements, so it is a lagging indicator. Because of this the optimal time to enter a trade may have already passed by the time the trend direction shows up in an EMA chart.

How Investors Can Use EMA

Usually traders look at the direction the EMA is going in and they trade in the direction of the trend. In addition to spotting market trends and direction, EMA can also identify spot reversals that occur when a security is overbought or oversold.

The EMA is a fairly accurate tool because stock prices typically only stray so far from the average before returning to test the average, creating support or resistance and continuing to rise or fall. Even beginning investors can use EMA to spot trends and gain an understanding of what direction the market is heading.

Like other indicators, It’s best to use EMA in conjunction with other tools such as relative strength index (RSI) and moving average convergence divergence (MACD) to get a more comprehensive and accurate picture of the market. There are a few ways investors can use EMA:

Trend Trading

Traders can use the EMA to discover and trade primary market trends. When the EMA rises this is a bullish indicator, a trader may buy when the stock price dips to hit the EMA line or just below it. When EMA goes down, a trader might sell their position when the stock price goes up to hit the EMA line or just above. If the stock has a closing price that crosses over the average line, the trader closes out their trade.

Support and Resistance

EMA lines can track support and resistance levels, another useful way to track price movements and trends. If EMA goes up, this is a support indicator, while if it goes down this shows resistance to the security’s price movement.

Buy and Sell Signals

Traders can set up fast and slow moving averages and then find buy and sell signals when the two lines cross each other.

💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

The Takeaway

EMA is a useful tool for both advanced and beginner traders to understand market trends and directions. It’s a technical indicator that evaluates a stock’s price trend with a greater emphasis on recent price levels.

Whether you’re planning to use in-depth technical analysis or not, a great way to get started building a portfolio is by opening an investment account on the SoFi Invest® stock trading app. It lets you research, track, buy and sell stocks, exchange-traded funds, and other assets right from your phone.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Which EMA is best?

Day traders often use 8- and 20-day EMA periods, while long-term investors use 50- and 200-day EMA. Indicators such as the moving average convergence divergence (MACD) and percentage price oscillator (PPO) use 12- and 26-day periods. If a security passes over a 200-day EMA this is a technical sign that a trend reversal has occurred.

What’s the difference between EMA and SMA?

Both simple moving average and exponential moving average are used by traders to measure market trends. They both create a graphical line that smoothes out price fluctuations using calculated averages. But they weigh price data differently, and may have different sensitivities to price changes.

What is 5 EMA and 20 EMA?

There are different EMAs referring to different time periods that can identify trends. In that sense, 5 EMA and 20 EMA refers to the 5-day and 20-day EMA, a shorter and longer-term EMA measure.

Photo credit: iStock/South_agency

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN0124043

Aug

2024

What Are Liquid Assets and How Do They Work?

By Austin Kilham | Budgeting & Goals, invest, Terminology | No Comments

Liquid assets are any assets that can be easily and quickly converted into cash. In fact, people often refer to liquid assets as cash or cash equivalents, because they know that the asset can be exchanged for actual cash without losing value.

Here’s a closer look at the topic and how liquid assets can contribute to your financial wellbeing.

Key Points

• Liquid assets are easily convertible to cash, allowing quick access to funds without significant loss in value, essential for financial flexibility during emergencies.

• Common examples of liquid assets include cash in bank accounts, stocks, bonds, mutual funds, and money market funds, which can be readily sold for cash.

• Non-liquid assets, such as real estate and collectibles, require more time and effort to convert into cash, often leading to potential value loss during the process.

• Maintaining liquid assets is important for calculating net worth, applying for loans, and ensuring a business can handle emergencies or market fluctuations effectively.

• Building liquid assets involves creating an emergency fund with three to six months’ worth of expenses, allowing for better financial security and investment opportunities.

What Makes an Asset Liquid?

