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Closing a credit card can hurt your credit in some situations. If you already have good to excellent credit, closing one credit card generally won’t have a huge impact on your credit score. However, there are a few scenarios where closing a credit card can hurt your credit score; say, doing so might shorten the length of your credit history or might send your credit utilization rate soaring.

Learn more about the potential consequences of closing a credit card, as well as alternatives to explore to avoid possible impacts to your credit score.

Ways Closing Your Credit Card Can Affect Your Credit Score

If you’re worried about whether it hurts your credit to close a credit card, you should know that there are two main ways that canceling a credit card can indeed affect your credit score.

Through Credit Card Utilization Ratio

The first way that canceling a credit card affects your credit score is by raising your credit card utilization ratio. Your utilization ratio (sometimes called your utilization percentage) is the total amount of available credit that you’re actually using. If you have a credit card with a $10,000 limit and you regularly spend $5,000 on that card each month, you’d have a utilization ratio of 50% ($5,000 divided by $10,000).

Having a low utilization ratio is generally considered a positive factor in determining your credit score. Lenders prefer when you’re not using all of your available credit, since doing so can be an indicator of financial distress. Typically, you should be using no more than 30% of your credit limit across all your lines of credit and ideally no more than 10%.

When you cancel a credit card, you lower the total amount of your available credit line, which will generally raise your credit card utilization ratio.

Example: Say you have two credit cards.

•   On credit card A, you have a balance of $5,000 and a credit limit of $10,000.

•   On credit card B, you have no balance and a credit limit of $10,000 too.

•   So, on these two cards, your combined limit is $20,000. The fact that you have a $5,000 balance means your credit utilization is $5,000 out of $20,000 or 25%.

•   If you close credit card B, you now have a balance of $5,000 with a $10,000 limit. Your utilization ratio rises to 50%.

If you close credit card B, your credit utilization could rise and your credit score could be lowered.

Recommended: What Is the Average Credit Card Limit

Impact on the Length of Credit History

Another way that canceling a credit card can affect your credit score is by impacting the average length of your credit history. Your average age of credit accounts is another factor in determining your credit score, with an older average being better. You’ll especially see an impact on your score if you close a card that you’ve had for a very long time — and the impacts of a bad credit score are myriad. Credit can be harder to secure and more expensive.

When Canceling a Credit Card Might Make Sense

There are several scenarios when canceling a credit card might be the right financial move, such as when:

•   Your card has a steep annual fee that isn’t worth it. One of the most common reasons for when to cancel your credit card is if you have a card with an annual fee and you’re no longer getting enough in benefits to justify paying that cost. It doesn’t make sense to pay an annual fee of $100 or more a year if you’re not getting much benefit from having the card — and there are plenty of credit cards that come with no annual fee.

•   You have multiple credit cards and want to streamline your finances. Another scenario is if you have multiple credit cards and want to simplify your finances. With how credit cards work, missing a payment can have a big negative impact on your credit score. So if you’re in a situation where you have too many credit cards and are having trouble keeping payments straight, it may be a good idea to simplify your life and cancel some of your credit cards.

•   You have a high interest rate on a card. Particularly if you need to carry a balance for whatever reason, ditching a card with a high interest rate might be in your best interest. That will save you from paying more than necessary in interest charges.

•   You want to replace a basic or secured credit card. Another reason you might consider canceling your card is if you have a very basic starter credit card. Or perhaps you have a secured credit card and want to upgrade to an unsecured card. Especially if you have built your credit score considerably since you opened that card, you could secure better terms and potentially the opportunity to earn rewards as well.

Recommended: When Are Credit Card Payments Due

When It Might Make Sense to Keep the Credit Card Account Open

On the other hand, there can be good reasons to keep your credit card accounts open as well. This includes if:

•   Your card doesn’t have an annual fee. If the card has no annual fee, you could always keep the card open and not use it rather than closing the account. When you close an account, the next time the credit bureaus are updating your credit score, your score may decrease. Keeping your credit card open instead could prevent that.

•   You don’t have many accounts open. One of the factors that’s used to determine your credit score is your mix of accounts. If you don’t have many accounts open, closing one of your few accounts could ding you in this area, possibly dragging down your credit score. Plus, it could cause your available credit to take a big hit, which would increase your credit utilization.

•   Your only reason for canceling is not using your card very often. Given the potential impacts to your credit, if you don’t have much reason to cancel a credit card, you’re likely better off keeping it open due to the importance of good credit. That way, you won’t risk driving up your credit utilization or lowering the average age of your accounts, both of which can cause your score to drop. Plus, there aren’t any penalties for not using a credit card frequently.

Recommended: What Is a Charge Card

Guide to Closing a Credit Card Safely

To close a credit card safely, there are a few things that you’ll want to keep in mind before canceling your card.

Automatic Payments

If you have any automatic payments being charged to the card, you’ll want to contact the vendors and change them to another card if you own multiple credit cards. Once you close your credit card account, if a vendor attempts to charge your account, the charge will likely be denied. This could lead to interruptions in other areas of your life, especially if it’s for something crucial like rent or utilities.

Paying Your Balances in Full

Simply closing your credit card account does not eliminate your responsibility for any charges already on the account. You’re still just as responsible and liable for the total balance on your account, so you should pay off your balance in full. If you don’t pay the full balance when you close the account, your card issuer will still issue you monthly statements, and interest will continue to accrue.

Redeeming Your Rewards

If you have a credit card that allows you to earn cash back, travel, or other rewards, you’ll want to redeem those rewards before you close your account. Once you close your account, you may not be able to access them, and it’s possible that you will lose some of your hard-earned rewards. To avoid that possibility, you should redeem your rewards before canceling your credit card account.

Recommended: Tips for Using a Credit Card Responsibly

Alternatives to Canceling a Credit Card

If you’re worried about how closing a credit card can hurt your credit, there are alternatives to explore.

Downgrade to a No-Fee Card

If one of the reasons you’re considering canceling your credit card is to avoid paying an annual fee, you may be able to downgrade the card instead. Many credit card issuers offer a variety of different cards, and only some of them come with annual fees. Downgrading to a no-fee card will keep your account open without having to pay the annual fee.

Negotiate With Your Credit Card Company

Another option is to negotiate with your credit card company. Most credit card issuers do not want you to cancel your card, so you may be willing to negotiate for better terms. This might include waiving the annual fee, lowering the interest rate, or getting additional rewards — it never hurts to call your credit card company to ask what they might be willing to do.

Put Your Card Away

If you’re considering canceling your credit card because you’re worried about overspending on the card, you also have the option to just take it out of your wallet. Depending on your situation, simply placing the card in your sock drawer, for instance, might prevent you from overspending without having to actually close the account.

Recommended: How to Avoid Interest on a Credit Card

Check Your Credit Report Before Closing an Account

If you’ve decided to close your credit card account, it can be a wise move to check your credit report both before and after canceling your card. If you’re concerned about how checking your credit score affects your rating, remember that it won’t impact it.

Also keep in mind that you have different credit scores, so take some time to check each one before and after closing your account. That way, you’ll have an accurate idea of how closing your credit card impacted your credit score.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

The Takeaway

While closing a credit card likely won’t have a huge impact on your credit score, it can lower it, especially in certain situations. Unless you have a good reason for closing your account, you may want to consider keeping your credit card open. Instead, you could consider downgrading to a no-fee card, negotiating with your credit card company, or just taking your card out of your wallet.

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

FAQ

Is closing a credit card bad?

Closing a credit card isn’t usually bad, but it may lower your score in some situations. Instead, consider alternatives to closing your credit card like downgrading your card or negotiating with your card issuer.

Is it better to cancel unused credit cards or keep them?

In many scenarios, it’s preferable to just keep your credit card accounts open, even if you don’t regularly use them. This allows your average age of accounts to increase and also lowers your utilization ratio by having access to a higher total of available credit. Both of these factors can help build your credit score.

Does closing a credit card with a zero balance affect your credit score?

If you close a credit card, even if you have a $0 balance, your credit score might drop. This is because closing your card could lower your average age of accounts and/or increase your credit utilization ratio. Instead of canceling your credit card, consider negotiating with your card issuer for a lower interest rate or lower fees.

How much does your credit score drop if you close a credit card?