Liquidity means that you can readily access an asset as cash. While you might own any number of valuable assets (e.g., your home, retirement accounts, collectibles) and these can be considered part of your overall net worth, only liquid assets can generate cash quickly, when circumstances demand it. If you needed cash quickly, you likely would not be able to sell your home overnight to get money.

For an asset to be considered liquid, it must be traded on a well-established market with a large number of buyers and sellers. It also must be relatively easy to transfer ownership. Think: stocks, bonds, mutual funds and other marketable securities.

Generally, you can sell stocks and obtain cash readily. By contrast, you probably couldn’t sell your vintage watch collection that fast, and even if you could, there are a number of factors that might influence how much cash value you might obtain from the sale.

Worth noting: Although liquid assets (aka cash and cash equivalents) pose very little risk of loss, they also have little or no capacity for growth.

What Investments Are Considered Liquid Assets?

As you can see, the primary advantage of liquid assets is that they can be converted to cash in a short period of time. For example, stock trades must be settled within two days, according to Securities and Exchange Commission rules. Here, you’ll learn more about what are considered liquid assets.

Examples of Liquid Assets

Here are some specifics about what a liquid asset is.

• Money in the bank. Cash in a checking and savings account is a liquid asset.

• Stocks. Stocks are often considered liquid assets because they can be converted into cash when you sell them. Keep in mind, though, that the most liquid stocks might be the ones that many people want to buy and sell. You may have a more difficult time liquidating stocks that are in lower demand.

• U.S. Treasuries and bonds. These instruments are relatively easy to buy and sell, and these processes are usually done in high volume. They have a wide range of maturity dates, which helps you to figure out when you want to liquidate them. Because U.S. Treasuries are often considered relatively safe and dependable, the interest rates are somewhat lower and could be a good fit for investors who are looking to mitigate risk.

• Mutual funds. Mutual funds are pooled investment vehicles that hold a diversified basket of stocks, bonds, or other investments.

◦ Open-end mutual funds are considered more liquid than closed-end funds because they have no limit on the number of shares they can generate. Also, investors can sell their shares back to the fund at any time.

◦ Closed-end mutual funds, on the other hand, are less common. These funds raise capital from investors via an IPO; after that, the number of shares are fixed, and no new shares are created. Instead, closed-end funds shares can only be bought and sold on an exchange, and thus are considered less liquid than open-end fund shares because they’re more subject to market demand.

• Exchange-traded funds and index funds. Like mutual funds, exchange-traded funds (ETFs) and index funds allow individuals to invest in a diversified basket of investments. ETFs are traded like stocks, throughout the day on the open market, which makes them somewhat more liquid than index funds, which only trade at the end of the day.

• Money market assets. There are two main types of money market assets:

◦ A money market fund is a type of mutual fund that invests in high-quality short-term debt, cash, and cash equivalents. It’s considered low-risk and offers low yields. It is therefore thought of as a relatively safe vs. risky investment. You can cash in your chips at any time, making money-market funds a liquid investment.

◦ Money market funds are different from money market accounts, which are a type of savings account that’s insured by the Federal Deposit Insurance Corporation (FDIC).

• Certificates of deposit. If you have money in a certificate of deposit or CD, this might be considered semi-liquid because your money isn’t available until the official withdrawal date. You can withdraw money if you need it, but if you’re doing so before the maturity date, you’ll likely pay a penalty.

What Assets Are Considered Non-Liquid?

There are, of course, many assets that are not easy to liquidate quickly. These assets typically take a relatively long time to sell or for the deal to close. You’ll get your money, but most likely not right away, and there may be time or costs associated with the conversion to cash that could impact the final amount. That’s why assets like these are considered illiquid or non-liquid assets.

Examples of Non-Liquid Assets

• Collectibles. Items like jewelry and artwork, as well as hobby collections like stamps and baseball cards, may be hard to value and difficult to sell.

• Employee stock options. While employee stock options can be a valuable form of compensation, they may also be highly non-liquid. That’s because employees must typically remain with a company for years before their options vest, they exercise them, and they finally own the stock.