If you already have good or excellent credit, closing a credit card generally won’t have a huge impact. If you have a low credit score, however,it’s possible that closing a credit card can hurt your score even more. This is especially true if the card you close is one you’ve had for a long time or one with a high credit limit.

Photo credit: iStock/wichayada suwanachun

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 .

SOCC-Q324-004

Group term and voluntary term life insurance are both offered by employers and other organizations, providing convenient and low-cost baseline coverage. Depending on the employer, coverage may not be as comprehensive as some employees might require.

We’ll get into what group term life insurance is, how it’s different from voluntary term, and who should take advantage of these policies. You’ll also find out what portion of group term life insurance benefits is taxable and whether premiums are tax deductible.

Group Term Life Insurance, Defined

What is group term life insurance exactly? Term life insurance covers a policyholder for a set amount of time, hence the “term” part. (This roundup of life insurance terminology can be helpful for the uninitiated.) It pays a death benefit to beneficiaries — usually family members or other dependents — if the insured person dies within that time frame.

Group term life insurance is simply a policy offered to a group — often by an employer, trade union, or other organization — often at no cost to the employee. Group life insurance is sometimes referred to as employer-provided life insurance.

How Group Term Life Insurance Works

Group term life insurance coverage usually covers the timeframe of the member’s employment. (When it’s not purchased through an employer, terms range from 10 to 30 years.) All premium payments and death benefits tend to be fixed. If the policyholder lives past the end date on the policy, no benefit is paid and the premium payments are forfeited.

This type of policy is sometimes referred to as a “pure” life insurance product. That is, it has no cash value. Other types of life insurance do.

In group policies, many employers pay for baseline coverage for the employee, who pays nothing. Additional term life policies may be available at an affordable rate to cover a spouse, child (learn why life insurance for children might be necessary), or other dependent, with premiums deducted from payroll. Since an employer or similar entity is buying the coverage for many people at once, their savings are passed along to the members.

Recommended: Why Is Life Insurance Important?

What Group Term Life Insurance Typically Covers

Often, group policies pay out the equivalent of one year’s salary. Group term may cover fewer causes of death than other policies, but generally includes critical illness. Death by self-inflicted wounds may be excluded for the first 1 to 3 years of the policy.

Pros and Cons of Group Term Life Insurance

Group term life insurance has advantages and disadvantages.

Pros of Group Term Life Insurance:

•   Cost. Baseline policies are often free.

•   Availability. There’s usually no medical exam or other strict requirements.

•   Simple application. Often employees just check a box or sign a form.

•   Coverage when you need it. Families have some coverage in the event their main source of income is lost.

Cons of Group Term Life Insurance:

•   Low payout. Coverage is typically on the low side, equivalent to one year’s salary at most. Experts typically recommend that life insurance cover 10x your salary or more, depending on your financial obligations.

•   Lack of choice. A single policy is typically selected by your employer to cover all members, regardless of situation.

•   Non-portable. If you leave your job, you lose your coverage.

Requirements of Group Term Life Insurance

Requirements are minimal and usually involve being a permanent employee. You may need to be employed for a certain period of time (say, 90 days) before qualifying. There is typically no medical exam required. Individual workplace requirements can vary.

Voluntary Term Life Insurance, Defined

Similar to group term life insurance, voluntary policies are offered by an employer or membership group. However, voluntary policies are entirely optional (or voluntary) benefits the employee can purchase. Because your employer negotiates a group rate, it’s usually more affordable than purchasing online insurance yourself.

If you’re curious about non-employer-based policies, this is a helpful look at how to buy life insurance.

As with group term, voluntary term life insurance has no cash value nor options for investing your premiums. (Whole life insurance does have cash value. Here’s a good comparison of term vs. whole life insurance.)

How Voluntary Term Life Insurance Works

As with most life insurance, voluntary term pays out a lump sum to your beneficiaries if you die while the policy is in effect. Premiums are deducted from the policyholder’s paycheck.

Voluntary term life insurance coverage may be offered on an annual basis. The employee can choose to re-up, change, or cancel during their company’s open enrollment period. Rates go up over time, either annually or as the employee enters a new age bracket.

Recommended: How Long Do You Have to Have Life Insurance Before You Die?