• Land and real estate. These investments often require negotiation and contracts that can tie up real estate transactions for weeks, if not months.

• Private equity. There are often strict restrictions about when you can sell shares if you’ve invested in private equity assets such as venture capital funds.

Liquid Assets in Business

If you’re running a business, accounts receivable — the money you’re owed from clients — are often considered to be a liquid asset, because you can typically expect to be paid within one or two months of billing.

Any inventory you have on hand, such as office furniture or a product you’re selling, can also be considered liquid, because you could sell them for cash if need be. The liquid assets on your company balance sheet usually list cash first, followed by other assets that are considered liquid, in order of liquidity.

Having more liquid assets is desirable because it indicates that a company can pay off debt more easily. When businesses need to determine how cash liquid they are, they often look at the amount of their net liquid assets. When all current debts and liabilities are paid off, whatever remains is considered their liquid assets.

Are Retirement Accounts like IRAs and 401(k)s Liquid Assets?

Retirement accounts, such as individual retirement accounts (IRAs) and 401(k)s are not really liquid until you’ve reached age 59 ½. Withdraw funds from your account before then, and you may face taxes and a 10% early withdrawal penalty.

What’s more, you can hold a variety of assets inside retirement accounts. For example, if you hold a money market fund inside your IRA, that is a liquid asset. But you could also hold real estate, which very much isn’t.

Reasons Why Liquid Assets Matter

Other than the most obvious reason, which is that cash gives you a great deal of flexibility and can be essential in a crisis, liquid assets serve a number of purposes.

• Calculating net worth: To calculate your net worth, subtract your liabilities (your debt) from your assets (what you own, which can include your liquid assets).

• Applying for loans: Lenders might look at your liquid assets when you apply for a mortgage, car loan, or home equity loan. If your liquid assets are high, you may get better terms or lower interest rates on your loans. Lenders want to know that if you were to lose your job and/or your income, you would be able to continue to pay back the loan using your liquid assets.

• Business interests: Having liquid assets on your balance sheet is a signal that your business is prepared for an emergency or a market shift that could require a cash infusion.

Are All Liquid Assets Taxable?

While income is money you earn or receive, an asset is something of value you possess that can be converted to cash at some point in the future. While owning an asset doesn’t make it taxable, converting it to actual cash would, in most cases.

The IRS, or Internal Revenue Service, has many rules around how the proceeds from the sale of assets can be taxed.

The IRS considers taxable income to include gains from stocks, interest from bonds, dividends, alimony, and more. Gains on the sale of a home might be taxed, depending on the amount of the gain and marital status. If you aren’t sure whether income from the sale of an asset is taxable, it might be wise to consult a tax professional.

Is It Smart to Keep Cashing In Liquid Assets?

The point of maintaining a portion of your assets in liquid investments is partly for flexibility and also for diversification. The more access to cash you have, the more prepared you are to navigate a sudden change in circumstances, whether an emergency expense or an investment opportunity.

Having a portion of your portfolio in cash or cash equivalents can also be a hedge against volatility.

Thus, it may be worth keeping a mix of both liquid and non-liquid assets to help you reach your short-term financial goals as well as longer-term ones. And while cashing in liquid assets might be necessary, it’s also prudent to keep some cash on hand in case you need it. You may want to focus on gathering at least three to six months’ worth of expenses in the form of liquid assets as an emergency fund.

How Liquid Are You?

To figure out how liquid you are, make a list of all your monthly expenses, from rent/mortgage on down, including even your streaming service subscription. Then, make a list of all your liquid assets and investments (being careful to pay attention to the definition of liquid assets vs. illiquid assets, as it can be confusing).

Then, total all your monthly expenses, and compare that sum to the liquid assets in your possession.

Does your total savings cover six months’ worth of monthly expenses? If so, congrats! If not, you’re not very liquid. Don’t despair, though. There are ways to build up more liquidity by growing your emergency fund.

Where to Start Building Liquid Assets

As you start to build your liquid assets, first consider saving a cash cushion in the form of an emergency fund, which should be enough to cover any unexpected expenses that might come along.

Envision what you might need in the event of a crisis (e.g., a job loss, divorce, health event, and so on). In terms of how much to save in an emergency fund, aim to accumulate three to six months’ worth of expenses to cover basic bills, repairs, insurance premiums and copays, as well as any other personal or medical expenses.

One good way to build liquidity is to set money aside every week or month. Or you might have a set savings amount auto-deducted from each paycheck. You could keep the funds in a high-yield savings account to help them grow.

From there, you may consider opening a retirement account or a taxable brokerage account where you can invest in potentially more lucrative (but risky) liquid investments, such as stocks, bonds, mutual funds, and ETFs.

The Takeaway

Liquid assets are assets that can be converted into cash relatively easily — typically with little or no loss in value. Liquid assets can include cash in a checking or savings account, money market accounts, or marketable securities like stocks, bonds, mutual funds, and ETFs.

Liquid investments can play a surprisingly important role in your financial wellbeing. Having ready access to cash can help you pay off debt, cover a crisis, or be able to invest in new opportunities.

Having the right banking partner can help you keep your cash secure and earning interest.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

What’s the definition of a liquid asset?

A liquid asset is an asset that is readily converted into cash, such as money in the bank, stocks, or a certificate of deposit (although you might owe a penalty when you liquidate it).

What does non-liquid asset mean?

Non-liquid assets are resources that can’t be quickly converted to cash, such as real estate, employee stock options, or collectibles (such as artwork or jewelry) that would have to be sold, which can take time and the price may fluctuate.

Is a 401(k) considered a liquid asset?

Retirement accounts, such as a 401(k) are not really considered liquid until you are over the age of 59 ½. Before that age, you would face a 10% early withdrawal penalty, as well as taxes, meaning you would take a loss on the value.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOBNK-Q324-023

Aug

2024

Instant-Use Credit Cards, Explained

By Kelly Boyer Sagert | Credit, credit card | Comments Off

After you’re approved for a new credit card, you usually have to wait for it to arrive in the mail before you can start using it. But with an instant-use credit card, as the name implies, you can start shopping immediately.

While not all credit card issuers offer this feature, some issuers share account information with cardholders as soon as they’re approved. Getting a credit card you can use instantly can come in handy if you’re eager to start racking up rewards or spending to secure a sign-up bonus.

What Is an Instant-Use Credit Card?

Instant-use is a feature that some credit cards offer, allowing account holders to use the credit card before they receive a physical card. This is a perk given how long it takes to get a credit card otherwise — usually, cardholders can expect to wait between seven and 10 business days for their card to arrive in the mail.

Each credit card issuer can have unique policies and requirements about using an instant-access credit card. For example, you may not have access to your full credit limit until your physical credit card arrives.

How Instant-Use Credit Cards Work

There are a few different ways that credit cards offering instant use may work. After applying and being approved, you may receive a credit card account number before you get the actual card, which allows you to use the account online. Or, the credit card issuer may provide a temporary instant credit card number or barcode that you can use to make purchases before the official card and number arrives. Note that this differs from virtual credit cards, where the credit card numbers you receive are always temporary and disposable.

In other cases, it’s possible to add the instant-use credit card you’re approved for to a digital wallet, such as PayPal, Google Pay, or Apple Pay. You could then use the card as you’d use other cards in your digital wallet.

Benefits of Instant-Use Credit Cards

The exact benefits of an instant-use credit card depend upon the specific policies of the issuer. Besides providing access to the credit card account more quickly, these cards can offer the following perks.