What Voluntary Term Life Insurance Typically Covers

Employees may select their amount of coverage, usually in multiples of their salary. The more coverage you select, the higher your premium will be. Limitations may be set as to the level of coverage you can choose or the availability of certain riders, compared to individual life insurance. Coverage varies by employer. But your voluntary policy should have the same coverage options and exclusions as your group term policy.

For lower coverage amounts, no medical information may be required. Higher coverage amounts often require a health questionnaire or medical exam.

Pros and Cons of Voluntary Life Insurance

As you might guess, the advantages and disadvantages of voluntary term insurance are similar to those of group term insurance. However, they’re not identical.

Pros of Voluntary Term Life Insurance:

•   Low cost. While not free, premiums are normally more affordable than for individual policies due to the employer’s group discount. You can learn about typical premium costs in this look at how much life insurance is.

•   No medical exam. No medical exam is required for less coverage. Older employees and those with health issues usually get a better deal through voluntary term plans than on their own.

•   Simplicity. Employees just need to select the level of coverage they want.

•   More-complete coverage. Because you can choose your level of coverage, payout benefits could cover loved ones completely in case of the policyholder’s death.

•   Portability. If you leave your job, you might be able to keep your coverage, but your premiums may rise significantly.

Cons of Voluntary Term Life Insurance:

•   Limitations. Employees are limited to a single insurance company. There may also be limits to the level of coverage and available policy riders.

•   Short-term solution. Employees who don’t plan on staying with their company long-term may be better served by an individual policy.

Main Difference Between Voluntary and Group Term Life Insurance

Group term life insurance is typically free through your employer, while voluntary term is an optional benefit the employee can purchase at a reduced rate. Also, voluntary term insurance usually offers different levels of coverage, while group is provided at one level for all employees.

If you’re still not clear on the differences, this high-level introduction to what is life insurance may be useful.

Requirements for Voluntary Term Life Insurance

Like basic group insurance, requirements are minimal aside from a potential waiting period for new employees. There is typically no medical exam required. Individual workplace requirements can vary.

Is Group Term Life Insurance Taxable?

There are two components to group term life insurance that pertain to taxes: premiums and payouts.

Are Group Term Life Premiums Tax Deductible?

Life insurance premiums are usually not tax deductible. The IRS considers such premiums a “personal expense.” There may be exceptions for beneficiaries that are charitable organizations. (SoFi does not provide tax advice. Please consult with a tax professional prior to making any decision.)

Are Group Term Life Payouts Taxable?

The first $50,000 of payouts from group term life insurance carried by an employer is excluded from taxes. After that, the benefit is counted as income and subject to income tax as well as social security and Medicare taxes.

The Takeaway

Term life insurance typically pays out a lump sum equal to a multiple of the policyholder’s salary upon their death. It has no cash value or investment options. Employers, unions and other organizations may offer group term life insurance as a free benefit. Employees may upgrade their coverage with voluntary term life insurance at a low cost, deducted from their paycheck.

Voluntary term policies can be valuable to older employees and those with health problems because premiums are low and a medical exam is usually not required. However, group policies can have limitations that make them less comprehensive than individual policies.

SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.

FAQ

What are the disadvantages of group term insurance?

Coverage amounts tend to be much smaller than what experts recommend. You’ll need to use the insurance carrier chosen by your employer and, if you leave your job, you’ll lose the policy.

What happens to my group life insurance when I retire?

Retirees may have the opportunity to continue paying for their life insurance. Before you retire, explore your options, comparing cost and benefits.

Is group term life insurance the same as life insurance?

Group term life insurance is one type of life insurance that pays out a lump sum upon the policyholder’s death. It has no cash value, unlike whole life policies, which are another type of life insurance.

Photo credit: iStock/akinbostanci

Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, SoFi Technologies, Inc. (SoFi) and SoFi Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under LadderlifeTM policies. SoFi is compensated by Ladder for each issued term life policy.
Ladder offers coverage to people who are between the ages of 20 and 60 as of their nearest birthday. Your current age plus the term length cannot exceed 70 years.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

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

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.

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.

SOPRO-Q324-009

Have you ever watched somebody pull out a set of jumper cables and thought, “I really should learn how to jump-start a car someday”?

It isn’t a difficult process. But to avoid damaging your car or hurting yourself, you should perform each step carefully, in the correct order, and with the right equipment.