Faster Rewards Accrual

A key benefit of instant-use credit cards is how quickly you can use them. If a credit card for immediate use features a rewards program, you could start accrue these rewards more quickly, thanks to prompt access to your credit card account. Similarly, if your card offers a lucrative sign-up bonus, you can start spending to earn it that much sooner.

Discounts

Many brands offer discounts to those who get their instant-use credit card. For instance, some retailers may provide a 25% discount on the first purchase you make with the instant-use card. You could use that discount strategically on the largest purchase you’d planned to make in order to maximize this benefit.

Financing Offers

An instant credit card number may offer special financing offers, such as a promotional rate of 0% annual percentage rate (APR) for a designated amount of time. Taking advantage of such an offer can save you a significant amount of money if you pay off your full balance before the promotion ends. Otherwise, the regular interest rate will kick in.

Recommended: How to Avoid Interest on a Credit Card

Drawbacks of Instant-Use Credit Cards

When choosing a credit card, it can understandably seem tempting to get a credit card you can use today. Watch out, though, for the following drawbacks of instant-use credit cards.

Limited Availability

There aren’t that many instant-use credit cards available to choose from. Only a select number of issuers offer them, with some only offering instant access on certain cards. Further, even if you do apply for one of the instant-use credit cards offered, there’s the chance you won’t get immediate access if the issuer encounters any challenges confirming your information.

Initial Usage Restrictions

With some instant-use credit cards, you don’t get immediate access to your full credit limit until you activate your physical card. Instead, when you receive your instant credit card number, you’ll only be able to use a limited portion of your approved credit limit. Especially if you were planning to make a large purchase immediately, this could cap your spending power.

Recommended: What is the Average Credit Card Limit

Potential for Overspending

This can be a downside of any credit card. But with a credit card for immediate use, it can be tempting to run up the balance as soon as you have the account number in hand.

Tips for Getting an Instant-Use Credit Card

If you’re hoping to secure a credit card you can use immediately, here are some tips to keep in mind throughout the process.

Check Your Credit Score Before Applying

Before you move forward with applying — and incurring a dip in your credit score due to a hard inquiry — take a look at your credit score. See if it falls within an issuer’s credit card requirements. If it doesn’t, you might be better off applying for another card you’re more likely to get approved for. Or, you could take steps to improve your credit score before you submit an application, assuming you have the time to do so.

Don’t Skip Researching

If you’re in a rush to find a credit card for immediate use, you might feel tempted to jump on the first instant-use credit card you spot. But don’t let a sense of urgency cause you to skip out on doing due diligence. It’s still important to take the time to compare your options, and to review a credit card’s terms and conditions before you’d move forward with applying.

Remember to Read the Fine Print

When you’re in a rush to get a credit card you can use today, it can seem harmless enough to skip over reading the fine print. However, especially in the case of instant-use credit cards, this can contain some important information when it comes to understanding how credit cards work.

For instance, there may be restrictions on usage of your instant credit card number, such as limited access to your credit limit. If you’d planned to make a massive purchase immediately, you’ll want to know that sooner rather than later.

Tips for Using an Instant-Use Credit Card

If you get approved for a credit card for immediate use, it’s likely you’ll want to start using it as soon as possible. Here are some important tips to keep in mind as you start spending.

Know Your Options for Access

Issuers will provide approved applicants with usage instructions for their instant-access credit cards. The issuer may give you a credit card number that you can then use to make purchases online or using your mobile wallet. If the credit card is attached to a retailer, they may set it up so you can use their app right away with the credit card number they provide.

Don’t Forget to Active Your Physical Card When It Arrives

Even if you’re already off to the races when it comes to spending with your new credit card, don’t neglect your physical card when it does arrive in the mail. Unless you have your card in your digital wallet, an instant-use credit card number limits you to online or over-the-phone purchases. Plus, some issues only offer partial access to your credit limit until your physical card is activated.

Remember That Basic Credit Card Rules Still Apply

Same-day credit cards come with the same set of credit card rules as any other card. Before you get carried away with making purchases, make sure you’re not spending more than you can afford to pay off. You’ll also want to set up a reminder — or even better, auto-pay — to ensure you make timely payments on your new credit card.

Recommended: When Are Credit Card Payments Due?

What to Do If Your Card Doesn’t Offer Instant Access

If you thought you’d applied for an instant-access credit card only to discover it actually isn’t a credit card you can use instantly, you do have options.

• For one, you can call your credit card issuer and request rush delivery. Though this likely won’t be as speedy as instant access, it can expedite the mailing process. Just keep in mind that you may owe a fee to cover the cost of faster shipping.

• You might also explore a personal loan. Many online lenders offer same-day funding, and the interest rates for personal loans tend to be lower than those of credit cards. Just keep in mind that applying for multiple loans in a short amount of time can affect your credit score. That’s because each application results in a hard inquiry, which will temporarily lower your score.

• Lastly, this could be a good time to dip into your emergency fund — especially if you really need fast access to cash. If you do, just make sure to replenish your savings so you’re covered the next time an unexpected expense comes up.

The Takeaway

Applying for instant-use credit cards can come with benefits, including immediate buying power. There are some downsides to consider, though, before making the right credit card choice for your unique needs. For one, you’ll have a more limited selection of cards to choose from, as not all credit card issuers offer instant-use credit cards.

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

FAQ

Can you use a credit card the same day you get it?

With instant-use credit cards, you can use the card upon approval, which could happen almost instantly. For credit cards that don’t offer instant use, you can typically use the card as soon it arrives in the mail.

How long does it take for a credit card to arrive in the mail?

There are two factors that can impact how long it takes for a credit card to arrive. The first is how long approval takes, which can happen nearly instantly or take up to a week or so. You’ll then have to wait on mailing time, which can take anywhere from five business days up to two calendar weeks.

Can I use my credit card before it arrives?

There are credit cards that you can use instantly, although not all credit cards offer this capability. Some cards require you to wait for the physical card to arrive before you use it. If you have an instant-use credit card, you’ll receive instructions from the issuer on how to start using the account right away.

Photo credit: iStock/Cunaplus_M.Faba

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.

SOCC-Q324-033

Aug

2024

Instant Approval Credit Cards: How They Work

By Dan Miller | Credit, credit card | Comments Off

Typically, when you apply for a credit card, you may be instantly denied, or you may receive a notice that the card issuer needs more time to evaluate your application. Another possibility is that you’re instantly approved for the credit card; there are cards that guarantee a decision in just minutes.

When you receive an instant approval for a credit card, you can rest easy knowing that you’ll get the credit card and any applicable welcome bonus. In some cases, credit card issuers will allow you to have instant access to your credit card number. That can be useful if you want to make an immediate and time-sensitive purchase.

What Is an Instant Approval Credit Card?

An instant approval credit card is a credit card that guarantees a decision about your application within a matter of minutes. Once you submit your application, the credit card issuer will instantly let you know if you’ve been approved or denied for the card.

Not all credit card issuers do instant approvals, and it’s possible to not receive an instant approval even if you have excellent credit and income. For some issuers and certain credit cards, when you’re instantly approved, you also receive your credit card number and everything else you need to make a purchase with the card right away.

How Instant Approval Credit Cards Work

When you apply for a new credit card, the card issuer will typically conduct a hard pull of your credit report and review your credit history, income, and other financial information. They will use this information to decide whether or not to approve you for a card.

If they have enough information on your credit report to approve you automatically, you may be instantly approved. In other cases, a credit analyst may need to review your application before making a decision. This will impact how long it takes to get a credit card.

Instant Approval vs Prequalified Offers

Many credit card issuers also allow you to prequalify for a credit card. When a lender prequalifies you for a credit card, they usually take your basic information and do a soft pull on your credit report, as opposed to the hard inquiry done for formal approval of your application. This soft pull allows them to see a limited amount of information about you, which may be enough for them to prequalify you.