By learning how to properly jump-start a car battery by yourself, you can save time, money, and hassle. In this guide, we’ll cover how to jump-start a car, how long it can take, and what you’ll need to get the job done.

How to Jump-start a Vehicle

Whether your battery is temporarily drained of power or truly dead, there are a few ways to get your car back on the road. The most important step is learning how before you’re stuck on the side of the road.

The most common method is to use a set of jumper cables and another car’s battery to give yours the charge it needs to get started. Or if you keep a portable jump-starter in your car, you may be able to give your battery a needed boost without anyone else’s help. And if you drive a car with a manual transmission, it might be possible to “pop the clutch” or “push-start” the car.

By the way, it helps if you have a good battery without a lot of corrosion on the posts. (A 12-volt battery typically lasts around six years. Batteries can deteriorate faster if you don’t drive much.) You may want to make checking the battery part of your routine to help save money on car maintenance.

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How to Jump-start a Vehicle with Jumper Cables

Before you try to jump-start any vehicle for the first time, it’s a good idea to read the owner’s manual, just in case there is anything you should know about that specific model. But the steps are basically the same no matter what you’re driving.

Get Out Your Jumper Cables

Jumper cables come in sets of two: The positive cable has red clamp at each end, and the negative cable has black clamps. You’ll need both cables to jump-start a car.

Jumper cables aren’t standard equipment with most vehicles, so you’ll have to purchase a set to keep in your trunk. You can purchase a new set for about $20-$40. You may want to keep a pair of gloves and safety glasses with the cables.

Get Another Car to Cozy Up Next to Yours

If you’re at home and have a second car, you might even be able to do this by yourself. Otherwise you’ll have to call a friend or flag down a Good Samaritan. The two cars should be parked close enough that you can connect the cables without pulling them too tight, but leave enough room so you can move comfortably between the cars. Both cars should have their engine turned off and the emergency brake on.

Open the Hood on Each Car

Open the hood and locate the battery in each car. Then look for the negative and positive terminals on each battery. The positive terminal should have a plus sign (+) and/or a red cover. The negative terminal should have a minus sign (-) and/or a black cover.

Connect the Jumper Cables

Start with the dead-battery car. Attach one red clamp from the positive cable to the dead battery’s positive terminal. The clamp should “bite” through any corrosion and onto the metal terminal. If you have the black clamp of the other cable near the dead-battery car, be sure it isn’t touching any metal surfaces before you move over to attach both clamps to the booster (working) car.

Move over to the booster car. Attach the other red clamp from the positive cable to the positive terminal on the booster car’s battery. Then attach a black clamp from the negative cable to the booster battery’s negative terminal.

Go back to the dead-battery car. Attach the other black clamp from the negative cable to an unpainted metal surface on the engine. (You can look for an unpainted bolt or bracket that is several inches away from the battery.)

Check the cables to be sure they aren’t dangling or exposed to any moving parts in either vehicle.

Turn Off All Accessories

Before starting the booster car, check that all electronics are turned off in the dead-battery car. This includes hazard lights, the air conditioner or heater, radio, cell phone charger, etc.

Start the Booster Car

Put the booster car in park, start the engine, and let it idle for a few minutes. Don’t race the engine, but gently rev it to a bit above idle for 30 seconds or so to help the charge get to the dead battery. An older battery may take more time to charge.

Start the Dead-Battery Car

Try starting the car with the dead battery, and if it works, let it idle for several minutes. (Ask the driver of the other car to please wait while you do this.)

If the disabled car doesn’t start, disconnect the black clamp from the dead battery, check to make sure all your other connections are good, then replace the black clamp to the dead battery. Start the booster car again and let it idle for five minutes. Then try again to start the non-working car. If you repeat this process a couple of times and the car still won’t start, you may have to call for a tow truck.

Disconnect the Jumper Cables

Once the dead-battery car is running, you can disconnect the four clamps, working in reverse order. Be careful to remove the black clamp from the dead-battery car first, and keep it away from any metal and the other cable clamps while you work your way through the rest of the clamps. Then remove the black clamp from the working car, the red clamp from the good battery, and the red clamp from the dead battery.

Replace the plastic post protectors if either car has them. Keep fingers, clothing, and equipment away from any moving parts.