Being prequalified does not mean that you’ll necessarily be approved when you fill out the complete application. In contrast, when you receive an instant approval, that means that you’ve actually been approved for the card.

Recommended: What is the Average Credit Card Limit

Pros and Cons of Instant Approval Credit Cards

Fast credit cards approval has some obvious upsides, but there are also some possible downsides to take into consideration as well:

Pros	Cons
You know right away when you are approved	You may not be instantly approved, even with good credit and income
You may be able to access your card information instantly	Instant access to your credit card number may tempt you to spend more

When to Consider an Instant Approval Credit Card

The only time it may be worth it to go out of your way to go for an instant approval card is if you have a large purchase that you need to make within the next day or two. In that case, being able to secure a big signup bonus on a new card or get a card with an introductory 0% APR offer may be worthwhile, given how credit cards work.

When possible, however, it’s better to manage your credit cards and credit card applications so that you don’t have to depend on instant credit card approval.

When to Skip an Instant Approval Credit Card

In most non-emergency cases, it doesn’t make sense to go out of your way to find an instant approval credit card. Instead, review the different credit cards that are out there and find the best card for you — regardless of whether you might be instantly approved.

Choosing a credit card that’s right for you might earn you hundreds of dollars or more in rewards. In the end, it may be worth more than getting the card information a few days earlier.

Choosing an Instant Approval Credit Card

It’s not always possible to determine whether any particular card will give you instant approval. Some card issuers (including American Express) publicly state that they offer instant credit card numbers to eligible cardholders.

That being said, receiving instant approval (and an instant credit card number) is contingent on the information on your credit report and the credit card requirements of the card issuer itself. In other words, instant credit card approval and use is not something that can be guaranteed.

Increasing Your Chances of Approval

While there isn’t always a guarantee of getting instant credit card approval, there are a few things you can do to help increase your chances of getting approved immediately.

Provide Information About Your Income

Most credit card applications ask about your total household income. Providing accurate income information can help the credit card issuer understand your financial situation and possibly approve you instantly.

Remember, one of the key credit card rules is that you should be truthful. If an issuer finds out that you were dishonest on your application, they may close your account.

Recommended: How to Avoid Interest On a Credit Card

Check Your Credit Reports

Another great idea if you’re hoping to secure instant approval on a credit card is to check your credit report. Keep your eye out for any incorrect or inconsistent information. If there’s incorrect negative information on your credit report, it may prevent you from being instantly approved for a credit card.

In general, it’s a wise financial move to regularly review the information on your credit report at least on a yearly basis.

Apply for the Right Instant Approval Credit Card

You’ll also want to be realistic about your approval odds for the credit card you’re looking at. If your credit isn’t that great, you might not want to try applying for an instant approval credit card that requires excellent credit (meaning a score of 800+). It’s more important to try to apply for a card that you’re likely to get approved for than one that might offer instant approval.

Alternatives to Instant Approval Credit Cards

One alternative to an instant approval credit card is to just apply for the best credit card for you, regardless of whether you might be instantly approved. You might also look at virtual credit cards, where you can get a temporary, randomly generated credit card number that’s linked back to your actual credit card account.

If you are in need of fast funding, there are other options to explore there, too. Some online lenders offer funding the same day you apply and get approved for a personal loan. You might also consider tapping into your emergency fund, which you then can replenish once you’ve addressed your need for fast cash.

The Takeaway

When you apply for a credit card, it’s possible the credit card issuer may instantly approve you. In other cases, they may need more time to decide whether or not to approve your application. If you are instantly approved, you may also be able to have immediate access to your card number and other credit card details. Instant approval credit cards with instant use can be useful if you have an immediate need to make a large purchase and want to do it on a new credit card.

FAQ

What credit score do I need for an instant approval credit card?