Keep the Dead-Battery Car’s Engine Running

Let the engine in the car you jump-started run for about 20 minutes so the alternator can recharge the battery. Drive somewhere safe (home or to a friend’s house, for example) before you shut off the car and try to start it up again.

If the car won’t start up again, you may have to get another jump-start or buy a new battery. You may even want to take the car straight to a mechanic to have the battery tested and, if necessary, replaced.

How to Jump-start a Car with a Portable Jump-starter Device

If you like the idea of being completely self-sufficient, you may want to purchase a portable jump-starter to keep in your car. The portable unit can take the place of a second vehicle when you need to charge your battery. Here’s how it works:

Confirm That the Unit’s Battery Is Charged

Before you stash the battery pack in your car, check that it has enough juice. Units typically plug into a common household outlet, and take an hour or longer to charge. Read the directions before you use the charger for the first time.

Attach the Cables

The unit will have two cables coming out of it: one with a red clamp and one with a black clamp. The unit and your car should be turned off. Then, with your car in park, attach the cable with the red clamp to the positive post on your car battery, and the cable with the black clamp to a bare metal area on the car. (Check your device’s directions for specifics.) Ensure that the unit won’t fall over or into the engine when you start the car.

Turn on the Power

When you’re ready, hit the power switch on the jump-starter device.

Start Your Car

Try to start your engine. If the problem is a dead battery, the engine should turn over.

Disconnect the Clamps

Just as you would when using jumper cables, let the car run above idle for a few minutes to help the battery charge. Then, with the car still running, turn off the power to the device and carefully disconnect the black and red clamps. Drive the car to a safe place or take it to a mechanic to have the battery tested.

To charge a motorcycle, the steps are pretty much the same if you’re using the portable jump-starter. It may be better for your bike than using a car battery, and easier than using another motorcycle. You also can try push-starting your motorcycle.

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How to Push Start a Manual Transmission

This method is sometimes called “bump starting,” “clutch starting,” or “popping the clutch.” The idea is to get the car moving fast enough (by going downhill, getting some helpers to push it, or pushing it bumper-to-bumper with another car) that you can put it in gear, quickly let out the clutch, and get the engine to turn over. (If you enjoy learning new terms, consider adding some car insurance terms to your repertoire.)

When you get a push, warn your helpers that the car may jerk a bit when you pop the clutch. If someone offers to use their car to push you, be sure you can do so without denting or scratching either car.

Recommended: How to Get Car Insurance

Get into Gear

Depress the clutch pedal, and put the car into second gear.

Turn the Key Part Way

Turn the key one step to turn on the car, but not far enough to start the engine.

Get the Car Moving

If you’re at the top of the hill, you may be able to do this on your own, just by taking your foot off the brake and letting it roll. But you’ll likely need other people or another car to push your car. Keep the clutch pedal down.

Pop the Clutch

When the car is moving about 5 mph, quickly let your foot off the clutch pedal. The car may jerk a bit and the engine should turn over and start. If it doesn’t, you can try depressing and popping the clutch again while the car is still rolling.

Words of Caution Before Jump-starting Your Car

Once you learn how to do it, jump-starting your car can be fairly simple. But because there may be sparks, and batteries can explode, it’s always important to go through each step cautiously.

•   Do keep your face as far from the battery as you can while you’re attaching the cables.

•   Don’t let the clamps dangle near any metal while you’re attaching them. Don’t cross the cables when you’re attaching them to the batteries. Do keep the cables clear of the engine when you’re ready to start the cars.

•   Do avoid connecting all four clamps to battery posts. It’s safer to attach the black clamp to bare metal on the disabled car.

How Long Will It Take To Jump-start Your Car?

Once you know the basics of jump-starting a battery, you can expect it to take 15 to 20 minutes. Of course, waiting until you find another motorist to help you could add to the overall time.

If you’re a first-timer, it may take longer than 20 minutes. But you can cut down that time just by knowing where your jumper cables are, and where your car battery and battery terminals are located. (Speaking of first-timers, new drivers may benefit from these car insurance tips for first-time drivers.)

Calling for Help

If you don’t feel comfortable jump-starting a car yourself or don’t feel safe where you are, you can always call a pro for help when your battery dies. The jump-start or tow might even be free if you have a roadside assistance plan through your car insurance policy. Most plans include jump-starts as a basic service, but you should verify in advance what your coverage offers.