There isn’t a single credit score you’ll need to be approved for an instant approval credit card. Instead, each credit card has its own criteria for approval. When choosing a credit card, it’s important to select a credit card that matches your credit profile. If you have fair or worse credit, you shouldn’t apply for a credit card that requires excellent credit — you’ll likely be denied.

What is the difference between instant approval and instant use of credit cards?

When you apply for a credit card, you may be instantly approved if the card issuer has enough information to make an automatic decision. If you’re instantly approved, some issuers allow you to have instant access to your credit card number and account. That immediate access is what’s known as instant use.

Does an instant approval credit card guarantee you’ll be approved?

There’s no guarantee you’ll get approved when you apply for a credit card, and the same goes for instant approval credit cards. Whether you’re approved will depend on your financial specifics and the credit card’s requirements. Even if you’re prequalified or preapproved, that does not guarantee that you’ll be approved when you go through the formal application process.

What if my application for an instant approval credit card gets declined?

If your instant approval credit card application is denied, you may still eventually be approved for the card. It may just mean that the issuer needs additional information or more time to determine if they can extend credit to you. If you receive a firm denial, then it’s time to move on and find a credit card which will approve you.

Photo credit: iStock/PeopleImages

SOCC-Q324-040

What Is Maintenance Margin? How Its Requirements Work

Maintenance Margin Definition

Does a Maintenance Margin Mitigate Risk?

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 11%* and start margin trading.

Maintenance Margin Requirement Examples

When Maintenance Margin Requirements Aren’t Met

Calculating Maintenance Margin

Maintenance Margin vs Initial Margin

The Takeaway

FAQ

What happens if you go below maintenance margin?

What does current maintenance margin mean?

What is the difference between maintenance margin and minimum margin?

Who sets the maintenance margin?

Why is my maintenance margin so high?

What does 25% maintenance margin mean?

What Is Exponential Moving Average (EMA)?

What is EMA?

EMA Formula

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.

How to Calculate EMA

Example of EMA

What Does EMA Show You?

Limitations of Using EMA

How Investors Can Use EMA

Trend Trading

Support and Resistance

Buy and Sell Signals

The Takeaway

FAQ

Which EMA is best?

What’s the difference between EMA and SMA?

What is 5 EMA and 20 EMA?

What Are Liquid Assets and How Do They Work?

What Makes an Asset Liquid?

What Investments Are Considered Liquid Assets?

Examples of Liquid Assets

Get up to $300 when you bank with SoFi.

What Assets Are Considered Non-Liquid?

Examples of Non-Liquid Assets

Liquid Assets in Business

Are Retirement Accounts like IRAs and 401(k)s Liquid Assets?

Reasons Why Liquid Assets Matter

Are All Liquid Assets Taxable?

Is It Smart to Keep Cashing In Liquid Assets?

How Liquid Are You?

Where to Start Building Liquid Assets

The Takeaway

FAQ

What’s the definition of a liquid asset?

What does non-liquid asset mean?

Is a 401(k) considered a liquid asset?

Instant-Use Credit Cards, Explained

What Is an Instant-Use Credit Card?

How Instant-Use Credit Cards Work

Benefits of Instant-Use Credit Cards

Faster Rewards Accrual

Discounts

Financing Offers

Drawbacks of Instant-Use Credit Cards

Limited Availability

Initial Usage Restrictions

Potential for Overspending

Tips for Getting an Instant-Use Credit Card

Check Your Credit Score Before Applying

Don’t Skip Researching

Remember to Read the Fine Print

Tips for Using an Instant-Use Credit Card

Know Your Options for Access

Don’t Forget to Active Your Physical Card When It Arrives

Remember That Basic Credit Card Rules Still Apply

What to Do If Your Card Doesn’t Offer Instant Access

The Takeaway

FAQ

Can you use a credit card the same day you get it?

How long does it take for a credit card to arrive in the mail?

Can I use my credit card before it arrives?

Instant Approval Credit Cards: How They Work

Student Loan
Refinancing

Personal
Loans

Online
Investments