Recommended: How to Lower Car Insurance & Save Money

The Takeaway

Jump-starting a car isn’t that complicated, and it doesn’t take long — if you have the right equipment and know the proper steps. Still, it’s important to use caution as you go through the process to avoid hurting yourself or damaging your vehicle. The hardest part might be finding someone who will let you use their car for the jump (or give you a push, if you’re trying that method). And you’ll have to be in a spot where you can park two cars close enough together that you can use your jumper cables.

If you don’t want to — or can’t — jump-start your car, you may decide it’s easier and safer to call roadside assistance. You can purchase roadside assistance through an auto club, and many car insurance companies offer inexpensive plan options as part of their coverage. If you haven’t had a personal insurance planning session lately, this might be a good time to review your options.

And if you’re looking for the best car insurance for your needs, it can help to compare your current auto insurance policy to what other top insurers are offering.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

How long does it take to jump-start a car?

The process — attaching the cables, starting the cars and running both for a few minutes, then detaching the cables — should take just a few minutes. It’s a good idea, though, to keep the booster car around for a few minutes after that, just to be sure the boosted car keeps running and can get back on the road.

How long should you let a car run after you jump-start it?

You should let a car idle for several minutes after you jump-start it, to be sure you have a sufficient charge. After that, it’s important to let it keep running or drive it for at least 20 minutes so the battery can fully charge.

Can you jump-start a car alone?

It’s possible to jump-start a car alone if you’re home and have a second car handy to use as a booster car, or if you have a portable jump-starting device with you.

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

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.

SOPRO-Q324-008

Here’s some nice news: It may be possible to change the due dates of some of your monthly bills.

This might come as a relief if you find that the bulk of your bills are due around the same time, such as early or late in the month, making cash flow a challenge. Or, perhaps you have some bills that are maddeningly due a couple of days before you get paid, which can also cause money management issues. Being able to spread out your bills, or push one or two due dates a few days further out, could give you some helpful breathing room.

These adjustments may be possible. Though not every company will allow you to change your billing due date, it doesn’t hurt to ask. Here’s a closer look at why you might want to change some of your bill due dates and how to do it.

Can You Change the Due Dates on Your Bills?

You may be able to change the due dates on some — or, if you’re lucky, all — of your bills. Each company will have its own policy. To find out what’s possible, simply reach to customer service via phone, email, online chat, or even old-fashioned letter. If the service provider is local, you may also be able to make the request in person. Your request may well be honored, down to exactly which day of the month your bill is due.

However, setting your own bill due dates is never guaranteed. Many companies offer this service as a courtesy to loyal customers, but they have the right to reject your request.

Recommended: When Are Credit Card Payments Due?

Why Might Someone Change the Due Dates of Their Bills?

Here are some reasons why you might benefit from changing the due dates of some or your bills.

Aligning Better with Paydays

If your bill dates are not aligned well with your paydays, you may find that you don’t always have enough money in your checking account to cover your bills when they are due. If you struggle with spending and budgeting, it could be helpful to schedule bills shortly after a payday. That way you won’t accidentally spend money that was earmarked for bills later that month. Scheduling your bill paying like this might help you better manage your money and make your bill payment on time.

Recommended: How Much of Your Paycheck Should You Save?

Convenience

While some people like to stagger their bill-paying throughout the month, others find it more convenient to pay all of their bills at the same time each month. A single due date each month for all of life’s bills could certainly make them easier to track and remember.

Ability to Spread Out Payments

While paying bills all at once — like right after payday — might make it easier for some people to stay on top of bill payments, others may prefer not to have their bank account significantly drained on a single day.

If you’d prefer to have your due dates spread out throughout the month, it may be worth trying to change some of your due dates. This could be especially helpful if your paychecks are irregular — say, if you are a freelancer who depends on clients paying their invoices before you have cash in the bank.

Remembering Pay Dates May Be Easier

Regardless of when you arrange your bill due dates to be, it will likely be easier for you to remember them if you get to pick the dates. By picking an important date, like the first or last day of each month or the day after payday, it may be easier for you to stay on top of your bills, even without reminders in your phone or on your calendar. And if you sign up for automatic bill payment, it might be a totally seamless process.

Benefits of a Bill Date Change

So what are the pros of changing a bill due date?

•   It puts you in control of your budget.

•   It can make remembering due dates easier.

•   It might help you avoid missed payments and late fees.

Drawbacks of a Bill Date Change

So are there cons to changing a payment date? If you are making the conscious decision to change your billing schedule, you likely have a good reason for it — meaning you probably won’t encounter any drawbacks with the bill date change itself.

However, you might find that you spend a lot of time trying to get a company to change a bill due date, only for them to say no. This could lead to wasted time and effort.

Recommended: How Long Does a Direct Deposit Take?

When to Schedule New Pay Dates

When you should schedule new bill pay dates will depend on your own paycheck schedule and personal preferences. The Consumer Finance Protection Bureau (CFPB) offers a helpful worksheet for organizing all your current bills and due dates. Seeing them on paper may help you determine the best date(s) in your calendar month for bills to process.

Tips for Changing Pay Dates

Changing payment dates require a little bit of effort but can pay off by helping you gain better control of monthly bills like rent, utilities, subscription services, and even credit card payments. Here are a few tips for changing your bill due dates:

1.    Get organized. A good first step is to make a list of all your recurring payments. When organizing your bills, you might want to create a master calendar that includes when each bill is due every month, as well as when your paycheck(s) are deposited. This can help you determine the ideal dates for bills to process.

2.    Decide which bill dates should change. Once you have a list of all your recurring bills and paydays, you can more easily identify which bills need to change. From there, you’ll want to investigate whether the company will even allow you to change due dates. You may be able to find this information on their websites.

3.    Make the necessary requests. To get your due dates changed, you’ll need to contact the company by phone, email, online chat, or letter. If you aren’t sure what to say, the CFPB offers a useful script: “I am requesting a change in my bill payment due date for my [company] bill. I would prefer to have my bill payment due date be on the __th of each month. Thank you for your assistance.”

4.    Set up autopay. If a service provider has an automatic bill pay option, it might be a good idea to schedule this. How bill pay works is that you schedule electronic payments in advance so you don’t have to manually transfer funds or write a check as your due date approaches. It can be an especially good option if you have a bank account with no-fee overdraft coverage. Because of the risk of overdrafting when you set up autopay, however, it might only make sense if you regularly keep more than enough funds in your checking account to cover monthly bills.

5.    Schedule reminders. Once you’ve changed your due dates, it’s a good idea to schedule reminders in your phone or on your calendar ahead of the payment date. This allows you to make sure you have the funds in your account ahead of an automatic payment or reminds you to manually complete the payment (online, by mail, or in person) if you don’t have autopay set up.

Can You Always Change Bill Dates?

Many companies will allow you to change bill dates to a schedule that makes sense for your finances. However, no company is required to do this. You may encounter some service providers that do not allow you to change bill dates.

What if You Can’t Change Your Due Date?

If you cannot change your due dates, you can still take some actions to ensure you pay all your bills on time, such as:

•   Setting reminders: If you often forget to pay your bills on time but have the funds available, you may just need to schedule reminders for yourself ahead of the due date. Putting a recurring reminder in your calendar (perhaps the one on your phone) can be a wise move.

•   Setting money aside until you need it: If you can’t resist the temptation to spend the money available in your checking account and often struggle with a low current or available account balance on the day that bills are due, it might be wise to move money to a separate account for paying bills. And of course, don’t touch those funds for any other sort of spending.

Banking With SoFi

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.

FAQ

How easy is it to change the due date for your bills?

Changing the due dates for your bills can be as easy as making a phone call or sending an email to the service provider. However, not every company allows you to change your bill due dates. It is solely done at the company’s discretion.

Can I pay my bill before the due date?

Yes, if you are worried about missing a payment or spending too much money before a bill is due, you can make an early bill payment. This can help you avoid late fees and develop good financial habits.

Is it better to have your bill dates close together or spread out?

It depends on your financial situation, including your pay schedule and spending habits. Some people may prefer their bill dates to be close together (even on a single day per month) while others might benefit from having them spread out throughout the month.

Photo credit: iStock/Tatomm

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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.

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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.

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